Sustainability

The IESBA is committed to being part of the rapidly progressing developments regarding sustainability reporting and assurance and providing timely responses to ethics and independence-related concerns. As part of its Sustainability Project, the IESBA is developing:

• Sustainability-related revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) to address the ethics issues professional accountants might face while providing sustainability-related professional services (including sustainability reporting and assurance); and
• Ethics and independence standards for use and implementation by all sustainability assurance practitioners (i.e., professional accountants and other professionals performing sustainability assurance engagements).

 The Sustainability Task Force consists of two separate workstreams focusing on the ethics and the independence aspects of the Task Force’s work.

The Task Force coordinates closely with other global standard-setters in the field of sustainability reporting and assurance, including IAASB and International Sustainability Standards Board (ISSB), as well as the IESBA Task Force on the Use of Experts.

The IESBA's Sustainability Reference Group acts as a "sounding board" to the Sustainability Task Force, providing insights, expertise, or advice relating to the development of global ethics and independence standards for sustainability reporting and assurance. 

PROJECT FOCUS PAGE

• Website

IESBA December 2024 Meeting Highlights

The IESBA approved the International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA) and other revisions to the Code relating to sustainability assurance and reporting.

Except for the independence provisions applicable to assurance work performed at value chain components (VCCs), the IESBA agreed to align the effective date of the IESSA with the effective date of the International Auditing and Assurance Standards Board’s (IAASB) International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements, i.e., for sustainability assurance engagements (SAEs) for periods beginning on or after December 15, 2026, or as at a specific date on or after December 15, 2026.

With respect to the independence provisions applicable to assurance work performed at VCCs, the IESBA agreed to a longer effective date (“deferred effective date”), i.e., for SAEs for periods beginning on or after July 1, 2028 or as at a specified date on or after July 1, 2028, subject to certain requirements for SAEs involving assurance work performed at VCCs beginning, or as at a specific date, prior to this date.

The sustainability reporting-related revisions will be effective as of December 15, 2026.

The IESBA also discussed a draft Basis for Conclusions prepared by IESBA staff.

Subject to certification by the Public Interest Oversight Board (PIOB), the final pronouncement is expected to be issued by the end of January 2025.