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- IASSB New Assurance Standard: ISSA 5000 standard establishes a comprehensive framework for sustainability assurance, adaptable to both limited and reasonable assurance engagements.
- Global Applicability: Designed to be a global baseline, ISSA 5000 aligns with EU’s CSRD and supports various sustainability frameworks including ISSB and GRI.
- Stakeholder Confidence: Backed by IOSCO, the standard is expected to enhance trust in sustainability reporting, as stakeholder demand for independent ESG assurance grows.
The International Auditing and Assurance Standards Board (IAASB) has officially published the International Standard on Sustainability Assurance 5000 (ISSA 5000), marking a significant step in standardizing sustainability assurance practices globally. IAASB Chair Tom Seidenstein announced this milestone during the recent Accountancy Europe/IFAC webinar, highlighting the collaborative journey leading to its development.
Seidenstein stated, “The IAASB has created a global baseline that can work in every jurisdiction, in Europe and elsewhere,” acknowledging the alignment of ISSA 5000 with the EU’s Corporate Sustainability Reporting Directive (CSRD) and other major sustainability frameworks.
Key Details:
ISSA 5000 has been designed to support both limited and reasonable assurance engagements. It incorporates traditional materiality and double materiality concepts, vital for meeting EU requirements. This dual approach ensures that sustainability reports address both enterprise risks and their broader environmental and societal impacts.
Jean-Paul Servais, Chair of IOSCO, praised the IAASB’s timely delivery, saying, “A strong assurance framework for sustainability-related reporting needs to be focused on the public interest and should be profession – and framework – agnostic. I commend the IAASB for delivering sustainability assurance standards well on time with a view to enable the assurance of 2024 corporate disclosure.”
Broad Engagement and Implementation Support: The IAASB underscored its extensive consultation process, which engaged stakeholders across six continents through webinars, roundtables, and feedback sessions. This global input informed a practical, scalable approach to assurance standards.
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Seidenstein emphasized the IAASB’s commitment to supporting implementation: “We will release a package of guidance, support videos, and wide range of outreach activities beginning in January 2025,” ensuring practitioners are equipped for seamless adoption.
Outlook:
As the IAASB pushes for ISSA 5000’s widespread adoption, the European Commission has requested that the Committee of European Auditing Oversight Bodies (CEAOB) advise on incorporating the standard into CSRD requirements. This alignment underscores the EU’s leadership in sustainable reporting practices and sets a precedent for global adherence.
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