The International Auditing and Assurance Standards Boards (IAASB) and the International Ethics Board for Accountants (IESBA) have launched integrated standards to meet the rising demand for reliable sustainability data. These new standards, including the International Standard on Sustainability Assurance 5000 (ISSA 5000) and the International Ethics Standards for Sustainability Assurance (IESSA), aim to improve the legitimacy and openness of sustainability reporting.

The new global standards are expected to enhance sustainability reporting and assurance practices, significantly impacting private market firms, asset managers, and impact investors by promoting greater transparency, accountability, and trust in sustainability data, which is crucial for informed decision-making and compliance with evolving regulatory expectations.

Let’s explore the new global standards released by IAASB and IESBA in detail. 

Development of IAASB IESBA global standards

In April 2023, the International Auditing and Assurance Standards Board (IAASB) initiated a significant advancement in global sustainability reporting by announcing consultations on the proposed International Standard on Sustainability Assurance (ISSA) 5000, a framework for assurance engagement on sustainability information. This consultation process ran from July to December 2023, culminating in the publication of the final ISSA 5000 draft in November 2024.

Complementing IAASB's efforts, the International Ethics Standards Board for Accountants (IESBA) developed its own set of sustainability standards, focusing on ethical sustainability reporting practices, which received approval in early 2025. 

The integration of these two standards represents a significant milestone in sustainability reporting, combining assurance engagement with ethical sustainability reporting practices. These global standards will provide organizations with a more transparent, legitimate, and compliance-friendly framework for sustainability reporting and assurance.

Key aspects of the new global standards

• The new standards highlight ethical behaviour, aiming to tackle issues like greenwashing and fraud in sustainability practices, ensuring that sustainability reports accurately reflect actual environmental and social impact.
• The standards are designed to be framework-neutral and applicable across various sustainability reporting frameworks, ensuring reliability in sustainability information. This strategic approach enables organizations to apply the standards across diverse sustainability reporting frameworks to maintain consistency.
• The IAASB and IESBA have developed a comprehensive support system to facilitate the effective implementation of these global standards. To streamline the implementation of the new global standards, they will provide resources such as webinars, guidance documents, and feedback mechanisms for stakeholders and concerned businesses. 
• ISSA 5000 and IESSA will be effective for periods starting on or after December 15, 2026, however, it is encouraged that businesses start adopting the new standards as early as possible. 

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