The Financial Reporting Council (FRC) has taken a major step to improve the reliability and consistency of sustainability reporting in the UK with the release of International Standard on Sustainability Assurance (UK) 5000.
Known as ISSA (UK) 5000, the new standard sets out general requirements for sustainability assurance engagements and offers a profession-agnostic framework designed for voluntary use by UK assurance providers.
The standard mirrors the global benchmark created by the International Auditing and Assurance Standards Board (IAASB) and represents the UK’s commitment to internationally aligned assurance practices. By adopting a UK-specific version of the global standard, the FRC aims to promote a unified approach that supports the quality, credibility, and comparability of sustainability disclosures.
ISSA (UK) 5000 provides detailed guidance for both limited and reasonable assurance engagements covering environmental, social and governance (ESG) reporting. It encourages consistent methodology and documentation, regardless of the profession of the assurance provider. According to the FRC, the standard is intended to enhance the confidence of investors and other users of sustainability information, ultimately contributing to more efficient capital allocation across UK markets.
The FRC highlighted that clear, trusted sustainability reporting is becoming increasingly important as companies and investors navigate growing regulatory expectations and heightened scrutiny of ESG claims. The organisation believes the voluntary use of ISSA (UK) 5000 will boost the attractiveness of the UK as a hub for sustainable finance by ensuring that disclosures are backed by credible assurance.
Stakeholder feedback played a significant role in shaping the introduction of the standard. Firms, professional bodies, investors and companies expressed broad support for its issuance on a voluntary basis.
FRC executive director of regulatory standards Mark Babington said, “The release of ISSA (UK) 5000 marks a significant step in establishing a consistent framework for sustainability assurance in the UK. It reflects our commitment to internationally aligned standards and supports the growing demand for high-quality, assured sustainability information which users can trust.
By underpinning investor confidence in sustainability disclosures, this standard will help UK companies access capital more efficiently and contribute to long-term economic growth.”
The launch of ISSA (UK) 5000 underlines the FRC’s continued backing of global frameworks that promote streamlined reporting, consistent assurance practices and reliable sustainability information for investors.
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