IAASB approves ISSA 5000

The International Auditing and Assurance Standards Board (IAASB) approved the International Standard on Sustainability Assurance 5000 (ISSA 5000) on 20 September 2024. The standard text is currently being finalised, with the final text expected to be announced before the end of the month and the final standard officially published by the end of the year. Supporting materials are expected to be published in January 2025.

Background: The ISSA 5000 is intended to serve as an internationally applicable standard for the assurance of sustainability information with limited or reasonable assurance. It is a principles-based standard that can be used independently of the frameworks or standards used for sustainability reporting and by different assurance providers. European associations for auditors assume that the ISSA 5000 will be adopted by the European Commission as an assurance standard for sustainability reporting in accordance with the CSRD by means of a delegated act. The CSRD requires the adoption of an assurance standard for obtaining limited assurance in relation to the audit of sustainability reporting by 1 October 2026 at the latest. In addition, the European Commission shall assess whether an assurance standard for obtaining reasonable assurance should also be developed (Article 26a of the Statutory Audit Directive, Directive 2006/43/EC).

In June 2024, the Committee of European Auditing Oversight Bodies (CEAOB) published proposals for guidelines on obtaining limited assurance in relation to sustainability reporting. The CEAOB thus complied with the European Commission’s request to develop overarching and risk-based guidelines that those tasked with auditing sustainability reports can use as a guide for the time being in the absence of existing international standards.

The International Auditing and Assurance Standards Board (IAASB) approved the International Standard on Sustainability Assurance 5000 (ISSA 5000) on 20 September 2024. The standard text is currently being finalised, with the final text expected to be announced before the end of the month and the final standard officially published by the end of the year.