The International Public Sector Accounting Standards Board (IPSASB) split their climate-related disclosures project into two phases. Phase 1 focuses on how public sector entities disclose climate-related risks and opportunities to their own operations. Phase 2 will develop a separate standard for those specific public sector entities responsible for delivering climate-related public policy programmes and their outcomes. The IPSASB reviewed the first draft of the standard for Phase 1 at their September meeting.
The IPSASB Climate-related Disclosures Sustainability Reporting Standard (SRS) in Phase 1 proposes alignment with private sector guidance while maintaining necessary public sector adaptations. The private sector guidance from the International Sustainability Standards Board on IFRS S2 Climate-related Disclosures and IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information were considered in developing the SRS.
The understanding of materiality poses challenges to some stakeholders of the IPSASB when applied to the SRS. The SRS retains the definition of material information as contained in the IPSASB Conceptual Framework i.e. information is material if omitting, misstating or obscuring it could reasonably be expected to influence the discharge of accountability by the entity, or the decisions that primary users make on the basis of the entity’s general purpose financial reports prepared for that reporting period. The IPSASB decided at their September meeting that there is a need for further materiality guidance and prioritised the development of practical implementation support on materiality as it pertains to sustainability reporting.
The approval of the final SRS is planned for the IPSASB meeting in December 2025. To follow this project, refer to the IPSASB’s Climate-related Disclosures project page.
Disclaimer
The article has been prepared by the Secretariat of the ASB for information purposes only. It has not been reviewed, approved, or otherwise acted on by the Board.