The introduction of ISSA 5000

The International Auditing and Assurance Standards Board (IAASB) announced the approval of International Standard on Sustainability Assurance 5000 (ISSA 5000) on 20 September.

The final wording of the standard will be published shortly, with full guidance and application materials to be published by January 2025.

ISSA 5000 provides a robust, globally applicable framework for practitioners to provide assurance services in this growing and important market, very much like the International Standards on Auditing (ISAs) provide a robust international framework for auditing.

ISSA 5000 provides an unprecedented opportunity for professional services firms of all sizes to contribute to the growth of sustainability and to participate in the environmental, social and governance (ESG) advisory and assurance market.

Since the publication of the United Nations Millennium Development Goals in 2015 and the Task Force on Climate Related Disclosures report in 2017, the reporting of sustainability information has become vital to companies globally as they seek to measure their ESG impacts. In addition, they us these reports to identify business risks and opportunities, such as new products and services.

This reporting also provides key non-financial data for investors and debtholders when valuing companies and assessing the cost of capital. Sustainability reporting is also becoming increasingly important to small and medium size companies as larger firms and public bodies require more sustainability information from the companies they work with.

Mercia Group is developing a range of products to meet the needs of firms wishing to provide sustainability assurance in line with ISSA 5000. This will include an international manual and methodology which will include all the programmes, documents and guidance required to perform work under this new international standard.

Mercia is also developing an EU manual for firms working with European Union reporting requirements in line with the Corporate Sustainability Reporting Directive (CSRD) with a particular focus on the European Sustainability Reporting Standards (ESRS) and a Republic of Ireland manual for engagements in Ireland. As guidance and legislation is introduced in the United Kingdom, we will also develop a UK manual.

Have an ESG query, email one of Mercia’s ESG experts today:

Ross Haydock - Ross.Haydock@mercia-group.com

Joanne Gregory - joanne.gregory@mercia-group.com