IAASB Submits Comments on Draft ISSB Sustainability Standards

The International Standards Board on Auditing and Assurance Engagements (IAASB) provided comments to the International Sustainability Standards Board (ISSB) on its sustainability and climate change disclosure projects. In its letter, the IAASB noted the importance of reliable, high quality, globally consistent sustainability reporting that investors and regulators can trust.


"The reliability and quality of sustainability reporting and maintaining the confidence of investors and regulators in sustainability information depend on the performance of all links in the reporting chain - from compilers (i.e., the organization and its management), those responsible for managing users, assurance practitioners, standard setters, regulators and supervisors.Just as for financial reporting, providing assurance in sustainability reporting plays a key role in building investor confidence.This is why the IAASB commentary focuses on the ability of practitioners to obtain assurance regarding reporting in the field of sustainability, prepared in accordance with the draft standards of the ISSB, which is why we are ready to cooperate with and support the ISSB," said Tom Seidenstein, Chairman of the IAASB.


The IAASB highlighted the value of long-term collaboration between the IAASB and the ISSB, as well as the International Ethics Standards Board for Accountants, to strengthen the relationship between sustainability reporting, external sustainability assurance and ethical standards - especially as standards become more refined and improved . Ensuring confidence in sustainability reporting must play a critical role in enabling organizations to demonstrate the reliability and validity of their sustainability reporting.


The IAASB initiated the development of an engagement standard for sustainability reporting. At the IAASB meeting in June 2022, the IAASB committed to developing a specific standard for assurance of sustainability reporting. This path towards improved standards for reaffirming the sustainable development goals was recently marked by the decision of the Financial Stability Board to include the work of the IAASB in its Roadmap to Address Climate Change-Related Financial Risks.

IAASB Submits Comments on Draft ISSB Sustainability Standards