The proposed definition of climate-related public policy programmes in a new Exposure Draft from International Public Sector Accounting Standards Board (IPSASB) is too narrow, increasing the risk that policies could be scoped in or out by changing their objective. This could lead to greenwashing, according to a joint representation by ICAEW and CIPFA.

The two bodies suggested broadening the scope to include all material policies that contribute to a country’s climate targets, to ensure genuine and comprehensive climate reporting. It would enable the comparison of trade-offs between different measures, which would make requirements more meaningful.

ICAEW and CIPFA warned against pausing the introduction of climate reporting; this would send the “wrong signals”. It called for a phased implementation process to enable public sector entities to set up processes, upskill employees and start collecting data.

ICAEW and CIPFA also emphasised the role of government policies and regulations in achieving global emissions targets and advocated for strong government action on climate change.

“Comprehensive climate reporting is an essential part of sustainability work and it’s important that the final standard promotes transparency, accountability and genuine progress,” Henning Diederichs, ICAEW Senior Technical Manager, Public Sector, said. 

Climate reporting will be as challenging for the public sector as it is for the private sector, he said, but it is in the public interest to ensure quality reporting on policies that impact the climate. “We will all need to work together to upskill the workforce to meet these challenges, but IPSASB should put a marker down to show what the public sector should be aiming for.”

Amit Verma, CIPFA Sustainability Policy Manager, urged IPSASB to broaden its scope to include all material policies that contribute to a jurisdiction’s climate goals. “A more comprehensive approach would provide a clearer picture, capturing both positive and negative climate impacts, as well as the trade-offs involved. Expanding the scope will enhance transparency, better meet user needs, and reduce the risk of greenwashing in public sector climate reporting.”