ACCA backs UK’s voluntary rules on sustainability assurance

The Association of Chartered Certified Accountants (ACCA) has welcomed the UK government’s plan to introduce voluntary registration rules for sustainability assurance providers.

The global accountancy body said the initial voluntary model would allow firms to adapt to new requirements, but stressed that any system must include a clear route towards a mandatory regime in future.

Sustainability assurance – an independent examination of a company’s environmental, social and governance (ESG) disclosures – is designed to give investors and stakeholders confidence in the accuracy of reported information.

Maggie McGhee, executive director for strategy and governance at ACCA, said: “A voluntary approach provides space for assurance providers to build capability and adapt to new requirements, helping the market to grow.

“There is, though, a risk that the UK approach could be perceived as less robust than other jurisdictions that have introduced mandatory assurance requirements. It is important, therefore, to signal the intention to move in due course to a mandatory regime, building on lessons learned from the initial voluntary arrangements.”

The organisation said the UK is well placed to shape international practice, citing its corporate governance framework, and called for interoperability with global standards to support cross-border consistency and investor confidence.

It also backed a profession-agnostic model, where accountants and non-accountants can offer assurance services provided they meet the same regulatory standards. ACCA said this approach reflected the technical breadth of sustainability reporting and aligned with emerging international practice.

Progress on assurance should move alongside the development of sustainability reporting disclosures, the body said, welcoming recent consultations on the UK Sustainability Reporting Standards (S1 and S2) and on ISSA (UK) 5000 issued by the Financial Reporting Council.

Glenn Collins, head of technical advisory and strategic engagement at ACCA UK, added: “The assurance regime should enhance the quality, consistency, and credibility of sustainability disclosures which will improve investor access to reliable, decision-useful information. This is essential for mobilising private capital toward productive, innovative, and sustainable sectors, and for enhancing the UK’s ability to attract a greater share of internationally mobile investment.”