Section 5100Part 5

Complying with This Part

Introduction

General

5100.1 It is in the public interest that sustainability assurance provider act ethically in order to maintain public trust and confidence in sustainability information that is subject to assurance. High-quality ethics and independence standards alongside other high-quality, globally accepted reporting and assurance standards will help users of sustainability information such as investors, customers, employees, suppliers, regulators and governments to confidently rely on such information in their decision-making. 5100.1a Sustainability assurance provider are expected to have relevant skills, knowledge and experience to perform sustainability assurance engagements and have appropriate training to ensure their assurance skills are continually up to date with relevant developments. 5100.2 This Part sets out ethics (including independence) standards for sustainability assurance provider and comprises:

(a)

Sections 5100 to 5350 which set out ethics standards for all sustainability assurance engagements (including those within the scope of the Independence Standards in this Part) and other professional services performed for sustainability assurance clients; and

(b)

Sections 5400Sections 5400 to 5600 which set out independence standards for sustainability assurance engagements that are within the scope of the Independence Standards in this Part as set out in paragraphs 5400.3a and 5400.3b. 5100.2a When a sustainability assurance provider performs a sustainability assurance engagement that is not within the scope of the Independence Standards in this Part, Part 4B of the Code sets out the applicable independence standards as set out in paragraph 5400.3e. 5100.2b Sustainability assurance provider might perform professional activities and have professional and business relationships that are not covered by this Part, in which case Parts 1 to 4B of the Code apply to a practitioner who is a chartered accountant. 5100.3 This Part sets out high quality standards of ethical behavior expected of sustainability assurance providers. The Code should also be used by firms in developing their ethics and independence policies. 5100.4 This Part establishes five fundamental principles to be complied with by all sustainability assurance providers. It also includes a conceptual framework that sets out the approach to be taken to identify, evaluate and address threats to compliance with those fundamental principles and threats to independence. This Part also applies the fundamental principles and the conceptual framework to a range of facts and circumstances that sustainability assurance provider might encounter.

Sustainability Information Subject to Assurance

5100.4a Sustainability information might include comprehensive disclosures about many different topics or aspects of topics as required by the sustainability reporting framework or by law or regulation, or that an entity chooses to prepare in accordance with other criteria. Alternatively, the sustainability information prepared by an entity might be limited to certain matters, such as metrics, targets or key performance indicators. 5100.4b The criteria used for the reporting of sustainability information on which the sustainability assurance provider expresses an opinion might be framework criteria, entity-developed criteria or a combination of both. Framework criteria might be embodied in law or regulation or issued by authorized or recognized bodies that follow a transparent due process. 5100.4c Depending on the criteria used, the sustainability information might be prepared on a single entity or group basis, and might include information from other entities in the reporting entity’s value chain. 5100.4d Sustainability information might be presented in different ways, for example, in a separate sustainability report issued by the entity, as part of the entity’s annual report (e.g., a separately identified report within the annual report, or presented as part of the management report or management commentary), or in an integrated report.

Requirements and Application Material

5100.5 A1 The requirements in this Part, designated with the letter “R,” impose obligations. 5100.5 A2 Application material, designated with the letter “A,” provides context, explanations, suggestions for actions or matters to consider, illustrations and other guidance relevant to a proper understanding of this Part. In particular, the application material is intended to help a sustainability assurance provider to understand how to apply the conceptual framework to a particular set of circumstances and to understand and comply with a specific requirement. While such application material does not of itself impose a requirement, consideration of the material is necessary to the proper application of the requirements of this Part, including application of the conceptual framework. 5100.6 A1 Upholding the fundamental principles and compliance with the specific requirements of this Part enable sustainability assurance providers to act in the public interest when providing sustainability assurance. 5100.6 A2 Complying with this Part includes giving appropriate regard to the aim and intent of the specific requirements. 5100.6 A3 There might be unusual or exceptional circumstances in which a sustainability assurance provider believes that complying with a requirement or requirements in this Part might not be in the public interest when providing sustainability assurance or would lead to a disproportionate outcome. In those circumstances, the practitioner is encouraged to consult with Institute. 5100.6 A4 In acting in the public interest, a sustainability assurance provider considers not only the preferences or requirements of an individual sustainability assurance client, but also the interests of other stakeholders when performing professional services for sustainability assurance clients.

R5100.6

A sustainability assurance provider shall comply with this Part when providing a professional service described in paragraph 5100.2.

R5100.7

If there are circumstances where laws or regulations preclude

Notes, amendments & references (7)

a sustainability assurance provider from complying with certain provisions in this Part, those laws and regulations prevail, and the practitioner shall comply with all other provisions in this Part. If provisions which are more stringent or additional to those prescribed in this part have been stipulated vide any industry/Sector specific provisions, the said provisions shall be applicable with regard to such industry/Sector. 5100.7 A1 The principle of professional behavior requires a sustainability assurance provider to comply with relevant laws and regulations. Practitioners need to be aware of differences in local regulations from the provisions as set out in the Code and comply with the more stringent provisions unless prohibited by law or regulation.

Breaches of this Part

R5100.8

Paragraphs R5400.80 to R5400.89 address a breach of

independence requirements in this Part. A sustainability assurance provider who identifies a breach of any other provision in this Part shall evaluate the significance of the breach and its impact on the practitioner’s ability to comply with the fundamental principles. The practitioner shall also:

(a) Take whatever actions might be available, as soon as possible, to address the consequences of the breach satisfactorily; and

(b) Determine whether to report the breach to the relevant parties. 5100.8 A1 Relevant parties to whom such a breach might be reported include those who might have been affected by it.