The IPSASB’s first Sustainability Reporting Standard, Climate-related Disclosures, is now in development
The International Public Sector Accounting Standards Board (IPSASB), with support from the World Bank, is developing a climate-related disclosures standard for the public sector.
The IPSASB, developer of international reporting standards for use by governments and other public sector entities around the world, announced in June 2023 it would begin developing a Climate-related Disclosures standard, a first for the public sector. This standard will be the IPSASB’s inaugural Sustainability Reporting Standard (IPSASB SRS™). By increasing transparency, it will enable governments and other public sector entities to make more informed decisions about their contributions towards addressing the climate emergency, hold them accountable for their interventions, and foster trust in their efforts.
The World Bank, an institution dedicated to providing financing, policy advice, and technical assistance to governments of developing countries, has put their support behind this critical initiative to develop the IPSASB's first SRS on Climate-related Disclosures. An initial draft standard will be released for feedback in Q4 2024.
Alongside this announcement, the IPSASB has also published a Stakeholder Engagement Plan outlining how people can provide feedback about the project, through mechanisms that are already a central part of the IPSASB’s due process.
“Equipping governments with the quality standards necessary to report on their critical contributions to addressing the climate emergency together with other sustainability issues requires global support,” said Ian Carruthers, IPSASB Chair. “The World Bank’s contribution provides welcome support for our initiative to develop urgently-needed public sector specific sustainability reporting standards, beginning with a Climate-related Disclosures standard.”
“The standard will take climate reporting to a new level and will complement the reporting requirements of the Paris Agreement which come into effect this year,” said Arturo Herrera, World Bank Global Director for Governance. “Many countries lack a way to track and assess progress against their climate-related commitments, and to identify and disclose risks and impacts. This is especially true for developing countries, many of which are among the most at-risk from climate change. At the same time, SRS disclosure can help attract new investment from the private sector. Some of the world’s biggest investors look at ESG performance in deciding where to invest. The new standard will provide that information.”
Global community engagement is essential to developing sustainability reporting standards for the public sector. The IPSASB continues to seek support for its sustainability reporting standards development program and requires additional resources to scale up its efforts and move with pace. To contribute financial or other support to the IPSASB for the development of IPSASB SRS, please email Ross Smith, IPSASB Program and Technical Director (rosssmith@ipsasb.org).
About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and the benefits of accrual adoption. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, the government of Canada, and the World Bank. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.
About the World Bank
The World Bank is an international organization that provides financing, advice, and research to developing nations to help advance their economies. It is one of the world’s largest sources of funding and knowledge for developing countries. The World Bank is headquartered in Washington, D.C. and is affiliated with the United Nations. It is made up of five institutions with one common mission: to end extreme poverty and boost shared prosperity on a livable planet.
Funding for the project is through the World Bank’s Financial Management Umbrella Program. The Program is supported by the Australian Department of Foreign Affairs and Trade, the Government of Austria, the Bill & Melinda Gates Foundation, the European Union, the Swedish International Development Cooperation Agency, Switzerland’s State Secretariat for Economic Affairs, the United Kingdom’s Foreign, Commonwealth and Development Office, and the United States Agency for International Development.