Sustainability Reporting AssuranceSustainability Reporting Assurance

Sustainability Reporting Assurance

This page is your simple guide to understanding the standards that underpin assurance in sustainability reporting.

What is sustainability reporting assurance?

Like assurance on financial information (e.g., financial statements), sustainability assurance involves an independent third-party performing procedures to verify the reliability and credibility of an organization’s sustainability information and to report on the information. Assurance providers provide either reasonable or limited assurance opinions on sustainability information.

Why is assurance of sustainability information important?

External assurance is important to enhance trust and confidence in sustainability reporting. External assurance can also help organizations improve their reporting processes, data management and accountability.

What sustainability assurance standards exist?  

There are a couple of assurance standards that support sustainability reporting. Currently, Canadian Standard on Assurance Engagements (CSAE) 3000, Attestation Engagement other than Audits and Reviews of Historical Financial Information and CSAE 3410, Assurance Engagements on Greenhouse Gas Statements are available for use of sustainability information. Furthermore, the International Auditing and Assurance Standards Board (IAASB) has released an assurance standard specific to sustainability, International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements.

ISSA 5000

On November 12, 2024, the IAASB issued ISSA 5000. The standard is a comprehensive, stand-alone standard  for all assurance engagements (both reasonable and limited assurance engagements) on sustainability information. It applies to sustainability information reported across any sustainability topic and prepared under any sustainability reporting framework. The standard is also profession agnostic, supporting its use by both professional accountant and non-accountant assurance practitioners.

The Canadian Auditing and Assurance Standards Board (AASB) issued in September 2023 the Canadian Standard on Sustainability Assurance (CSSA) 5000, which is based on ISSA 5000 with amendments considered appropriate for the Canadian market. The CSSA 5000 exposure draft was open for comment until December 31, 2023. The anticipated approval date for the final CSSA 5000 is December 2024.

Adjacent to the work of the IAASB and AASB, the International Ethics Standards Board for Accountants (IESBA) resolved in June 2022 to take action to develop fit-for-purpose, globally applicable ethical and independence standards to support sustainability reporting. IESBA has released its International Ethics Standards for Sustainability Assurance (IESSA) exposure draft which includes certain amendments to the International Code of Ethics for Professional Accountants, as well as ethical and independence standards for use and implementation by all sustainability assurance practitioners (i.e., professional accountants and other practitioners).

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