Sustainability Audit Rules Toughened and Explained Globally

Rules for sustainability audits are being strengthened as countries gear up for mandatory reporting of environmental, social, and governance issues.

Australia on Tuesday became the first country to pass binding rules for sustainability auditor ethics, the same day that leading international accounting bodies published guidance on how auditors check that all material, or significant, matters have been reported. The rules state that Australian companies must produce audited sustainability reports from this year.

The additional rules and guidance come amid criticisms from academics like Sheffield University’s Richard Murphy that companies have been allowed too much leeway over what to report under ...