Credit WB
Credit WB
Credit WB
Credit WB
On March 24, 2026, the World Bank Group’s Governance Global Department and the International Public Sector Accounting Standards Board (IPSASB) co-hosted a global hybrid launch in Washington, D.C., to mark the release of IPSASB SRS 1, Climate-related Disclosures — the first-ever sustainability reporting standard designed specifically for governments and public sector entities.
The event brought together leaders from governments, international organizations, development partners, standard setters, and practitioners to discuss why climate-related disclosures matter and how countries can begin implementing the standard in practice.
Why public-sector climate reporting matters—now
The launch of IPSASB SRS 1 was widely recognized as a significant milestone for the public sector, with strong support from panelists and participants. Panelists viewed IPSASB SRS 1 as an enabling reform — one that helps governments better understand, manage, and communicate climate risks and opportunities. The standard requires entities to disclose climate-related risks and opportunities within general purpose financial reports, strengthening accountability, improving decision-making, and building trust with citizens, development partners, and capital markets. Done well, it becomes a critical catalyst for accessing climate finance.
Implementation in practice: six pillars to get started (and get better)
On adopting IPSASB SRS 1, panelists agreed that implementation works best when sequenced, embedded in existing reform pathways, supported by practical guidance, and strengthened through learning and iteration over time.
Six practical steps emerged from the discussion which countries can consider as they begin this reform:
1. Leadership, mandate, and governance
Once a government decides to adopt the standard, begin by clarifying who owns the reform, who are the key stakeholders, and who is accountable — typically the Ministry of Finance, Supreme Audit Institution, environment and climate agencies, and major spending ministries. The designated owner needs a clear political and legislative mandate to lead and coordinate implementation. Governance structures should mirror IPSASB SRS 1's own emphasis on oversight and accountability. IPSASB SRS 1 implementation is a governance agenda, not simply a reporting exercise.
2. Integrate climate risks and opportunities into Public Financial Management (PFM) and existing financial reporting arrangement
Governments should embed climate considerations across the PFM cycle — linking climate disclosures to budget tagging, public investment management, fiscal risk statements, debt management, and performance frameworks, so that disclosures actively shape decisions on projects, policies, and financial management.
3. Develop and implement a national roadmap
A clear, sequenced roadmap is essential — one that starts with priorities, builds on existing systems, and progressively strengthens data quality, capacity, and assurance. The scope should be pragmatic: focus first on high-impact entities such as central government, major infrastructure agencies, and state-owned enterprises with significant footprints, using a pilot implementation approach as needed, and then expand coverage over time. Countries can draw on experience from implementing other standards, such as the Accrual IPSAS Accounting Standards. The roadmap should serve as a living monitoring tool, updated regularly based on lessons learned, and ideally accompanied by technical assistance.
4. Build the IT and data architecture and controls
Implementation ultimately depends on IT systems and data — emissions and energy use, climate hazards, asset exposure, adaptation measures, and financial effects. Governments need data standards, interoperable systems, clear ownership, and internal controls that can withstand scrutiny and, over time, external assurance. A useful starting point is mapping what data is needed, identifying gaps, and planning reforms to close them, including strengthening systems to record such data.
5. Build capacity and provide guidance
Roadmaps should include raising awareness, and capacity building, such as targeted training for preparers, reviewers, and users of disclosures — finance staff, statisticians, engineers, climate specialists, and auditors. Countries should integrate IPSASB SRS 1 capacity building into existing training programs and take advantage of IPSASB's implementation initiatives and other relevant resources. Effective change management will also be critical for the successful implementation of the reform.
6. Assurance and credibility pathway
Credibility is central to unlocking trust and finance. Countries should begin by institutionalizing strong internal controls and transparent methodologies, then phase toward external assurance and robust monitoring and evaluation processes, as relevant audit standards, audit capacity, and audit practices for sustainability information and reports mature. This assurance pathway ensures that disclosures remain decision-useful and resilient to challenge.
Call to Action: coordinated support for scaling implementation
The launch event reinforced that turning standards into results requires coordinated effort. Governments should start implementation now, adopt a learning mindset, and commit to continuous improvement. As one panelist put it: " Just start - don't let perfect be the enemy of good."
Governments can draw on implementation resources by IPSASB and IFRS Foundation. The momentum from this launch is real. Now is the time to channel it — making climate disclosure a practical tool for better governance, stronger public finance, and expanded access to climate finance.
