NEWS

Almost three quarters of the largest global companies sought assurance on some aspect of their sustainability disclosures in 2023, accordin to an updated report from the International Federation of Accountants (IFAC) and AICPA & CIMA. The study marks the fifth annual benchmark that now includes 2023 data. 

The report found that 73% of large companies from G20 countries obtained assurance on their sustainability disclosures in 2023, up from 69% the previous year, according to the report, The State of Play: Sustainability Disclosure and Assurance, (Five-Year Trends and Analysis, 2019-2023). Five years ago, that number stood at 51%. Most of the assurance then and now is of limited scope.  

Audit firms—as opposed to consultants or other service providers—continue to lead (55 %) in providing assurance on sustainability disclosures by large global companies, with broad variation between countries. Audit firms’ overall share of the market declined from 58% in 2022, although there are mitigating factors for the drop, including:

• Consolidation of reports – In the European Union, where audit firms historically provide the majority of sustainability assurance, firms began issuing a single assurance report instead of a series of separate ones, lowering the raw number of reports issued, albeit for an increased number of assurance clients. 
• Consultants and non-audit firm service providers are more likely to issue multiple greenhouse gas-related assurance reports (for example, an average of 2.5 assurance reports (for example, an average 2.5 assurance reports were generated per company in South Korea during 2023). 
• When companies obtain assurance for the first time, they typically focus on greenhouse gas-related information and start by engaging other service providers who specialise in that area.
  
  

The report notes the increased use of audit firms over the prior year in several major markets in 2023, including Singapore (+6 percentage points), South Africa (+4), the UK (+5) and the US (+5). In the latter instance, audit firms’ share of sustainability assurance rose from 23% to 28%.

“Auditors have extensive education requirements, adhere to strict independence rules and possess a deep and holistic view of an organisation’s business, processes and risk profile,” said Susan Coffey, CEO of public accounting for AICPA & CIMA,  “That makes them ideal candidates to perform sustainability assurance engagements, and we’re seeing many boards and audit committees endorsing that view as corporate reporting matures.”  

More than three-quarters of companies now report sustainability information with financial disclosures in annual or integrated reports. Organisations that include sustainability information with their annual or integrated reports overwhelmingly use their statutory auditor to provide assurance over those disclosures.  

“The largest global companies have responded well to voluntary systems of sustainability reporting and assurance, driven by investor demand,” said IFAC CEO Lee White.“ With new global standards in place, regulators now have the toolkits to move from voluntary to mandatory disclosures over time, which we expect will further drive high-quality, consistent and comparable sustainability-related information for the investing public and all stakeholders. IFAC and our members, including AICPA & CIMA, remain committed to supporting this shift—advancing trust, good governance, and global alignment in sustainability disclosure, united in shaping a future where sustainability information earns the same level of trust as financial reporting.”  

The International Auditing and Assurance Standards Board (IAASB) will retire its greenhouse gas assurance standard, ISAE 3410, as it introduces the International Standard on Sustainability Assurance (ISSA) 5000.   

The new sustainability assurance framework, effective from 15 December 2026, covers all types of sustainability information, including greenhouse gas emissions.  

According to the IAASB, “ISSA 5000 addresses assurance of all types of sustainability information, including greenhouse gas emissions, regardless of how that information is presented.”  

ISSA 5000 introduces a principles-based framework to “enhance” the reliability and transparency of sustainability reporting.   

It aims to improve the credibility of sustainability information, addressing the growing demand for verified data from investors, regulators and stakeholders. 

The framework is adaptable to global and local contexts, compatible with reporting regimes such as the EU’s Corporate Sustainability Reporting Directive (CSRD).  

The new standard supports diverse practitioners by applying to all types of assurance providers.   

It incorporates concepts such as materiality and proportionality, ensuring suitability for organisations of all sizes.   

In April 2025, the IAASB initiated a public consultation on narrow-scope amendments to its standards to align with the International Ethics Standards Board for Accountants’ (IESBA) Code of Ethics.   

These amendments, approved in March 2025, address the use of external experts in audits and assurance engagements.  

The amendments focus on four standards: ISA 620, ISRE 2400 (Revised), ISAE 3000 (Revised), and ISRS 4400 (Revised).  

These relate to the use of an auditor’s expert, review engagements, assurance engagements, and agreed-upon procedures engagements.   

The IAASB and IESBA have collaborated to ensure alignment between the IAASB’s standards and the IESBA Code.  

In January 2025, the IAASB and IESBA launched a joint initiative to enhance trust and transparency in sustainability reporting and assurance, aiming to set unified global standards for sustainability assurance practices.  

The Chartered Institute of Management Accountants (CIMA) has upgraded its Chartered Global Management Accountant (CGMA) Professional Qualification syllabus. 

The new syllabus is set to take effect in 2026. 

The revision aims to equip students with the necessary skills to excel in the changing landscape of finance, focusing on high-performance finance business partnering, technological adeptness and critical thinking, CIMA said.

The updated syllabus is a response to the Future of Finance 2.0 research by the Association of International Certified Professional Accountants and the Chartered Institute of Management Accountants (AICPA & CIMA) and the World Economic Forum's Future of Jobs Report 2025.

These studies emphasised the importance of synergising technology with human insight for career advancement in the knowledge economy and for future roles in accounting and finance. 

The new syllabus is aimed at enhancing core competencies such as finance business partnering, analytical thinking, and strategic planning. 

It also expands to cover sustainability topics such as green finance, environmental costing, and disclosures under IFRS S1/S2, as well as financial technologies including GenAI. 

Students planning to appear for CGMA exams this year will not be affected by these changes, CIMA noted. 

To assist with the transition, CIMA will release a case study and objective tests study support materials pack in October this year. 

These materials will aid students in preparing for the May 2026 CGMA exams. 

AICPA & CIMA Management Accounting Education and Professional Qualifications vice-president Stephen Flatman said: “With a focus on finance role simulations embedded in our Case Study exams, the CGMA Professional Qualification allows finance professionals to quickly develop and apply cognitive, digital and technical skills needed as finance business partners.

“Our unique problem-solving educational approach helps them provide expert advice, support decision-making, and create value for organisations.” 

Additionally, CIMA has developed more than 50 hours of complimentary study support materials to aid candidates in their exam preparation and journey towards earning the CGMA designation. 

In March 2025, AICPA & CIMA recognised 177 accounting and finance professionals in Sri Lanka with their ACMA and FCMA certificates, alongside the CGMA designation.