The ethical angle
Professional competence and due care There is a real danger that professional accountants won’t have the necessary knowledge to provide assurance on sustainability information. Competency washing can also be an issue – whereby assurance providers exaggerate their level of expertise. While many companies have been reporting on sustainability matters for Assurance providers need to adhere to relevant ethical codes of practice, just as when they are performing other professional engagements. The IESBA Code of Ethics includes the principles of integrity, objectivity, professional competence and due care, confidentiality and professional behaviour and these all apply to sustainability matters.
Objectivity There are many ways that objectivity can be threatened. For example, if a medium-sized company asks its audit provider to help with its sustainability reporting, a number of ethical issues arise regarding objectivity. The audit firm could be at risk from a self-interest threat, in that providing the work could be a strategic win, giving the firm exposure in this new, dynamic and potentially lucrative field of work. And advertising their experience in the area could help them win more clients. The years, for assurance providers the new reporting standards are largely unfamiliar territory, so there is a real issue that professional accountants won’t have the necessary knowledge to provide assurance on sustainability information. Knowledge can be developed, but a deeper level of understanding can’t be developed overnight.
SUSTAINABILITY ASSURANCE | THE ETHICAL ANGLE
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