Standards body proposes rules for auditing company climate disclosures By Reuters

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<p>By Huw Jones</p>
<p>LONDON (Reuters) – A global body on Wednesday proposed its first set of comprehensive rules for auditing climate-related company disclosures in an anticipated move regulators have said is crucial for giving investors information free of greenwashing.</p>
<p>Stricter European Union, U.S. and global rules are being introduced over coming months to replace a patchwork of voluntary private sector practices for listed companies to disclose the impact of climate change on their bottom line.</p>
<p>EU members and other countries will require the disclosures to be externally audited in a similar way to how financial statements are checked by outside accounting firms such as EY, KPMG, Deloitte and PwC.</p>
<p>The International Auditing and Assurance Standards Board (IAASB) said its first comprehensive, standalone standard for auditing sustainability disclosures would play a key role in enhancing trust and confidence in reporting.</p>
<p>The proposed standard, put out to public consultation, can be used for disclosures under the various regimes being rolled out to aid global consistency, the IAASB said.</p>
<p>“The final standard will be issued before the end of 2024,” it added.</p>
<p>Nigel Sleigh-Johnson, director for audit and corporate reporting at the ICAEW, a London-based professional accounting body, said the proposed standards were a much-needed underpinning for high quality disclosures.</p>
<p>Jurei Yada, programme lead for EU sustainable finance at climate think tank E3G, said auditing can have a “multiplier effect” on the use of new disclosure rules, and accelerate the uptake of company plans on how they will transition to a net-zero economy. </p>
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