The International Ethics Standards Board for Accountants (IESBA) and International Auditing and Assurance Standards Board (IAASB) welcome the report released today by the International Organization of Securities Commissions (IOSCO) on developing a global assurance framework for sustainability-related corporate reporting. The IOSCO report reflects extensive research and feedback from key stakeholders. The report calls for timely development of ethics and assurance standards for sustainability reporting by the IESBA and the IAASB, respectively.

The IESBA and the IAASB have responded to growing demand for high-quality assurance over sustainability-related information to enhance the reliability of corporate reporting by prioritizing their projects to develop relevant and complementary standards. Both the IESBA and IAASB will issue public consultations later this year on standards for sustainability ethics and assurance, respectively. Both boards plan to finalize their respective standards in 2024. IOSCO called for widespread outreach to ensure the standards meet the needs of users and benefit from diverse stakeholder input, among other recommendations. Both boards emphasize their commitment to address key considerations and recommendations presented in the IOSCO report.

Commenting on the IOSCO report, Gabriela Figueiredo Dias, IESBA chair, stated, “We appreciate IOSCO's leadership in coordinating global consistency in sustainability assurance. The ethics standards that the IESBA is developing aim at supporting a robust ethical and independent approach to sustainability reporting and assurance in the public interest. We are involving all stakeholders at an early stage through global and inclusive consultation. We will continue to work collaboratively with IOSCO and other stakeholders to support a globally coordinated approach to ethics and assurance for sustainability reporting.”

Tom Seidenstein, IAASB chair, added, “We share the sense of urgency highlighted in IOSCO’s report, are on track to delivering a high-quality standard on time, and embrace the report’s call for an inclusive process. Our efforts will include outreach to a wide range of stakeholders to ensure our standards are of high quality, meet the needs of users, and are profession-agnostic. The IAASB will intensify external outreach in the second half of 2023 in conjunction with the publication of a draft sustainability assurance standard.”

About the IESBA
The International Ethics Standards Board for Accountants serves the public interest by setting ethics standards, including independence requirements, to underpin ethical behavior in the production, reporting and assurance of financial and non-financial information. Along with the International Auditing and Assurance Standards Board, the IESBA is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board (PIOB) oversees IESBA and IAASB activities and the public interest responsiveness of the standards. For copyright, trademark, and permissions information, please visit Permissions.

About the IAASB
The International Auditing and Assurance Standards Board develops auditing, assurance, related services, and quality management standards and guidance in the public interest that support consistent performance of quality engagements. Along with the International Ethics Standards Board for Accountants, the IAASB is part of the International Foundation for Ethics and Audit. The Public Interest Oversight Board oversees IAASB and IESBA activities and the public interest responsiveness of the standards. For copyright, trademark, and permissions information, please visit Permissions.

The International Ethics Standards Board for Accountants (IESBA) witnessed an auspicious start to its March Board meeting with the announcement from the Abu Dhabi Accountability Authority (ADAA), host of the 5-day meeting, that it has adopted the 2022 edition of the IESBA International Code of Ethics for Professional Accountants (including International Independence Standards). The Code will be applicable to all entities subject to ADAA’s mandate for audits of financial statements for periods beginning on or after December 15, 2023.

ADAA is the ultimate authority responsible for promoting the principles of accountability, transparency, and integrity across all Abu Dhabi government entities and institutions, whether local or international, in which the Abu Dhabi government has a vested interest of over 25%.

“On behalf of IESBA, I applaud ADAA for this historic commitment to ethics and the public interest,” said Gabriela Figueiredo Dias, IESBA Chair. “IESBA’s ethics and independence standards could not fit better with ADAA’s mandate to work for the integrity and transparency of businesses within its remit. ADAA’s commitment to ensuring fair and transparent financial reporting and improving the quality of audit across all its subject entities will benefit immensely from its adoption of the Code.”

The Code has been further strengthened in several important areas in recent years, including provisions addressing the role and mindset expected of professional accountants, and auditor independence requirements in relation to the provision of non-assurance services to audit clients and fees. Above all, the Code places a responsibility on all professional accountants to act in the public interest. The strength and global acceptance of the Code are evident as it has been adopted or is used in over 130 jurisdictions, translated into about 40 languages, and adopted by the 34 largest international networks of accounting firms for transnational audits.

Wael Abdul Qader, Acting Head of Monitoring and Auditing Sector at ADAA, said: “We announce the full adoption of the standards set by the International Ethics Standards Board for Accountants. The standards will be applicable to preparers of financial information and financial statement auditors of Abu Dhabi Government Entities as part of our efforts to promote the principles of transparency, integrity and accountability and elevate the quality of audit.”

The IESBA meeting will continue all week. In the days ahead, the IESBA will continue deliberating strategic issues on its project to develop ethics and independence standards for sustainability reporting and assurance as well as in a related project addressing the use of experts by professional accountants in both business and public practice. Among other agenda items, the IESBA is also expected to finalize a consultation paper on its strategy and work plan for 2024-2027.

For more information about the ADAA's announcement, contact ADAACommunication@adaa.gov.ae.

For more information about the IESBA March meeting, including how to register to observe, click here.  

About the IESBA

The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA serves the public interest by setting ethics standards, including auditor independence requirements, which seek to raise the bar for ethical conduct and practice for all professional accountants through a robust, globally operable International Code of Ethics for Professional Accountants (including International Independence Standards).

The IESBA believes a single set of high-quality ethics standards enhances the quality and consistency of services provided by professional accountants, thus contributing to public trust and confidence in the accountancy profession. The IESBA sets its standards in the public interest with advice from the IESBA Consultative Advisory Group (CAG) and under the oversight of the Public Interest Oversight Board (PIOB).

The largest global companies continue to show momentum on corporate reporting and related assurance involving environmental, social and governance (ESG) issues, according to a new report from the International Federation of Accountants (IFAC) and AICPA & CIMA, the latter two of which form the Association of International Certified Professional Accountants. Yet significant hurdles remain when it comes to providing consistent, comparable, and high-quality sustainability information for investors and lenders.

Some 95% of large companies reported on ESG matters in 2021, the latest year available, the IFAC-AICPA & CIMA study found. That’s up from 91% in 2019. Sixty-four percent of companies obtained assurance over at least some ESG information in 2021, up from 51% in 2019. The inability so far to coalesce around agreed upon global standards continues to create challenges, however.

“Even as we see companies increasingly report on ESG and sustainability, the data we’re tracking reveals continuing fragmentation around the world in terms of which standards and frameworks are used,” noted IFAC CEO Kevin Dancey. “Eighty-six percent of companies use multiple standards and frameworks. This patchwork system does not support consistent, comparable, and reliable reporting. Importantly, it also does not provide the necessary foundation for globally consistent, high-quality sustainability assurance.”

The report also examines the extent to which companies provide forward-looking information on emissions reduction targets and plans. While two-thirds of companies disclosed targets, they lag the rate at which companies report their historic greenhouse gas emissions (97%).

“Steady increases in reporting and assurance are significant, yet more companies need to take the additional step to obtain assurance to build trust and confidence in what they report,” said Susan Coffey, CPA, CGMA, AICPA & CIMA’s CE of public accounting. “The decision over who provides that assurance—and the rigor, skepticism and professional judgment they bring to the task—is critical.”

Additional Key Findings

• Use of Sustainability Accounting Standards Board (SASB) standards and the Task Force on Climate-Related Financial Disclosures (TCFD) framework have increased significantly between 2019 and 2021: there was a 29% increase for SASB standards usage and 30% for the TCFD framework.
• When companies obtained assurance from a professional accountant, they chose their statutory auditor 70% of the time.
• Globally, the International Auditing and Assurance Standards Board’s International Assurance Engagement Standard 3000 (Revised) remains the most popular standard when providing assurance.
  • 95% of firms providing assurance use ISAE 3000, up from 88% in 2019.
  • 38% of non-accountant service providers use ISAE 3000, up from 34% in 2019.

About the Study
IFAC and AICPA &CIMA partnered to understand the environmental, social, and governance (ESG) reporting and assurance practices on a global basis by capturing reports containing ESG information in 21 jurisdictions. 1,350 companies were reviewed—100 from each of the largest six economies, with 50 companies reviewed in the remaining 15 jurisdictions. The current report includes data from 2019-2021. Full methodology is available in the study.

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 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

About the Association of International Certified Professional Accountants, and AICPA & CIMA
The Association of International Certified Professional Accountants (the Association), representing AICPA & CIMA, advances the global accounting and finance profession through its work on behalf of 689,000 AICPA and CIMA members, students and engaged professionals in 196 countries and territories. Together, we are the worldwide leader on public and management accounting issues through advocacy, support for the CPA license and specialized credentials, professional education and thought leadership. We build trust by empowering our members and engaged professionals with the knowledge and opportunities to be leaders in broadening prosperity for a more inclusive, sustainable and resilient future.

The American Institute of CPAs (AICPA), the world’s largest member association representing the CPA profession, sets ethical standards for its members and U.S. auditing standards for private companies, not-for-profit organizations, and federal, state and local governments. It also develops and grades the Uniform CPA Examination and builds the pipeline of future talent for the public accounting profession.

The Chartered Institute of Management Accountants (CIMA) is the world’s leading and largest professional body of management accountants. CIMA works closely with employers and sponsors leading-edge research, constantly updating its professional qualification and professional experience requirements to ensure it remains the employer’s choice when recruiting financially trained business leaders.

The International Ethics Standards Board for Accountants (IESBA) recently held three global webinars on the upcoming Tax Planning and Related Services exposure draft (ED). The ED was released on February 17, and comments are requested by May 18.

During the webinars, members of the Tax Planning and Related Services Task Force explained the key proposals in the ED, among other matters, including:

• Compliance with the fundamental principles, highlighting the types of threats that might be created when providing tax planning activities.
• Understanding the applicable tax laws and regulations, the legislative intent behind the relevant laws and regulations, and the economic purpose and substance of the transaction.
• Exercising professional judgment to establish a credible basis for the tax planning arrangement in circumstances of uncertainty. This includes a consideration of the reputational, commercial, and wider economic consequences arising from the way stakeholders might view the arrangement.
• Communicating relevant matters or concerns with the individual client, management, or those charged with governance, including as part of an escalation process where necessary.
• Developing an appropriate level of documentation throughout the process to substantiate the judgments, decisions, and actions.

Watch the recordings now and learn more about these important proposals. 

Monday, February 27 | 10 am – 11 am EST | Click here, led by Jens Poll

Tuesday, February 28 | 4 pm – 5 pm EST | Click here, led by Andrew Mintzer

Tuesday, February 28 | 9 pm – 10 pm EST | Click here, led by Channa Wijesinghe

Gaylen R. Hansen has been reappointed as the chair of the Consultative Advisory Group (CAG) to the International Ethics Standards Board for Accountants (IESBA), effective October 1, 2022. Mr. Hansen’s reappointment, approved by the Public Interest Oversight Board, follows his re-election by IESBA CAG members at the September 2022 CAG meeting.

The IESBA CAG is an independent body comprising regulators, preparers, international investors and user groups, and other stakeholders interested in developing and maintaining high-quality international ethics (including independence) standards for professional accountants and designed to serve the public interest.

"It is an honor to be re-elected by my colleagues," said Mr. Hansen. "I am confident that the IESBA CAG will continue to play an important role in providing invaluable advice not only on IESBA's key projects for the coming year but also on its future strategic vision and goals."

"Under Gaylen’s stewardship, the CAG has made significant contributions to the IESBA's standard-setting projects. The CAG’s perspectives, insights, and suggestions have enriched the IESBA’s considerations and deliberations in the broadest possible sense, enabling the board to advance high-quality ethics and independence standards in the public interest," said Gabriela Figueiredo Dias, IESBA Chair.

Mr. Hansen will serve as IESBA CAG Chair until December 31, 2023, when the IESBA CAG and the International Auditing and Assurance Standards Board (IAASB) CAG will both be transitioned to a new IAASB and IESBA Stakeholder Advisory Council (SAC). The creation of the SAC¹  is one of the outcomes of implementing the Monitoring Group’s recommendations regarding strengthening the international audit and ethics standard-setting system.

About Mr. Hansen

Mr. Hansen retired as an audit partner of EKS&H in 2018 following over forty years of engagement in the accounting profession. His career has encompassed lengthy periods in public practice as an auditor and quality control partner and briefly as the controller of a small private company that went public during his tenure. Since 2010, he has represented the National Association of State Boards of Accountancy (NASBA) on the Consultative Advisory Groups (CAGs) for the IESBA and the IAASB.

Previously he has served on the AICPA's Auditing Standards Board, which promulgates practice standards for the audits of all U.S. non-issuers, as a chair of NASBA and on the Colorado State Board of Accountancy, which regulates and disciplines all the state's certified public accountants and their firms. He has also served on the AICPA's Professional Ethics Executive Committee (PEEC), establishing and enforcing the ethics and independence requirements in the AICPA's Code of Professional Conduct. He is a former member of the PCAOB's Standing Advisory Group (SAG) and, during 2007 – 2008, served on the U.S. Treasury's Advisory Committee on the Auditing Profession (ACAP).

About the IESBA CAG

The IESBA Consultative Advisory Group (CAG) is an integral and important part of the IESBA's formal process of consultation. Representatives of CAG member organizations provide advice on numerous areas, including the IESBA's agenda, project timetable (work program) and priorities, and technical advice on projects and other matters of relevance to the activities of the IESBA.

About the IESBA

The IESBA is an independent global standard-setting board. The IESBA's mission is to serve the public interest by setting ethics standards, including auditor independence requirements, which seek to raise the bar for ethical conduct and practice for all professional accountants through a robust, globally operable International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code).

The IESBA believes a single set of high-quality ethics standards enhances the quality and consistency of services provided by professional accountants, thus contributing to public trust and confidence in the accountancy profession. The IESBA sets its standards in the public interest with advice from the IESBA Consultative Advisory Group (CAG) and under the oversight of the Public Interest Oversight Board (PIOB).

Today, the International Ethics Standards Board for Accountants (IESBA) released its Technology Working Group’s final report, IESBA Technology Working Group Phase 2 Report (the Report).

Building on the February 2020 Phase 1 Report, the Report documents the impacts of disruptive and transformative technologies on the work of professional accountants, and provides extensive analysis and insights into the ethical dimension of those developments. The report also discusses the relevance and importance of the overarching principles and specific provisions in the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) in laying out the ethical guardrails for professional accountants as they face opportunities and challenges in their work as a result of rapid digitalization.

The Report surveys the technology landscape and summarizes the outcomes of the Working Group’s fact-finding into the ethics implications of innovative technologies such as artificial intelligence, blockchain and cloud computing. It explores -- through the ethical lens -- various related issues, including data governance, cybersecurity, and reliance on, or use of, experts, and provides insights into those issues and the questions they raise. The Report includes ten recommendations which the IESBA will further consider, some of which it is already addressing in developing technology-related revisions to the Code.

The Report has been informed by the IESBA’s Technology Expert Group and the input of a diverse group of stakeholders, including investors, regulators, those charged with governance, firms, national standard setters, professional accountancy organizations, public sector organizations, and academics. 

Stakeholders, including the International Federation of Accountants (IFAC) (and its member organizations), national standards setters, academics, firms, and others are encouraged to study and leverage the Report’s comprehensive findings as they consider how best to reinforce public trust in the work of professional accountants in business and in public practice in the age of digitalization.

Learn more on the IESBA’s Technology Initiative by clicking here.

The International Federation of Accountants (IFAC) has selected Mrs. Olivia Kirtley of the United States and Mr. Edward Olowo-Okere of Nigeria as the 2022 recipients of the IFAC Global Leadership Award, recognizing their contributions to the advancement of the global accountancy profession and capital markets.

Mrs. Olivia Kirtley

Mrs. Kirtley is an internationally known expert in accounting, risk management, and governance. She served as the first female Chair of the American Institute of CPAs (AICPA) and later became Chair of the AICPA Board of Examiners administering the U.S. CPA Exam.

While serving as the first female Deputy President and later President of IFAC, Mrs. Kirtley worked on important reforms to IFAC’s constitution and support for Professional Accountants in Industry. As President, she focused on promoting diversity within the profession, capacity building, strong governance structures and public sector financial management.

Since leaving IFAC, Mrs. Kirtley has continued breaking the glass ceiling for women with ongoing service on corporate boards, including current service as Director of Papa John’s International, Inc., a publicly traded company listed on the NASDAQ; Lead Independent Director of U.S. Bancorp, the parent company of US Bank, a NYSE and Fortune 500 company; and Director and Audit Committee Chair of Bexion Pharmaceuticals.

Mrs. Kirtley is a member of the Accounting Hall of Fame and an AICPA Gold Medal winner, which is the highest honor granted by the AICPA. In addition, in 2020, she was named the first recipient of the American Woman's Society of CPAs (AWSCPA) Lifetime Achievement Award, which recognizes women who have demonstrated leadership and a strong record of accomplishment in furthering the advancement of women in the accounting profession.

“It is a privilege to present this award to Olivia, IFAC's first female president," said President Alan Johnson. "Through her leadership of the AICPA and IFAC, and work on many corporate boards, Olivia has used her expertise in accounting, risk management, and governance to lead the development of the profession across the world, including as a role model for aspiring female accountants, and has continually enhanced the reputation and trust of our profession. Her international reach and steadfast commitment to the public interest have been of immeasurable service to the profession."

Mr. Edward Olowo-Okere

Mr. Olowo-Okere has over three decades of experience working on development issues around the world. He is Senior Adviser in the Equitable Growth, Finance, and Institutions (EFI) Vice Presidency at the World Bank.

Previously, Mr. Olowo-Okere was the Global Director for the Governance Global Practice where he led the Practice to support client countries in building accountable, transparent, and inclusive institutions to facilitate private-sector growth and build trust in governments. He joined the World Bank in 1998 and has held various positions in operations, including Director of Governance overseeing Africa, MENA and ECA regions, and Director of the Core Operational Services Department in the Africa region. Before joining the Bank, he worked in Nigeria, Britain, and New Zealand.

Mr. Olowo-Okere was instrumental in establishing Pan African Federation of Accountants, playing a crucial role in facilitating engagements amongst the key stakeholders that culminated in the organization’s launch in Senegal in May 2011. Specifically, he facilitated several conversations, provided guidance on drafting the PAFA constitution, and presided over the launch event. Over the years, Ed has actively supported PAFA, especially by speaking at various forums, providing advisory input to the Board and leadership, and, more recently, serving as a 10-year PAFA advisory committee member. PAFA currently has a membership of 56 Professional Accountancy Organizations from 45 countries. Amongst other contributions, Ed served on the IFAC’s Developing Nations Committee (DNC) and a Group that transformed DNC to Professional Accountancy Organization Development Committee (PAODC).

In 2021, Mr. Olowo-Okere was recognized by the World Economic Forum Global Future Council on Agile Governance as one of the world’s 50 most influential people driving agile initiatives to ensure governments can effectively navigate disruptions like COVID-19 and the climate crisis.

"I am honored to present this award to Ed, a passionate global leader with over thirty years of significant global contributions to the accountancy profession and the public sector," said President Alan Johnson. "Ed was instrumental in the development of the Pan African Federation of Accountants (PAFA) in 2011 and has played a leading role in developing a strong accountancy profession across the world."

Established in 2017 by the IFAC Board, the IFAC Global Leadership Award in Honor of Robert Sempier recognizes individuals who make outstanding contributions to the global accountancy profession. The award honors the contributions of Robert Sempier, IFAC’s first executive director who greatly contributed to the development of the profession worldwide.

The Global Leadership Award was presented during IFAC’s Council meeting, held on November 15, 2022.

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 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

The International Federation of Accountants (IFAC), the voice of the global accountancy profession, announces the election of Asmâa Resmouki as its President. Mrs. Resmouki is the first IFAC President from the Africa-Middle East region and the third female President. She will serve a two-year term through November 2024, serving previously as IFAC Deputy President since November 2020.

“I am honored to have been elected IFAC’s next president, and proud to be the organization’s first president from the Africa – Middle East Region.  This is a clear example of IFAC leading by example in the area of diversity,” said Mrs. Resmouki.  “I look forward to continuing to work with IFAC’s Board and management to deliver on our public interest mandate, and to progress our positive impacts on a strong and sustainable accountancy profession, strong and sustainable private and public sector organizations, and strong and sustainable financial markets and economies.”

Mrs. Resmouki joined the IFAC Board in November 2017, originally nominated by the Ordre Des Experts Comptables—Morocco. She served as the Governance Committee Chair in 2020, before taking the role of the Planning and Finance Committee (PFC) Chair in 2021 and 2022. In addition to her work with IFAC, she was the first female President of the Pan African Federation of Accountants (PAFA), after serving on the PAFA Board for six years.

Mrs. Resmouki has over 30 years of experience in the profession, including as a Big-4 Audit partner at EY and Deloitte. In 2020, she started her consultancy practice where she has been assisting different organizations in projects relating to the profession and to advisory services.  

Jean Bouquot Named Deputy President

IFAC also announced the election of Jean Bouquot as Deputy President.  Mr. Bouquot joined the IFAC Board in November 2020, nominated by Compagnie Nationale des Commissaires aux Comptes (CNCC) and Conseil National de l'Ordre des Experts-Comptables . Mr. Bouquot served as president of the CNCC from 2017 to 2020 and was also a President and Deputy President of the Compagnie des Commissaires aux Comptes (CRCC) de Versailles from 2015 to 2017. He currently serves as a Board member of the Fédération Internationale des Experts Comptables et Commissaires aux Comptes Francophones (FIDEF).

Mr. Bouquot has over 42 years of experience as an auditor in various positions with a wide exposure to international activities. He was a Partner with EY from 2002 until 2020 and was in charge of the company’s assurance service line for France/Luxembourg/Maghreb from 2008 to 2015.

New Board Members Elected

IFAC also announced new board members, maintaining a female-majority board for the fourth consecutive year. IFAC places a priority on diversity in professional, gender, and geographic representation on its board and advisory groups.

The new and reappointed IFAC Board members and their nominating member organizations are:

New appointments:

• Ms. Kathryn Byrne (AICPA, USA)
• Mr. Francisco A. M. Sant’Anna (CFC / IBRACON, Brazil)
• Prof. Sidharta Utama (IAI, Indonesia)

Reappointments:

• Mrs. Fiona Wilkinson (CCAB (ICAEW), UK)
• Mr. Yeong Kyun Ahn (KICPA, Korea, Republic of)
• Ms. Joan Curry (CAI, Ireland)
• Ms. Caroline Gardner (CIPFA, UK)
• Dr. Winnie Nyamute (ICPAK, Kenya)
• Mr. Ismaila Zakari (ICAN, Nigeria)

New IFAC Member Organizations Admitted

In addition to the election of new Board members, the IFAC Council also approved a new member and new associate member organizations.

New IFAC Member:

• Ordre National des Experts-Comptables et des Comptables Agréés du Burkina Faso

New Associates:

• Association of Professional Financial Managers (Azerbaijan)
• Ordre National des Experts Comptables et des Comptables Agréés du Mali
• Qatari Association of Certified Public Accountants
• Auditors' Chamber of Ukraine

The new appointments and membership decisions were approved at IFAC’s 2022 Council meeting, held on November 15.

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 more than 180 members and associates in 135 jurisdictions, representing more than 3 million accountants in public practice, education, government service, industry, and commerce.

Today, the International Federation of Accountants (IFAC) released a new report providing insight into climate-related disclosure. Getting to Net Zero: A Global Review of Corporate Disclosures focuses on corporate emissions reduction reporting. It finds that inconsistency and incomparability of target disclosures may pose challenges for investors, regulators, and other stakeholders who require actionable information. The report’s findings strongly support the movement in global policy towards rapidly enhancing the usefulness of disclosures on climate-related targets and transition plans.

Getting to Net Zero is based on 2020 corporate reporting and provides a useful benchmark for climate disclosures which are under development by the International Sustainability Standards Board (ISSB), the U.S. Securities and Exchange Commission (SEC), and the European Financial Reporting Advisory Group (EFRAG), among other initiatives. The report also comes during the COP27 conference in Sharm El-Sheikh, Egypt, where delegates from over 190 countries, many of which have proposed or set net-zero targets for around mid-century, gather to discuss and progress climate actions.

“With COP27, this is perfect time to dig into what is being disclosed and explore how emissions disclosures need to become more decision-useful,” said IFAC CEO Kevin Dancey. “The accountancy profession is well positioned to drive improvements in climate reporting, ensuring information is trusted and decision-useful for management and boards, investors, and all stakeholders.”

Some key takeaways from Getting to Net Zero include:

• 66% of the large, exchange-traded companies IFAC reviewed included some type of emissions reduction target in their corporate disclosures.
• These emissions targets used a variety of terminology and only 39% incorporated Scope 3 emissions.
• Most companies (90%) who disclose emissions targets also provide a disclosure about how they plan to reach their target.
• Only 24% of companies with a plan include some past expenditure or future estimate of expenditures to implement plan actions.

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.

Earlier today, the Staff of the International Ethics Standards Board for Accountants (IESBA) released a Questions & Answers (Q&A) publication, Ethics Considerations in Sustainability Reporting, Including Guidance to Address Concerns about Greenwashing. The publication highlights the relevance and applicability of the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) to ethics-related challenges in the context of sustainability reporting and assurance, especially circumstances involving misleading or false sustainability information (i.e., “greenwashing”). 

Among other matters, the publication spotlights key provisions in the Code that apply in preparing and presenting sustainability information. It emphasizes the professional accountant’s obligation to be straightforward and honest and refrain from being associated with information that is misleading or false, including in situations where they might experience pressure to do so.

The publication is intended to assist professional accountants, especially those in business, but might also be of interest to other professionals involved in preparing sustainability reports or disclosures. It will also be useful to regulators and audit oversight bodies, policy makers, investors, those charged with governance, national standard setters, professional accountancy organizations, and others with an interest in the work of professional accountants and in sustainability reporting and assurance.

About IESBA

The International Ethics Standards Board for Accountants (IESBA) is an independent global standard-setting board. The IESBA serves the public interest by setting ethics standards, including auditor independence requirements, which seek to raise the bar for ethical conduct and practice for all professional accountants through a robust, globally operable International Code of Ethics for Professional Accountants (including International Independence Standards).

The IESBA believes a single set of high-quality ethics standards enhances the quality and consistency of services provided by professional accountants, thus contributing to public trust and confidence in the accountancy profession. The IESBA sets its standards in the public interest with advice from the IESBA Consultative Advisory Group (CAG) and under the oversight of the Public Interest Oversight Board (PIOB).