CA ANZ and CPA Australia have lodged a joint submission to the IPSASB on its first Sustainability Reporting Standards Exposure Draft, that proposes to create a new standard for climate-related disclosures in the public sector.

Our key points are as follows:

• We support alignment with international private sector standards issued by the ISSB and adapting them for the public sector where necessary.
• We largely support the proposed climate-related risks and opportunities disclosures relating to an entity’s own operations that are based on IFRS S2 Climate-related Disclosures.
• We do not support the disclosures relating to public policy programs with a primary objective to achieve climate-related outcomes.
  • Due to the narrow definition, we are concerned that the proposals would confuse rather than help primary users’ understanding of climate action (or lack thereof).
  • We are also concerned that the proposals are only seeking transparency on policies intending to have positive impacts on climate change. Not seeking transparency on policies negatively impacting climate change would not achieve the cornerstone principle of neutrality – providing balanced reporting and serving as a safeguard against bias and misrepresentation.
• We recommend the development of an overarching framework for such reporting.
• We highlight the importance of capacity building and call out specific challenges for local councils’ whose governing bodies are elected by the public in meeting the requirements around “appropriate skills and competencies” to oversee climate-related strategies.