We are consulting on the IPSASB’s first Sustainability Reporting Standard! (part 1 of 3)

The International Public Sector Accounting Standards Board (IPSASB) published its first Sustainability Reporting Standard on Climate-related Disclosures for public sector entities. The Exposure Draft (ED) proposes to align public sector sustainability reporting with global best practices, building on other international sustainability standards, while addressing the differences and information needs of primary users of public sector reports.

The ASB does not have a mandate to develop sustainability reporting standards and thus the ED has no impact on local requirements. As the area of sustainability reporting continues to grow internationally, the ASB considers it important for local stakeholders to provide input to the IPSASB. The ED is exposed locally as ED 213 so that stakeholders are informed of and can contribute to the IPSASB’s new role in developing sustainability reporting standards.

In this article, we focus on the conceptual foundations and general requirements of the ED. Articles in the coming weeks will focus on other sections of the ED. Look out for our Thursday social media post on the specific matters for comment related to this article.

The ED provides conceptual foundations and general requirements based on the concepts from the IPSASB Conceptual Framework for General Purpose Financial Reporting by Public Sector Entities (IPSASB Conceptual Framework) and the requirements from IFRS S1 General Requirements for Disclosure of Sustainability-related Financial Information. Specific areas of guidance include:

General requirements

The ED proposes general requirements relating to the location of reporting, timing of reporting, comparative information, statement of compliance and judgements, and uncertainties and errors.

Fair presentation

The ED requires a depiction of climate-related risks and opportunities and climate-related public policy programme outcomes that are complete, neutral and free from material error.

Connected information

The ED proposes that disclosure should be connected across the reporting entity’s general purpose financial reports to enable users’ understanding of these connections. This includes connections to other sustainability-related reports or the entity’s general purpose financial statements.

Material information

Entities are required to disclose information that is material to the primary users of general purpose financial reports. The definition of material information in the ED is aligned with that in the IPSASB Conceptual Framework.

You may submit your written comment on ED 213 to info@asb.co.za or participate in scheduled consultations. Details of these consultations are shared on the “ASB Engage” post every alternate Friday. Comment from stakeholders will be considered for inclusion in the ASB’s comment letter to the IPSASB. The comment period closes on 14 February 2025.