Technical Briefing: Sustainability Assurance

Standards

Sustainability standards provide guidance on how organisations should present information about how they deal with environmental risks, opportunities and practices. You may come across all sorts of standards that deal with particular types of business activity. If you’re operating in a particular business vertical or sector, you should acquaint yourself with the relevant rules that exist governing that type of activity. However, there are three standards that are aimed specifically at accountants: IFRS S1 Focuses on sustainability risks and opportunities, and the disclosures that companies should make concerning them and their likely impact on future cash

flows, access to capital, and cost of borrowing. IFRS S2 Looks specifically at climate related disclosures. ISSA 5000 Governs sustainability assurance engagements. Together these standards make up the current financial reporting framework (IFRS S1 & S2) and the guidelines for providing an external independent validation of the numbers – giving them a stamp of approval (ISSA 5000).

SUSTAINABILITY ASSURANCE | STANDARDS

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