Sustainability Reporting Ecosystem: Insights of Audit Committee Chairs

SYNOPSIS In many parts of the world, companies are preparing to transition to both mandatory reporting of sustainability and climate-related information and mandatory assurance of such information. With audit committees expected to expand their role to include sustainability information (International Federation of Accountants (IFAC) 2023), we interview audit committee chairs of Australia’s largest companies to understand their perspectives on sustainability assurance. We provide insights on their involvement in sustainability reporting and assurance decisions, the value they see from assurance, the challenges they anticipate, who has responsibility for decisions on sustainability reporting/assurance, and the timing and level of assurance associated with sustainability assurance. Building on the financial reporting ecosystem, we develop a sustainability reporting ecosystem and provide important insights to audit committee members, directors, assurance providers, and regulators/standard-setters currently grappling with the introduction of regulations and standards in their jurisdiction.