Cleerit’s Post

The International Auditing and Assurance Standards Board (IAASB) has introduced the International Standard on Sustainability Assurance (ISSA) 5000. These standards outline the general requirements for sustainability assurance engagements, aiming to enhance trust and confidence in sustainability information. The standard emphasizes a principles-based approach, enabling practitioners to apply professional judgment in their assurance engagements, making it applicable across various sustainability topics and reporting frameworks. The new standard is applicable for both limited and reasonable assurance engagements and is able to work with both traditional materiality as well as double materiality. The standards can be used in several sustainability reporting frameworks to map both the risks and impact of sustainability issues on an enterprise, as well as the enterprises’ impacts on the environment and society. This development will be impacting India’s ESG Regulations (BRSR) with the update in Standard on Sustainability Assurance Engagements (SSAE) frameworks, which were inspired from ISAE 3000 standards.   #esg #esgassurance #sustainabilityreport #brsr #brsrassurance #sustainabilityassurance #climatefinance #ssae #isae https://lnkd.in/gEgWWG7s

The Australian Accounting Standards Board (AASB) has finalised the Australian Sustainability Reporting Standards (ASRSs) as of 20 September 2024. This marks a significant step forward in aligning with global sustainability practices, particularly the IFRS Sustainability Disclosure Standards, and offers businesses a unique opportunity to embed sustainability into their core strategies.   Explore PwC's latest article, where we: ·        Summarise the new Australian sustainability reporting requirements ·        Highlight differences from the exposure draft proposals ·        Detail core mandatory requirements and reporting timelines ·        Share practical steps for businesses to prepare, stay ahead, and ensure compliance   Read the full article here https://lnkd.in/gwTAzJV4   Additionally, on the 20 September, the International Auditing and Assurance Standards Board (IAASB) approved a new International Standard on Sustainability Assurance, ISSA 5000. The AUASB is working on a proposal for planned Australian adoption. #Sustainability #Reporting #AASB #IFRS #PwCAustralia #PwC

🌟 **IAASB Releases New International Sustainability Reporting Assurance Standard** Key insights: - **Global Standard**: The International Auditing and Assurance Standards Board (IAASB) has published the International Standard on Sustainability Assurance 5000 (ISSA 5000), a global baseline for sustainability assurance engagements. - **Regulatory Alignment**: This standard aligns with emerging sustainability disclosure standards, including the EU’s Corporate Sustainability Reporting Directive (CSRD) and IFRS climate and sustainability reporting standards. - **Industry Relevance**: Companies are under increasing pressure to provide ESG assurance, with over half of CFOs and investors believing that independent third-party assurance builds credibility in sustainability reporting. Actionable takeaways: 1. **Ensure Compliance**: Companies must comply with new sustainability reporting standards and regulatory requirements. 2. **Invest in Assurance**: Implementing ESG assurance can enhance the credibility and accuracy of sustainability reports. 3. **Global Application**: The ISSA 5000 is designed to work across multiple jurisdictions, making it a global standard for sustainability assurance. Read more: https://lnkd.in/dqVdYfB9 #ESG #SustainabilityReporting

good summary for leaders who want to know what matters, in simple terms.

Further to my post on Saturday.... the Australian Accounting Standards Board (AASB) finalised and approved the first two Australian Sustainability Reporting Standards (AASB S1 & S2) last Friday. To help organisations needing to get across the final requirements PwC have pulled together an article that summarises: - The new Australian sustainability reporting requirements; - Differences from exposure draft proposals; - Core mandatory requirements and reporting timelines; and - Some practical steps for businesses to prepare, stay ahead, and ensure compliance. Read more at: https://lnkd.in/gejQUgqc #Sustainability #Reporting #AASB #IFRS #PwCAustralia #PwC

𝐓𝐡𝐞 𝐅𝐮𝐭𝐮𝐫𝐞 𝐨𝐟 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐀𝐬𝐬𝐮𝐫𝐚𝐧𝐜𝐞: 𝐈𝐀𝐀𝐒𝐁 𝐏𝐮𝐛𝐥𝐢𝐬𝐡𝐞𝐬 𝐆𝐥𝐨𝐛𝐚𝐥 𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝 (𝐈𝐒𝐒𝐀 𝟓𝟎𝟎𝟎) 🌱 International Auditing and Assurance Standards Board (IAASB) has finalized and published its new International Standard on Sustainability Assurance 5000 (ISSA 5000). 𝐊𝐞𝐲 𝐏𝐨𝐢𝐧𝐭𝐬: o The new standard provides a global baseline for sustainability assurance, addressing the growing need for credible and independent verification of sustainability and climate-related disclosures. o With more companies reporting on environmental, social, and governance (ESG) factors, ISSA 5000 aligns with new regulations like the EU’s Corporate Sustainability Reporting Directive (CSRD) and the IFRS Sustainability Standards from the International Sustainability Standards Board (ISSB). o Many reporting systems now require external assurance on sustainability reporting to enhance trust and ensure accuracy. This includes the CSRD and a growing trend in global ESG frameworks, such as the Global Reporting Initiative (GRI) and ISO standards. 𝐊𝐞𝐲 𝐅𝐞𝐚𝐭𝐮𝐫𝐞𝐬 𝐨𝐟 𝐭𝐡𝐞 𝐒𝐭𝐚𝐧𝐝𝐚𝐫𝐝: o Applicable for both limited and reasonable assurance engagements. o Designed to support double materiality, considering both the impact of sustainability on the business and the business's impact on society and the environment. o Flexible across various sustainability reporting frameworks and jurisdictions. o While the standard is particularly relevant for European companies under the CSRD, it is designed as a global framework, offering consistency for sustainability assurance across all jurisdictions. 𝐖𝐡𝐲 𝐓𝐡𝐢𝐬 𝐌𝐚𝐭𝐭𝐞𝐫𝐬 : o As the demand for transparency grows, stakeholders—including investors and regulatory bodies—are increasingly calling for independent third-party assurance on ESG disclosures. o With stricter regulations, including the EU's CSRD, external assurance is now mandatory for many companies, making ISSA 5000 a critical tool for meeting these new compliance standards. o The ISSA 5000 provides a unified global framework, ensuring consistent sustainability assurance across borders, regardless of the reporting framework in use. o By setting clear, globally accepted standards for assurance, the IAASB helps to address concerns about the reliability and accuracy of sustainability data, empowering businesses to build trust with investors, regulators, and the public. o The new standard has received backing from IOSCO, the global body for securities regulators, underscoring its global relevance and the industry's commitment to establishing a comprehensive framework for sustainability assurance. #SustainabilityAssurance #ISSA5000 #IAASB #ESG #SustainabilityReporting #CorporateDisclosure #ClimateRisk #CSRD #GlobalStandards #ESGAssurance #Audit https://lnkd.in/dyJ9YxyR

Canada-specific sustainability reporting standards look set to land on Canadian shores. The Canadian Sustainability Standards Board (CSSB) has issued its inaugural proposed sustainability reporting standards in the form of 'CSDS1' and 'CSDS2'. CSSB is charged with advancing sustainability disclosure standards in Canada which align with the IFRS standards, but which are adapted to the Canadian context. CSSB is open for feedback on its proposed standards until June 10th, 2024. As with the IFRS standards, the purpose of the CSSB standards is to bring about globally aligned sustainability reporting to harmonize the sustainability information on companies available to investors as they make their decisions on capital allocations. Consistency, comparability and decision-usefulness of sustainability-related information for end users is the ambition. This is to enable investors to "review, understand and compare this information across countries and companies" (to quote CSSB). Those hoping for significant Canada-specific changes to the IFRS sustainability standards will be disappointed. The only material changes are to timeframes for the effective date and transition periods for phasing in reporting under the proposed regimes. Generally, the timing for adoption is pushed out by a year or two, with the first tranche of disclosures (climate-related) to begin in the 2025 annual reporting period. Otherwise, the CSSB proposed standards adopt wholesale the IFRS S1 and S2 standards.  Accordingly, companies up to speed with the IFRS standards will be prepared for the CSSB proposed standards. If CSDS1 and CSDS2 are ultimately adopted by CSSB, disclosures under them will include information on the company's climate-related (CSDS2) and sustainability-related (CSDS1) risks and opportunities under the following categories: governance, strategy, risk management, and metrics and targets. Companies already reporting under existing sustainability disclosure frameworks such as TCFD will have a head start on CSSB readiness, but there's still plenty of time for others. We can help: our dedicated ESG team has broad experience in assisting companies with their ESG reporting. Please reach out if you would like our help navigating this complex and rapidly evolving field. #Sustainability #CSSB #Canada #CorporateResponsibility #ClimateAction

📑 How Malaysian Companies Can Prepare for IFRS S1 and S2 📑 ESG reporting is an increasing trend as evidenced by developments in other countries. There will be a greater or increased focus on sustainability reporting, a necessity for additional and concerted resources to be focused on ESG, and continued efforts in establishing governance, assessing risks and developing comprehensive disclosures. With the implementation of IFRS S1 and S2 on the horizon, Malaysian companies must tactically align with the increasing emphasis on ESG reporting and sustainability. The Advisory Committee on Sustainability Reporting (“ACSR”) has indicated that IFRS with reliefs will be available through 2025 and 2026, with full implementation potentially required by 2027. Given the earliest implementation of IFRS S2 could occur within the next 18 months, it's crucial to start preparing now. 📝 Steps to Prepare for IFRS S1 and S2 📝 ✒ Develop Internal Capacity: Build and enhance your team’s expertise in ESG and sustainability reporting. This includes investing in training and potentially hiring specialists to manage the transition. ✒ Conduct a Gap Analysis: Evaluate your current ESG practices against the new IFRS standards and identify gaps and areas for improvement to ensure your practices are up to date. ✒ Create an Implementation Roadmap: Develop a comprehensive plan outlining the steps needed to achieve compliance, which should include specific timelines, assigned responsibilities, and key milestones. ✒ Undertake Climate Risk Assessments: Assess the potential impact of climate-related risks on your business operations. Incorporate these findings into your ESG strategy to address and mitigate risks effectively. ✒ Allocate Resources: Dedicate sufficient resources—financial, technological, and human—to ESG reporting and compliance efforts. Ensure your company is well-equipped to meet the new standards. As the global focus on sustainability reporting intensifies, it’s important to allocate additional resources towards ESG initiatives, strengthen governance, assess risks, and develop comprehensive disclosures. For insights into global progress and how other countries are adapting, explore: 🔗 Responsible Investor ISSB Adoption Tracker: https://lnkd.in/gSFFDsvY 🔗 ESG Policy Digest - June 2024: https://lnkd.in/egKrvXMa #ESG #Sustainability #IFRS #S1 #S2 #Reporting #Risk #Disclosure #Corporate #Governance #Malaysia 

The Canadian Sustainability Standards Board (CSSB) announced the release of its first proposed Canadian Sustainability Disclosure Standards (CSDS), aligned to #IFRS Sustainability S1 and S2. Although the CSDS are aligned to S1 and S2, they include several “Canadian-specific modifications.” Key changes from the IFRS standards include pushing off the effective date by a year, with the standards becoming effective for reporting periods beginning on or after January 1, 2025, as well as extending the reliefs for certain aspects of the new requirements, with disclosure of Scope 3 and disclosures beyond climate-related risks and opportunities required 2 years after the implementation of the requirements, compared to the 1-year relief included in the IFRS standards. These requirements take the place of required #TCFD reporting that would have taken effect this year. The standards are open for comment. #ESGreporting #sustainabilityreporting #climatereporting

Very helpful guide to the Australian ESG disclosure requirements