Governance and sustainability are increasingly critical to organizations. In addition, these factors are becoming ever more essential in gaining the confidence of investors, other stakeholders, and the wider public—and ultimately in ensuring sustainable value creation. Business leaders and professional accountants must recognize the importance of incorporating environmental, social, and governance factors into all functions and processes—from strategic planning and goal setting, to external communications and reporting.

IFAC is a key player in the international discussion regarding governance and sustainability issues, including as a participant in the International Integrated Reporting Committee—which is starting on a journey to develop an international framework for integrated reporting—and through a partnership with His Royal Highness the Prince of Wales’ Accounting for Sustainability Project, which is developing thinking and good practices to integrate sustainability issues into the strategy, operations, and reporting of organizations.

IFAC’s Professional Accountants in Business Committee has issued an updated Sustainability Framework, a tool to support professional accountants and their organizations as they integrate sustainability into their strategy, operations, and reporting. In addition, the International Auditing and Assurance Standards Board (IAASB) issues standards and guidance on governance and sustainability-related matters, such as its project to develop the International Standard on Assurance Engagements (ISAE), Assurance on a Greenhouse Gas Statement.

IFAC also contributes to the governance and sustainability debate through guidance and support tools, and information papers to support professional accountancy organizations and their members.