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- Global Accountability for Climate Action: IPSASB’s proposed standard is set to enable governments to disclose their climate actions transparently, promoting accountability.
- Alignment with Global Standards: Building on the ISSB’s global baseline, SRS ED 1 aims to bring consistency to public sector sustainability reporting.
- Invitation for Public Feedback: The IPSASB seeks input from public sector stakeholders worldwide by February 28, 2025, to refine and finalize the standard.
The International Public Sector Accounting Standards Board® (IPSASB®) has released a draft of the first climate-related disclosures standard tailored specifically for the public sector, backed by support from The World Bank. This groundbreaking Sustainability Reporting Standard (SRS ED 1) is open for public feedback, aiming to enable governments worldwide to provide transparent climate-related disclosures, fostering accountability in the fight against climate change.
Ian Carruthers, IPSASB Chair, explained the need for this initiative: “The rapid progress needed to address climate change requires public sector action. 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. Using policy tools, such as taxation, regulation, and subsidies, governments can influence behaviors across entire economies.”
With sovereign bonds comprising nearly 40% of the $100 trillion global bond market in 2022, IPSASB’s standard addresses the financial community’s demand for verifiable climate action data. According to Carruthers, the standard will help governments maintain access to capital markets by providing “consistent, comparable, and verifiable information.”
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Building on Global Sustainability Standards
SRS ED 1 extends the ISSB’s global baseline to the public sector, aligning public sector sustainability reporting with the needs of global capital markets.
Sue Lloyd, ISSB Vice-Chair, highlighted the significance of this alignment: “The public sector is a major component of global capital markets so ensuring public sector organisations disclose high quality, comparable sustainability information is important to meet the information needs of investors. Consistency in disclosure requirements will help support comparability across sectors and is essential to driving an efficient corporate reporting system.”
Engaging Public Sector and Stakeholders
IPSASB encourages all stakeholders—public sector entities, standard setters, accountants, assurance providers, and members of the public—to provide feedback on SRS ED 1 by February 28, 2025. This input will shape the final version of the standard, ensuring it serves as a vital tool for governments worldwide in climate accountability.
An online launch event hosted by IPSASB will feature Ian Carruthers, IPSASB Chair, Sue Lloyd, ISSB Vice-Chair, and Lee White, CEO of IFAC, moderated by Owen Mapley, CEO of CIPFA, discussing the draft’s impact on public sector climate leadership and global sustainability efforts.