Global Guidance Released for ESG Auditors to Avoid Greenwashing

Two global accounting bodies launched a program Monday to help companies ensure consistent auditing of environmental, social and governance disclosures and avoid corporate greenwashing.

The International Auditing and Assurance Standards Board and the International Ethics Standards Board for Accountants announced a joint effort to help companies use their incoming dedicated sustainability auditing rules, which take effect Dec. 15, 2026. The standards are designed to work together, with IAASB’s ensuring consistent sustainability audits and IESBA’s tackling greenwashing and companies that don’t follow regulatory requirements.

Around 130 countries use IAASB and IESBA rules, although each country must adopt the new set individually. ...