Thomson Reuters Spotlights AccountAbility's Stance on the Need for Diversified Sustainability Assurance

London – New York, July 24, 2024

AccountAbility, a global standards and consulting firm and creator of the AA1000 Series of Standards, has garnered attention in a recent article published by Thomson Reuters on sustainability assurance. In the article, AccountAbility’s commitment to meeting stakeholder needs for sustainability assurance through its Next Generation AA1000 Assurance Standard (AA1000AS v3) - going beyond regulatory compliance has been highlighted.

Please click the link for the article here: Using the same assurance methodology for sustainability and financial reporting could be short-sighted

The highlights of the article capturing AccountAbility’s views include:

Why a Diversified Sustainability Assurance Market Matters: Sustainability assurance cannot be limited to ticking boxes to comply with regulations. To build trust with stakeholders, demonstrate transparency, and drive positive impact, market leading companies need to consider assurance beyond data accuracy and reliability of company disclosures. As businesses face increasing scrutiny, the need for more holistic assurance frameworks, exceeding baseline minimum requirements has become critical.

“It’s not a debate whether the finance professionals do the assurance better than the sustainability professionals,” Udaya Nanayakkara, Acting Head of Standards, explains. “It was just that with the regulation for data verification of sustainability disclosures, there seems to be an emphasis on recognizing only standards used by finance professionals to provide sustainability assurance. We believe the market should be broader in getting the views of different professionals providing assurance, including their preferred standards.”

AA1000AS v3 - Leading the Way: AccountAbility’s AA1000AS v3 provides a stakeholder driven, principles-based approach to sustainability assurance that is preferred by sustainability professionals as well as market-leading companies. Unlike a compliance-focused approach prescribed by regulations, the AA1000AS v3 emphasizes holistic performance improvement, driven by management of material environmental, social, and governance (ESG) topics. It provides stakeholders with the assurance they need by challenging companies to create lasting value for both their organizations and the planet.

To assure the validity and completeness of sustainability information, using both standards that complement each other is preferable. One standard is not necessarily better than the other; however, applying two purpose-built standards may provide a more comprehensive perspective. Indeed, AA1000 does not compete with the ISAE 3000, rather it is “not exclusive of other standards,” Nanayakkara says. “Our position is that the complementary usage is a tremendous value-add and an enhancement to information verification which assurance providers, reporting companies, and the stakeholders will recognize.”

Sunil (Sunny) A. Misser, CEO of AccountAbility, states, “We are now in a world where ESG metrics are not only used to report and disclose on a company’s health, but, more importantly, to predict it. Use of the AA1000AS v3 assurance standard provides a broader, holistic, and more inclusive view towards measuring, managing, and disclosing sustainability performance.”

AccountAbility invites other industry leaders to join the movement towards sustainable excellence beyond minimum regulatory compliance.

Contact:
Ms. Rachel Rose
AccountAbility
Global Head of Operations
Email: rachel.rose@accountability.org
Web: www.accountability.org

About AccountAbility:

AccountAbility is a specialist global Consulting and Standards firm that works with businesses, investors, governments, and multilateral organizations to innovate and advance the global Sustainability/ ESG agenda by improving the practices, performance, and impact of organizations. The firm focuses on delivering practical, effective, and enduring results that enable our clients to succeed.

AccountAbility is a Public Benefit Corporation, operating globally through a highly qualified team from offices in New York, London, Riyadh, and Dubai. The firm is the recipient of multiple business awards from the Financial Times, Forbes, and Capital Finance International, and its website is archived with the United States Library of Congress. Learn more at www.accountability.org.