The International Auditing and Assurance Standards Board (IAASB) has reached a significant milestone with the recent approval of its International Standard on Sustainability Assurance (ISSA) 5000. This marks a pivotal step in enhancing the credibility and trust in sustainability reporting on a global scale. As sustainability reporting becomes increasingly integral to corporate strategy and investor decision making, ISSA 5000 provides much needed consistency for accountants and assurance practitioners as they navigate the complex world of sustainability disclosures.

Meeting the Growing Demand for Reliable Sustainability Reporting

With global attention focused on environmental, social, and governance (ESG) issues, stakeholders—ranging from investors and regulators to consumers and governments—are demanding more comprehensive and reliable sustainability information from organizations. However, the assurance of these disclosures has been inconsistent across markets. ISSA 5000 seeks to address this gap by providing a unified, global framework for the assurance of sustainability information, ensuring that reported data is reliable, comparable, and transparent.

The approval of ISSA 5000 is a significant development in the IAASB’s efforts to support the growing need for high-quality sustainability assurance and to reduce the risk of fragmentation. As organizations around the world prepare for new reporting requirements, this standard equips assurance practitioners with the tools they need to offer robust assurance on sustainability disclosures.

What ISSA 5000 Brings to the Table

ISSA 5000 is the first comprehensive international standard focused on sustainability assurance. It builds on the IAASB's existing standards, particularly the IAASB’s International Standard on Assurance Engagements 3000 (Revised), and is designed to be flexible enough to cover the wide range of sustainability information that organizations report—from climate-related risks and emissions data to social and governance metrics.

Key features of ISSA 5000 include:

  • Scope and Flexibility: The standard applies to all forms of sustainability reporting, allowing for the assurance of non-financial information in alignment with the varying frameworks used globally, including the International Sustainability Standards Board’s (ISSB) IFRS S1 and IFRS S2 and the Global Reporting Initiative’s standards, and regulatory requirements.
  • Risk-Based Approach: ISSA 5000 promotes a risk-based approach to assurance, requiring practitioners to assess the risks of material misstatements in sustainability information and tailor their procedures accordingly.
  • Enhanced Professional Skepticism: The standard emphasizes the need for assurance providers to exercise heightened professional skepticism, particularly given the evolving nature of sustainability reporting and the unique challenges of verifying non-financial data.
  • Engagement and Transparency: ISSA 5000 enhances transparency in assurance engagements, requiring clear reporting of the scope, methodology, and limitations of the assurance work conducted.

A Major Step Forward for Global Alignment

The adoption of ISSA 5000 comes at a time when global sustainability reporting standards are converging. With increasing numbers of jurisdictions requiring sustainability disclosure and turning their focus to assurance, it is critical that ISSA 5000 supports assurance of sustainability information prepared using multiple different suitable reporting frameworks. The standard will enable assurance practitioners to offer consistent and comparable services across markets, boosting investor confidence and enhancing the credibility of sustainability reporting globally.

A New Era for Assurance Practitioners

For assurance practitioners, the approval of ISSA 5000 represents a new era of opportunity and responsibility. As companies increasingly turn to assurance practitioners to verify their sustainability claims, practitioners will need to familiarize themselves with the nuances of the standard and develop the expertise required to navigate the unique challenges of sustainability assurance.

Training and professional development will be crucial as firms adapt to the new standard, and the IAASB is expected to offer support through guidance and implementation materials. Moreover, firms that specialize in sustainability assurance will likely see an increase in demand for their services as companies face mounting pressure to ensure that their sustainability disclosures are reliable and trustworthy.

Looking Ahead

The approval of ISSA 5000 is a game-changer for sustainability assurance. It provides a solid foundation for the assurance of sustainability information, helping companies meet the growing demand for transparency, while also meeting investor and stakeholder information needs.

As global sustainability reporting standards continue to evolve, the role of accountants and assurance practitioners will become even more critical in ensuring the integrity of sustainability reporting. With ISSA 5000, the IAASB has set a new global benchmark for sustainability assurance, paving the way for more credible, reliable, and consistent sustainability disclosures worldwide.

If you are interested in requesting permission to translate ISSA 5000, request permission from IFAC via the Online Permissions and Requests Inquiry (OPRI) system.

Visit the IAASB website for more information on ISSA 5000’s approval and next steps: iaasb.org/ISSA5000

Megan Hartman

Megan Hartman is a principal on the Communications team. She joined the team in 2011 after working with a number of international organizations, primarily in the not-for-profit sector. Megan holds a master’s in integrated marketing communications from Northwestern University as well as a bachelor’s from George Washington University.