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A sustainability focus in businesses is becoming the new normal, but trust in sustainability information is lagging.

Regulatory frameworks are evolving, and markets are growing fast. More than US$30 trillion globally is already invested in sustainability-related assets, and the figure is expected to hit US$40 trillion by 2030. But low-quality data and a lack of ethical safeguards are serious threats to that momentum.

The world needs trusted sustainability information, and strong frameworks to make it work for its main purpose: to manage risk. That calls for clear ethical and independence standards, to be applied consistently by all who prepare or assure sustainability reports – accountants and non-accountants alike.

Accordingly, the International Ethics Standards Board for Accountants (IESBA) has issued a new set of global ethics standards for sustainability. They include ethics and independence standards for sustainability assurance (IESSA), enhanced ethical provisions for sustainability reporting, and a new standard on using the work of external experts. Together, they form part of the IESBA International Code of Ethics, which has been adopted or is in use in over 130 jurisdictions.

Responding to risk

This global, consistent ethics foundation for sustainability reporting and assurance comes at a critical time.

Greenwashing poses a severe threat to the global effort to ensure high-quality sustainability information. Above all, it undermines trust and impairs the effective functioning of the business sector and the financial system. In 2023 alone, more than 2,000 companies were identified by consultancy RepRisk as carrying out greenwashing activities. Fines in the millions show that regulators are responding. But so far, rules alone haven’t been enough to eliminate greenwashing.

Poor data, inconsistent ratings and weak reporting and assurance are feeding public scepticism. A sustainable economy cannot be built on a foundation of doubt. Ethics changes that. Ethics helps professionals recognise and respond to threats to their integrity, objectivity and independence – and therefore, to the quality and reliability of the information they prepare or assure. It provides a clear framework for good judgment – even when the pressure to compromise is high.

Sustainability information is complex and forward-looking, and often involves subjective judgments. All of this increases the opportunity for bias and manipulation. That’s why the IESBA standards are a game-changer. They are robust, ambitious and address the complexity of the matters and frameworks they apply to.

Support

Professionals don’t have to navigate this alone. IESBA made it a strategic priority in 2025 to slow down new standard-setting and focus on supporting the adoption and implementation of recently issued standards, having created a specific working group to that effect. In particular, we are backing the Global Ethics Sustainability Standards with one of the most comprehensive implementation programmes we have ever undertaken.

• We have established an IESSA implementation monitoring advisory group – experts in practice who advise IESBA on implementation challenges and how best to respond in a timely way.
• We are developing practical tools – including FAQs, implementation guides and explanatory materials – to help practitioners apply the standards consistently.
• We have extended the timeline to allow a longer lead time for the value chain independence provisions. There are now effectively four reporting cycles before those provisions come into force.
• We are working with IAASB, IFAC, ISSB, IOSCO, PAFA, UNCTAD and other organisations to strengthen capacity for the standards across jurisdictions.
• We are enhancing stakeholder engagement, especially with the accountancy profession, to gain a better understanding of the implementation challenges and to provide closer support.

Almost half of all sustainability assurance engagements worldwide are being undertaken by non-audit firms. This requires mechanisms to ensure a level playing field in the public interest.

Like the IAASB’s ISSA 5000 standard, the IESSA is designed to ensure that the same ethical and independence requirements apply, whoever is doing the assurance work. This is essential to protect the public and to make sure accountants do not have to follow stricter requirements than other providers.

Mindset

Ethics is not a box-ticking exercise; it is a mindset. These standards promote a culture of inquiry, sound judgment and accountability. But we cannot do this alone. We are calling on jurisdictions, firms, companies and professional bodies to adopt and promote the IESBA sustainability-related standards.

We are also calling for open dialogue. Engagement is important, as these standards must work for real people in real situations. ACCA has been working hard in this regard, promoting forums for discussion, listening to members and supporting adoption.

And if there are areas where professionals need more help, we’ll provide it within our mandate and capacity.

This is not the end of a project; it is the start of a journey. It is an opportunity we cannot miss and must take together.

Gabriela Figueiredo Dias, Chair of the IESBA, delivered a keynote speech followed by a rich discussion moderated by João Ferreira da Silva at the 20th International Congress on Accounting and Auditing (CICA), organized by the Institute of Accounting and Administration of the University of Aveiro and the Order of Certified Accountants (OCC) under the theme “Accounting in a Sustainable World.”

The International Bar Association (IBA) and the International Federation of Accountants (IFAC) have today launched a pioneering new initiative aimed at supporting legal and accountancy professional bodies in the fight against money laundering. 

This pilot workshop, which is the first in a planned global series of regional AML capacity building events, brings together representatives from the accountancy and legal professions in a shared learning environment designed to help strengthen national AML systems.

The three-day programme, with over 70 delegates from bar associations and professional accountancy bodies from 22 jurisdictions in the Caribbean region and beyond, is being held in the Cayman Islands between October 28-30. It is supported by the Financial Action Task Force (FATF), the global AML standard setter, and CFATF, its regional affiliate, and is being hosted by the Cayman Islands Institute of Professional Accountants (CIIPA) and the Legal Services Supervisory Authority (LSSA), with the sponsorship of the Cayman Islands Ministry of Financial Services. 

The workshop agenda, which comprises panel sessions, lectures, and collaborative breakout activities, aims to:

• Enhance the ability of professional bodies to educate and equip their members with relevant AML requirements and expectations;
• Empower professional associations to partner more effectively with key AML stakeholders, including government agencies and financial intelligence units; and
• Support professional bodies in undertaking or preparing for AML supervisory responsibilities where applicable.

Steven Richman, Chair of the IBA’s Bar Issues Commission, commented: ‘This initiative underscores the critical role that the accountancy and legal professions play in combatting money laundering and strengthening the integrity of the global financial system as a whole. Sharing ideas and working together is crucial to stamping out this corrupt practice.’

"IFAC, by connecting and uniting its members, makes the accountancy profession’s contributions to the fight against money laundering truly global.  Through our partnership with the FATF and IBA, we aim to equip our member professional bodies with the tools and networks they need to be AML leaders in their jurisdictions," said Scott Hanson, Director of Policy & Global Engagement of IFAC.

Media Contact

For further information or media inquiries, please contact:

• Scott Hanson, Director, IFAC – scotthanson@ifac.org
• Sara Carnegie, International Bar Association – sara.carnegie@int-bar.org

About the International Bar Association (IBA)

The International Bar Association (IBA), the global voice of the legal profession, is the foremost organisation for international legal practitioners, bar associations and law societies. Established in 1947, shortly after the creation of the United Nations, it was born out of the conviction that an organisation made up of the world's bar associations could contribute to global stability and peace through the administration of justice.

About IFAC

IFAC, by connecting and uniting its members, makes the accountancy profession truly global.

IFAC member organizations are champions of integrity and professional quality, and proudly carry their membership as a badge of international recognition.

IFAC and its members work together to shape the future of the profession through learning, innovation, a collective voice, and commitment to the public interest.

The International Federation of Accountants (IFAC), the International Organization of Supreme Audit Institutions (INTOSAI), and the INTOSAI Development Initiative (IDI) have signed a Memorandum of Understanding (MoU) at the XXV INCOSAI meeting in Sharm El Sheikh, Egypt.

The MoU formalizes collaboration between the three organizations to enhance the quality of public sector auditing and strengthen transparency and accountability in government activities—fostering good governance and promoting the economy, effectiveness, and efficiency of government programs for the benefit of all.

The agreement underscores a shared commitment to strengthen public financial management, promote high-quality international standards, and build capacity within Supreme Audit Institutions (SAIs) and the broader accountability profession.

Under the MoU, IFAC, INTOSAI, and IDI endeavor to :

• Collaborate on issues of mutual interest to promote sound public financial management, support each other’s efforts to promote the adoption and implementation of their standards, and foster partnerships between INTOSAI and IFAC members to strengthen public sector accountancy and audit capacity;
• Exchange relevant knowledge, experience, and best practices;
• Explore opportunities to convene or contribute to joint events, forums, and dialogues to advance shared objectives and engage stakeholders;
• Cooperate in engagements with donors and development partners to leverage synergies in capacity-building projects that support all three parties’ objectives; and
• Promote relevant initiatives and publications.

This partnership builds on a long history of cooperation between the global accountancy profession and the public sector audit community, recognizing their complementary roles in advancing integrity, trust, and effective governance.

Lee White, Chief Executive Officer, IFAC said:  “This MoU is a milestone in our ongoing collaboration with INTOSAI and IDI. Public sector accountability is fundamental to trust in government and citizens’ confidence in how public resources are managed. Together, we are reinforcing the bridge between the accountancy profession and Supreme Audit Institutions to strengthen integrity, transparency, and the quality of public sector reporting and assurance globally.”

Dr Margit Kraker, Secretary General, INTOSAI said:  "INTOSAI welcomes this strengthened collaboration with IFAC and IDI. This agreement is a reflection of our mutual confidence and our conviction that collaboration is central to lasting progress. By pooling our knowledge, experience, and resources, we are laying a strong foundation for sustainable and impactful results. Let us approach this partnership with commitment and confidence — for the benefit of our institutions, our partners, and ultimately, the citizens we serve."

Einar Gørrissen, Director General, IDI said: “As an INTOSAI body, the IDI is pleased to formalize this partnership with IFAC. Our collaboration is rooted in a shared commitment to support independent, professional, and credible Supreme Audit Institutions ensuring trust in public institutions. We look forward to working together for capacity development, standard-setting support, and advocacy, for contributing to stronger, more resilient institutions that are essential for better societies and improved lives.”

About IFAC

IFAC, by connecting and uniting its members, makes the accountancy profession truly global.

IFAC member organizations are champions of integrity and professional quality, and proudly carry their membership as a badge of international recognition.

IFAC and its members work together to shape the future of the profession through learning, innovation, a collective voice, and commitment to the public interest.

The International Public Sector Accounting Standards Board (IPSASB®), developer of IPSAS® Standards, international accrual-based accounting standards for use by governments and other public sector entities around the world, has issued Definition of Material (Amendments to IPSAS 1, IPSAS 3, and the Conceptual Framework).

“The amendments aim to bring consistency into our guidance on the definition of material, helping organizations apply it more effectively,” said Ian Carruthers, IPSASB Chair. "A clear and well-understood definition will serve as a solid foundation for our planned guidance on how to make materiality judgments to be developed during the second phase of this project.”

The amendments:

• Clarify that an entity is required to consider the information needs of primary users instead of other users of GPFRs; and
• Align the definition of material in IPSAS 1, Presentation of Financial Statements, with Chapter 3 of the Conceptual Framework on Qualitative Characteristics.

The amendments will help strengthen accountability by ensuring financial statements focus on information most relevant to primary users. They will enhance consistency through conforming the definition of the term material between the Conceptual Framework and within IPSASB’s authoritative guidance and lay the foundation for planned guidance on materiality judgments in financial and reporting.

The second phase of the project includes developing non-authoritative guidance aligned with IFRS® Practice Statement 2, Making Materiality Judgements, to efficiently and promptly address constituents' need for additional guidance on making materiality judgments when preparing financial statements in accordance with IPSAS Standards.

The amendments to IPSAS Standards in the Definition of Material (Amendments to IPSAS 1, IPSAS 3, and the Conceptual Framework) are effective January 1, 2027. An earlier application is permitted. The amendments to the Conceptual Framework are effective immediately.

About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards (IPSAS Standards), IPSASB Sustainability Reporting Standards (IPSASB SRS™ Standards) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS Standards and IPSASB SRS Standards and promotes the adoption and implementation of these to enhance the quality and consistency of practice throughout the world and strengthen the transparency and accountability of public sector finances and sustainable development. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, the government of Canada, and The World Bank. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC®). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.

Distinguished President of the Ordem dos Revisores Oficiais de Contas,

Honored guests, ladies and gentlemen,

It is a great pleasure to join you today – although, unfortunately, not in person as I would have very much liked – in the beautiful city of Porto.

Allow me to begin by thanking the OROC, through its President, Dr. Virgílio Macedo, for the kind invitation, and to congratulate OROC for the rich and timely program that brings us together today. It is a privilege to take part in this important conversation.

Ladies and gentlemen,

Let me reflect on three major challenges that are transforming the auditing profession.

First, the current geopolitical context is acting as a real stress test on the foundations of ethics across all professions.

We are moving from a period of regulatory expansion - which began with the post–financial crisis strengthening and more recently extended to areas such as technology and sustainability - to a period increasingly marked by simplification, deregulation, lighter supervision, and global fragmentation.

This shift is shaping narratives that question the value of ethics, of long-term strategies, and of sound governance principles.

Some organizations – including companies – argue that ethics, long-term sustainability, and a multidimensional approach to governance have gone too far and now constitute a burden. For those who think this way, this is an opportunity to remove any “constraints” that might limit or delay profit generation.

These dynamics are not abstract. The fragmentation of capital markets and regulatory approaches is a tangible reality, reinforced by divergent national and regional strategies. And fragmentation, as we know, can weaken consistent practices in regulation, governance, and supervision.

We are, therefore, living through a period of intense policy experimentation. Many decisions are being made whose full consequences only time will reveal – and some are even moving in opposite directions.

Take the case of Europe. The so-called “Sustainability Omnibus Directive” seeks simplification but risks weakening the transparency and accountability momentum built through the CSRD.

By exempting almost 80% of the companies initially expected to report, this change could erode trust and reduce the flow of information on which investors, regulators, the financial system (particularly banking), and society at large depend.

At the same time, as announced in Lisbon last month during the first IESBA Conference, the European Commission decided to launch a public consultation on ways to strengthen the coherence of audit oversight and assess the balance between national discretion and convergence - with a clear goal: reducing fragmentation and improving efficiency.

We are thus living in challenging and uncertain times.

Simplification is most welcome, but it cannot turn into dilution. Clarity and efficiency must strengthen - not replace - ethical responsibility. It is important that, in the decisions we make today, we do not lose focus on cooperation and the sustainable success of businesses and organizations.

*

The second major challenge I wish to highlight is the profound impact of artificial intelligence and technological developments.

Audit firms are deeply focused on AI’s transformative potential, striving to keep up in every possible way - sometimes struggling to fully understand and manage its consequences.

Given the scale and speed of change, such difficulties are natural.

But success will not be measured merely by the adoption of AI or other technologies. In fact, even if firms overcome the technological challenge, they will fail if they do not simultaneously drive the ethical, cultural, and governance transformation that this new reality demands. Only by advancing on both fronts - technological and ethical - can innovation generate sustainable success.

AI raises profound ethical questions, affecting fundamental principles of the IESBA Code - integrity, objectivity, professional competence, confidentiality, and professional behavior.

It is therefore crucial that organizations foster environments where professionals can exercise sound judgment, supported by exemplary leadership, clear accountability, and dedicated ethical resources.

AI is also accelerating structural and strategic change within firms. The growing presence of private equity investment in accounting and audit firms - enabling the significant capital required for technological capability - introduces new ethical risks for professionals and new threats to firms’ independence.

These require robust governance systems capable of withstanding and responding to disruptions and threats accompanying changes in ownership, business, and operational models.

I am speaking of risks, but AI, technology, and external capital also bring extraordinary opportunities.

Audit and accounting professionals are uniquely positioned to ensure that these serve the public interest, applying professional judgment and ethical principles to guide their responsible use.

In short, geopolitics, technology, and culture are converging forces. They should not be seen as threats that paralyze us. Geopolitical, technological, and economic pressures can act as catalysts - driving transformation and even reinvention - of firms and professionals alike. Such transformation must be supported by the right organizational cultures.

*

This brings me to the third challenge, perhaps the most essential one: the need to cultivate strong ethical cultures in the face of the formidable transformations we are experiencing.

For any audit firm, its ethical culture will ultimately determine its success or failure - depending on how clients, employees, regulators, investors, and the public perceive it as trustworthy and reputable.

The strongest cultures are those where ethics are embedded in leadership practices and supported by effective governance mechanisms. Values alone are not enough; governance is the architecture that sustains ethics. Without it, values remain mere intentions.

It is therefore essential that firms use all available resources to build, assess, and continuously reinforce their ethical culture.

This means linking performance evaluations, promotions, and leadership appointments to ethical behavior – demonstrating that values, not just results, matter.

It means promoting open conversations between leaders and teams, across all service lines,  particularly by creating psychological safety that allows ethical concerns or failures to be raised early. This is the best way to prevent crises.

And it means remembering that culture does not live in codes or slogans. Culture is what people do when no one is watching – instinctively and fully embedded in practices and decisions. That is where ethics truly resides.

It is also important to recognize that ethical culture does not depend solely on the “tone from the top,” but also on the echoes from the middle of the organization. Middle managers play a vital role: they shape behaviors through example and daily proximity to their teams.

The relevance of this topic is reflected in the IESBA’s work plan through a major project on Culture and Governance in Firms.

Its first output will be a set of high-level, outcome-oriented principles addressing eight core elements necessary to build and maintain an ethical culture and good governance in audit firms.

These principles aim to support firms in developing consistent and adaptable systems, ensuring that ethics remains the profession’s guiding compass in a rapidly evolving environment.

Ladies and gentlemen,

Ethics is sometimes seen as an accessory – something “nice to have” when the seas are calm, but a burden when the storms rise.

But it is exactly the opposite. Ethics and independence are fundamental instruments to prevent crises – or to resolve them with minimal damage. They are, for firms and professionals alike, the foundation of credibility, sustainability, and lasting success. They are also the distinctive mark of the audit profession.

The profession’s relevance will depend on its ability to anticipate ethical risks before they materialize. Amid all the uncertainty we face, ethics is the compass to navigate it.

I conclude by encouraging you all to follow closely the upcoming IESBA discussions and proposals, particularly on the new principles of culture and governance in firms. The success of this project will depend on our ability to engage in open and constructive dialogue with all stakeholders, ensuring that the principles are practical, applicable, and responsive to reality.

Thank you very much.