ICAS calls for urgent road map for sustainability assurance

MEDIA STATEMENT: The Institute of Chartered Accountants of Scotland (ICAS) has responded to the Financial Reporting Council’s (FRC) publication of the final report from its Assurance of Sustainability Reporting Market Study.

ICAS’ long-standing position is that sustainability assurance professionals should be subject to robust performance and quality management, and ethical and independence standards to help establish a level playing field for all those involved in this kind of work. ICAS urges the UK Government to outline its roadmap for sustainability assurance in the UK and to work with the FRC to establish an appropriate regulatory framework as a matter of urgency.
 
Responding to the final report from FRC's Sustainability Assurance market study, Bruce Cartwright CA, CEO at ICAS (Institute of Chartered Accountants of Scotland), said: “We agree with the FRC that the quality of these services is inconsistent. While we’re encouraged to see such a wide range of sustainability assurance service providers in the UK, it's vital that we create the right conditions for healthy competition and choice in the market but not at the detriment of quality. We also agree with the report’s concerns about the lack of clarity on the UK's regulatory position, which is having an adverse effect on the UK's ability to participate in this market - particularly when it comes to sustainability assurance engagements under the EU's Corporate Sustainability Reporting Directive (CSRD) which is already impacting certain UK entities.
 
“Ultimately, we believe the UK should take a leading role in this area, and that a robust, but proportionate regulatory framework is key to make sure that stakeholders have high-quality sustainability information to help them make informed decisions.
 
“We congratulate the FRC on the publication of the final sustainability assurance market study report and fully support the three key actions it recommends: setting a clear UK policy framework for sustainability assurance, creating a unified regulatory system, and improving the information on the quality of sustainability assurance.” 

Read the Assurance of Sustainability Reporting Market Study