IPSASB SRS 1 strengthens transparency, accountability, and decision-making for governments and public sector entities
NEW YORK- Governments face risks related to climate change and extreme weather events. However, there was a lack of clear public sector guidance on how to disclose them and inform accountability and decision-making.
To address this gap, the International Public Sector Accounting Standards Board (IPSASB) issued IPSASB SRS 1, Climate-related Disclosures, the first-ever public sector standard to help governments and public sector entities report climate-related risks and opportunities clearly and consistently.
IPSASB SRS 1 was developed with support from the World Bank, which works to create a world free of poverty on a livable planet through a combination of financing, knowledge, and expertise.
“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. “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.”
“We are very happy to collaborate with IPSASB and support the development of these new sustainability reporting standards for the public sector,” said Arturo Herrera, World Bank Global Director for Governance. “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.”
IPSASB SRS 1 is aligned with IFRS S2 to enhance the consistency and comparability of climate-related disclosures across the public and private sectors for market participants, in particular for lenders and other resource providers.
Access IPSASB SRS 1, Climate-related Disclosures. IPSASB SRS 1 applies to an entity’s general purpose financial reports for annual reporting periods beginning on or after January 1, 2028.
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