ACCA and Chartered Accountants ANZ Call for Consistent Application of Sustainability Assurance Standards

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 (the Association of Chartered Certified Accountants) 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.