Himanshu Arora (Ph.D)’s Post

The International Auditing and Assurance Standards Board (IAASB) has published the International Standard on Sustainability Assurance 5000 (ISSA 5000). This global standard sets the stage for consistent and credible assurance of sustainability reports, aligning with frameworks like CSRD and ISSB. Designed for flexibility across jurisdictions, it supports both limited and reasonable assurance engagements. This is a significant step toward enhancing trust and transparency in ESG reporting. https://lnkd.in/e3kZ4rGd #Sustainability #ESGReporting #Assurance

This is a major milestone for sustainability assurance! As experts with deep roots in assurance, ESG Lynk is uniquely positioned to help businesses align with these new standards. With a standardized approach that supports diverse frameworks and assurance levels, we’re ready to guide organizations in enhancing the credibility and transparency of their ESG reporting. Together, we can leverage ISSA 5000 to advance sustainable practices and foster trust in global markets.🌱 #Sustainability #ESGReporting #Assurance

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

The International Auditing and Assurance Standards Board (IAASB) has now officially approved its International Standard on Sustainability Assurance (ISSA) 5000. 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. It provides much needed consistency for accountants and assurance practitioners as they navigate the complex world of sustainability disclosures. 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. It also enhances transparency in assurance engagements, requiring clear reporting of the scope, methodology, and limitations of the assurance work conducted. The standard applies to all forms of sustainability reporting with 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. The EU is developing its own assurance standard, aligned with ESRS. The CSRD requires the adoption of limited assurance standards by the European Commission by 1 October 2026 at the latest. ISSA 5000 is likely to be a valuable input in that process. Meanwhile, the Committee of European Auditing Oversight Bodies (CEAOB) has issues guidelines to support limited assurance on sustainability reporting compliant with ESRS, the reporting framework mandatory under CSRD. The guidelines can be downloaded here: https://lnkd.in/dzjTTvem ISSA 5000 can be downloaded here: https://lnkd.in/deH2W6cN #getCSRDready, #CSRD, #ESRS, #CSDDD, #ESG, #Strategy, #Governance, #SustainabilityReporting, #Digitalisation, #CleeritESG https://lnkd.in/d5pZdRkX

On 20 September 2024 the International Auditing and Assurance Standards Board (IAASB) approved the International Standard on Sustainability Assurance (ISSA) 5000, issued for public consultation in August 2023. It is expected to be formally publish by the end of the year, together with guidance and application materials in January 2025. Momentum is gathering for increased sustainability/environmental, social, and governance (ESG) reporting requirements for companies all over the world. With global assets in sustainability and ESG-related investment vehicles due to surpass $53 trillion by 2025, the need for reliable, neutral, and comprehensive frameworks for reporting sustainability information is evident. And policymakers and regulatory bodies have taken note. The EU Corporate Sustainability Reporting Directive (CSRD) and the ESRS standards are an important example in that direction. So is the establishment of the International Sustainability Standards Board (ISSB) by IAASB’s counterpart organization, the IFRS Foundation, and the IFRS S1 and S2 standards, issued by the ISSB last summer. And with this, demand for assurance engagements that enhance the degree of confidence of the intended users of sustainability/ESG reporting is growing. ISSA 5000 will serve as a comprehensive, stand-alone standard suitable for any sustainability assurance engagements. It will apply to sustainability information reported across any sustainability topic and prepared under multiple frameworks. It is a principles-based standard, focused on principles or outcomes rather than procedures or steps. This allows the assurance practitioner to apply their professional judgment in planning and performing the assurance engagement. Building a mature reporting and assurance ecosystem for sustainability will not happen overnight. ISSA 5000 is an important step in the right direction. So are the technical guidelines for CSRD sustainability assurance issued by French H3C, now H2A: https://lnkd.in/dQbh_G65 The Committee of European Audit Oversight Bodies (CEAOB) has also issued draft guidelines for limited assurance engagements on sustainability reporting under the CSRD: https://lnkd.in/d8xNEY49 The objective of CEAOB is to facilitate the harmonisation of the sustainability assurance across the EU before the European Commission (EC) adopts EU limited assurance standard in 2026. ISSA 5000 sources: https://lnkd.in/erx5HQ_r https://lnkd.in/dFWsuMxd #getCSRDready, #CSRD, #ESRS, #CSDDD, #ESG, #Strategy, #Governance, #SustainabilityReporting, #Digitalisation, #CleeritESG

With so many daily ESG related news articles, particularly around the increasingly demanding regulatory agenda such as the joyful CSRD, one could be excused for not having noted the IASSB recently finalised International Standard on Sustainability Assurance (ISSA) 5000 publication from the IASSB. As an Assurance practitioner who has worked with clients on their ESG Assurance agenda for many years, I am particularly excited with this move towards more aligned Assurance and what it represents for longer term collaborative working on this agenda. 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. It is specifically designed to be a global baseline, aligning with EU’s CSRD and supports various sustainability frameworks including ISSB and GRI. A few key features to note: -       Effective for assurance engagements on sustainability information reported for periods beginning on or after December 15, 2026, or as at a specific date on or after December 15, 2026. Early application is permitted. -       Applicability for both limited and reasonable assurance engagements as well as its applicability to all sustainability subject matter -       It incorporates traditional materiality and double materiality concepts, vital for meeting EU requirements. -       Risk Assessment: Detailed guidance on assessing risks related to sustainability information. -       Evidence Gathering: Clear procedures for obtaining sufficient and appropriate evidence. -       ISAE 3410, traditionally used for GHG Assurance, is incorporated into the new standard and will be withdrawn once ISSA 5000 becomes effective. -       The IAASB will release a package of guidance and support videos in relation to the standard in January 2025. The standard also clearly references expectations on quality management of the assurance provider at an ISQM 1 level or other ‘as demanding professional standard’, this will be an important consideration as the UK grapples with its vision around the long term Sustainability Regulatory and Assurance landscape. We all look forward to more guidance as we navigate this pathway together..... #BDOESG #CSRD #ISSA5000 IAASB Announcement (12 November 2024) https://lnkd.in/ei7hYFkb

Sustainability Assurance Initial findings from an FRC study highlight market immaturity, quality inconsistencies and the need for a clear regulatory framework, against a backdrop of increasing demand for sustainability assurance services. (FRC stands for Financial Reporting Council, the UK's independent regulator of auditors, accountants and actuaries. It sets standards, monitors and enforces compliances and sets the UK’s Corporate Governance and Stewardship Codes.) As I discovered, while the study is UK-centric, a lot of information published is highly relevant for other jurisdictions also. The link is: https://lnkd.in/gAE-7XCB #Sustainabilityassurance

How do the TNFD recommendations support corporate sustainability reporting? Quite a lot as it turns out. Check out our latest blog below. In the wake of growing global commitments to nature and an increasing stakeholder interest in how nature-related matters influence value creation, understanding an organization's interactions with nature has never been more critical. Recognizing this imperative, the Taskforce on Nature-related Financial Disclosures (TNFD) has released its final disclosure recommendations and guidance. This pivotal framework empowers organisations to navigate nature-related challenges effectively, fostering resilience and unlocking new value streams in the process. For entities covered by the EU's Corporate Sustainability Reporting Directive (CSRD) and the European Sustainability Reporting Standards (ESRS), or those preparing for forthcoming laws in sync with the International Sustainability Standards Board’s (ISSB) IFRS Sustainability Disclosure Standards (SDS), the TNFD’s insights serve as invaluable tools. They guide organisations in pinpointing their nature-related dependencies, impacts, risks, and opportunities. This process not only enhances sustainability reporting but also positions organisations at the forefront of sustainable development, aligning operational strategies with ecological stewardship. Embrace this opportunity to steer your organisation towards a sustainable future, guided by the TNFD’s comprehensive framework. Let's collectively work towards a resilient and value-driven approach to nature, ensuring a thriving planet for generations to come. https://lnkd.in/eu3kHpbu #Sustainability #TNFD #NatureRelatedRisks #CSRD #ESRS #SustainableDevelopment

Did you know that there is a standard for auditing sustainability reports? 📄 Me neither. Last Friday, the International Auditing and Assurance Standards Board (IAASB) approved the International Standard on Sustainability Assurance (ISSA) 5000. What is important to know: First, there are standards for auditing financial reports. Sure thing. These are intended to ensure the quality of auditors' work by laying out how, in what way, and in what form auditors should arrive at their judgments of a report. The recognized standards for this are the International Standards on Auditing (ISAs). Now, a similar standard exists for sustainability reports: The International Standard on Sustainability Assurance (ISSA) 5000. What the ISAs are for financial reports, the ISSA is for sustainability reports. The IAASB developed the ISSA 5000 to work with sustainability reporting frameworks like those developed by the ISSB. They collaborate to ensure their standards are compatible. However, the standard can also be used to work with reports published under the ESRS. (Please link the final version in the comments, if you have it. I only found the exposure draft.)