Historically, sustainability reporting in the public sector has been fragmented often based on voluntary frameworks or jurisdiction-specific guidance. While the private sector has widely adopted standards such as TCFD, SASB, and the IFRS Sustainability Disclosure Standards, public sector reporting has lacked a unified global approach.
Public sector organizations differ fundamentally from private companies: their primary purpose is to deliver services and redistribute resources in the public interest. Their funding largely comes from taxes, transfers, and social contributions. They also play critical regulatory and policy-setting roles that influence sustainability outcomes across society.
The IPSASB’s new standard and its intention to continue developing additional standards is expected to bridge this gap by creating guidance aligned with international best practices but tailored to the public sector context. IPSASB SRS1 focuses first on climate-related disclosures, recognizing climate change as an urgent risk to service delivery, infrastructure, financial stability, and environmental resilience.
This publication provides a high-level overview of the new standard, addresses key questions you may have, and offers our recommendations on how to prepare for its implementation.
