APESB proposes code amendments for sustainability reporting, assurance

The amendments are expected to be effective from 1 January 2026, with APESB encouraging all firms to adopt the changes as soon as possible.

According to APESB, the proposed new standards would provide ethical guidance to sustainability reporting and assurance practitioners to deliver the mandatory climate-related financial disclosures and sustainability reports.

The guidance was proposed by the body based on the requirements for annual reports commencing for Group 1 entities in Australia as specified in legislation from 1 January 2025.

The proposed guidance would allow professional accountants in business and public practice and sustainability assurance practitioners to evaluate the competence, capabilities and objectivity of an external expert to ensure their work could be used for its intended purpose.

The amendments would incorporate recent revisions made by the International Ethics Standards Board for Accountants (IESBA) to the International Code of Ethics for Professional Accountants (the International Code).

It was noted that the proposed amendments had been included in two exposure drafts, including Proposed Australian Ethics Standards for Sustainability Assurance (including independence Standards) and Other Revisions to the Code Relating to Sustainability Assurance and Reporting (ED 01/25) and Revisions Addressing the Work of an External Expert (ED 02/25).

Nancy Milne, chair of APESB, said the amendments would address the demand for reliable information to support decision-making.

They would also better equip practitioners to uphold the integrity and foster transparency in sustainability reporting and assurance.

“These standards are built on fundamental ethical principles for reporting and assurance, providing a robust foundation for delivering high-quality sustainability information,” Milne said.

“The proposed revisions to the Code provide clarity on the expected professional and ethical behaviours for sustainability-related matters, especially for firms performing assurance engagements on the new mandatory sustainability reports required by the Corporations Act 2001.”

Though APESB had recommended that all firms adopt the changes soon after the expected enforcement date on 1 January 2026, Milne said there would be transitional relief options available to assist practitioners and firms in implementing the changes.

APESB said feedback on the proposed changes is open and should not be received later than 12 May 2025.