The IAASB issued the proposed, landmark International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, for public consultation on August 2.

When approved, ISSA 5000 will be the most comprehensive sustainability assurance standard available to all assurance practitioners across the globe. It will apply to sustainability information reported about any appropriate sustainability matter and prepared under any suitable framework. It will also apply for both limited and reasonable assurance engagements.

ISSA 5000 also benefits from close consultation and coordination with other global organizations, including IOSCO, FSB, IESBA, ISSB, and GRI.

From August 2 to December 1 is when we need to hear from you; your feedback on the proposed standard is crucial. We need to hear from those who:

• Prepare, use or provide assurance on sustainability information
• Use reported sustainability information to make decisions, including audit committee members, investors, and others.

Follow us on LinkedIn or on Twitter or register & subscribe on our website for updates on the proposed ISSA 5000’s release and for announcements about upcoming webinars and events.

The endorsement by International Organization of Securities Commissions (IOSCO) of IFRS Sustainability Disclosure Standards S1 and S2, and its call to action to its member jurisdictions, are most welcome developments in the ever-important sustainability space.

We commend the IFRS Foundation, the International Sustainability Standards Board (ISSB), and IOSCO who are dedicated to maintaining fair, efficient and transparent markets. Promoting consistent and comparable climate-related and other sustainability-related information is an important component of this work.

As sustainability reporting becomes increasingly mandatory in some jurisdictions, the focus must turn quickly to mandatory assurance. Without it, the quality of sustainability reporting will lag financial reporting, and there will continue to be issues with greenwashing, reliability, and credibility. The accountancy profession, underpinned by its Code of Ethics, is particularly well placed to provide assurance services across both sustainability and financial disclosure.

IFAC CEO Kevin Dancey said, "IFAC applauds IOSCO’s endorsement of IFRS Sustainability Disclosure Standards S1 and S2, and its call to action to its member jurisdictions. These are important and most welcome developments. Now, the focus must turn quickly to sustainability assurance. IFAC remains committed to advancing these important conversations with our many global stakeholders, including with our 180 member organizations that represent millions of professional accountants all around the world."

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. 

The International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) applaud the efforts of the International Sustainability Standards Board (ISSB) and today’s International Organization of Securities Commissions’ (IOSCO) endorsement decision of the ISSB’s recently issued IFRS Sustainability Disclosure Standards S1 and S2. IOSCO determined that these standards are “appropriate to serve as a global framework for capital markets to develop the use of sustainability-related financial information in both capital raising and trading and for the purpose of helping globally integrated financial markets accurately assess relevant sustainability risks and opportunities.”

In commenting on the endorsement, Tom Seidenstein and Gabriela Figueiredo Dias, IAASB and IESBA Chairs, respectively, said, “IOSCO’s endorsement of IFRS Sustainability Disclosure Standards S1 and S2 and its call to action for member jurisdictions to move toward adoption and implementation are two more important steps in establishing a trusted reporting framework for sustainability information. We appreciate IOSCO’s leadership in coordinating global consistency in sustainability reporting, assurance and ethics standards.”

The International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board for Accountants (IESBA) applaud the efforts of the International Sustainability Standards Board (ISSB) and today’s International Organization of Securities Commissions (IOSCO) endorsement decision of the ISSB’s recently issued IFRS Sustainability Disclosure Standards S1 and S2. IOSCO determined that these standards are “appropriate to serve as a global framework for capital markets to develop the use of sustainability-related financial information in both capital raising and trading and for the purpose of helping globally integrated financial markets accurately assess relevant sustainability risks and opportunities.”

In commenting on the endorsement, Tom Seidenstein and Gabriela Figueiredo Dias, IAASB and IESBA Chairs, respectively, said, “IOSCO’s endorsement of IFRS Sustainability Disclosure Standards S1 and S2 and its call to action for member jurisdictions to move toward adoption and implementation are two more important steps in establishing a trusted reporting framework for sustainability information. We appreciate IOSCO’s leadership in coordinating global consistency in sustainability reporting, assurance, and ethics standards.”

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Mark your calendars for August 2!

We will issue the proposed, landmark International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, for public consultation on August 2.

When approved, ISSA 5000 will be the most comprehensive sustainability assurance standard available to all assurance practitioners across the globe. It will apply to sustainability information reported about any appropriate sustainability matter and prepared under any suitable framework. It will also apply for both limited and reasonable assurance engagements.

ISSA 5000 also benefits from close consultation and coordination with other global organizations, including IOSCO, FSB, IESBA, ISSB, and GRI.

From August 2 to December 1 is when we need to hear from you; your feedback on the proposed standard is crucial. We need to hear from those who:

• Prepare, use or provide assurance on sustainability information
• Use reported sustainability information to make decisions, including audit committee members, investors, and others.

Follow us on LinkedIn or on Twitter or register & subscribe on our website for updates on the proposed ISSA 5000’s release and for announcements about upcoming webinars and events.

Various media revelations, such as the Paradise Papers and the Pandora Papers, have highlighted the important role tax intermediaries play in facilitating tax structures that contribute to billions of euros of lost tax revenue in the EU every year. To address this issue, the European Commission has announced a proposal with the objective of preventing enablers from setting up complex structures in non-EU countries for tax evasion and aggressive tax planning purposes. This initiative would complement the Unshell Directive, which sets out criteria for identifying entities that lack minimal economic substance within the EU.

IESBA Chair Gabriela Figueiredo Dias will speak at a public hearing organized by the European Parliament’s Subcommittee on Tax Matters (FISC) on July 17, 2023 from 15:00 to 16:30 CEST in Brussels, Belgium.

The event, “Tackling the role of enablers involved in facilitating tax evasion and aggressive tax planning in the European Union (SAFE),” will be introduced by Paul Tang, FISC Chair. Other speakers include Olivier Boutellis-Taft (CEO, Accountancy Europe) and Ivan Lazarov (Research Associate, International Bureau of Fiscal Documentation (IBFD)). A question-and-answer session with Members of the FISC Subcommittee will follow. The public hearing will help inform the European Parliament's opinion on the new legislative proposal.

The hearing will be web-streamed at: https://www.europarl.europa.eu/committees/en/tackling-the-role-of-tax-enablers/product-details/20230705CHE11962.

About the IESBA

The International Ethics Standards Board for Accountants serves the public interest by setting ethics standards, including independence requirements, as a cornerstone to ethical behavior in business and organizations, and to public trust in 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.

The Public Interest Oversight Board’s (PIOB) Standard-Setting Nominations Committee has opened the Invitations for Application [https://bit.ly/PIOB-SAC] period for the new Stakeholder Advisory Council. This newly established global forum will provide strategic advice to the International Auditing and Assurance Standards Board (IAASB) and the International Ethics Standards Board (IESBA). The SAC will replace the IAASB Consultative Advisory Group (IAASB CAG) and the IESBA Consultative Advisory Group (IESBA CAG), which complete their remits in late 2023.

The Invitation for Application outlines the opportunity for experienced individuals from various relevant stakeholder groups and the expectations for SAC members. Through the open and interactive forum, SAC members will have the opportunity to actively participate in providing strategic input and shape the future of global standard setting. The PIOB encourages applications from candidates with diverse backgrounds, including different geographic regions, genders, and professional backgrounds.

Full details of the Invitation for Applications and the SAC’s role are available on the PIOB website. Applications are welcome until September 30, 2023.

The Public Interest Oversight Board’s (PIOB) Standard-Setting Nominations Committee has opened the Invitations for Application period for the new Stakeholder Advisory Council. This prestigious global council, a key element of recent governance reforms, will provide strategic advice to both the IAASB and International Ethics Standards Board for Accountants (IESBA) in developing standards. It replaces the IAASB and IESBA Consultative Advisory Groups.

The Invitation for Application outlines the opportunity for experienced individuals from various relevant stakeholder perspectives and the expectations for SAC members. Through the open and interactive forum, SAC members will have a chance to actively participate and shape the future of standard setting. The PIOB encourages applications from candidates with diverse backgrounds, including different geographic regions, genders, and professional backgrounds.

Full details of the Invitation for Applications and the SAC’s role are available on the PIOB website. Applications are welcome until September 30, 2023.

The International Ethics Standards Board for Accountants (IESBA) today announced that a Sustainability Reference Group (SRG) has been established to support the work of its Sustainability Task Force. 

The SRG members have been selected based on a series of criteria, including their background, experience or expertise in sustainability reporting or assurance, stakeholder groups, and geographical location. The members will act as a “sounding board” to the Sustainability Task Force, providing insights, expertise, or advice relating to the development of global ethics and independence standards for sustainability reporting and assurance. 

The SRG will be chaired by Mr. Channa Wijesinghe, IESBA Member and Sustainability Task Force Member. The SRG Members are: 

• Kenneth Amaeshi, European University Institute, Africa
• Antonio Astone, DNV, Europe 
• Michael Bray, Deakin University, Oceania 
• Charlotte Drain, Deloitte LLP, Europe 
• Dongsoo Kim, AccountAbility, Asia 
• Kristian Koktvedgaard, Confederation of Danish Industry and EFRAG Sustainability Reporting Board Member, Europe
• Olga Rivas, Independent International Organisation for Certification, Global 
• Samantha Ross, AssuranceMark, North America 
• Michael Tang, SGX Group, Asia 

To learn more about IESBA’s work on sustainability, please refer to our focus page.