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International Public Sector Accounting Standards Board (IPSASB) Sustainability Reporting Standards

In October 2024, the International Public Sector Accounting Standards Board (IPSASB) issued an exposure draft for its inaugural Sustainability Reporting Standard (SRS) Exposure Draft 1: Climate-related Disclosures (SRS ED 1).The proposed disclosure requirements are aligned with the International Sustainability Standards Board (ISSB)’s IFRS S2 and the Taskforce for Climate-related Disclosures (TCFD), but integrates Global Reporting Initiative (GRI)’s multi-stakeholder.

Who's impacted?

The IPSASB develops standards for public sector financial reporting, but their adoption is determined by individual jurisdictions. Refer to “What do Canadian CPAs need to know” section below for Canadian implications.

What’s the latest?

Following the close of the public consultation on IPSASB SRS ED 1 in February 2025 and after reviewing the feedback received, the IPSASB decided to split the Climate-related Disclosures project into two distinct phases:

  • Phase 1: Own Operations. Focuses on finalizing the inaugural IPSASB Sustainability Reporting Standard for disclosing climate-related risks and opportunities in an entity’s own operations.
  • Phase 2: Public Policy Programs. IPSASB will develop a separate standard tailored to entities responsible for designing, delivering and reporting on climate-related public policy programs and their outcomes.

This decision was made to meet the urgent need for public sector guidance while allowing additional time to address the more complex reporting needs identified by stakeholders.

What do Canadian CPAs need to know?

The proposed SRS ED1 when issued by the IPSASB would not be mandatory in Canada. The authority to mandate the adoption of any public sector sustainability standards lies with individual governmental and oversight bodies.

The Public Sector Accounting Board (PSAB) is the primary body responsible for developing accounting standards for the public sector in Canada. The scope of PSAB currently only covers the accounting standards for the public sector in Canada. It does not include sustainability standards for public sector.

Where can I learn more?

For more information on IPSASB’s climate-related disclosure standards, the following resources are available: