Resource published by IFAC and We Mean Business Coalition, in partnership with the Global Accounting Alliance
NEW YORK - Accountants and finance professionals can now benefit from a practical resource to strengthen governance and control activities, enhancing the quality of sustainability information and disclosures. Building Trust in Sustaina-bility Reporting and Preparing for Assurance: Governance and Controls for Sus-tainability Information was published by the International Federation of Account-ants (IFAC) and We Mean Business Coalition (WMBC), in partnership with the Global Accounting Alliance (GAA).
In today’s evolving corporate landscape, where companies and their stakeholders require reliable and decision-useful information to understand sustainability risks and opportunities, Building Trust in Sustainability Reporting and Preparing for Assurance provides a roadmap for organizing and enhancing governance and con-trol systems. The guidance outlines steps to align sustainability and financial re-porting in terms of quality, timing, and connectivity, and addresses challenges in sustainability reporting.
By implementing a systematic annual cycle of governance and control activities, companies can improve the quality and maturity of their data and reporting pro-cesses, reducing the likelihood of modified assurance conclusions or audit opin-ions while laying the foundation for robust sustainability reporting and assurance.
Lee White, Chief Executive Officer of IFAC, said: “Professional accountants play a pivotal role in enhancing the quality of sustainability information—a role that is increasingly critical as companies navigate new requirements for sustainability-related financial disclosure. This new guidance is a practical resource for our member organizations to support professional accountants take on this responsi-bility and to build confidence, prepare for assurance, and support the global sus-tainability transformation.”
Maria Mendiluce, CEO of the We Mean Business Coalition, added: “Robust sus-tainability reporting depends on effective governance and control processes. Ele-vating the quality of sustainability information and connecting it to financial re-porting is essential for companies committed to ambitious climate action and at-tracting investors committed to sustainable growth.”
Jim Knafo, CEO of The Global Accounting Alliance (GAA), said: "This guidance marks an important step forward in recognizing how robust governance and con-trols lead to reliable and decision-useful sustainability reporting. Professional ac-countants are well-positioned to ensure that sustainability information meets the high standards of transparency and quality demanded by today’s stakeholders. Through our collaboration with IFAC and We Mean Business Coalition, GAA is committed to empowering our members with the tools they need to drive trust and accountability in sustainability reporting and assurance."
The new guidance can be applied to the adoption of the IFRS Sustainability Dis-closure Standards issued by the International Sustainability Standards Board (ISSB) and jurisdictional requirements, including the European Sustainability Re-porting Standards (ESRS). Both sets of standards also emphasize the importance of transparency on governance, risk management, and internal controls to inform an assessment of the quality of a company’s sustainability reporting.
This resource is part of IFAC’s ongoing efforts to convene and empower global and regional stakeholders and equip them with the tools to advance effective sus-tainability reporting practices and assurance preparedness such as its global IFAC ConnectTM events, bringing together key players, including PAOs, business lead-ers, and regulators, to address the urgent need for actionable sustainability strate-gies.