Landmark Sustainability Audit Standards Approved by Global Board

Global standard-setters approved Friday the first dedicated rules for audits of corporate sustainability statements, which are expected to be mandatory in many countries as new reporting requirements take effect in Europe and elsewhere.

The International Auditing and Assurance Standards Board’s new rules for how auditors should approach sustainability assurance are modeled after existing guidance for vetting the accuracy of companies’ financial statements. But they include sustainability-specific requirements, such as making sure companies that issue such reports have sufficient on-staff expertise in topics like greenhouse gas emissions and human rights.

All 18 members of the global board voted to pass the ...