FRC Introduces ISSA (UK) 5000

UK has just inched closer to boosting Credibility & Comparability of Sustainability Reporting with newly introduced ISSA (UK) 5000 The Financial Reporting Council (FRC) has launched new sustainability assurance standards, improving the quality, consistency, and credibility of sustainability reporting in the UK. Over the recent years, sustainability reporting has outpaced the systems needed to validate it. The result: ambitious disclosures, unbalanced credibility. Aligned with the global IAASB assurance standard, the new International Standard on Sustainability Assurance (UK) 5000 provides a clear, internationally consistent framework for both limited and reasonable assurance engagements. It enables a wider range of qualified assurance providers to support companies on their sustainability journeys with a profession-agnostic approach. Strategic Importance: • Market is moving from “reporting more” to “reporting relevant” • Investors are demanding more than transparency – verifiable integrity • Introduction of the standard strengthens global convergence, improves comparability and elevates sustainability reporting Core Features of the Standard: • ISSA (UK) 5000 is aligned with IAASB’s International Standards increasing comparability across jurisdictions, consistent cross-border assurance, and support for international investors and regulators • Applies to all sustainability topics and frameworks (ISSB, GRI, TCFD, ESRS), allowing assurance providers to work across industries and reporting regimes • Supports both Limited and Reasonable Assurance levels • Unlike traditional audit standards, ISSA 5000 can be used by any qualified assurance practitioner, broadening the market and scaling up the sustainability assurance capacity • Emphasizes on risk assessment and evaluating materiality in context of users and reporting framework • The standard requires practitioners to focus on internal controls and data systems, integrating financial reporting processes As sustainability reporting becomes more complex and more visible, robust assurance is no longer optional; it’s a mechanism for better governance, stronger accountability, and quality ESG reporting globally. The new assurance standard becomes effective for periods beginning on or after 15th December 2026, with early adoption permitted.