Section 5270Part 5

Pressure to Breach the Fundamental Principles

Introduction

5270.1 Sustainability assurance providers are required to comply with the fundamental principles and apply the conceptual framework set out in Section 5120 to identify, evaluate and address threats. 5270.2 Pressure exerted on, or by, a sustainability assurance provider might create an intimidation or other threat to compliance with one or more of the fundamental principles.

This section sets out specific requirements and application

material relevant to applying the conceptual framework in such circumstances.

Requirements and Application Material

General

R5270.3

A sustainability assurance provider shall not:

(a)

Allow pressure from others to result in a breach of compliance with the fundamental principles; or

(b)

Place pressure on others that the practitioner knows, or has reason to believe, would result in the other individuals breaching the fundamental principles. 5270.3 A1 A sustainability assurance provider might face pressure that creates threats to compliance with the fundamental principles, for example an intimidation threat, when undertaking a professional activity for a sustainability assurance client. Pressure might be explicit or implicit and might come from: • The sustainability assurance client. • Within the firm, for example, from a colleague or superior. • Another external organization or individual such as a supplier, customer or lender of the sustainability assurance client or of the firm. • Internal or external targets and expectations. 5270.3 A2 Examples of pressure that might result in threats to compliance with the fundamental principles include: • Pressure related to conflicts of interest: o Pressure from a family member bidding to act as a counterparty to a transaction involving a sustainability assurance client to select the family member over other counterparties. See also , Conflicts of Interest. • Pressure to act without sufficient expertise or due care: o Pressure from a sustainability assurance client to express an opinion on sustainability information that is not supported by the evidence obtained from the assurance procedures performed. o Pressure from a sustainability assurance client to inappropriately alter the scope of the sustainability assurance engagement to influence how the client’s sustainability goals or practices are perceived. o Pressure from a sustainability assurance client to deviate from the recommended approach when setting the scope of a voluntary sustainability assurance engagement. o Pressure from a sustainability assurance client not to inquire about strategy-related assumptions used in the forward-looking information prepared by the client and subject to assurance procedures. o Pressure from superiors to inappropriately reduce the extent of work performed. o Pressure from superiors to perform a task without sufficient skills or training or within unrealistic deadlines. • Pressure related to inducements: o Pressure from colleagues to accept a bribe or other inducement, for example to accept inappropriate gifts or entertainment from potential or existing sustainability assurance clients.