The UK government has initiated three consultations to improve sustainability reporting and assurance.

The Institute of Chartered Accountants in England and Wales (ICAEW) will work closely with its members to assess these proposals thoroughly.

ICAEW’s Audit and Assurance Faculty will focus on the proposed regulatory framework. While statutory auditors are currently regulated, sustainability assurance providers lack similar supervision.

ICAEW views this as a chance to enhance market confidence. The government suggests creating a ‘sustainability assurance provider’ designation with optional registration.

The Audit, Reporting and Governance Authority (ARGA) will manage this system. ICAEW will offer insights to ensure stringent eligibility standards for providers.

The framework will adopt an inclusive approach, covering both audit and non-audit professionals. It will acknowledge standards such as the UK SRS and equivalents to ISSA 5000. ICAEW endorses alignment with rigorous assurance practices.

ARGA will establish future standards and implement a balanced enforcement system. The framework will connect with the Corporate Sustainability Reporting Directive. ICAEW will push for clear guidance to assist its members.

In the future, ARGA may explore mandating the registration system. ICAEW will contribute to discussions on the scheme’s specifics.

Member input will help craft a framework that ensures quality and uniformity.

The Department for Business and Trade (DBT) seeks to expand the UK’s sustainability assurance sector and implement “regulatory structures to ensure that assurers have the necessary skills and qualifications to undertake high-quality sustainability assurance engagements”.

ICAEW has collaborated with the Financial Reporting Council’s Sustainability Assurance Market Study.

It will maintain engagement with DBT, FRC, and ARGA. The objective is a regulatory system that promotes excellence in sustainability reporting and assurance.

ICAEW Audit and Assurance Strategy head Alex Russell said: “ICAEW welcomes this consultation as a vital next step in establishing a high-quality sustainability assurance environment in the UK, where there is currently an unregulated market of voluntary assurance on a wide range of sustainability information from individual metrics to entire sustainability reports.”