IPSASB releases climate disclosure standard

The International Public Sector Accounting Standards Board released a standard Thursday to help governments and public sector entities report climate-related risks and opportunities on a clear, consistent basis globally.

IPSASB SRS 1, Climate-related Disclosures, developed with support from the World Bank, aligns with the International Sustainability Standards Board's IFRS S2 climate-related disclosure standard to provide consistency and comparability of climate-related disclosures across the public and private sectors for market participants, especially for lenders and other resource providers.  

"Governments play a fundamental role in climate action, as their decisions can shape outcomes across the entire economy," said IPSASB chair Thomas Müller-Marqués Berger in a statement Thursday. "Climate-related information is therefore essential for stronger public financial management as it provides insights into the climate-related risks and opportunities to governments' operations. By doing so, the new disclosures enable efficient access to capital markets to mobilize the additional financing needed for climate resilience."

IPSASB SRS 1 requires disclosures about the governance processes, controls and procedures an entity uses to monitor, manage and oversee climate-related risks and opportunities, including the roles of both the governing body and management in overseeing and managing climate-related matters. On the strategy side, it requires disclosures about climate-related risks and opportunities that could reasonably be expected to affect an entity's long-term fiscal sustainability, including the entity's strategy and decision-making; current and anticipated financial effects; and climate resilience, informed by climate-related scenario analysis.

In terms of risk management, IPSASB SRS 1 requires disclosures about the processes and policies an entity uses to identify, assess, prioritize and monitor climate-related risks and opportunities, and how they're integrated into the entity's overall risk management. When it comes to metrics and targets, IPSASB SRS 1 requires disclosures on an entity's performance in relation to its climate-related risks and opportunities, including greenhouse gas emissions and climate-related targets. The standard includes a "rebuttable presumption" that entities measure GHG emissions using the GHG Protocol. Scope 3 GHG emissions are required, subject to transition relief for the first three annual reporting periods. 

IPSASB SRS 1 applies to an entity's general purpose financial reports for annual reporting periods starting on or after Jan. 1, 2028, although earlier adoption is permitted.

"We are very happy to collaborate with IPSASB and support the development of these new sustainability reporting standards for the public sector," said World Bank global director for governance Arturo Herrera in a statement. "In the past, the focus of sustainability reporting has been on the private sector. With the public sector responsible for a significant share of global emissions, these new standards represent an important opportunity to make more complete climate-related information available to the public."

To support adoption, IPSASB plans to host a global webinar on Feb. 12, 2026, 8:00–9:00 a.m. EST, where participants can learn about the standard, ask questions, and explore practical implementation strategies. 

Natural resources for conservation

Separately, the IPSASB issued a different but related standard last week, IPSAS 51, Tangible Natural Resources Held for Conservation, offering new, public sector-specific guidance on accounting for natural resources with physical substance, such as land, trees and water, held by governments to preserve or protect them. IPSAS 51 also points to guidance in other standards applicable to natural resources that are held for other purposes.

"Decisions about why a public sector entity holds natural resources have long-term financial and social consequences," Berger said in a statement. "IPSAS 51 helps governments better connect environmental stewardship with public finances, improving transparency around how today's choices affect public wealth and future generations."

IPSAS 51 is effective for annual financial statements for periods starting on or after Jan. 1, 2028, but as with the climate-related disclosure standard, earlier application is permitted.