The International Public Sector Accounting Standards Board (IPSASB) has released “IPSASB SRS 1, Climate-related Disclosures”, the first sustainability reporting standard tailored for governments and other public sector entities, enabling consistent reporting of climate-related risks and opportunities.

Developed with backing from The World Bank, the standard responds to global demand for public sector-specific climate reporting guidance and follows an initial draft released in 2024. It focuses on disclosures about an entity’s own operations, while future phases will address disclosures related to public policy programs and outcomes.

The structure of the new standard aligns with the IFRS Foundation’s ISSB climate standard (IFRS S2), outlining disclosures across the core pillars of Governance, Strategy, Risk Management, and Metrics & Targets. Required disclosures cover oversight of climate-related risks and opportunities; strategy and financial impacts, including scenario analysis; risk identification and prioritization processes; and emissions reporting (Scopes 1, 2, and 3) using the GHG Protocol or another established methodology.

IPSASB introduced transition reliefs, such as not requiring Scope 3 emissions disclosures for the first three reporting periods and allowing reporting after the financial statements in the initial year. The standard applies to general-purpose financial reports for annual reporting periods beginning on or after January 1, 2028, with earlier adoption permitted.

According to IPSASB Chair Thomas Müller-Marqués Berger, meaningful climate-related disclosures are critical for public financial management, supporting stronger accountability and helping governments access capital to fund climate resilience.