• Unified Global Standards: New guidelines establish a cohesive global approach to sustainability reporting and assurance, ensuring transparency and trust.
• Effective Ethical Framework: Standards address greenwashing, fraud, and ethical risks in sustainability practices, promoting accountability.
• Implementation Timeline: Effective for periods starting on or after December 15, 2026, with early adoption encouraged.

The International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) have introduced integrated standards to strengthen sustainability reporting and assurance practices. These measures aim to meet the rising demand for reliable sustainability data, essential for stakeholder decision-making.

The new standards:

• Equip global markets with interoperable guidelines for assurance, ethics, and independence in sustainability engagements.
• Provide a framework-neutral approach applicable to various sustainability reporting frameworks.
• Address risks like greenwashing, fraud, and non-compliance with laws and regulations.

Tom Seidenstein, Chair of the IAASB, emphasized the standards’ significance, stating, “The interoperable package of ISSA 5000 and IESSA represents an important evolution in global sustainability reporting and assurance. These standards establish the necessary technical and ethical pillars to ensure that qualified practitioners could consistently perform high-quality assurance engagements on sustainability information.”

Ethics: The Foundation of Trust

Gabriela Figueiredo Dias, Chair of the IESBA, highlighted the importance of ethics, stating, “Ethics is the foundation of trust. With these standards, we are equipping preparers and practitioners with the tools needed to uphold integrity and foster transparency in sustainability reporting.”

Implementation and Support

The standards—ISSA 5000 for assurance engagements and IESSA for ethical practices—will be effective for periods starting December 15, 2026, with early adoption encouraged. To ensure smooth implementation, IAASB and IESBA will offer resources such as webinars, guidance documents, and feedback mechanisms.

Related Article: Good.Lab Launches New CSRD Sustainability Reporting Solution  

Key features of IESSA include:

• Addressing challenges such as immature data systems and forward-looking information in sustainability reporting.
• Mitigating unethical practices like greenwashing and pressures to act unethically.
• Enhancing investor protection by fostering trust and alignment with ethical best practices.

Additional Resources:

• The IESBA is hosting a series of global webinars to help stakeholders adopt these standards.
• Fact sheets, technical overviews, and implementation guides are now available to aid in understanding the new requirements.

This unified effort by IAASB and IESBA reinforces trust, transparency, and ethical conduct in sustainability reporting, paving the way for informed stakeholder decisions globally.

Follow ESG News on LinkedIn