IAASB Launches Global Sustainability Reporting Assurance Standard

The International Auditing and Assurance Standards Board (IAASB) has announced the release of its proposed International Standard on Sustainability Assurance (ISSA) 5000, titled “General Requirements for Sustainability Assurance Engagements.” Once approved, this standard will become the most comprehensive sustainability assurance guideline accessible to assurance practitioners worldwide.

The ISSA 5000 is designed to enhance confidence and trust in sustainability reporting, aligning with the recommendations of the International Organization of Securities Commissions and complementing the efforts of other standard-setting bodies, such as the International Ethics Standards Board for Accountants. The IAASB Chair, Tom Seidenstein, emphasized that external and independent assurance, based on globally accepted standards developed in the public interest, contributes to the greater trustworthiness of corporate reporting, be it financial or sustainability-related.

The ISSA 5000 is a principles-based standard applicable to both limited and reasonable assurance engagements for sustainability information across any sustainability topic. It has been drafted to be compatible with sustainability information prepared under various reporting frameworks, including those established by the European Union, the International Sustainability Standards Board, the Global Reporting Initiative, the International Organization for Standardization, among others. This profession-agnostic standard supports both professional accountants and non-accountant assurance practitioners in conducting high-quality sustainability assurance engagements.

To ensure broad stakeholder input, the IAASB plans an extensive outreach effort, including a series of four roundtables starting in September, participation in virtual, regional, and national events held in collaboration with other organizations during the consultation period.

The IAASB encourages stakeholders to provide their perspectives on the proposed ISSA 5000 by visiting the IAASB website and submitting comments by December 1, 2023. The board aims to engage with a wide range of stakeholders to gather valuable insights for finalizing a robust and high-quality standard. Additionally, the IAASB will release versions of ISSA 5000 in French, Japanese, Portuguese, and Spanish in the coming weeks.

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