The Board of IOSCO congratulates the International Ethics Standards Board for Accountants (IESBA) on achieving an important milestone of finalizing their International Ethics Standards for Sustainability Assurance (including International Independence Standards) (IESSA) and Other Revisions to the Code Relating to Sustainability Assurance and Reporting. IOSCO notes the extensive and thorough outreach program conducted by the IESBA throughout the lifecycle of the development of IESSA.
IOSCO reiterates its support for this work and commends the IESBA for its timely development of the standard in response to the public interest need for ethics (including independence) standards to cover all sustainability assurance providers.
The final standard is responsive to the key considerations and observations set out by IOSCO in its 2023 report and 2024 public statement. IOSCO believes the standard can support high-quality assurance over sustainability-related information and may enhance consistency, comparability and reliability of sustainability-related information provided to the market. The final standard together with the IESBA’s plan to develop implementation support materials and other capacity-building efforts, can contribute to enhancing trust in the sustainability-related information provided to investors.
Recognizing that individual jurisdictions have different domestic arrangements regarding the consideration of international ethics and independence standards, IOSCO calls on members to consider ways in which they might apply or otherwise be informed by the IESSA when considering ethics and independence requirements for assurance or permissions within the context of their jurisdictional arrangements.
Jean-Paul Servais, Chair of IOSCO, said: “History has shown us that assurance is necessary to deliver trust in disclosures, which is instrumental for the good functioning of financial markets. Today’s announcement from IESBA is a welcome development, providing a robust ethical framework for the assurance of sustainability reporting.
A strong assurance framework for sustainability related disclosures needs to be focused on the public interest and should be profession – and framework – agnostic. IESBA’s new international standard will foster trust and integrity for years to come.
“IOSCO will continue to play a key role in promoting global consistency in the assurance of sustainability-related information”, he added.
Please click here to read IOSCO’s full Statement of Support.
