A new era of public sector sustainability standards

Public sector organizations around the world are facing a critical turning point in sustainability reporting. With the International Public Sector Accounting Standards Board (IPSASB) approving two landmark standards—IPSAS 51: Tangible Natural Resources Held for Conservation and IPSASB SRS 1: Climate related Disclosures—governments and public sector organizations now have a pathway to elevate transparency, strengthen stewardship, and lead by example on environmental accountability.

Together, these standards mark the first global sustainability reporting requirements designed specifically for public sector entities, and they signal a shift toward more rigorous, data-driven management of natural resources and climate related risks.

A significant turning point for the public sector

The global sustainability landscape is evolving. While certain sustainability reporting requirements may be paused in Canada, public sector organizations have a unique opportunity to set the tone for credible, high-quality reporting.

Governments and public sector organizations increasingly face pressure to take meaningful action to mitigate and adapt to climate change, strengthen stewardship of natural resources, and build trust with citizens and capital markets. Transparently demonstrating progress through globally aligned reporting is a key element of how the public sector can proactively address these demands. 

IPSAS 51 and SRS 1 provide a structured, internationally aligned way to do this.

What the standards can mean for you

IPSAS 51: Tangible Natural Resources Held for Conservation

If your organization manages forests, watersheds, conservation lands, habitats, or other natural resources, IPSAS 51 helps you:

• Properly identify and recognize these assets.
• Improve how you communicate their importance to citizens, partners, and funders. 
• Lay the groundwork for new opportunities like green bonds, biodiversity credits, or nature-based partnerships.

This standard helps shift natural resources from being “invisible” to becoming strategically managed public assets.

IPSASB SRS 1: Climate related Disclosures

SRS 1 helps you understand and disclose how climate risks affect your operations, budgets, infrastructure, and long-term service delivery. It guides you to: 

• Strengthen governance and oversight of climate risks.
• Integrate climate considerations into strategic and financial planning.
• Improve transparency on GHG emissions and climate related targets.
• Align with national commitments and meet rising expectations from auditors, stakeholders, and the public. 

This standard supports a more proactive and resilient approach to climate planning.

What Canadian organizations should do next

While IPSAS 51 and SRS 1 are not yet mandatory in Canada, they signal the direction of global public‑sector sustainability reporting and are being closely followed by standard setters domestically. For Canadian public sector organizations, early consideration supports better visibility over climate risks and natural assets, strengthens long‑term fiscal decision‑making, and positions organizations to respond efficiently should domestic requirements evolve or converge with international standards.

With the standards coming into effect in 2028, public sector organizations should begin preparing now to ensure an orderly transition. The first step is to develop a clear understanding of the natural assets and climate-related impacts within your mandate. This involves identifying which forests, watersheds, conservation lands, habitats, or other resources fall within the scope of IPSAS 51 and determining the extent to which existing information is complete, reliable, and fit for reporting purposes. Public sector organizations must also look at their governance, strategies and risk management for climate risks and opportunities, and develop appropriate metrics and targets.

Organizations should then assess whether their current data infrastructure can support the measurement and disclosure expectations of both IPSAS 51 and SRS 1. This includes evaluating environmental data systems, valuation methodologies, and greenhouse gas emissions measurement capabilities—particularly for Scope 3, where processes may be less mature.

Given the breadth of these requirements, many entities will need to update accounting policies, asset registers, risk management frameworks, disclosure templates, and assurance processes. A phased approach to system and policy modernization will help reduce operational burden and support more consistent adoption.

Engagement across internal and external stakeholders will also be essential. Finance, environmental program teams, risk and internal audit functions, executive leadership, auditors, and where relevant, community and Indigenous partners should be involved early to build alignment and ensure coordinated implementation.

Finally, preparation for a formal climate risk assessment and scenario analysis should begin as soon as possible. A scenario analysis will require specialized expertise to assess future risks to infrastructure, service delivery, and long-term fiscal sustainability under different warming pathways. Starting this work now will support more robust and defensible disclosures once SRS 1 becomes effective.