Speeding up adoption of sustainability frameworks could boost economic growth

The UK and China could enable smoother cross-border trade and investment through strengthening the coherence and credibility of their sustainability reporting.

Following extensive research and consultation in both countries, leading global accountancy body ACCA (the Association of Chartered Certified Accountants) has set out recommendations to bolster both countries' sustainability reporting.

Regulators and policymakers in both countries could accelerate the effective development of sustainability and assurance by setting realistic expectations and adopting phased implementation.

Helen Brand OBE, chief executive, ACCA, said: 'Regulators and policymakers can strengthen corporate uptake by providing clear guidance, support with practical implementation and promoting the use of digital tools. By setting out a transparent roadmap with defined milestones organisations could plan, align and build capacity while reducing uncertainty and cost.

'Assurance providers would be helped by regulators providing clear terminology, expectations and scope in order to build confidence in the market. The report says the assurance market should 'operate under the supervision of an appropriate oversight body to enhance credibility and trust'.'

The report draws on insights gathered in an ACCA-convened roundtable which brought together participants from the UK and China, including policymakers, regulators, academia, accountancy and assurance professionals, financial institutions and corporates.

The report's recommendations seek to overcome the three top challenges identified:

• Lack of skills/capability to analyse date
• Large, diverse volume of sustainability matters that need to be considered
• Difficulty in connecting sustainability and financial data.

Both the UK and China support the work of the International Sustainability Standards Board (ISSB) and both are using the International Auditing and Assurance Standard Board (IAASB)'s ISSA 5000, as a basis for their sustainability assurance standard. The report - which gives a detailed comparison of how the two countries are approaching sustainability standards and disclosures - urges as little divergence from international standards as possible.

Joe Fitzsimons, regional lead, Policy and Insights - EEMA & UK, ACCA, said: 'The work underlines how the UK and China share the same challenges in the development and implementation of sustainability disclosure and assurance standards. We are at a critical juncture globally with sustainability reporting and assurance and we hope this report will make a significant contribution in helping both countries to find the right road.'

Read Accelerating Jurisdictional Implementation of Sustainability Disclosure and Assurance Standards