The creation of an effective sustainability standards infrastructure requires not only high-quality sustainability reporting and assurance standards, but also a global baseline of ethics (including independence) standards to ensure the integrity and objectivity of sustainability information. The IESBA’s proposed standards are aimed at completing and supporting the effectiveness of that infrastructure. The development of both EDs was closely coordinated with the International Auditing and Assurance Standards Board (IAASB).
Gabriela Figueiredo Dias, Chair of the IESBA, commented, “Ethics is about acceptable behaviors and right decisions to avoid bias in sustainability information and foster trust. From investors looking for transparent and credible information, to consumers wanting to ensure the reliability of companies’ narratives about the sustainable credentials of their products and practices, and companies wanting to be trusted, all users of sustainability disclosures have a vested interest in ensuring ethical choices by the preparers and assurers of such information. These proposed standards will serve as a cornerstone of ethical behavior with far- reaching benefits.”
Jean-Paul Servais, Chair of the Board of the International Organization of Securities Commissions (IOSCO), said, “I am delighted to welcome today’s publication and call on issuers, investors and assurance providers to participate in the IESBA’s consultation. Sustainability disclosures are undeniably high on the agenda of investors globally. Trust in such disclosures will be enhanced when they receive external assurance based upon globally accepted standards regarding ethical behavior and independence, that have been developed in the public interest. IOSCO will continue to play a key role in promoting global consistency in the assurance of sustainability-related disclosures by issuers and support its members and other stakeholders to enhance trust in corporate sustainability-related reporting.”
Alan Johnson, Chair of the IESBA and IAASB Stakeholder Advisory Council (SAC), independent corporate director, and Chair of the Good Governance Academy, stated: “IESBA’s Exposure Draft reflects the increasing demand for greater ethics and independence in corporate sustainability reporting. As the inaugural Chair of the Stakeholder Advisory Council, I view the proposed standards as critical to enhancing the integrity and credibility of sustainability information. These standards are a significant step towards ensuring that sustainability disclosures are ethically grounded and universally trusted while also enabling businesses around the world to provide full transparency of progress towards achieving sustainability goals and objectives.”
The development of the standards was preceded by extensive outreach, including four global roundtables which took place in March and April 2023 in Paris, Singapore, Sydney and New York. The roundtables involved over 140 senior-level representatives from stakeholders from very different jurisdictions and backgrounds, with a significant participation of non-professional accountants.
How to Comment
The IESBA invites all stakeholders to provide their feedback on the EDs by visiting the IESBA’s website. Comments on the Using the Work of an External Expert ED are requested by April 30, 2024, and on the Sustainability ED by May 10, 2024.
Global Webinars and Other Resources
The IESBA will hold a series of global webinars where IESBA board members and staff will explain the key proposals in the EDs. Further information about the timing of the webinars, together with registration details, will be announced in the near future. In addition, the IESBA will soon release fact sheets and other explanatory materials on the EDs
About the IESBA
The International Ethics Standards Board for Accountants® (IESBA®) is an independent global standard- setting board. The IESBA’s mission is to serve the public interest by setting high-quality, international ethics (including independence) standards as a cornerstone to ethical behavior in business and organizations, and to public trust in financial and non-financial information that is fundamental to the proper functioning and sustainability of organizations, financial markets and economies worldwide.
Along with the International Auditing and Assurance Standards Board (IAASB), the IESBA is part of the International Foundation for Ethics and Audit (IFEA). The Public Interest Oversight Board (PIOB) oversees IESBA and IAASB activities and the public interest responsiveness of the standards. For more information about the IESBA, please visit http://www.ethicsboard.org/ and on LinkedIn at http://www.linkedin.com/company/iesba.
About the International Accreditation Forum
The IAF is a global association of accreditation bodies, conformity assessment body associations and other organizations involved in conformity assessment in fields including validation/verification and the certification of management systems, products, processes, services and persons.
The IAF promotes the worldwide acceptance of certificates of conformity and validation/verification statements issued by conformity assessment bodies accredited by IAF Multilateral Recognition Arrangement (MLA) signatories, and seeks to add value for all stakeholders through its activities and programs.
This article first appeared on IESBA‘s website and is published here with permission.