IOSCO Reaffirms Commitment to Global Sustainability Standards with Endorsement of IESBA's Ethical Framework
The International Organisation of Securities Commissions (IOSCO) has reiterated its dedication to advancing global standards and codes for sustainability assurance and reporting. This commitment aligns with IOSCO’s broader mission to foster trust and transparency in financial markets worldwide.
Milestone Achievement: IESBA’s International Ethics Standards for Sustainability Assurance (IESSA)
In a recent announcement, IOSCO applauded the International Ethics Standards Board for Accountants (IESBA) for finalizing its International Ethics Standards for Sustainability Assurance (IESSA). This significant milestone includes:
- Updated International Independence Standards (IIS).
- Revisions to the ethical code supporting sustainability assurance and reporting frameworks.
According to IOSCO Chair Jean-Paul Servais, assurance plays a pivotal role in establishing trust within financial disclosures, which is critical for the effective functioning of global markets.
“History has shown that assurance is necessary to deliver trust in disclosures, which is instrumental for the good functioning of financial markets,” Servais stated.
IESSA: A Comprehensive Ethical Framework for Sustainability Reporting
Servais hailed IESBA’s IESSA as a groundbreaking development, emphasizing its value in strengthening sustainability reporting assurance. He noted that a robust assurance framework should:
- Serve the public interest.
- Remain neutral with respect to professional roles and reporting frameworks.
“IESBA’s new international standard will foster trust and integrity for years to come,” he affirmed, adding that it will enhance confidence in sustainability-related disclosures over the long term.
Strengthening Ethical and Sustainable Financial Practices
The endorsement of IESBA’s IESSA reinforces IOSCO’s position as a leader in promoting ethical standards and sustainable financial practices globally. This development underscores the growing importance of reliable sustainability reporting in addressing environmental, social, and governance (ESG) challenges in today’s economic landscape.
Why Sustainability Reporting Matters
As businesses and financial markets face increasing scrutiny over ESG practices, frameworks like IESSA play a critical role in ensuring:
- Transparency in sustainability-related disclosures.
- Confidence among investors and stakeholders.
- Ethical governance that supports long-term global sustainability goals.
IOSCO’s endorsement of IESBA’s standards highlights a shared vision of fostering a trustworthy and transparent financial ecosystem built on ethical principles and robust reporting mechanisms.
