Sustainability Reporting

Sustainability reporting is a disclosure and communication of environmental, social, and governance (ESG) goals, as well as an organisation’s progress towards them. In 2013, the INTOSAI WGEA finalized a project on sustainability reporting. The publication reviewed experiences from private sector reporting and emerging examples from public sector reporting. The report considered it probable that similar development will take place in the public sector and that it would be advisable for SAIs to keep an eye on developments in the reporting and assurance field, especially as the role of assurance of the reports is likely to be increasingly important.

This project aims to increase the transparency and reporting by exploring the role of SAIs in sustainability reporting in public sector. This role could be, for instance, encouraging the implementation or providing external assurance to sustainability reporting. Sustainability reporting in public sector also emphasizes the link between financial and non-financial performance in order to address the double materiality (financial and impact materiality) as well as affects long-term management strategy, policy and plans. Therefore, sustainability reporting makes the management of an organization more environmentally and societally sustainable and impactful.

As the role of external assurance is critical to the credibility of sustainability report as a feedback process to increase the quality of the reporting, SAIs could also support in overseeing these processes. Thereby, the project explores the current reporting practices and standards and frameworks in public sector. The project also discusses the benefits of sustainability reporting, and analyses the challenges faced in public sector and SAIs. The project includes collaborative actions with key stakeholders such as accounting firms, GRI, UN Global Compact, CIPFA, IPSASB, etc. as well as a workshop or webinar to share knowledge and experiences between SAIs, international organizations, and experts.