FRC consultation on ISSA 5000- Sustainability assurance is coming to the UK

The Financial Reporting Council (FRC) has announced its consultation on a proposed UK version of the International Standard on Sustainability Assurance 5000 (ISSA 5000).

ISSA 5000 provides a globally applicable foundation for practitioners to provide assurance services in this growing market. It will contribute to building increased confidence in the sustainability/environmental, social and governance (ESG) data reported by companies as they strive to meet the growing expectations of investors and wider society. In this blog we examine what’s happening with ISSA 5000.

Voluntary adoption

The FRC have proposed voluntary adoption of ISSA 5000 in the UK with one minor amendment, which will restrict the use of direct assistance by internal auditors in sustainability assurance engagements. The government will make a decision on whether the standards remain voluntary when the sustainability reporting standards are approved.

Deadline for responses

The FRC have set a deadline of 31 July 2025 to provide responses to the following questions:

1. Do you agree that the FRC should issue ISSA (UK) 5000 for voluntary use in the UK?
2. Do you agree with the proposed modification to ISSA 5000? If not, what material would you suggest we include?
3. Do you believe any further adaptations should be made? If you do, please explain them.
4. Do you agree with the proposed effective date? If not, please explain what date would be appropriate.

Excellent opportunity

Sustainability reporting is becoming more important to small and medium size companies as larger firms, public bodies and national parliaments require more sustainability information from the companies they work with and legislate for.

ISSA 5000 provides an excellent opportunity for professional services firms of all sizes to contribute to sustainability and to participate profitably to the sustainability advisory and assurance market. The consultation gives firms a chance to have their say on how the ISSA 5000 is introduced to the UK.