ICAI issues new standard on sustainability assurance

The Institute of Chartered Accountants of India (ICAI) has issued a new standard on sustainability assurance that will be applicable from April 1, 2027. SSA 5000 is the Standard on Sustainability Assurance, and the General Requirements & Framework for Sustainability Assurance Engagements aligns with global standards.

ICAI President Prasanna Kumar D said the move would help boost confidence among investors and stakeholders. This standard pertains to an entity’s disclosures about sustainability information across different topics, including climate, labour practices and biodiversity.

SSA 5000 has been prepared with certain carve-outs from the International Standard on Sustainability Assurance (ISSA 5000), an ICAI official said on Sunday.

The official said there are two carve-outs in SSA 5000 are about joint audits and forward-looking statements. Both provisions have been excluded from the standard.

“This marks a significant step in elevating sustainability assurance in India to global standards. It is a principles-based framework and broadens the ambit of sustainability assurance while accommodating the diverse reporting framework we have in the country also,” Prasanna Kumar said at a session here on Saturday.

SSA 5000 will be very important. From April 2027, the standards that already have the framework for sustainability reporting in India, such as SSA 3000 and SAE 3410, will stand withdrawn, he added. ICAI Vice President Mangesh Kinare, in a release on Sunday, said SSA 5000 broadens the ambit of sustainability assurance while accommodating diverse reporting frameworks with equal rigour and consistency.

As part of efforts to boost reporting and disclosures on sustainability by corporates and other entities, ICAI is also taking various initiatives, including the Sustainability Reporting Maturity Model (SRMM).

ICAI sets standards for various activities. It has more than five lakh members.