The International Public Sector Accounting Standards Board (IPSASB), with support from the World Bank, is developing a climate-related disclosures standard for the public sector.
The Sustainability Reporting Standard (IPSASB SRS) will be the first for the public sector, and it is believed increasing transparency will enable governments and other public sector entities to make more informed decisions about their contributions towards addressing the climate emergency, hold them accountable for their interventions, and foster trust in their efforts.
The new standard will be released for feedback in Q4 2024.
IPSASB chair Ian Carruthers said: “Equipping governments with the quality standards necessary t report on their critical contributions to addressing the climate emergency together with other sustainability issuers requires global support.”
The World Bank’s Arturo Herrera added: “The standard will take climate reporting to a new level and will complement the reporting requirements of the Paris Agreement which come into effect this year. Many countries lack a way to track and assess progress against their climate-related commitments, and to identify and disclose risks and impacts. This is especially true for developing countries, many of which are among the most at-risk from climate change. At the same time, SRS disclosure can help attract new investment from the private sector. Some of the world’s biggest investors look at ESG performance in deciding where to invest. The new standard will provide that information.”
