Leila Hellgren’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 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

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

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

🌟 **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

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

𝐄𝐒𝐆𝐢𝐧𝟑: 𝐒𝐮𝐬𝐭𝐚𝐢𝐧𝐚𝐛𝐢𝐥𝐢𝐭𝐲 𝐀𝐬𝐬𝐮𝐫𝐚𝐧𝐜𝐞 𝐢𝐧 𝐭𝐡𝐞 𝐬𝐩𝐨𝐭𝐥𝐢𝐠𝐡𝐭!💡 #𝐂𝐎𝐏𝟐𝟗 – the finance COP – has highlighted the critical importance of high-quality sustainability and climate-related data, disclosures, governance, controls, and assurance, as critical to unlock capital to finance the energy transition. During COP29 week 1, the International Auditing and Assurance Standards Board (IAASB) released the finalized version of their sustainability assurance standard, the International Standard on Sustainability Assurance 5000 (ISSA 5000) (https://lnkd.in/e7r2WXVT). The new standard will apply to both limited and reasonable assurance and will be critical for upcoming assurance requirements under the CSRD. It can also be used for ISSB-aligned reports. With this backdrop, Deloitte is proud to be named a leader in the inaugural #ESG & #Sustainability Assurance Services 2024 Report by Verdantix. This recognition underscores our commitment to leveraging deep auditing and accounting experience to provide independent assurance to clients seeking to drive trust and confidence in their sustainability reporting and comply with evolving sustainability regulation. 📌 This research highlights the important role of assurance in the evolving sustainability regulatory and reporting landscape, with a critical emphasis on the application of recognized assurance, ethics, and independence standards required to be followed by registered audit firms. 📌 We were credited for being the firm to work with for large multinationals seeking one provider for integrated sustainability and financial reporting and assurance solutions, to meet the demands of stakeholders and regulators. 📌 Our pre-assurance services received the highest score of all providers assessed. This is a reflection of our deep expertise in sustainability reporting standards, ongoing engagement with regulators and standard-setters, and our own digital solutions.    🔍 Learn more: https://lnkd.in/eRE7nZAp #SustainabilityLeadership #assurance #deloitteesgnow

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.)

We're encouraged to learn that International Auditing and Assurance Standards Board (IAASB) has approved the ISSA 5000—a global standard that will apply to sustainability information reported across any sustainability topic and prepared under multiple frameworks—in a move that marks a milestone in advancing sustainability assurance.   With the standard set to formally publish by the end of the year, read our alert to learn more about a CPA’s role in third-party assurance over sustainability information. The accountancy profession is well-positioned to provide the assurance required to avoid greenwashing and maintain credibility within sustainability reporting. https://lnkd.in/gfYkChwe