Who's impacted?
The IPSASB develops standards for public sector financial reporting, but their adoption is determined by individual jurisdictions. Refer to the “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 Exposure Draft 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.
With the issuance of IPSASB SRS 1, Climate-related Disclosures in January 2026, Phase 1 is now completed. IPSASB aims to finalize Phase 2 by the end of 2026.
What do Canadian CPAs need to know?
IPSASB SRS 1, Climate-related Disclosures is not 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:
