IPSASB proposes climate standard for public sector

The International Public Sector Accounting Standards Board released a draft version of a sustainability reporting standard for use by governments around the world on Thursday, and is asking for public comments.

SRS ED 1, "Climate-related Disclosures," proposes public sector-specific guidance that builds on the International Sustainability Standards Board's standard, but proposes principles for the more limited group of public sector entities that have responsibility for climate-related public policy programs and their outcomes.

"The rapid progress needed to address climate change requires public sector action," said IPSASB chair Ian Carruthers in a statement. "The scale of the investment involved and the need for coordinated action across all sectors of the economy mean that only governments are equipped to lead the changes required."

Bartek Sadowski/Bloomberg

The draft standard proposes disclosure requirements for public sector entities to report on the climate-related risks and opportunities to their own operations and climate-related public policy programs and their outcomes.  

"The public sector is a major component of global capital markets, so ensuring public sector organizations disclose high-quality, comparable sustainability information is important to meet the information needs of investors," said ISSB vice-chair Sue Lloyd in a statement. "By building on the ISSB's global baseline — which is being adopted by jurisdictions around the world — IPSASB is bringing the public sector into the global sustainability reporting ecosystem."

The IPSASB is asking for comments by Feb. 28, 2025.