Chartered Accountants Australia and New Zealand (CA ANZ) has supported the approval of new climate reporting and assurance standards for Australia.
This development is expected to provide enhanced clarity for the accountancy profession, businesses, and retail investors regarding sustainability and climate risk assurance.
CA ANZ said that the Auditing and Assurance Standards Board (AUASB) has sanctioned the Australian Standard on Sustainability Assurance (ASSA) 5000 General Requirements for Sustainability Assurance Engagements and ASSA 5010 Timeline for Audits and Reviews of Information in Sustainability Reports under the Corporations Act 2001.
The standards were approved on 28 January 2025.
CA ANZ Reporting and Assurance leader Amir Ghandar said: “The approval of sustainability assurance standards by the AUASB this week is a watershed moment for sustainability and climate risk assurance in Australia.
Voluntary reporting on sustainability issues has sometimes been dismissed as a glossy market exercise, but robust reporting standards and a clear pathway to mandatory assurance moves these critical topics into the domain of investment grade market information.
“Australian investors have increasingly demanded reliable and consistent reporting on climate and sustainability – with dependable assurance key to increasing confidence in the reporting.”
CA ANZ’s 2024 Investor Confidence survey revealed that 80% of investors would have greater confidence in sustainability information if it were compulsorily prepared and assured in line with established standards.
The newly mandated reporting and assurance standards will require corporates and professional audit firms to allocate resources to prepare and audit a new set of information that will accompany financial reports.
The standards are now in effect for reporting periods starting on or after 1 January 2025, although entities are allowed to adopt them earlier if they choose.
Gandhar added: “CA ANZ has been closely engaged with the government and the standard setters, and we recognise they’ve listened and offered some transitional reprieve, such as slightly relaxing timelines for reasonable assurance over the transitional period.”
In addition, CA ANZ and Tax Management New Zealand recently conducted a survey indicating an uptick in inland revenue audit activity.
The survey, which collected responses from 362 chartered accountants in public practice, reflects the evolving landscape of the accountancy sector in the region.
