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ACCA Strategic Professional · Advanced Audit and Assurance (International) · Developments in sustainability assurance

Harbour Energy plc's sustainability report includes a claim that it will cut emissions by 40% by 2035, plus historical emissions data. The practitioner is performing a limited assurance engagement. Which approach is most appropriate for the forward-looking target?

The practitioner should assess how the target is presented, check it is clearly identified as management's aspiration rather than fact, and consider its consistency with other information and the plans behind it. Assurance cannot guarantee a future outcome, but forward-looking information is not automatically excluded or required to be removed.

  1. AConsider whether the target is presented as management's aspiration, assess whether it is clearly distinguished from factual data, and check consistency with other information and any underlying plansCorrect
  2. BObtain a reasonable assurance opinion on whether the target will be achieved by 2035
  3. CIgnore the target because forward-looking information is outside any assurance engagement
  4. DRequire management to remove the target because assurance cannot be given where future events are involved

Explanation

Forward-looking information can be within scope, but the practitioner cannot assure that a future event will occur. The practitioner assesses how it is presented, whether it is clearly identified as aspirational, whether assumptions and basis are reasonable and disclosed, and consistency with other information. Opining on achievement is not possible and removal is not required.

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