The International Auditing and Assurance Standards Board (IAASB) today issued its proposed International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements. With its focus on assurance on sustainability reporting, ISSA 5000, when approved, will be the most comprehensive sustainability assurance standard available to all assurance practitioners across the globe.

“Our proposed ISSA 5000 is a crucial step in enhancing confidence and trust in sustainability reporting. This proposal directly responds to the International Organization of Securities Commissions recommendations and complements the work of other standard setters, including the International Ethics Standards Board for Accountants,” noted IAASB Chair Tom Seidenstein. “Corporate reporting, whether financial or sustainability focused, is more trusted when it receives external and independent assurance based upon globally accepted standards independently developed in the public interest.”

ISSA 5000 is a principles-based, overarching standard suitable for both limited and reasonable assurance engagements on sustainability information reported across any sustainability topic. The IAASB drafted the standard to work with sustainability information prepared under any suitable reporting framework. These frameworks include the many reporting frameworks already in place and those under development, including but not limited to those issued by the European Union, the International Sustainability Standards Board, the Global Reporting Initiative, the International Organization for Standardization, and others. The standard is profession agnostic, supporting its use by both professional accountant and non-accountant assurance practitioners when performing high quality sustainability assurance engagements.

The IAASB is committed to an extensive, high-level outreach plan to ensure broad stakeholder input. One core element of the outreach is a series of four roundtables beginning in September. The IAASB will also take part in virtual, regional, and national events, many held in partnership with other organizations, throughout the consultation period.

“Receiving the broadest range of views from our stakeholders will improve both the quality of and trust in the final standard. Our unprecedented commitment to outreach will allow us to engage directly with a much wider group of stakeholders to gather the valuable insights we need to finalize a high-quality robust standard,” noted IAASB Vice-Chair and Sustainability Task Force Chair Josephine Jackson.

For additional information on upcoming events, follow the IAASB on LinkedIn and/or Twitter and register/subscribe to our mailing list.

ISSA 5000 will be available French, Japanese, Portuguese, and Spanish in the coming weeks. The IAASB invites all stakeholders to comment on the proposed revisions via the IAASB website by December 1, 2023.

The International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) applaud the efforts of the International Sustainability Standards Board (ISSB) and today’s International Organization of Securities Commissions (IOSCO) endorsement decision of the ISSB’s recently issued IFRS Sustainability Disclosure Standards S1 and S2. IOSCO determined that these standards are “appropriate to serve as a global framework for capital markets to develop the use of sustainability-related financial information in both capital raising and trading and for the purpose of helping globally integrated financial markets accurately assess relevant sustainability risks and opportunities.”

In commenting on the endorsement, Tom Seidenstein and Gabriela Figueiredo Dias, IAASB and IESBA Chairs, respectively, said, “IOSCO’s endorsement of IFRS Sustainability Disclosure Standards S1 and S2 and its call to action for member jurisdictions to move toward adoption and implementation are two more important steps in establishing a trusted reporting framework for sustainability information. We appreciate IOSCO’s leadership in coordinating global consistency in sustainability reporting, assurance, and ethics standards.”

Mark your calendars for August 2!

We will issue the proposed, landmark International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, for public consultation on August 2.

When approved, ISSA 5000 will be the most comprehensive sustainability assurance standard available to all assurance practitioners across the globe. It will apply to sustainability information reported about any appropriate sustainability matter and prepared under any suitable framework. It will also apply for both limited and reasonable assurance engagements.

ISSA 5000 also benefits from close consultation and coordination with other global organizations, including IOSCO, FSB, IESBA, ISSB, and GRI.

From August 2 to December 1 is when we need to hear from you; your feedback on the proposed standard is crucial. We need to hear from those who:

• Prepare, use or provide assurance on sustainability information
• Use reported sustainability information to make decisions, including audit committee members, investors, and others.

Follow us on LinkedIn or on Twitter or register & subscribe on our website for updates on the proposed ISSA 5000’s release and for announcements about upcoming webinars and events.

The Public Interest Oversight Board’s (PIOB) Standard-Setting Nominations Committee has opened the Invitations for Application period for the new Stakeholder Advisory Council. This prestigious global council, a key element of recent governance reforms, will provide strategic advice to both the IAASB and International Ethics Standards Board for Accountants (IESBA) in developing standards. It replaces the IAASB and IESBA Consultative Advisory Groups.

The Invitation for Application outlines the opportunity for experienced individuals from various relevant stakeholder perspectives and the expectations for SAC members. Through the open and interactive forum, SAC members will have a chance to actively participate and shape the future of standard setting. The PIOB encourages applications from candidates with diverse backgrounds, including different geographic regions, genders, and professional backgrounds.

Full details of the Invitation for Applications and the SAC’s role are available on the PIOB website. Applications are welcome until September 30, 2023.

The IAASB is working on a narrow scope maintenance of standards project on listed entity and PIE that addresses the IAASB’s actions in respect of recent revisions to the International Ethics Standards Board for Accountants’ International Code of Ethics for Professional Accountants (including International Independence Standards) (IESBA Code) as a result of IESBA’s project on the definitions of listed entity and PIE.

The IAASB is excited to announce that it has approved by unanimous vote the draft International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, for public consultation. The consultation will be open by early August until early December 2023.

With the increasing global demand for corporate reporting and disclosure on sustainability, ESG (environmental, sustainability, and governance), and climate-related information, we are proud to have risen to the occasion by developing this new proposed standard. This proposed standard aims to enhance confidence in sustainability reporting, responds to IOSCO recommendations, and complements the work of other standard setters, including the International Ethics Standards Board for Accountants, EFRAG, International Sustainability Standards Board and IFRS Foundation, Global Reporting Initiative, and others.

Once finalized, ISSA 5000 will serve as a comprehensive, stand-alone standard suitable for limited and reasonable sustainability assurance engagements. It will apply to sustainability information reported across any sustainability topic and prepared under multiple frameworks. Moreover, the standard will be profession-agnostic, enabling its use by professional accountants and other professionals performing sustainability assurance engagements.

As the IAASB works toward the release of the draft standard in the coming weeks, it is also in the process of finalizing extensive outreach plans. These plans include a series of four roundtable discussions, as well as virtual, regional, and national events held in partnership with other organizations throughout the consultation period. To stay updated on the latest information and upcoming events, please follow us on Twitter and LinkedIn and consider registering or subscribing to our mailing list via the IAASB website.