#1599 Introduce ESG regulatory reporting competency into Audit (AUDT) and Governance (GOVN) skills change request pending

Problem Statement: SFIA 9 Governance (GOVN) is currently defined only at Levels 6–7, creating a gap in mid-level ESG governance accountability mapping. Audit (AUDT, Levels 2–7) does not reference ESG compliance frameworks (CSRD, IFRS/ISSB, ASRS, GHG Protocol). The TBM for Sustainability & ESG Framework requires organisations to govern ESG programmes with board-level accountability and to audit ESG data and disclosures with the same rigour applied to financial audits.

Proposed Change:

Amend GOVN to include:

·        New level descriptors at Levels 4 and 5 covering mid-level ESG governance responsibilities including:

·        Level 4: Applies governance frameworks to ESG programme management; monitors ESG compliance within defined policy boundaries.

·        Level 5: Establishes and manages governance structures for ESG initiatives; ensures accountability for ESG outcomes at programme level.

·        At Levels 6–7: Add explicit reference to governing ESG reporting obligations under applicable regulatory frameworks.

 

Amend AUDT descriptors at Levels 4–7 to include:

·        Audit of ESG data quality, carbon accounting records, and sustainability disclosures.

·        Assessment of compliance with ESG regulatory frameworks (CSRD, IFRS/ISSB S1/S2, ASRS, GHG Protocol).

·        Independent assurance of ESG-related internal controls and reporting processes.

 

Rationale:

·        Directly addresses the "Partial" coverage ratings and identified gaps in Section 2.2 of the gap analysis.

·        GOVN limited to Levels 6–7 is insufficient for organisations needing mid-level ESG programme governance.

·        External assurance requirements under CSRD and IFRS/ISSB make ESG audit competency a mandatory workforce need.

Applies to: GOVN — Governance; AUDT — Audit

Change Note: Proposed new level descriptors for GOVN at Levels 4–5; proposed additions to AUDT descriptions at Levels 4–7.

Note: More than 36 jurisdictions globally are actively adopting or aligning their corporate disclosure regulations with the IFRS Sustainability Disclosure Standards (ISSB) to create a global baseline for climate and sustainability reporting. Beyond the UK, the EU, and Australia, numerous other countries have formally finalised their approach to adopt or closely align with these rules, including Brazil, Canada, Chile, China, Hong Kong, Japan, Malaysia, Mexico, Nigeria, Qatar, and Turkey. Additionally, nations such as Singapore, South Korea, India, and Indonesia are in advanced stages of implementing ISSB-aligned frameworks. View official implementation maps and country-by-country data on the IFRS Foundation Jurisdictional Profiles page.

Proposed change applies to Governance

Current status of this request: pending