IFAC introduces mandatory sustainability competencies in accounting education
In a significant move to enhance sustainability within the accounting profession, the International Federation of Accountants (IFAC) has announced mandatory updates to its International Education Standards (IESs). These changes, which were officially confirmed in a recent release by ESG News, introduce new competencies focused on sustainability that aspiring professional accountants will now be required to master during their training.
The updates come in response to a growing global demand for comprehensive and robust sustainability reporting, which is increasingly being seen as essential for businesses to maintain transparency and accountability. As concerns around environmental, social, and governance (ESG) issues mount, IFAC’s revisions aim to equip accountants with the necessary skills to support high-quality sustainability reporting and assurance.
Chief Executive Officer of IFAC, Lee White, emphasised the importance of these changes, stating, “These revisions ensure that professional accountants develop the right competencies to support high-quality sustainability reporting and assurance.” This statement underlines the organisation's commitment to enhancing the accounting profession’s role in sustainability.
Among the key updates are the integration of sustainability into all aspects of professional accounting education. This comprehensive approach means that sustainability will no longer be an ancillary topic but a core element in the training of future accountants. Moreover, a new Assurance Competence Area has been established, mandating specialized skills in sustainability assurance, thereby ensuring that accountants are equipped to assess and verify sustainability reports accurately.
In addition to new technical competencies, the revisions also place substantial emphasis on developing enhanced business acumen. Accountants will receive more training in strategic thinking related to sustainability issues, along with new behavioural competencies aimed at better preparing them for ethical decision-making. This is a crucial development, considering the heightened scrutiny that businesses face regarding their sustainability practices.
To support the global adoption and implementation of these revised standards, IFAC has expanded its explanatory materials. This additional guidance will assist educators and accounting professionals in navigating the updated IESs and integrating these crucial competencies into their programmes and practices.
Furthermore, IFAC has modernised IES 6, introducing integrity and authenticity as foundational principles alongside revisions to equity standards. This upgrade is intended to provide clearer guidance, especially in the context of business environments that are increasingly hybrid and remote, reflecting the changing landscape of work and learning.
The implications of these revisions are profound for the accounting profession globally, as they represent a significant step toward ensuring that accountants not only keep pace with the evolving expectations around sustainability but are also expected to take a leading role in this critical area. By embedding sustainability competencies into training, IFAC aims to foster a new generation of accountants who are not only adept at traditional accounting practices but are also capable of delivering transparent, accurate, and relevant sustainability-related information.
As these updates take effect, it will be essential for accounting programmes and professionals to adapt to the new standards, ensuring that the profession maintains its integrity and relevance in a rapidly changing global environment.