Sustainability/environmental, social, and governance (ESG) reporting has quickly become a matter of global importance. Interested and affected parties are increasingly calling for transparency on sustainability/ESG matters, and as organizations shift from voluntary reporting to mandatory disclosures, they face growing demands for assurance on this information.
The International Auditing and Assurance Standards Board (IAASB) developed and approved an overarching standard for assurance on sustainability reporting, proposed International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements. During the standard's development, the IAASB leveraged its existing assurance standards:
- International Standard on Assurance Engagements (ISAE) 3000, Assurance Engagements Other Than Audits or Reviews of Historical Financial Information (the equivalent to Canadian Standard on Assurance Engagements (CSAE) 3000); and
- ISAE 3410, Assurance Engagements on Greenhouse Gas Statements (the equivalent to CSAE 3410).
The IAASB also considered its existing extended external reporting (EER) non-authoritative guidance, and the International Standards on Auditing that can be used globally by all assurance professionals. See the IAASB project page for the status of its activities.
The AASB monitored the IAASB’s progress on this initiative, including providing feedback on the IAASB’s meeting agenda papers and has approved a project to adopt ISSA 5000 concurrently in Canada as a Canadian Standard on Sustainability Assurance (CSSA) 5000, General Requirements for Sustainability Assurance Engagements. The AASB’s Sustainability Assurance Committee supports the AASB in reviewing and responding to materials issued by the IAASB.
In addition, over the last few years, the AASB has undertaken several activities to support assurance in this area, including:
- consulting with practitioners on the challenges they face when providing assurance over sustainability information (both stand-alone reporting and reporting integrated within the financial statements);
- listening and contributing to international deliberations on this topic, including participating in National Standard Setters discussions;
- establishing the Extended External Reporting Assurance Advisory Group to support the AASB in reviewing and responding to materials issued by the IAASB;
- issuing non-authoritative guidance on applying CSAE 3000 to sustainability and other EER assurance engagements; and
- answering frequently asked questions on sustainability assurance and helping practitioners navigate the AASB’s non-authoritative guidance.
Canadian practitioners are encouraged to follow the progress of this initiative and provide feedback, as necessary.