Sustainability Reporting Standards: our response
In partnership with GSG Impact and its National Partners, we have submitted a formal response to the International Public Sector Accounting Standards Board (IPSASB) as part of their open consultation on the development of their inaugural Sustainability Reporting Standards (SRS) for the public sector.
Why Sustainability Reporting in the Public Sector Matters
For over 25 years, IPSASB has played a pivotal role in guiding public sector financial reporting, with a strong emphasis on transparency, accountability, and serving the public interest. Their proposed Sustainability Reporting Standards aim to build on leading frameworks, such as the International Sustainability Standards Board (ISSB) and the Global Reporting Initiative (GRI), to strengthen how governments and public institutions report on climate-related impacts and sustainability outcomes.
Key Recommendations from Our Submission
In our response, we outlined several critical areas of improvement to help shape more effective and inclusive public sector sustainability reporting:
1. Rethinking materiality
The current definition of materiality places too much emphasis on financial returns, potentially overlooking impacts on the well-being of service recipients. We recommend that well-being—not just financial outcomes—be prioritised in the materiality assessment.
2. Ensuring consistency in reporting
Materiality frameworks must accommodate a wide range of users with differing priorities. Without clear guidance, this can lead to inconsistent disclosures. We propose centring materiality on public interest and societal impact, especially for citizens and communities.
3. Clarifying the scope of climate-related public policy programmes
The scope and thresholds for climate-related public policy programmes are currently vague, which may result in selective or incomplete sustainability reporting. We call for clearer definitions to ensure that all significant impacts—positive or negative—are captured.
4. Enhancing accessibility and usability of disclosures
To truly serve the public, sustainability disclosures must be transparent, comparable, and easy to understand. Reports should be designed to support informed decision-making for a broad range of stakeholders, including policymakers, investors, and citizens.
Looking Ahead: Building robust public sector standards
As public institutions are increasingly called upon to lead the way on climate action and social impact, the development of robust, inclusive, and globally aligned sustainability reporting standards will be essential. We commend IPSASB for taking this critical step and look forward to continued collaboration to ensure that public sector reporting reflects the outcomes that matter most.