The Association of Chartered Certified Accountants argues that quicker adoption of robust sustainability reporting and assurance frameworks can help drive economic growth in both the UK and China. This article lays out the ACCA’s core recommendations for regulators, lists the practical hurdles firms face, and explains why aligning with international standards matters for trade and investment. It also preserves key quotes from ACCA leaders about guidance, digital tools and oversight.
ACCA’s research suggests that better quality, coherence and credibility in sustainability reporting reduces friction between markets and makes cross-border deals easier. When companies present comparable, trustworthy sustainability information, investors and trading partners can assess opportunities faster and with more confidence. That clarity matters for flow of capital and trade between two large economies with different reporting histories.
After work in both the UK and China, the accounting body urged policymakers to pick up the pace but to do so in a practical way that companies can absorb. The recommendation is straightforward: set realistic expectations, issue clearer guidance and use phased timelines so firms can build the right capabilities. These steps aim to lower compliance uncertainty, trim costs, and prevent small firms from being squeezed out by one-size-fits-all rules.
“Regulators and policymakers can strengthen corporate uptake by providing clear guidance, support with practical implementation and promoting the use of digital tools. “By setting out a transparent road map with defined milestones, organisations could plan, align and build capacity while reducing uncertainty and cost. “Assurance providers would be helped by regulators providing clear terminology, expectations and scope in order to build confidence in the market. The report says the assurance market should ‘operate under the supervision of an appropriate oversight body to enhance credibility and trust’.”
The ACCA grounded its findings in a roundtable that pulled in voices from academia, the accounting and assurance professions, corporate leaders, financial institutions, and regulators from both jurisdictions. That mix highlighted shared practical challenges rather than ideological differences, and produced a set of pragmatic steps intended for immediate use. The collaborative approach aimed to surface what businesses actually need from regulators to make reporting workable.
Three main hurdles keep sustainability reporting from realising its growth potential: a shortage of skills to analyse and interpret sustainability data, the sheer breadth and diversity of topics under the sustainability umbrella, and difficulty linking sustainability data back to financial statements. Tackling the skills gap means training and hiring people who can translate environmental and social metrics into business-relevant insights. Dealing with scope and linkage challenges requires clearer boundaries for what companies must report and better methods for integrating non-financial and financial information.
Both the UK and China are backing the International Sustainability Standards Board and are using the International Auditing and Assurance Standards Board’s ISSA 5000 as a foundation for assurance rules. ACCA’s report urges minimal deviation from those international standards to avoid creating costly discrepancies that could slow trade or confuse investors. Consistency with global norms helps multinational companies avoid duplicate reporting and lets assurance providers develop repeatable, comparable approaches across jurisdictions.
“The work underlines how the UK and China share the same challenges in the development and implementation of sustainability disclosure and assurance standards. “We are at a critical juncture globally with sustainability reporting and assurance and we hope this report will make a significant contribution in helping both countries to find the right road.”
