The Association of Chartered Certified Accountants (ACCA) has expressed support for the UK government’s initiative to set up a voluntary registration system for providers of sustainability assurance services.  

As part of a consultation, there is a proposal under consideration that would assign the planned Audit, Reporting and Governance Authority (ARGA) the task of establishing a voluntary registration framework.  

This framework would be for entities providing third-party assurance services on sustainability-related disclosures. 

Sustainability assurance is crucial for verifying the accuracy and reliability of a company’s environmental, social, and governance (ESG) information.  

The accounting body said that the UK established corporate governance framework positions it to shape the sustainability assurance landscape.  

ACCA highlights the importance of adopting standards that will be internationally recognised, to uphold market confidence and consistency across borders. 

It supports an approach to sustainability assurance that is open to professionals from various fields, not just accountants, if there is equal adherence to standards and regulatory oversight.  

The main objective is to maintain high standards of assurance, requiring knowledge in both the assurance process and the specific sustainability topics involved. 

The development of sustainability assurance should advance in conjunction with improvements in sustainability reporting standards.  

ACCA has welcomed the recent consultations on the UK Sustainability Reporting Standards and the ISSA (UK) 5000 by the FRC, which are crucial steps towards a comprehensive UK sustainability reporting framework. 

ACCA Strategy and Governance executive director Maggie McGhee said: “A voluntary approach provides space for assurance providers to build capability and adapt to new requirements, helping the market to grow. 

“There is, though, a risk, that the UK approach could be perceived as less robust than other jurisdictions that have introduced mandatory assurance requirements. It is important, therefore, to signal the intention to move in due course to a mandatory regime, building on lessons learned from the initial voluntary arrangements.” 

Additionally, ACCA advised the UK Government to provide clear and actionable guidelines for mandatory climate transition plans for financial institutions and top-tier companies.