IPSASB SRS Exposure Draft 1, Climate-related Disclosures

Climate change affects everyone, transcending borders and economic boundaries. Rapid progress on climate change requires public sector action, and effective action requires the quality information only sustainability reporting standards specific to the sector’s needs can provide. 

The IPSASB’s inaugural Sustainability Reporting Standards Exposure Draft (IPSASB SRS ED) 1, Climate-related Disclosures proposes disclosure requirements for public sector entities to report on (i) the climate-related risks and opportunities to its own operations and (ii) climate-related public policy programs and their outcomes, that are useful for primary users of general purpose financial reports to support decision-making and accountability.  

These proposals align public sector reporting with global best practices, building on other international sustainability standards, while addressing the unique differences and information needs of primary users of public sector reports. This leads to more consistent, comparable and verifiable information across sectors to enable better decision-making and accountability, and maintaining access to funding needed for development, including from capital markets.  

IPSASB standards are designed for public sector entities that meet the following three criteria: 

1. Are responsible for the delivery of services (encompassing goods, services and policy advice, including to other public sector entities) to benefit the public and/or to redistribute income and wealth; 
2. Mainly finance their activities, directly or indirectly, by means of taxes and/or transfers from other levels of government, social contributions, debt or fees; and 
3. Do not have the primary objective to make profits. 

This includes a wide range of public sector entities, such as: 

1. National, regional, state/provincial and local governments; 
2. Government ministries, departments, programs, boards, commissions, agencies; 
3. Public sector social security funds, trusts and statutory authorities; and 
4. International governmental organizations. 

SRS ED 1 is open for public comment until February 28, 2025. Comments must be submitted in English. 

Feedback received on SRS ED 1 will shape the final standard which will assist governments and other public sectors around the world in responding to addressing climate change.  

An At-a-Glance summary document, webcast, and brochure related to the draft can be found below. The brochure is available in English, Arabic, and Spanish.