KICPA Successfully Concludes 21st Sustainability Certification Forum

Discussion on Implications of IFRS Sustainability Disclosure

The Korean Institute of Certified Public Accountants announced on the 4th that it held the 21st Sustainability Certification Forum on the 27th of last month. The forum, held under the theme "Examples of Applying IFRS Sustainability Disclosure Standards and Implications for Domestic Companies," concluded successfully with the participation of more than 300 people.

Participants are taking a commemorative photo at the "21st Sustainability Certification Forum" held on the 27th. From the left: Huh Kyuman, Partner at Anjin Accounting Corporation; Oh Seungjae, CEO of Sustainvest; Jeon Kyu-an, Professor at Soongsil University; Shin Eun-sook, Partner at Hanyoung Accounting Corporation; Kim Doyeon, Partner at Samil Accounting Corporation; Jo Yeonju, Executive Research Vice Chairman of the Korean Institute of Certified Public Accountants; Lee Sangho, Research Fellow at the Capital Market Institute; Kim Dongcheol, Executive Administrative Vice Chairman of the Korean Institute of Certified Public Accountants; Yoon Changho, Executive External Cooperation Vice Chairman of the Korean Institute of Certified Public Accountants; Lee Woonghee, Standing Commissioner of the Korea Accounting Standards Board; Jeong Gwanghwa, Professor at Kangwon National University; Kim Huntae, Executive Director at POSCO Holdings; Joo Seongho, Director at the Korea Accounting Standards Board. Korean Institute of Certified Public Accountants

Since 2022, the Korean Institute of Certified Public Accountants has been operating the Sustainability Certification Forum to enhance the transparency and reliability of sustainability information. The forum has provided a platform to discuss a variety of topics, including the current status, systems, standards, and practical challenges of domestic and international sustainability disclosure and assurance. It has also served as an opportunity for the accounting industry to share accumulated knowledge and explore future directions together.

This year's forum featured discussions on climate-related disclosures in accordance with IFRS S2 and social and governance disclosures based on IFRS S1. On the day of the event, Choi Woonyeol, President of the Korean Institute of Certified Public Accountants, stated, "For companies that have been voluntarily disclosing information using the GRI standards based on impact materiality, the introduction of IFRS sustainability disclosure standards, which focus on financial materiality, presents a new challenge." He added, "I hope this forum, which was organized to support companies in preparing for the adoption of IFRS sustainability disclosure standards, will help alleviate their difficulties and provide a meaningful opportunity to consider the role of accounting firms together."

Eun-sook Shin, Partner at Han Young Accounting Corporation, commented, "Sustainability disclosure is not about asking whether a company is eco-friendly, but about showing information users what the company thinks and how it acts regarding sustainability." She explained, "It demonstrates, step by step, how a company anticipates the future, what strategies it establishes to align with that future, and how sustainability risks and opportunities impact its business and finances."

Doyeon Kim, Partner at Samil Accounting Corporation, emphasized, "It is not about retrospectively identifying and filling in sustainability risks and opportunities, but about establishing the necessary internal controls and data in advance." He added, "It is important to demonstrate how risks and opportunities actually operate within the business model and value chain."

Huntae Kim, Executive Director at POSCO Holdings, stated, "Currently, we are in the early stages of adopting IFRS sustainability disclosure standards. In order to advance disclosures that reflect industry-specific risks and financial impacts, it is necessary to accumulate data, refine internal processes, and enhance the assurance system." He stressed, "Companies should use sustainability disclosure not merely as a means of regulatory compliance, but as a tool to explain corporate value and strategy and to build trust in the market."

Sangho Lee, Research Fellow at the Korea Capital Market Institute, pointed out, "It is not easy to respond to IFRS sustainability disclosure standards due to a lack of reference cases and high preparation costs." He suggested, "If a 'Korean-style IFRS sustainability disclosure model' that reflects the structure of Korean industries and their unique risk factors is developed, it would be of great help to companies."

Kyuman Heo, Partner at Anjin Accounting Corporation, stated, "While various forms of disclosure tailored to industry-specific characteristics are necessary, comparability among companies and a certain level of consistency must also be maintained." He continued, "From the perspective of assurance, it is necessary to discuss the scope and methods of assurance for forward-looking information, and solutions should be derived through mutual agreement with information users."