IESBA, IAASB to launch global sustainability assurance rules

The International Ethics Sustainability Board for Accountants said Friday its Global Ethics Sustainability Standards have been certified by the Public Interest Oversight Board, which oversees IESBA, as well as the International Organization of Securities Commissions, ahead of the official launch later this month.

Both the PIOB and IOSCO issued a statement of support calling on their members to either apply or be informed by the new framework.

The official launch of the new standards will occur on Jan. 27, 2025, in conjunction with the International Auditing and Assurance Standards Board’s International Standard on Sustainability Assurance 5000 (ISSA 5000). The IESBA and IAASB coordinated on developing interoperable global standards for assurance, ethics and independence for sustainability assurance engagements. They are both affiliated with the International Federation of Accountants.

The Global Ethics Sustainability Standards include the International Ethics Standards for Sustainability Assurance (including International Independence Standards) and the revisions to the International Code of Ethics for Professional Accountants (including International Independence Standards) related to sustainability reporting and to the use of the work of an external expert.

The new standards offer an ethical framework for reporting and assuring sustainability-related information to provide more reliable information to investors, lenders, customers, suppliers, government, regulators and other stakeholders. The new standards and revisions to the code of ethics include guidance on use of the work of outside experts. They also address risks to the integrity, quality and effectiveness of sustainability reporting and assurance such as bias, conflicts of interest, pressure to act unethically, fraud including greenwashing, noncompliance with laws and regulations, and threats to the independence of assurance practitioners.

“The certification of IESBA’s new ethics standards framework for sustainability and experts, along with IOSCO’s call for its members to adopt or be informed by the framework, marks a significant step to cement ethics as the foundation of trust and accountability in sustainability reporting and assurance,” said IESBA chair Gabriela Figueiredo Dias in a statement Friday. “The global sustainability standards infrastructure is now complete, with the ethics piece providing foundational instruments to underpin transparent, relevant and trustworthy sustainability information. Looking forward to the joint launch with IAASB of the new ethics and assurance standards, join us on January 27.”

The final standards can be found on IESBA’s website.