As focus sharpens on ensuring the credibility and trustworthiness of increased sustainability reporting by businesses, two leading professional accountancy bodies have joined forces to provide a practical guide to key requirements of the new International Standard on Sustainability Assurance 5000 (ISSA 5000)
This follows the publication of ISSA 5000 by the International Auditing and Assurance Standards Board (IAASB) for sustainability assurance engagements, which aims to increase trust in sustainability reporting and reduce the risk of greenwashing. Sustainability reporting is increasing around the world as more countries make it mandatory, especially for larger businesses.
As part of a strategic alliance between the two bodies, ACCA and Chartered Accountants Australia and New Zealand (CA ANZ) have collaborated to plan a series of practical guides to some of the key requirements of the standard. The first focuses on materiality and is entitled ‘A case study: Demystifying materiality in accordance with ISSA 5000’.
Antonis Diolas, Head of Audit and Assurance at ACCA, said: ‘The trust and confidence of investors, regulators and other stakeholders in sustainability assurance is vital if sustainability reporting is to be successful in bringing about a more sustainable approach to business.
‘This guide is intended to support assurance practitioners in applying professional judgement when planning and performing sustainability assurance engagements under ISSA 5000. It’s critical that assurance practitioners focus on the most significant aspects of sustainability reporting, which are most likely to influence the decisions of intended users.’
Amir Ghandar, Reporting and Assurance Leader at CA ANZ, said: ‘Materiality is no longer a buzzword – it’s the backbone of credible sustainability assurance. This guide offers clarity where it’s most needed. As sustainability reporting and assurance become mandatory across jurisdictions, ISSA 5000 sets the global baseline – and this guide helps practitioners apply it with confidence.
‘Applying materiality in sustainability assurance isn’t just about numbers, it’s about understanding what truly matters to stakeholders. This guide shows how. The case study bridges the gap between theory and practice, helping assurance practitioners navigate the nuanced judgement calls required for materiality under ISSA 5000.’
Additionally, the guide recommends that practitioners recognise the importance of the materiality stage in an assurance engagement and the various professional judgement points that are involved, ensuring that they allocate sufficient time to applying the requirements appropriately, including the relevant documentation requirements. The results of the materiality stage will assist the practitioner in developing the approach to obtaining evidence and when evaluating any misstatements in sustainability reporting.
The guide provides guidance through a fictional assurance engagement and is structured around the application of materiality to Scope 1, 2 and 3 greenhouse gas (GHG) emissions.
Access the guide here.
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About ACCA
We are ACCA (the Association of Chartered Certified Accountants), a globally recognised professional accountancy body providing qualifications and advancing standards in accountancy worldwide.
Founded in 1904 to widen access to the accountancy profession, we’ve long championed inclusion and today proudly support a diverse community of over 252,500 members and 526,000 future members in 180 countries.
Our forward-looking qualifications, continuous learning and insights are respected and valued by employers in every sector. They equip individuals with the business and finance expertise and ethical judgment to create, protect, and report the sustainable value delivered by organisations and economies.
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About Chartered Accountants Australia and New Zealand
Chartered Accountants Australia and New Zealand (CA ANZ) represents more than 140,000 financial professionals, supporting them to build value and make a difference to the businesses, organisations and communities in which they work and live.
Around the world, Chartered Accountants are known for their integrity, financial skills, adaptability and the rigour of their professional education and training.
CA ANZ promotes the Chartered Accountant (CA) designation and high ethical standards, delivers world-class services and life-long education to members and advocates for the public good. We protect the reputation of the designation by ensuring members continue to comply with a code of ethics, backed by a robust discipline process. We also monitor Chartered Accountants who offer services directly to the public.
Our flagship CA Program, the pathway to becoming a Chartere Accountant, combines rigorous education with practical experience. Ongoing professional development helps members shape business decisions and remain relevant in a changing world.
We actively engage with governments, regulators and standard-setters on behalf of members and the profession to advocate in the public interest. Our thought leadership promotes prosperity in Australia and New Zealand.
Find out more at www.charteredaccountantsanz.com
