The International Auditing and Assurance Standards Boards (IAASB) announced a consolidation of sustainability assurance standards, withdrawing one standard related to greenhouse gas emissions now that a broader sustainability standard has been approved.
The IAASB approved the withdrawal of International Standard on Assurance Engagements (ISAE) 3410, Assurance Engagements on Greenhouse Gas Statements.
The withdrawal of ISAE 3410 follows the approval and certification of new International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, which covers assurance requirements across all types of sustainability information, an IAASB news release said.
“ISSA 5000 addresses assurance of all types of sustainability information, including greenhouse gas emissions, regardless of how that information is presented,” the release said. It is effective from reporting periods on or after 15 December 2026 and will remove reporting requirements under ISAE 3410 for companies on that date.
Accountants endorse new principles for a sustainable future
Five new core principles developed through the Accounting Bodies Network (ABN), a collaboration between Accounting for Sustainability (A4S) and professional accounting bodies worldwide, aims to best position the accountancy profession in driving the transition to a sustainable future.
“The adoption of the newly revised principles, updating the principles established 17 years ago, renews the commitment of the accounting bodies to sustainable business practices,” a news release said.
Twelve global accounting bodies, including CIMA, endorsed the move for more ambitious goals in the pursuit of a global sustainable economy, the release said, through the following principles:
Education and capacity building: Invest in education and training for accountants to equip them with competencies to support sustainable business practices and integrate sustainability into the curriculum, continuing professional development, and other accountancy programmes.
Advocacy and influence: Drive meaningful change through advocacy, engaging and sharing expertise with businesses, governments, and other stakeholders.
Innovation and adaptability: Encourage continuous innovation and adaptability in accounting practices and leverage new technologies to address sustainability challenges and opportunities.
Transforming value: Endorse a broader definition of value that adopts a holistic view, encompassing not only financial factors, but also human, social, and environmental dimensions.
Leading by example: Embed sustainability in the strategy and operations of ABN member organisations.
GRI looks to better align sustainability reporting practices
In a joint letter to the European Financial Reporting Advisory Group (EFRAG), the Global Reporting Initiative (GRI) and the Global Sustainability Reporting Board provided recommendations to effectively simplify and improve alignment of the European Sustainability Reporting Standards (ESRS).
The entities said that “removing ESRS data points not covered by the GRI standards would achieve a reduction in disclosures of at least 30%”, according to a news release.
According to the release, other considerations included more focus on reporting the most significant environmental, social, and governance impacts and providing clearer instructions on how to apply the materiality principle for companies.
— To comment on this article or to suggest an idea for another article, contact Steph Brown at Stephanie.Brown@aicpa-cima.com.