Framework for public sector sustainability reporting

Global Reporting Initiative’s Focal Point Australia has released research demonstrating how public sector sustainability reporting can increase public accountability and improve operational efficiency while reducing the reporting burden.

Australian public sector organisations are facing ever-growing demands to be more transparent and accountable about their economic, environmental, social and governance performance. Yet the overlap of current reporting requirements, and a lack of consistency, prevents further transparency and accountability.

Analysis by Manidis Roberts, commissioned by GRI’s Focal Point Australia, shows that reporting to GRI’s Sustainability Reporting Framework can decrease rather than increase the reporting burden on government - reducing costs and improving efficiency, while also increasing public accountability.

In analysis of six different pieces of public reporting legislation in NSW against GRI’s G3.1 Sustainability Reporting Guidelines, Manidis Roberts determined that of the 126 GRI indicators:

• 60 (48%) can potentially be answered either directly from general mandatory reporting data (25) or with some modification using information and data from existing reporting requirements (35);
• a further 29 (23%) items could potentially be answered using readily available organisational information.

“Sustainability reporting can add value and quality to management information, ensuring that vital performance information is disclosed and integrated into core strategy and practices. It’s amazing that government departments and agencies are potentially producing six different reports which could largely address the same information produced through one sustainability report. Integrating this information into one report, such as through the annual report, will provide department heads and ministers with a much clearer picture of the impacts that public organisations are having on society, the environment and the economy,” said Victoria Whitaker, Head of GRI’s Focal Point Australia.

GRI’s framework is designed to be used flexibly, allowing organisations to report on the sustainability issues that are most important to their operations and stakeholders. When following the framework, departments and agencies may consider providing guidance on minimum sustainability disclosures to ensure consistency across government.

The Australian Government, led by the Department of Finance and Deregulation, has recently launched a pilot program aimed at better integrating sustainability disclosures into annual reporting by Australian Government departments.

“The first reports from this pilot come out this month. Already there is tremendous opportunity for operational efficiencies both within and between departments,” said Whitaker.

Across Australia, many proactive departments and agencies already report upon their sustainability performance using GRI’s guidelines, including Landcom, the Department of Families, Housing, Community Services and Indigenous Affairs (FaHCSIA), Queensland Urban Utilities, Mainroads Western Australia, Melbourne City Council, the ABC and more.

GRI’s Focal Point Australia is pushing for government at all levels - local, state and federal - to set government-wide policies on consistent sustainability reporting by government departments, agencies and government-owned enterprises. Specifically they want to see government:

• lead by example and report with GRI’s Sustainability Reporting Framework;
• follow a minimum set of sustainability disclosures based on GRI’s Sustainability Reporting Framework;
• pressure the Council of Australian Governments (COAG) to adopt a common sustainability reporting framework for the public sector in Australia.

“What is clear is that there are more similarities than dissimilarities between current public sector reporting requirements and the GRI Sustainability Reporting Framework. This research highlights that public sector agencies are in an excellent position to avoid unnecessary duplication across reporting requirements and transition to GRI sustainability reporting: for transparency, accountability, and a brighter national and global future,” Whitaker said.

For more information, go to www.globalreporting.org.