A Commitment to Trustworthy Sustainability Reporting and Assurance
The IESBA's global sustainability standards address critical ethics and independence challenges in sustainability reporting and assurance, including risks like conflicts of interest, pressure, and bias leading to Greenwashing. The International Ethics Standards for Sustainability Assurance (IESSA) and related revisions provide a robust ethical and independence framework to protect investors, consumers, and society against misleading sustainability information and illicit financial flows hiding behind “green” objectives. The Use of Experts revisions establish clear guidance for assessing the competence, objectivity, and capabilities of external experts, ensuring reliable and trustworthy contributions to sustainability assurance.
IESBA's Ethics in Sustainability Standards Certified for PIOB and Ready for Global Release!
IESBA welcomes the Certification of its Global Ethics and Independence Standards for Sustainability Reporting and Assurance
Represents a Major Step Forward for Integrity and Public Trust in Sustainability Information
Executive Summary on IESBA's Proposed Ethics Standards for Sustainability Reporting and Assurance
IESSA At A Glance
This overview, developed by IESBA Staff, highlights key elements of IESBA's recently released exposure drafts on International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA) and Other Revisions to the Code Relating to Sustainability Assurance and Reporting and Using the Work of an External Expert.
Proposed standards aim to foster greater trust in all publicly communicated sustainability information through the application of a consistent ethical approach
-
About the Standards
The Exposure Draft on International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA) and ethics standards for sustainability reporting proposes a clear framework of expected behaviors and ethics provisions for use by all sustainability assurance practitioners regardless of their professional backgrounds, as well as professional accountants involved in sustainability reporting. The goal of these standards is to mitigate greenwashing and elevate the quality of sustainability information, thereby fostering greater public and institutional trust in sustainability reporting and assurance.
The Exposure Draft on Using the Work of an External Expert proposes an ethical framework to guide professional accountants or sustainability assurance practitioners, as applicable, in evaluating whether an external expert has the necessary competence, capabilities and objectivity in order to use that expert’s work for the intended purposes. The proposals also include provisions to aid in applying the Code’s conceptual framework when using the work of an external expert.
These proposed ethics (including independence) standards are especially relevant in a context where sustainability information is increasingly important for capital markets, consumers, corporations and their employees, governments and society at large, and when new providers outside of the accounting profession play a prominent role in sustainability assurance.
-
Links to the Final Standards and other official IESBA Publications
-
What You Need to Know (Short Video)
Video file
-
Global Voices of IESBA Discuss Ethics in Sustainability
-
Additional IESBA Materials
IESBA's Sustainability Reference Group
IESBA's Sustainability Reference Group (SRG) has been established to support the work of its Sustainability Task Force. The SRG members have been selected based on a series of criteria, including their background, experience or expertise in sustainability reporting or assurance, stakeholder groups, and geographical location. The members will act 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.
The SRG will be chaired by Mr. Channa Wijesinghe, IESBA Member and Sustainability Task Force Member.
The SRG Members are:
- Kenneth Amaeshi, European University Institute, Africa
- Antonio Astone, DNV, Europe
- Michael Bray, Deakin University, Oceania
- Charlotte Drain, Deloitte LLP, Europe
- Dongsoo Kim, AccountAbility, Asia
- Kristian Koktvedgaard, Confederation of Danish Industry and EFRAG Sustainability Reporting Board Member, Europe
- Olga Rivas, Independent International Organisation for Certification, Global
- Samantha Ross, AssuranceMark, North America
- Michael Tang, SGX Group, Asia
Objectives of Sustainability Reference Group (SRG)
- To act as a sounding board to the IESBA’s Sustainability Task Force on proposals relating to the development of global ethics and independence standards for sustainability reporting and assurance (“IESBA sustainability standards”).
- To provide insights, expertise or advice on identified areas or matters relating to the development of the IESBA sustainability standards.
- To provide input to, or otherwise assist in, the development of non-authoritative guidance material relating to the application of the IESBA sustainability standards.
ImageEthics Considerations in Sustainability Reporting: Including Guidance to Address Concerns About Greenwashing
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.
This publication is intended to highlight the relevance and applicability of the Code to several ethics-related challenges arising from professional accountants' involvement in sustainability reporting and assurance, especially circumstances related to misleading or false sustainability information (i.e., "greenwashing").
IESBA Global Sustainability Roundtables
The International Ethics Standards Board for Accountants (IESBA) held a series of four global roundtables to obtain stakeholder input to help shape the development of new ethics and independence standards for sustainability reporting and assurance.
The all-day roundtables, held in person in Paris, France (March 24), Sydney, Australia (March 30), Singapore (April 3), and New York (April 6), allowed stakeholders to convey relevant information to be addressed in developing the new standards. They were attended by members of the investor and corporate governance communities, C-suite executives, data aggregators, rating agencies, regulators and oversight bodies; international policy-making organizations; national standard setters; preparers; professional accountancy organizations; and sustainability assurance providers, including accountancy firms and independent providers outside the accountancy profession.
Read the briefing materials for attendees here.
The IESBA announced in June 2022 its commitment to take timely action to develop fit-for-purpose, globally applicable ethics and independence standards as a critical part of the infrastructure needed to support transparent, relevant, and trustworthy sustainability reporting and assurance. Importantly, this strategic commitment sets up the IESBA’s ethics and independence standards as the third pillar to trustworthy sustainability reporting and assurance, alongside the standards being developed by the International Sustainability Standards Board (ISSB) and the International Auditing and Assurance Standards Board (IAASB).
In December 2022, the IESBA approved two new standard-setting projects that will develop profession-agnostic ethics and independence standards for sustainability reporting and assurance and on the related topic of “use of experts.”
The IESBA's Sustainability Reference Group
IESBA's Sustainability Reference Group (SRG) has been established to support the work of its Sustainability Task Force. The SRG members have been selected based on a series of criteria, including their background, experience or expertise in sustainability reporting or assurance, stakeholder groups, and geographical location. The members will act 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.
The SRG will be chaired by Mr. Channa Wijesinghe, IESBA Member and Sustainability Task Force Member.
The SRG Members are:
- Kenneth Amaeshi, European University Institute, Africa
- Antonio Astone, DNV, Europe
- Michael Bray, Deakin University, Oceania
- Charlotte Drain, Deloitte LLP, Europe
- Dongsoo Kim, AccountAbility, Asia
- Kristian Koktvedgaard, Confederation of Danish Industry and EFRAG Sustainability Reporting Board Member, Europe
- Olga Rivas, Independent International Organisation for Certification, Global
- Samantha Ross, AssuranceMark, North America
- Michael Tang, SGX Group, Asia
Objectives of Sustainability Reference Group (SRG)
- To act as a sounding board to the IESBA’s Sustainability Task Force on proposals relating to the development of global ethics and independence standards for sustainability reporting and assurance (“IESBA sustainability standards”).
- To provide insights, expertise or advice on identified areas or matters relating to the development of the IESBA sustainability standards.
- To provide input to, or otherwise assist in, the development of non-authoritative guidance material relating to the application of the IESBA sustainability standards.