Sangna Kansagra’s Post

🌟 **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 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

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

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

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 article clearly explains the distinction between limited assurance and reasonable assurance in the context of ESG (Environmental, Social, and Governance) reporting. It is crucial for users to understand this difference and scrutinize the level of assurance provided for the various aspects of ESG information, even though ESG reporting remains voluntary in many countries. However, this landscape is beginning to change, as new rules and regulations are emerging. Specifically, the EU's Corporate Sustainability Reporting Directive (CSRD) has already come into effect for the largest businesses operating in the European region. This regulation takes a staggered approach, whereby companies can initially start with limited assurance, but must transition to reasonable assurance over a four-year period. Additionally, smaller companies will also be required to embark on this journey under the CSRD starting next year. In summary, the article highlights the importance of understanding the differences between limited and reasonable assurance in ESG reporting, and how the regulatory environment is evolving, with the CSRD mandating a gradual shift towards more stringent reasonable assurance requirements for companies.

The IAASB's launch of ISSA 5000 sets a major milestone for global sustainability reporting, providing a universal standard for assurance on ESG disclosures. This new framework enhances transparency, reliability, and confidence in sustainability reports, responding to rising demands from investors and regulators. By addressing both financial and sustainability impacts, ISSA 5000 aims to ensure that organizations’ ESG commitments are credible and verifiable, marking a leap forward in corporate accountability and sustainable finance. https://lnkd.in/g5hCsW_5