The International Federation of Accountants (IFAC) has submitted a comment letter to the International Ethics Standards Board for Accountants (IESBA) on its exposure draft for the proposed revisions to the Code of Ethics related to sustainability.
The global business community and the accountancy profession are making a significant transformation with respect to sustainability disclosures. The IESBA has an important role, like other standard setters, in this transformation.
IFAC appreciates the significant resources and effort the IESBA has devoted to this important project. However, the actions of standard setters, regulators, and policy makers must be undertaken and calibrated with priority for both being an effective influence on the sustainably transformation and bringing along relevant stakeholders in the business community, including the accountancy profession, on the journey. It is important for the IESBA to be a positive influence in this transformation through the creation of practical, easily understandable, and sufficiently flexible standards.
IFAC has raised three key areas in which the IESBA can enhance the practicality of implementation:
- Reduce complexity and call for transparency from practitioners with respect to relevant, jurisdiction-specific sustainability assurance oversight, as well as enforcement where they conduct engagements.
- Remove barriers to financial statement auditors providing sustainability assurance to the same client.
- Revise or remove proposed requirements related to value chain considerations.
IFAC will remain engaged with the IESBA’s consultation process until the publication of a final standard and supporting guidance materials.