Organizations face growing demands for clear and transparent disclosure on their long-term ESG commitments from government and stakeholders. Investors, suppliers, customers, and employees all want to understand the purpose and values of the businesses they work with or for. This has seen a rapid increase in the focus on and reporting of non-financial metrics. Regulators and standard setters across the world have and continue to introduce mandatory reporting requirements too. From, TCFD to ISSB, SEC climate disclosures to CSRD, its clear that more ESG metrics will be required and formal assurance will be expected. It has also resulted in the use of a vast range of ESG targets and frameworks, which can vary by sector, size and complexity of a business.
The International Auditing and Assurance Standards Board (IAASB) are working on the replacement to the current best-in-class assurance standards which are expected to provide more specificity for assurance on sustainability reporting (ISSA 5000). KPMG believes that investors and stakeholders will likely see ISSA 5000 as the gold standard against which to hold companies to account and we strongly support the IAASB as it develops a baseline for global sustainability assurance standards.
