SUSTAINABILITY ©Getty images/iStockphoto
Sustainability reporting standards for the public sector As the baseline for private sector sustainability reporting is finalised, the public sector has started to build on this to address its own specific needs, writes Ian Carruthers.
T
he UN Sustainable Development Goals provide a framework for governments’ sustainability activities globally. While the private sector has made notable progress in setting and measuring sustainability targets, the public sector has only recently intensified its focus in this area. This shift is crucial in the face of the global climate emergency. Through the size of its operations and its significant financial and regulatory influence, the public sector plays a fundamental role in achieving real progress. Representing over a fifth of the global workforce and with governmental spending exceeding 40% of GDP in many countries (see tinyurl.com/ 4aetu9dr), the public sector often drives national economies. Furthermore, it sets the sustainability agenda through policies, regulations and incentives. Without a structured approach to tracking these activities, assessing the success of governmental strategies is difficult. Like the private sector, the public sector needs appropriate
20
Ian Carruthers International Public Sector Accounting Standards Board
sustainability reporting standards to enable better-informed decision making, hold governments accountable for the environmental impact of their interventions and foster trust in the public sector’s sustainability efforts. While progress is still patchy, a promising boost comes from the International Public Sector Accounting Standards Board’s (IPSASB) recent announcement that it will start developing international sustainability reporting standards addressing the public sector’s unique reporting requirements.
Targeted frameworks produce results
In recent years, the private sector has made substantial progress in improving the sustainability of its activities. As of last June, over one-third of the world’s largest publicly traded companies had pledged to achieve net-zero carbon targets, a marked increase from about one-fifth in December 2020 (see tinyurl.com/mtb56jef). Furthermore, a record number of US businesses appointed their inaugural chief sustainability officer last year (see
ISSUE 132 | AIAWORLDWIDE.COM
