Module 9 Assurance on sustainability reporting

Question 1

In business what does sustainability mean?

Answer 1

Minimising the negative (and maximising the positive) impact of the organisations activities on the environment and society as a whole

Question 2

What are sustainability metrics / KPI’s?

Answer 2

Designed to measure a companies sustainability record

Question 3

What are some examples of Environmental metrics?

Answer 3

• Energy consumption in kw hours
• Water usage in metric tonnes
• Waste reduction in cubic metres
• Plastic reduction in metric tonnes
• Compliance with environmental standards

Question 4

What are some examples of Social metrics?

Answer 4

• Hours of volunteering caried out by volunteering
• Diversity, equality and inclusion (e.g pay equality between genders)
• Training days for employees

Question 5

What are some examples of Governance metrics?

Answer 5

• Board and management diversity metrics
• Disclosure and reporting programmes

Question 6

What are the key areas that need to be evaluated before starting the assurance engagement?

Answer 6

• Ethics and independence
• Competence
• Agreeing the terms of engagement

Question 7

Examples of procedures that may be performed for assurance on sustainability information include:

Answer 7

• Interviews with relevant corporate level staff to understand the clients sustainability strategy, policy and management systems
• Testing the procedures and systems
• An analytical review to test the accuracy and completeness of sustainability indicators

Question 8

At what stage should the level of assurance on sustainability information be agreed with the client?

Answer 8

Before any engagement work commences

Question 9

CSRD includes a requirement for for what on sustainability reporting?

Answer 9

Mandatory limited assurance over sustainability reporting and aims to move gradually towards ‘reasonable assurance’.

Question 10

What does profession-agnostic mean in reference to the International Standard on Sustainability Assurance?

Answer 10

Means it can be used by professional accountants as well as non professional accountant assurance practitioners

Question 11

Why is ISSA 5000 being developed?

Answer 11

The aim is to be more responsive to the growing stakeholder interest in suitable sustainability assurance reporting, while complementing and building on existing guidance such as ISAE 3000

Question 12

What will the contents of ISSA 5000 be?

Answer 12

• Difference in extent of work between limited and reasonable assurance
• The suitability of reporting criteria
• The scope of the assurance engagement
• Evidence
• Internal control systems
• Materiality

Question 13

What is IFRS S1 and IFRS S2?

Answer 13

These standards provide a common language for sustainability-related disclosures and have been developed to work with any financial reporting framework.

Question 14

For IFRS S1 companies are required to provide disclosures about?

Answer 14

• Governance
• Strategy
• Risk Management
• Metrics and targets

Question 15

What does IFRS 2 contain?

Answer 15

Content mirrors the four topics from IFRS S1 (ie governance, strategy, risk management, and metrics and targets)

But requires further detail

Question 16

What are the advantages of accountants providing sustainability related assurance?

Answer 16

• Qualifications and training
• Ethical requirements
• Assurance skills
• Using the work of sustainability experts
• Quality
• Understanding of the client and the business
• Public interest