This FAQ focuses on the relevance of International Standard on Sustainability Assurance (ISSA) 5000 to assurance on sustainability reports to be issued in the European Union. It provides a high-level understanding of how ISSA 5000 can support consistent, high-quality sustainability assurance engagements in the EU—enhancing users’ confidence in sustainability information prepared in accordance with the European Sustainability Reporting Standards (ESRS).

To view this piece on the AB Magazine website, click here.

A sustainability focus in businesses is becoming the new normal, but trust in sustainability information is lagging.

Regulatory frameworks are evolving, and markets are growing fast. More than US$30 trillion globally is already invested in sustainability-related assets, and the figure is expected to hit US$40 trillion by 2030. But low-quality data and a lack of ethical safeguards are serious threats to that momentum.

The world needs trusted sustainability information, and strong frameworks to make it work for its main purpose: to manage risk. That calls for clear ethical and independence standards, to be applied consistently by all who prepare or assure sustainability reports – accountants and non-accountants alike.

Accordingly, the International Ethics Standards Board for Accountants (IESBA) has issued a new set of global ethics standards for sustainability. They include ethics and independence standards for sustainability assurance (IESSA), enhanced ethical provisions for sustainability reporting, and a new standard on using the work of external experts. Together, they form part of the IESBA International Code of Ethics, which has been adopted or is in use in over 130 jurisdictions.

Responding to risk

This global, consistent ethics foundation for sustainability reporting and assurance comes at a critical time.

Greenwashing poses a severe threat to the global effort to ensure high-quality sustainability information. Above all, it undermines trust and impairs the effective functioning of the business sector and the financial system. In 2023 alone, more than 2,000 companies were identified by consultancy RepRisk as carrying out greenwashing activities. Fines in the millions show that regulators are responding. But so far, rules alone haven’t been enough to eliminate greenwashing.

Poor data, inconsistent ratings and weak reporting and assurance are feeding public scepticism. A sustainable economy cannot be built on a foundation of doubt. Ethics changes that. Ethics helps professionals recognise and respond to threats to their integrity, objectivity and independence – and therefore, to the quality and reliability of the information they prepare or assure. It provides a clear framework for good judgment – even when the pressure to compromise is high.

Sustainability information is complex and forward-looking, and often involves subjective judgments. All of this increases the opportunity for bias and manipulation. That’s why the IESBA standards are a game-changer. They are robust, ambitious and address the complexity of the matters and frameworks they apply to.

Support

Professionals don’t have to navigate this alone. IESBA made it a strategic priority in 2025 to slow down new standard-setting and focus on supporting the adoption and implementation of recently issued standards, having created a specific working group to that effect. In particular, we are backing the Global Ethics Sustainability Standards with one of the most comprehensive implementation programmes we have ever undertaken.

• We have established an IESSA implementation monitoring advisory group – experts in practice who advise IESBA on implementation challenges and how best to respond in a timely way.
• We are developing practical tools – including FAQs, implementation guides and explanatory materials – to help practitioners apply the standards consistently.
• We have extended the timeline to allow a longer lead time for the value chain independence provisions. There are now effectively four reporting cycles before those provisions come into force.
• We are working with IAASB, IFAC, ISSB, IOSCO, PAFA, UNCTAD and other organisations to strengthen capacity for the standards across jurisdictions.
• We are enhancing stakeholder engagement, especially with the accountancy profession, to gain a better understanding of the implementation challenges and to provide closer support.

Almost half of all sustainability assurance engagements worldwide are being undertaken by non-audit firms. This requires mechanisms to ensure a level playing field in the public interest.

Like the IAASB’s ISSA 5000 standard, the IESSA is designed to ensure that the same ethical and independence requirements apply, whoever is doing the assurance work. This is essential to protect the public and to make sure accountants do not have to follow stricter requirements than other providers.

Mindset

Ethics is not a box-ticking exercise; it is a mindset. These standards promote a culture of inquiry, sound judgment and accountability. But we cannot do this alone. We are calling on jurisdictions, firms, companies and professional bodies to adopt and promote the IESBA sustainability-related standards.

We are also calling for open dialogue. Engagement is important, as these standards must work for real people in real situations. ACCA has been working hard in this regard, promoting forums for discussion, listening to members and supporting adoption.

And if there are areas where professionals need more help, we’ll provide it within our mandate and capacity.

This is not the end of a project; it is the start of a journey. It is an opportunity we cannot miss and must take together.

Gabriela Figueiredo Dias, Chair of the IESBA, delivered a keynote speech followed by a rich discussion moderated by João Ferreira da Silva at the 20th International Congress on Accounting and Auditing (CICA), organized by the Institute of Accounting and Administration of the University of Aveiro and the Order of Certified Accountants (OCC) under the theme “Accounting in a Sustainable World.”

The International Bar Association (IBA) and the International Federation of Accountants (IFAC) have today launched a pioneering new initiative aimed at supporting legal and accountancy professional bodies in the fight against money laundering. 

This pilot workshop, which is the first in a planned global series of regional AML capacity building events, brings together representatives from the accountancy and legal professions in a shared learning environment designed to help strengthen national AML systems.

The three-day programme, with over 70 delegates from bar associations and professional accountancy bodies from 22 jurisdictions in the Caribbean region and beyond, is being held in the Cayman Islands between October 28-30. It is supported by the Financial Action Task Force (FATF), the global AML standard setter, and CFATF, its regional affiliate, and is being hosted by the Cayman Islands Institute of Professional Accountants (CIIPA) and the Legal Services Supervisory Authority (LSSA), with the sponsorship of the Cayman Islands Ministry of Financial Services. 

The workshop agenda, which comprises panel sessions, lectures, and collaborative breakout activities, aims to:

• Enhance the ability of professional bodies to educate and equip their members with relevant AML requirements and expectations;
• Empower professional associations to partner more effectively with key AML stakeholders, including government agencies and financial intelligence units; and
• Support professional bodies in undertaking or preparing for AML supervisory responsibilities where applicable.

Steven Richman, Chair of the IBA’s Bar Issues Commission, commented: ‘This initiative underscores the critical role that the accountancy and legal professions play in combatting money laundering and strengthening the integrity of the global financial system as a whole. Sharing ideas and working together is crucial to stamping out this corrupt practice.’

"IFAC, by connecting and uniting its members, makes the accountancy profession’s contributions to the fight against money laundering truly global.  Through our partnership with the FATF and IBA, we aim to equip our member professional bodies with the tools and networks they need to be AML leaders in their jurisdictions," said Scott Hanson, Director of Policy & Global Engagement of IFAC.

Media Contact

For further information or media inquiries, please contact:

• Scott Hanson, Director, IFAC – scotthanson@ifac.org
• Sara Carnegie, International Bar Association – sara.carnegie@int-bar.org

About the International Bar Association (IBA)

The International Bar Association (IBA), the global voice of the legal profession, is the foremost organisation for international legal practitioners, bar associations and law societies. Established in 1947, shortly after the creation of the United Nations, it was born out of the conviction that an organisation made up of the world's bar associations could contribute to global stability and peace through the administration of justice.

About IFAC

IFAC, by connecting and uniting its members, makes the accountancy profession truly global.

IFAC member organizations are champions of integrity and professional quality, and proudly carry their membership as a badge of international recognition.

IFAC and its members work together to shape the future of the profession through learning, innovation, a collective voice, and commitment to the public interest.

The International Federation of Accountants (IFAC), the International Organization of Supreme Audit Institutions (INTOSAI), and the INTOSAI Development Initiative (IDI) have signed a Memorandum of Understanding (MoU) at the XXV INCOSAI meeting in Sharm El Sheikh, Egypt.

The MoU formalizes collaboration between the three organizations to enhance the quality of public sector auditing and strengthen transparency and accountability in government activities—fostering good governance and promoting the economy, effectiveness, and efficiency of government programs for the benefit of all.

The agreement underscores a shared commitment to strengthen public financial management, promote high-quality international standards, and build capacity within Supreme Audit Institutions (SAIs) and the broader accountability profession.

Under the MoU, IFAC, INTOSAI, and IDI endeavor to :

• Collaborate on issues of mutual interest to promote sound public financial management, support each other’s efforts to promote the adoption and implementation of their standards, and foster partnerships between INTOSAI and IFAC members to strengthen public sector accountancy and audit capacity;
• Exchange relevant knowledge, experience, and best practices;
• Explore opportunities to convene or contribute to joint events, forums, and dialogues to advance shared objectives and engage stakeholders;
• Cooperate in engagements with donors and development partners to leverage synergies in capacity-building projects that support all three parties’ objectives; and
• Promote relevant initiatives and publications.

This partnership builds on a long history of cooperation between the global accountancy profession and the public sector audit community, recognizing their complementary roles in advancing integrity, trust, and effective governance.

Lee White, Chief Executive Officer, IFAC said:  “This MoU is a milestone in our ongoing collaboration with INTOSAI and IDI. Public sector accountability is fundamental to trust in government and citizens’ confidence in how public resources are managed. Together, we are reinforcing the bridge between the accountancy profession and Supreme Audit Institutions to strengthen integrity, transparency, and the quality of public sector reporting and assurance globally.”

Dr Margit Kraker, Secretary General, INTOSAI said:  "INTOSAI welcomes this strengthened collaboration with IFAC and IDI. This agreement is a reflection of our mutual confidence and our conviction that collaboration is central to lasting progress. By pooling our knowledge, experience, and resources, we are laying a strong foundation for sustainable and impactful results. Let us approach this partnership with commitment and confidence — for the benefit of our institutions, our partners, and ultimately, the citizens we serve."

Einar Gørrissen, Director General, IDI said: “As an INTOSAI body, the IDI is pleased to formalize this partnership with IFAC. Our collaboration is rooted in a shared commitment to support independent, professional, and credible Supreme Audit Institutions ensuring trust in public institutions. We look forward to working together for capacity development, standard-setting support, and advocacy, for contributing to stronger, more resilient institutions that are essential for better societies and improved lives.”

About IFAC

IFAC, by connecting and uniting its members, makes the accountancy profession truly global.

IFAC member organizations are champions of integrity and professional quality, and proudly carry their membership as a badge of international recognition.

IFAC and its members work together to shape the future of the profession through learning, innovation, a collective voice, and commitment to the public interest.