The IPSASB makes progress on their draft Climate-related Disclosures standard for the public sector

Scope

The draft standard requires disclosure about the following:

a)     The climate-related risks and opportunities to an entity’s own operations

These include those risks and opportunities that can affect the long-term fiscal sustainability of an entity, including the long-term sustainability of the services the entity delivers, i.e. the outside-in impact of climate change.

b)     The outcomes of an entity’s climate-related public policy programmes

Where an entity has climate-related public policy programmes, disclosure is required on the outcomes of its climate-related public policy programmes, which includes their effects on society, i.e. the inside-out impact on climate. Society is understood to include the economy, environment and people.

Disclosure requirements relating to climate-related risks and opportunities are expected to be applicable for all entities.

Disclosures about climate-related public policy programmes and their related outcomes are only applicable to those entities with such policy programmes.

Changes to the definitions of own operations and public policy programmes were made to simplify the distinction between these two activities.

Public policy programmes are any type of intervention taken or mandated by a public sector entity exercising its sovereign powers to influence the decisions or behaviours of other entities or individuals. These may take the form of legislation, regulation, subsidies or taxes, amongst others. Climate-related public policy programmes are programmes with a primary objective to address climate change.

Own operations are an entity’s activities other than public policy programmes.