IPSASB releases first draft of climate disclosure standards for the public sector.
The International Public Sector Accounting Standards Board (IPSASB) has unveiled its draft of its climate-related disclosure standard tailored for the public sector, inviting feedback from the global community until 28 February 2025.
This new standard, known as SRS ED 1, Climate-related Disclosures, aims to equip governments and public sector entities with a robust framework for climate-related reporting. Supported by the World Bank, the draft marks the first step in creating sustainability reporting standards that speak directly to the public sector.
The proposed standard builds on the International Sustainability Standards Board’s (ISSB) global baseline but is uniquely adapted for the public sector. SRS ED 1 lays out principles for entities engaged in climate-related public policy programmes, with a view to ensuring that the information provided is consistent, comparable, and verifiable. As IPSASB Chair Ian Carruthers notes, public sector action is essential in this area, with governments in a strong position to lead climate efforts through taxes, subsidies, and regulation.
Sue Lloyd, ISSB Vice-Chair, also emphasises the importance of public sector entities producing high-quality, comparable data to meet investor demands and strengthen the global sustainability reporting ecosystem. Bringing the public sector into alignment with corporate sustainability reporting could be transformative for cross-sector comparability.
IPSASB invites input from a broad array of stakeholders—including public sector preparers, accountants, and sustainability experts—to refine SRS ED 1 into a standard that will help governments worldwide hold themselves accountable on climate action. To discuss this draft and its alignment with global sustainability goals, IPSASB will host an online event on 13 November, featuring discussions with leaders from IPSASB, ISSB, and IFAC.
Nobody should be surprised that in our view, there needs to be a rapid effort to show how the new IPSASB standards can leverage the ISSB taxonomy to facilitate digital reporting. Is there a country, or a state/province, or just a group of vendors that would like to collaborate with public sector entities to demonstrate the business value that digital reporting brings to public sector preparers and users alike? You know where to reach us!
Access the draft and submit feedback by 28 February 2025 here.
