- The ICAI will implement the Standard on Sustainability Assurance 5000 from April 1, 2027
- SSA 5000 sets requirements for assurance on sustainability disclosures like climate and biodiversity
- The new standard excludes joint audits and forward-looking statements from its scope
The Institute of Chartered Accountants of India has introduced a new standard for sustainability assurance that will come into effect from April 1, 2027, bringing India's framework closer to global practices.
The new Standard on Sustainability Assurance 5000 sets out general requirements and a framework for assurance engagements covering sustainability-related disclosures by companies and other entities.
The standard will apply to information covering areas, such as climate, labour practices and biodiversity, with the objective of providing greater consistency and credibility to sustainability disclosures.
ICAI President Prasanna Kumar D said the new framework is expected to strengthen confidence among investors and other stakeholders. He described SSA 5000 as a principles-based framework that expands the scope of sustainability assurance while accommodating India's diverse reporting frameworks.
Also Read | How US Law Sanctioning Russian Oil Buyers Could Hit Indian Garment Exports
According to an ICAI official, SSA 5000 has been developed with two specific carve-outs from the International Standard on Sustainability Assurance. These relate to joint audits and forward-looking statements, which have been excluded from the Indian standard.
A key change will take effect when SSA 5000 becomes applicable. Existing sustainability assurance standards, including SSA 3000 and SAE 3410, will be withdrawn from April 2027, according to the ICAI president.
ICAI Vice President Mangesh Kinare said the standard would broaden sustainability assurance while maintaining rigour and consistency across different reporting frameworks.
The institute is also undertaking initiatives such as the Sustainability Reporting Maturity Model to support better sustainability reporting and disclosures by corporates and other entities.
The ICAI, which sets standards for various professional activities, has more than five lakh members.
(With PTI Inputs)
Also Read | FinMin To Meet PSB, RRB Chiefs On Monday To Ensure Banking Services During Three-day Strike
Essential Business Intelligence, Sharp Market Insights, Practical Personal Finance Advice, Daily Fuel, Gold and Silver Prices and Latest Stories — On NDTV Profit.