Responding to stakeholder input on its landmark IPSASB SRS Exposure Draft 1, Climate-related Disclosures, the IPSASB will split the project into two phases.
During its quarterly meeting in Toronto, Canada, the International Public Sector Accounting Standards Board (IPSASB) took pivotal decisions on the next steps in its project to develop urgently needed guidance for governments and public sector entities on climate-related disclosures. Responding to a record number of comments on its Exposure Draft (ED) IPSASB SRS ED 1, Climate-related Disclosures, the IPSASB recognized that the complexity of having different reporting perspectives in a single standard would not meet the needs of the public sector. Instead, the project will be split into two phases:
- Phase 1, Own Operations, will finalize the first-ever public sector sustainability reporting standard tailored for the public sector that’s already in development, focusing on how public sector entities disclose climate-related risks and opportunities to their own operations.
- Phase 2, Public Policy Programs, will develop a separate standard for those specific public sector entities responsible for delivering climate-related public policy programs and their outcomes.
This phased approach will meet the urgent need for public sector guidance while allowing additional time to address the more complex reporting needs identified by stakeholders.
Ian Carruthers, IPSASB Chair said: "The IPSASB’s ED on Climate‐related Disclosures generated unprecedented engagement – attracting the Board’s largest ever number of responses to a technical consultation. Our stakeholders clearly told us that the dual perspectives of Own Operations and Public Policy Programs are right for the public sector. The Board’s decision to take a phased approach to the project will bring a variety of benefits – providing timely guidance to preparers to start their sustainability reporting journeys and reducing the complexity of the proposed guidance.”
The IPSASB intends to vote on a final pronouncement for the Own Operations standard, which will be its inaugural IPSASB SRS Standard, at its December 2025 Board meeting. Once the first standard has been approved, the Board will then consider stakeholders’ feedback on the proposed Public Policy Programs guidance, with the aim of finalizing the second standard around the end of 2026. Both standards will help governments and public sector entities make informed decisions on climate action, while providing the reporting needed for accountability and public trust.
How to Access
Access the IPSASB SRS ED 1, Climate-related Disclosures, its summary At-a-Glance document, and the published comment letters responding to the ED.
About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®), IPSASB Sustainability Reporting Standards™ (IPSASB SRS™) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and IPSASB SRS and promotes the adoption and implementation of these to enhance the quality and consistency of practice throughout the world and strengthen the transparency and accountability of public sector finances and sustainable development. The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, the government of Canada, and The World Bank. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.
About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.