Get ready for ISSA 5000
What’s new?
The International Auditing and Assurance Standards Board (IAASB) has issued International Standard on Sustainability Assurance (ISSA) 5000, General Requirements for Sustainability Assurance Engagements in response to stakeholder demand for a specific sustainability assurance standard to address unique challenges and opportunities in assuring sustainability information.
Preparers and assurance providers of sustainability information should seek to understand what ISSA 5000 means to them as they implement organisational transformation to meet sustainability goals and get ready for sustainability reporting and assurance.
Why is this happening?
There have been significant shifts in stakeholder demand in recent years, including increasing calls from investors for credible, high quality and comparable sustainability information on which to base investment, risk management and stewardship decisions.
International climate laws and policies mandating reporting and assurance have emerged along with more broad-ranging reporting frameworks integrated with financial reporting disclosures. ISSA 5000 is the new global baseline standard for assurance providers to use to bring further comparability and increased confidence in reported sustainability information.
What’s next?
- Make yourself familiar with ISSA 5000 and how local standard setters and regulators intend to adopt
- Talk to your assurance providers regarding the impact to their service offerings, methodology, and information requirements
- Understand the practical implications for your company’s people, processes, systems, and governance
- Incorporate implications into your existing timelines and project plans
ISSA 5000 sets a new benchmark for sustainability assurance. It not only enhances the specificity of sustainability information but also establishes itself as the global baseline standard for assurance providers, fostering greater comparability and instilling increased confidence in the reporting process.
Neil Morris
Global Head of Assurance and ESG Methodology
KPMG International
Implications of Sustainability Assurance for Companies in China
As one of the world's largest economies, China exhibits robust growth driven by manufacturing, technology, and increasing consumer demand. This growth has lead stakeholders and investors to intensify their calls for greater sustainability and corporate transparency. Such demands underscore the urgent need for transparent and reliable ESG reporting.
The International Auditing and Assurance Standards Board (IAASB)'s new International Standard on Sustainability Assurance (ISSA) 5000 introduces a global benchmark for high-quality sustainability assurance, aiming to establish a standard that enhances public confidence in assurance and the information being reported. By creating a unified framework, the standard raises expectations for the quality of sustainability information, facilitating credibility and comparability.
Although not mandatory for Hong Kong-listed entities, the Hong Kong Stock Exchange (HKEX) encourages companies to seek independent assurance to strengthen transparency. As an International Finance Centre, the Hong Kong SAR government has also launched a report in December 2024 titled “Roadmap on Sustainability Disclosure in Hong Kong,” which outlines plans to adopt and align with international standards in 2025. In March 2025, The Hong Kong Institute of Certified Public Accountants (HKICPA) released the Hong Kong Standard on Sustainability Assurance (HKSSA) 5000, which conforms with the ISSA 5000.
With heightened expectations surrounding sustainability information, organisations should assess their internal capabilities, processes, and business model strategies while implementing a transformation plan and timetable to prepare for increased regulatory and stakeholder requirements.
The introduction of HKSSA 5000 marks a significant milestone in enhancing trust in sustainability information in Hong Kong. This new assurance standard, fully converged from ISSA 5000, provides a robust framework for conducting quality sustainability assurance engagements, ensuring the reliability and transparency of disclosed information. Below are key highlights of HKSSA 5000:
01. Framework Neutrality
HKSSA 5000 is designed to be framework-neutral, allowing it to be applied to assurance engagements on sustainability information reported under any suitable framework or criteria
02. Relationship with Other Standards
HKSSA 5000 supersedes the need for HKSAE 3000 in sustainability assurance engagements and will replace HKSAE 3410 when it becomes effective.
03. Effective Date
HKSSA 5000 will be effective for periods beginning on or after December 15, 2026, with earlier application permitted.
04. Assurance Types
The standard addresses both limited and reasonable assurance engagements, the HKSSA 5000 provides specific requirements and example reports for each type.
05. Scope of Sustainability Information
The standard applies to a wide array of sustainability topics (climate, labor, biodiversity, etc.). This means companies need to think holistically about their ESG (Environmental, Social, and Governance) impacts and reporting, not just focusing on one or two easily quantifiable areas.
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