IPSASB Announces a Proposed Public Sector Climate-Related Reporting Standard

It is the first sustainability reporting standard for the public sector, and the International Public Sector Accounting Standards Board (IPSASB) announced the publication of SRS ED 1, a new draft climate-related disclosure standard for governments and other private sector enterprises.

The new standard is being created with assistance from the World Bank, which in 2022 asked IPSASB to spearhead a process to garner support for the creation of sustainability reporting guidelines tailored to the public sector. A consultation document was released by IPSASB to assess demand after the request, and those who responded indicated that public sector sustainability reporting requirements were urgently needed.

With the urgent need to address climate change and the ability to build the standard off of existing resources like the IFRS S2 Climate-related Disclosures standard and GRI climate-related topic standards, the IPSASB announced in 2023 that it would begin development of the climate-reporting standard after evaluating three potential sustainability reporting projects: general requirements for disclosure of sustainability-related financial information, climate-related disclosures, and non-financial disclosures related to natural resources.

The organization further stated that the draft standard offers principles for the smaller group of public sector organizations in charge of climate-related public policy initiatives and their results, while the new standard offers specific guidance that expands upon the international baseline of the IFRS Foundation’s International Sustainability Standards Board (ISSB).

With the publication of the draft, the IPSASB is inviting public comment on the proposed standard until February 28, 2025. Public sector stakeholders, such as those who prepare public sector sustainability and climate-related reports, regional and national sustainability reporting standard setters, professional accountants, sustainability assurance providers, and members of the public, are being asked for their opinions.