The XRB consulted on making ISSA 5000 General Requirements for Sustainability Assurance Engagements (ISSA 5000) and the International Ethics Standards for Sustainability Assurance (Including International Independence Standards) (IESSA) available for use in New Zealand.

• We support making ISSA (NZ) 5000 available for use in New Zealand by adding it as an option in NZ SAE 1 Assurance Engagements over Greenhouse Gas Emissions Disclosures (NZ SAE 1) as this will allow firms that wish to adopt ISSA 5000 for their broader sustainability assurance services to use a single methodology.
• We also support temporarily retaining ISAE (NZ) 3410 Assurance on Greenhouse Gas Statements as an option in NZ SAE 1 for the purpose of transition.
• We remain concerned about the dual adoption of ISO standards alongside ISAE 3410/ISSA 5000. The ISO standards operate under a fundamentally different framework, with terminology and assurance concepts that diverge significantly from those used in the IAASB standards and other audited market disclosures in New Zealand and internationally. This divergence risks confusion among users and undermines comparability and consistency in assurance engagements.
• We support adopting the IESBA’s International Ethics Standards for Sustainability Assurance (Including International Independence Standards) (IESSA) in New Zealand, but we have made some recommendations on improvements to make it fit for purpose in New Zealand.
• We also support the proposed amendments to PES 1 International Code of Ethics for Assurance Practitioners (Including International Independence Standards) (PES 1) in relation to using the work of an external expert but have made some recommendations for the Board to consider.