Korean Institute of Certified Public Accountants Announces Final Publication of International Sustainability Certification Standard (ISSA 5000)

The Korean Institute of Certified Public Accountants announced on the 15th that the International Auditing and Assurance Standards Board (IAASB) received approval from the Public Interest Oversight Board (PIOB) on the 12th and officially published the International Sustainability Assurance Standard 5000 (ISSA 5000).

ISSA 5000 is a newly established standard designed to enhance the level of trust and confidence in sustainability information among stakeholders, including investors and regulators. ISSA 5000 is a comprehensive and independent standard suitable for all sustainability assurance engagements. It applies to the assurance of all sustainability information, including various disclosure frameworks and sustainability topics. The standard will be applied to assurance engagements for reporting periods beginning on or after December 15, 2026, with early adoption permitted. It is expected to become the global standard for assurance of sustainability information in the future.

Tom Seidenstein, Chair of the IAASB, stated, “We are pleased to announce the final approval of ISSA 5000,” adding, “A new era has arrived where information users require extensive information encompassing not only financial but also non-financial information to evaluate corporate performance, and the approval of ISSA 5000 marks the beginning of this significant change.” He urged policymakers and assurance providers to adopt ISSA 5000.

The IAASB plans to provide various materials, including relevant guidelines and videos, necessary for the adoption and implementation of ISSA 5000 as of January 2025 to ensure its stable establishment. It also announced that it will closely cooperate with related international organizations and regulatory bodies of various countries to facilitate the standard’s adoption.

The International Organization of Securities Commissions (IOSCO) issued a chair statement expressing strong support for ISSA 5000. In the European Union (EU), procedures have begun to adopt ISSA 5000 as the assurance standard for sustainability information disclosed under the Corporate Sustainability Reporting Directive (CSRD), and several countries are showing movements to adopt ISSA 5000.

Meanwhile, the Korean Institute of Certified Public Accountants is preparing for the prompt and smooth introduction of ISSA 5000 domestically. The impact analysis and response measures study expected upon the domestic introduction of ISSA 5000 is in its final stages, and a contract with the IAASB for Korean translation was signed simultaneously with the final publication of ISSA 5000. Along with this, a symposium will be held to announce future research results, and after broad stakeholder consultations on the domestic draft standard, ISSA 5000 is planned to be introduced domestically within 2025.