This benchmarking study captures and analyzes the extent to which companies are reporting and obtaining assurance over their sustainability disclosures, which assurance standards are being used, and which companies are providing the assurance service.
For the fourth consecutive year, our State of Play analysis indicates that while the frequency of reporting ESG information is very high and the incidence of assurance is on an upward trend, there continues to be a meaningful difference between reporting and assurance rates.
The Fast Future With IFAC is a conversational podcast series about small- and medium-sized practices (SMPs) adapting to the rapidly changing global economy.
Episode 10 features excerpts from a presentation to IFAC's SMP Advisory Group by Mark de Lat, Partner at Eshuis Accountants & Advisors, on topics related to sustainability.
Click below or visit IFAC's iTunes podcast channel to listen to this episode.
A Literature Review of Competencies, Educational Strategies, and Challenges for Sustainability Reporting and Assurance
Recent years have seen a significant shift in demand for relevant sustainability-related disclosure, reporting, and assurance and the accountancy profession is working to prepare current and future professionals to meet these stakeholder demands. The literature review identifies the new and existing competencies required of professional accountants to provide these services; educational strategies to develop them; and the challenges the accountancy education community will face.
IFAC has published Building Trust in Sustainability Reporting: The Urgent Need for Integrated Internal Control to address the demand for high-quality sustainability reporting and to prepare professional accountants for mandatory international and jurisdictional reporting and assurance requirements. This analysis highlights how companies can integrate sustainability information within their existing internal control and governance frameworks.
Professional accountants are ideally positioned to leverage existing internal control frameworks and apply them to sustainability information—enhancing both data quality and the connectivity of sustainability and financial reporting.
The COSO Internal Control - Integrated Framework has long provided a good foundation for delivering confidence in corporate reporting. In an integrated internal control environment, it can provide the foundation for enhancing the quality of sustainability data used for measuring progress on key sustainability objectives and deliver confidence to investors in the sustainability and financial performance of companies.
To bring about sustainability and climate transitions, companies and investors need to make economic decisions based on information they can trust— related to risks and opportunities, performance and resilience. An integrated internal control approach will lead to higher quality and more integrated reporting and help companies avoid perceptions of greenwashing and regulatory or legal action.
“The professional accountant’s skillset is instrumental in bringing about a step change in the quality of sustainability reporting through applying new reporting standards and integrated internal controls,” said Kevin Dancey, IFAC CEO. “Integrated internal control can put sustainability information on par with financial information, enhance its assurance readiness, and set the foundation for transitioning to a more sustainable business model.”
See IFAC's website and the ISSB’s Knowledge Hub which includes free resources for preparers to help them prepare for applying IFRS S1 and IFRS S2.
About IFAC
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.
As businesses grapple with uncertainties and navigate the complexities of digital transformations, sustainability and climate transitions, organizational leaders equipped with the unique skill set of professional accountants in business (PAIBs) are essential. PAIBs’ roles more commonly extend beyond traditional financial responsibilities, positioning them as key leaders shaping the trajectory of organizational success.
Informed by IFAC’s PAIB Advisory Group’s last meeting, a new article from IFAC details three paths through which professional accountants have led organizational transformation that can be a guide for PAIBs and businesses globally.
“The accountancy profession is evolving to meet the demands of a changing business environment,” said Sanjay Rughani, IFAC PAIB Advisory Group Chair. "By driving decision-useful sustainability information, harnessing disruptive technologies like AI and IA and nurturing a new generation of accountants who can confidently step into leadership roles, professional accountants can seize the uncertainty of the current environment to elevate the profession and society at large.”
IFAC is the global organization for the accountancy profession dedicated to serving the public interest by strengthening the profession and contributing to the development of strong international economies. IFAC is comprised of 180 members and associates in 135 countries and jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.
About the PAIB Advisory Group
Formed in 1977, the PAIB Advisory Group is comprised of volunteers with experience and expertise in the world of business and the public sector, nominated by the professional accountancy organizations that make up IFAC’s membership.
Takeaways from the Professional Accountants in Business Advisory Group’s Latest Meeting
IFAC's Small Business Susatinability Checklist is a diagnostic tool designed to be tailored by each business according to its own unique circumstances, including its industry sector, lifecycle, and products and services provided. It lists a comprehensive range of initiatives and actions to be considered in terms of environmental, social, and governance (ESG) factors. Not all actions in the Checklist will be relevant to every SME, but the Checklist aims to help all organizations to take small steps on what could be a long but highly fulfilling journey.
IPSAS 49 establishes comprehensive accounting and reporting requirements for the financial statements of retirement benefit plans, with participants comprising current and former public sector employees and other eligible members. The new pronouncement will bring increased transparency and accountability to these public sector entities, ensuring they can fulfill their obligations to employees and other eligible participants who are members of the retirement benefit plan.
In developing principles for this pronouncement, the private sector requirements in IAS 26 were used as the starting point. The IPSASB adapted IAS 26, based on feedback from stakeholders globally, to ensure the unique characteristics of the public sector are reflected in the pronouncement. In particular, some of the policy choices available in IAS 26 have been removed as they are not appropriate for the public sector or are inconsistent with existing IPSAS.
“Retirement benefit obligations can represent a significant but often hidden liability for the public sector,” said IPSASB Chair Ian Carruthers. “IPSAS 49 provides a principle-based approach to accounting by retirement benefit plans to provide a complete view of their financial activities, assets and obligations. This increased transparency is intended to result in stronger public financial management and better-informed decision making.”
The effective date of IPSAS 49 is January 1, 2026, with earlier application permitted.
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, and the government of Canada. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.
About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.
IPSAS 49 has an effective date of January 1, 2026. Earlier application is permitted.
