Core Viewpoint - The recent public consultation by the Chinese Institute of Certified Public Accountants aims to establish a clear regulatory framework for sustainable information verification, marking a new phase of standardization and professionalism in ESG verification in China [1] Group 1: Challenges in Sustainable Information Verification - Current challenges in China's sustainable information verification include fragmented standards, significant differences in methods and indicators among verification institutions, and inadequate risk assessment capabilities [2] - The consultation draft aims to address these issues by proposing key measures to fill the gaps and resolve related challenges [2] Group 2: Standardization and Quality Control - The consultation draft is expected to resolve the long-standing fragmentation issue in the industry by establishing standardized procedures and requirements for verification [2] - It emphasizes the need for quality control mechanisms and clear anti-fraud requirements to provide reliable institutional guarantees for the market [1][2] Group 3: Incorporating International Experience and Local Adaptation - The draft draws on international frameworks like ISSA 5000 while considering the local context of China's nascent sustainable information disclosure and verification practices [3] - It proposes detailed requirements for dual materiality assessment and expert competency evaluation, aligning with domestic regulatory frameworks [3] Group 4: Enhancing Verification Quality - The draft sets stringent requirements for verification institutions, including the need for project partners to possess adequate competency in sustainable information [4] - It highlights the importance of maintaining independence and quality management within verification processes [5] Group 5: Addressing Fraud and Data Verification Challenges - The identification of fraud remains a significant challenge in sustainable information verification, particularly due to the lack of standardized metrics for non-financial data [7] - The draft suggests implementing technological solutions and cross-departmental collaboration to enhance data verification and fraud detection [8] Group 6: Strengthening Accountability and Regulatory Mechanisms - The establishment of a robust accountability framework is crucial, with suggestions for dual accountability for fraudulent activities involving both companies and verification institutions [9] - A two-way data reporting platform is proposed to facilitate communication between verification institutions and regulatory bodies, enhancing the identification of high-risk entities [10]