ICAI Issues Exposure Draft on Sustainability Assurance Framework

1. Introduction

With sustainability and ESG reporting gaining increasing prominence in corporate governance and stakeholder decision-making, the need for credible assurance over sustainability-related disclosures has become equally important. Globally, regulators, investors, and businesses are placing greater emphasis on the reliability and transparency of sustainability information disclosed by entities. In line with these developments, the Sustainability Reporting Standards Board (SRSB) of The Institute of Chartered Accountants of India has issued an Exposure Draft on the “Framework for Sustainability Assurance Engagements” and invited public comments and suggestions on the proposed framework till 19th June 2026.

The proposed Framework aims to provide conceptual guidance regarding sustainability assurance engagements and to establish a foundation for the future development of Standards on Sustainability Assurance (SSA). The initiative is expected to play a significant role in strengthening India’s sustainability assurance ecosystem and aligning domestic practices with evolving global expectations.

2. Objective of the Proposed Framework

The proposed Framework has been issued to facilitate understanding of the elements and objectives of sustainability assurance engagements and the engagements to which the proposed “Standards on Sustainability Assurance” would apply.

The Exposure Draft specifically clarifies that the Framework itself does not constitute a Standard and therefore does not prescribe mandatory requirements, essential procedures, or basic principles for conducting assurance engagements. Accordingly, an assurance report cannot state that an engagement has been conducted in accordance with the Framework. Instead, such engagements would be required to comply with the relevant Standards on Sustainability Assurance, once notified.

The proposed Assurance Standards are expected to contain detailed objectives, requirements, explanatory guidance, and definitions that would operate consistently with the principles laid down in the Framework.

3. Role of the Framework

The Framework is intended to act as a foundational reference document for multiple stakeholders involved in sustainability assurance engagements. This includes assurance practitioners, intended users of assurance reports, engaging parties, and the SRSB itself, all of whom will be involved in developing future assurance standards, practice notes, and guidance documents.

Through the issuance of the Exposure Draft, the SRSB seeks to promote conceptual clarity, consistency, and uniform understanding in the evolving field of sustainability assurance engagements.

4. Key Areas Covered in the Exposure Draft

The proposed Framework provides a detailed overview of the nature and scope of sustainability assurance engagements. It explains the distinction between reasonable and limited assurance engagements, helping users understand the varying levels of assurance that may be provided in sustainability reporting engagements.

The document also distinguishes assurance engagements from other professional services, such as consulting engagements, thereby clearly defining the scope of sustainability assurance practice.

Further, the Framework outlines the preconditions that must be met before an assurance practitioner accepts a sustainability assurance engagement. It also identifies and explains the five essential elements of an assurance engagement, namely:

(a) a three-party relationship

(b) an underlying subject matter

(c) suitable criteria

(d) sufficient appropriate evidence and

(e) an assurance report.

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