The Exposure Draft on International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA) and ethics standards for sustainability reporting proposes a clear framework of expected behaviors and ethics provisions for use by all sustainability assurance practitioners regardless of their professional backgrounds, as well as professional accountants involved in sustainability reporting.

This Explanatory Memorandum is intended to be read with the separate Exposure Draft of the Proposed IESSA and Other Revisions to the Code Relating to Sustainability Assurance and Reporting, which was developed and approved by the IESBA.

The objectives of the project team are to:

On January 1, 2024, the International Ethics Standards Board for Accountants (IESBA) welcomed three new members following their appointments by the Public Interest Oversight Board (PIOB) in November 2023.

• Tomoyo Imura (Japan), Director, Member of the Board, and Member of the Audit & Supervisory Committee, Nomura Asset Management Co. Ltd.

"I am honored to join the IESBA,’ said Ms. Imura. “I am eager to contribute to the enhancement of the IESBA standards, adapting them to the evolving global landscape. I firmly believe that maintaining an ethical mindset will be increasingly vital in the future."

• Amarjeet Singh (India), Member, Securities and Exchange Board of India (SEBI)

“'The societal expectations from today’s sustainability and technology-driven world of business and finance to have higher standards of ethics and integrity are rising,” said Mr. Singh. “The relevance of ethics in the financial world deserves center stage and needs greater public discourse. IESBA is playing a pivotal role in this space. It is a privilege to join the IESBA’s Board and contribute to its public interest work.”

• David Wray (France), retiring from Huawei, Global Finance, and current Board Member, International CFO Alliance (ICFOA)

“It is a genuine privilege to join IESBA at this important time of profound change for the accountancy profession and its global community of stakeholders,” said Mr. Wray.  “From the connectivity and digitalization of financial and sustainability information to technologies that stand ready to fundamentally change what we do as finance and audit professionals and how we do it, it is truly a once-in-a-lifetime experience to be part of this exciting journey. As an international finance leader, I look forward to helping shape the global profession and ensuring a transparent, connected, equitable, and level playing field for everyone globally, underpinned by the IESBA Code.”

The IESBA also welcomes the reappointments of:

• Saadiya Adam (South Africa), Senior Professional Manager for Standards at the Independent Regulatory Board for Auditors (IRBA) in South Africa
• Vania Borgerth (Brazil), Retired accountant, a PhD Candidate in Accountancy, Fucape Business School, Brazil; and Deputy Coordinator of International Relations at CBPS, the Brazilian Committee for Sustainability Pronouncements
• Sung-Nam Kim (Republic of Korea), Currently a non-partner advisor of EY Korea and a former Executive Auditor of the Korean Institute of Certified Public Accountants (KICPA)
• Andrew Mintzer (United States of America) a principal at Hemming Morse LLP, providing forensic accounting services, and
• Luigi Nisoli (Italy), Partner and Director of Independence at Deloitte

“It gives me great pleasure to welcome Tomoyo, Amarjeet, and David to the IESBA, and I congratulate Saadiya, Vania, Sung-Nam, Andy, and Luigi on their reappointments,” said IESBA Chair Gabriela Figueiredo Dias. “The challenges ahead for IESBA are significant as we take on issues of global importance, like ethics in sustainability reporting and assurance, accounting firm culture and governance, and the expansion of the scope of the Code. To meet these challenges, we’ve set aggressive targets and made global commitments. We know the opportunities ahead are great when we lead with ethics. By bringing in three new perspectives, and three new voices, we grow as a Board. By keeping the voices of Saadiya, Vania, Sung-Nam, Andy, and Luigi, we bring continuity and “board” knowledge alongside their valued input and deep understanding of our issues.  I look forward to all the diverse and unique insights as they will all add to IESBA’s knowledge base and help guide our strategic thinking.”

The PIOB’s Invitation for Application for IESBA members for terms of service beginning in January 2025 is currently open. The IESBA encourages qualified candidates to apply.

About IESBA

The International Ethics Standards Board for Accountants® (IESBA®) is an independent global standard-setting board. The IESBA’s mission is to serve the public interest by setting high-quality, international ethics (including independence) standards as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information that is fundamental to the proper functioning and sustainability of organizations, financial markets and economies worldwide.

Along with the International Auditing and Assurance Standards Board (IAASB), the IESBA is part of the International Foundation for Ethics and Audit (IFEA). The Public Interest Oversight Board (PIOB) oversees IESBA and IAASB activities and the public interest responsiveness of the standards.

Mr. David Wray became a member of the International Ethics Standards Board for Accountants in January 2024. He became a member of the ICAEW Ethics Standards Committee in June 2025.

Mr. Wray most recently worked as a Senior Director of Accounting & Reporting at Huawei Global Finance. He previously held several finance executive roles in the technology industry. Mr. Wray serves as a Board Member for the International CFO Alliance (ICFOA) as well as its Chair of ESG. He also serves as the President for the DFCG's International Group and is an Executive Member of the DFCG National Board. He holds technical and sustainability advisory roles with various organizations in France, the US, UK, and South Africa.

Mr. Wray is currently serving on the jury for the Ethics & Trust in Finance 10^th Global prize.

Mr. Wray is the author of The Power of Potential and has published several articles, and spoken publicly, on the connectivity of sustainability and finance, data management, governance, leadership and the future of finance.

Mr. Wray earned an MBA in 2008 from Athabasca University (Canada) and is a member of ICAEW (UK) and CPA Canada and CPA Ontario (Canada).

Tomoyo Imura became a member of the International Ethics Standards Board for Accountants in January 2024. She was nominated by the Japanese Institute of Certified Public Accountants.

Ms. Imura is the Director, Member of the Board and Member of the Audit and Supervisory Committee of Nomura Asset Management Co., Ltd. (NAM), a wholly owned subsidiary of Nomura Holdings Incorporated since April 2023. NAM is the largest asset management company in Japan, investing in major listed companies not only in Japan but also globally.

Ms. Imura received a Bachelor's Degree in English Literature at Japan Women's University in Japan. She is a Certified Member Analyst of Securities Analysts Association of Japan.

Amarjeet Singh became a member of the International Ethics Standards Board for Accountants in January 2024. 

Mr. Singh is a Whole-time Member at the Securities and Exchange Board of India (SEBI). With a career spanning nearly 3 decades with SEBI, he has extensive experience in the development and regulation of the Indian securities markets. He has been instrumental in introducing various market reforms and led SEBI's engagements on sustainability reporting and the conceptualization and formation of Social Stock Exchange in India.

Apart from representing SEBI on several Committees set up by government and RBI, he has served on the Boards of National Financial Reporting Authority and Indian Institute of Corporate Affairs, and currently serves on the Board of National Institute of Securities Market. He has been involved in numerous international regulatory initiatives, including that of International Organization of Securities Commissions (IOSCO). As Chair of the Assessment Committee of IOSCO (2016-2018) and member of its various policy committees, he has steered international thematic assessments and contributed to the evolution of IOSCO Principles and Standards.

Apart from an MBA, Mr. Singh holds a Master's degree in Economic Policy Management from Columbia University, NY, USA.

At its December Board meeting, the International Ethics Standards Board for Accountants (“IESBA”) successfully completed and approved an Exposure Draft on Ethics and Independence Standards for Sustainability Reporting and Assurance and the final Ethics Standard for Tax Planning and Related Services. Other major achievements of the IESBA December Board meeting include the approval of an Exposure Draft on the Use of Experts and of the IESBA’s Strategy and Work Plan for 2024-2027.

Commitment to Trustworthy Sustainability Reporting and Assurance

The IESBA voted and approved the proposed new International Ethics Standards for Sustainability Assurance (including International Independence Standards) (“IESSA”), and proposed revisions to the International Code of Ethics for Professional Accountants (“the Code”) on sustainability reporting. The Exposure Draft will contain proposed independence standards for use by all sustainability assurance practitioners regardless of whether they are professional accountants, and specific ethics provisions relevant to sustainability reporting and assurance. This milestone completes more than 18 months of intensive fact-finding, outreach, and drafting efforts by the IESBA Board and staff.

The result is a set of draft standards that will establish the essential third pillar of ethics, including independence, standards to support public and corporate trust in sustainability-related information, alongside sustainability reporting and assurance standards. The IESBA intends to release the Exposure Draft in late January 2024.

Using the Work of External Experts

The IESBA approved proposed ethics provisions addressing the use of external experts by organizations as well as in the context of audit and assurance engagements, including sustainability assurance engagements. Professional accountants and sustainability assurance practitioners will be guided by an ethical framework to evaluate the competence, capabilities, and objectivity of external experts. These provisions will thereby help meet public expectations concerning ethical behavior when using external experts, especially in an audit or assurance context.

Strengthening Ethical Behavior in Tax Planning

The IESBA also approved final revisions to the Code to address tax planning and related services. These revisions respond to heightened public concerns about ethical behavior in tax planning in light of high-profile revelations about tax avoidance schemes in several jurisdictions in recent years. The final provisions establish an ethical framework in the public interest to guide professional accountants in making judgments and decisions when providing tax planning or related services. Pending certification by the Public Interest Oversight Board (“PIOB”), the final pronouncement is expected to be issued by mid-April 2024.

Strategy and Work Plan 2024-2027

The IESBA voted to approve its Strategy and Work Plan (“SWP”) for 2024-2027. Among other matters, the IESBA will tackle two new ambitious strategic areas of focus: accountancy firm culture and governance, and extending the impact of the Code beyond the accountancy profession, where it believes it can significantly expand reach and business impact.

Throughout 2023, the IESBA has responded vigorously to the challenges of ethics in the accountancy profession and beyond. The IESBA’s 2024 agenda will focus on final approvals of the sustainability-related  standards, as well as on new workstreams addressing accountancy firm culture and governance, and independence considerations regarding the audits of collective investment vehicles, pension fund arrangements, and investment company complexes.

“The global shift of governments, companies, and investors towards a more sustainable future will not happen with good intentions and soft targets,” said IESBA Chair Gabriela Figueiredo Dias. “This movement will require hard ethics to realize sustainability goals and mitigate the risks of wrongdoing. The IESBA’s new and proposed revisions to the Code and the Board’s strategy will help ensure that professional accountants and other sustainability assurance practitioners adopt the necessary ethical approaches to foster transparency, relevance, and public trust within the reporting sphere while supporting global sustainability efforts.”

About IESBA

The International Ethics Standards Board for Accountants serves the public interest by setting high-quality ethics standards, including independence requirements, as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information that is fundamental to the proper functioning and sustainability of organizations, financial markets and economies worldwide.

Along with the International Auditing and Assurance Standards Board (“IAASB”), the IESBA is part of the International Foundation for Ethics and Audit (“IFEA”). The Public Interest Oversight Board (“PIOB”) oversees IESBA and IAASB activities and the public interest responsiveness of the standards.

For more information about IESBA, please visit www.ethicsboard.org and on LinkedIn at www.linkedin.com/company/iesba.