Last updated: 19 Nov 2024 10:00 Posted in:
The world’s first climate-related disclosure standard for governments worldwide Is being developed by the International Public Sector Accounting Standards Board (IPSASB), with the support of the World Bank.
And the draft of its inaugural Sustainability Reporting Standard has now been issued for public comment.
To promote global consistency and comparability, ‘SRS ED 1, Climate-related Disclosures’ proposes public-sector-specific guidance that builds on the International Sustainability Standards Board’s (ISSB) global baseline. In doing so, SRS ED 1 proposes principles for the more limited group of public sector entities that have responsibility for climate-related public policy programmes and their outcomes.
IPSASB said: “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.
“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 said the standards are designed for public sector entities that meet the following three criteria:
• 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.
• Mainly finance their activities, directly or indirectly, by means of taxes and/or transfers from other levels of government, social contributions, debt or fees.
• Do not have the primary objective to make profits.
This includes a wide range of public sector entities, such as:
• National, regional, state/provincial and local governments.
• Government ministries, departments, programs, boards, commissions, agencies.
• Public sector social security funds, trusts and statutory authorities.
• International governmental organizations.
SRS ED 1 is open for public comment until February 28, 2025.
“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."
IPSASB