The IPSASB held its second meeting of the year from June 10 to 13, 2025, in Toronto, ON, Canada.

At our meeting last week, we continued our analysis of responses to the Climate-related Disclosures and Tangible Natural Resources exposure drafts, and we progressed several other projects that will enhance IPSAS Standards, which provide the cornerstone for effective and efficient public financial management.

While investments in carbon credits have significant potential to boost advancement in clean technology, protect and restore nature, and reduce greenhouse gas emissions, the burgeoning voluntary carbon market (VCM) has experienced growing pains. Critics and proponents alike have raised concerns about the quality of carbon credits, the integrity of stated emissions reductions and verification, and the appropriate role of credits in corporate net zero planning. The future of the market depends on improving its integrity, and professional accountants can play an important role.

The International Federation of Accountants (IFAC), in collaboration with the Edinburgh Group (EG), has launched a pioneering online tool designed to help small- and medium-sized enterprises (SMEs) maximize the benefits of incorporating sustainability into their strategy and business operations.

Developed specifically for IFAC and EG members to provide to their own members, The Small Business Sustainability Checklist is an interactive tool that provides practical steps to future-proof businesses and boost sustainability practices. It is designed to be tailored by each business according to its industry sector, lifecycle, and products and services. 

The innovative resource uses a simple self-assessment approach to score users’ sustainability initiatives across environmental factors, social responsibility, and governance. It helps users identify risks and opportunities, which can inform a roadmap for improvement.

Lee White, IFAC Chief Executive Officer, said, “This checklist is a practical tool to help small businesses benchmark and track their sustainability efforts, providing the resources and guidance to help them take the first step or make progress from what they’re currently doing.”

In an environment of shifting sustainability regulations worldwide, the straightforward approach of The Small Business Sustainability Checklist arrives at a critical time for small and medium-sized practices looking to support their clients to tackle sustainability-related risks and unlock opportunities.

“This is all about building sustainable futures for both accounting practices and their clients, to face the global standards of today and tomorrow,” White said. 

CA Rajendra Kumar P., Chair of the Edinburgh Group, noted: “As a coalition of sixteen accountancy bodies from across the world that is focused on supporting small- and medium-sized practices and entities, the Edinburgh Group expects this new tool will be hugely beneficial to those who use it.”

Peer-led content to deliver real-world examples

With interactive videos featuring real-world experiences from industry peers, the tool offers users firsthand insights into how fellow professionals are tackling sustainability challenges. By sharing practical strategies and best practices, these industry voices provide valuable context, helping accountants translate sustainability concepts into actionable steps for their own firms and for their clients.

“IFAC’s new tool is more than just a guide to reporting, it’s a resource that fosters best-in-class sustainability practices and helps firms develop advisory services,” said industry leader Sarah Lawrance. “As accountants and small businesses, we have a responsibility to consider our impact on the future, and this tool helps us all take meaningful action, no matter where we are on our journey.”

“This checklist sparks essential conversations between accountants and their clients,” Sarah added. “It empowers accountants to position themselves as sustainability leaders within their firms while also guiding their clients toward their own sustainability goals.”

The tool is now available via IFAC’s website.

About IFAC  

IFAC, by connecting and uniting its members, makes the accountancy profession truly global. IFAC member organizations are champions of integrity and professional quality, and proudly carry their membership as a badge of international recognition. IFAC and its members work together to shape the future of the profession through learning, innovation, a collective voice, and commitment to the public interest.  

About Edinburgh Group

The Edinburgh Group is a coalition of 16 accountancy bodies from across the world, representing over 1.3 million professional accountants. It champions, and provides a forum for the exchange of views on, issues affecting small- and medium-sized practices and small- and medium-sized entities, as well as related issues impacting developing nations and professional accountants in business in the context of the advancement of the accountancy profession internationally.

During its quarterly meeting in Toronto, Canada, the International Public Sector Accounting Standards Board (IPSASB) took pivotal decisions on the next steps in its project to develop urgently needed guidance for governments and public sector entities on climate-related disclosures. Responding to a record number of comments on its Exposure Draft (ED) IPSASB SRS ED 1, Climate-related Disclosures, the IPSASB recognized that the complexity of having different reporting perspectives in a single standard would not meet the needs of the public sector. Instead, the project will be split into two phases:

• Phase 1, Own Operations, will finalize the first-ever public sector sustainability reporting standard tailored for the public sector that’s already in development, focusing on how public sector entities disclose climate-related risks and opportunities to their own operations.
• Phase 2, Public Policy Programs, will develop a separate standard for those specific public sector entities responsible for delivering climate-related public policy programs and their outcomes.

This phased approach will meet the urgent need for public sector guidance while allowing additional time to address the more complex reporting needs identified by stakeholders.

Ian Carruthers, IPSASB Chair said: "The IPSASB’s ED on Climate‐related Disclosures generated unprecedented engagement – attracting the Board’s largest ever number of responses to a technical consultation. Our stakeholders clearly told us that the dual perspectives of Own Operations and Public Policy Programs are right for the public sector. The Board’s decision to take a phased approach to the project will bring a variety of benefits – providing timely guidance to preparers to start their sustainability reporting journeys and reducing the complexity of the proposed guidance.”

The IPSASB intends to vote on a final pronouncement for the Own Operations standard, which will be its inaugural IPSASB SRS Standard, at its December 2025 Board meeting. Once the first standard has been approved, the Board will then consider stakeholders’ feedback on the proposed Public Policy Programs guidance, with the aim of finalizing the second standard around the end of 2026. Both standards will help governments and public sector entities make informed decisions on climate action, while providing the reporting needed for accountability and public trust.

How to Access
Access the IPSASB SRS ED 1, Climate-related Disclosures, its summary At-a-Glance document, and the published comment letters responding to the ED.

About the IPSASB
The International Public Sector Accounting Standards Board (IPSASB) works to strengthen public financial management globally through developing and maintaining accrual-based International Public Sector Accounting Standards® (IPSAS®), IPSASB Sustainability Reporting Standards™ (IPSASB SRS™) and other high-quality financial reporting guidance for use by governments and other public sector entities. It also raises awareness of IPSAS and IPSASB SRS and promotes the adoption and implementation of these to enhance the quality and consistency of practice throughout the world and strengthen the transparency and accountability of public sector finances and sustainable development.  The Board receives support from the Asian Development Bank, the Chartered Professional Accountants of Canada, the New Zealand External Reporting Board, the government of Canada, and The World Bank. The structures and processes that support the operations of the IPSASB are facilitated by the International Federation of Accountants (IFAC). For copyright, trademark, and permissions information, please go to permissions or contact permissions@ifac.org.

About the Public Interest Committee
The governance and standard-setting activities of the IPSASB are overseen by the Public Interest Committee (PIC), to ensure that they follow due process and reflect the public interest. The PIC is comprised of individuals with expertise in public sector or financial reporting, and professional engagement in organizations that have an interest in promoting high-quality and internationally comparable financial information.