The International Public Sector Accounting Standards Board (IPSASB) on Thursday issued the first climate-related disclosures standard for governments and public sector entities. The standard is designed to strengthen transparency, accountability, and decision-making for governments and public sector entities that lack clear guidance on climate-related reporting.
Sustainability reporting standard IPSASB SRS 1, Climate-Related Disclosures, is intended to address this guidance gap by helping governments and public sector entities report climate-related risks and opportunities clearly and consistently, a news release said. The standard, developed with support from the World Bank, strives to “create a world free of poverty on a liveable planet” through financing, knowledge, and expertise.
“Governments play a fundamental role in climate action, as their decisions can shape outcomes across the entire economy,” IPSASB Chair Thomas Müller-Marqués Berger said in the release. “Climate-related information is therefore essential for stronger public financial management. … The new disclosures enable efficient access to capital markets to mobilise the additional financing needed for climate resilience.”
IPSASB SRS 1 is aligned with IFRS S2, Climate-Related Disclosures, to enhance the consistency and comparability of climate-related disclosures across the public and private sectors for market participants, the release said.
The standard applies to an entity’s general-purpose financial reports for annual reporting periods beginning on or after 1 January 2028, with earlier adoption permitted.
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