Ethics considerations in Sustainability Reporting & Greenwashing

11 November 2022
Accounting
South African Accounting Academy

The accountancy profession plays a major role in the sustainability reporting supply chain. The profession brings to this domain its wide and deep competencies in the preparation and presentation of information and the provision of assurance thereon. The profession has historically demonstrated wide and deep technical competencies and a strong ethical core in preparing, presenting, and assuring financial information. Similarly, those attributes are invaluable in reporting on non-financial information such as information related to sustainability. Most importantly, public trust in the profession in those crucial roles for sustainability is underpinned by robust global ethics standards, which in turn contribute to confidence in sustainability reporting

This IESBA publication highlights the relevance and applicability of the International Code of Ethics for Professional Accountants (including International Independence Standards) (the Code) to ethics-related challenges in the context of sustainability reporting and assurance, especially circumstances involving misleading or false sustainability information (i.e. “greenwashing”).

Among other matters, the publication spotlights key provisions in the Code that apply in preparing and presenting sustainability information. It emphasizes the professional accountant’s obligation to be straightforward and honest and refrain from being associated with information that is misleading or false, including in situations where they might experience pressure to do so.

Click here to download the Staff Publication:

https://www.ifac.org/system/files/publications/files/Ethics-Considerations-in-Sustainability-Reporting-Greenwashing.pdf

Relevance to Auditors, Independent Reviewers & Accountants:

Adherence with our Code of Conduct is crucial in the performance of our duties.
Auditors, Independent Reviewers and Accountants should be aware of the latest publications and guidance issued by regulators and standard-setting boards, such as the IESBA.
This publication aims to help professional accountants, especially those in business, navigate ethics situations or challenges that might lead to reporting misleading or false sustainability information.
The guidance may also be useful to other professionals involved in such reporting, and other stakeholders, including regulators and oversight bodies, policymakers, investors, those charged with governance (TCWG), national standard setters, professional organizations, accounting firms, government and nonprofit organizations, and academia.

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