Public Sector Accounting Enters the Climate Disclosure Era: Why Actionable Energy Data Matters More Than Ever

The release of the world’s first climate-related disclosure standard for the public sector marks a pivotal moment in the global drive for transparency and sustainability. 

Last October, the International Public Sector Accounting Standards Board (IPSASB) published an exposure draft of this standard, with consultation closing in February 2025. The move signals not only growing expectations for public sector organisations to report on climate risks and impacts, but also a need for new levels of operational insight. 

IPSASB Chair Ian Carruthers' recent visit to New Zealand, during which he engaged with local public sector stakeholders, underscores the international momentum behind this initiative. From national governments to local councils and charities, organisations worldwide are preparing to adapt. 

As draft standards progress toward adoption, one thing is clear: accurate, auditable energy data will be essential. Without it, compliance will be a challenge, and meaningful climate action even more so. 

This public sector shift reflects a well-established pattern in the private sector: 

• The EU’s Corporate Sustainability Reporting Directive (CSRD) came into effect in January 2024, bringing robust ESG reporting to a wide range of businesses. UK companies with EU operations are already being impacted through their subsidiaries and investor expectations. 
   

• In Australia, mandatory climate-related financial disclosures aligned with the International Sustainability Standards Board (ISSB) will begin rolling out from July 2024. 
   

• In Dubai and the wider UAE, regulatory bodies are moving toward alignment with global ESG frameworks as part of the country’s Net Zero 2050 Charter. 
   

As these standards spread, it is expected that public sector bodies, charities, and not-for-profits will adopt similar levels of transparency, both to maintain public trust and to satisfy funders, auditors, and regulators. 

The draft climate-related disclosure standard for the public sector is closely aligned with the ISSB’s IFRS S2 Climate-related Disclosures framework. It requires organisations to report on: 

• Governance: Oversight and management of climate-related risks. 
   

• Strategy: How climate risks and opportunities are factored into strategic and financial planning. 
   

• Risk Management: Processes for identifying and addressing climate-related risks. 
   

• Metrics & Targets: Quantitative and qualitative data on emissions, energy use, and performance targets. 
   

A key focus is on Scope 2 emissions, which arise from purchased electricity and energy use. For most public sector organisations, Scope 2 will account for a major portion of operational emissions and will require accurate, asset-specific data. The standard also calls for forward-looking metrics, not just historical reporting, placing even greater emphasis on the need for robust data platforms and analytics. 

While public sector leadership is committed to climate progress, there are unique challenges: 

• Older, diverse building stock with highly variable energy profiles. 
   

• Limited in-house capability for advanced energy analytics or continuous monitoring. 
   

• Risk of compliance burden without the right digital infrastructure. 
   

• Increasing need to justify investment and demonstrate climate accountability to the public and funding bodies. 
   

Without accurate, auditable energy data, public sector organisations risk falling behind emerging disclosure expectations and missing opportunities to reduce emissions. 

EP&T Global’s EDGE platform was built to meet exactly this need: to translate complex building energy data into actionable insights and auditable outputs. 

For public sector organisations preparing for climate-related disclosures, EDGE delivers: 

• Scope 2 Emissions Tracking: Automatically converts energy consumption data into carbon emissions, aligned with international standards. 
   

• Real-Time Operational Insights: Identifies inefficiencies and enables proactive action, not just reporting what happened, but driving improvements. 
   

• Audit-Ready Evidence: EDGE ensures data integrity and traceability to support formal reporting and withstand third-party scrutiny. 
   

• Historical & Forecasting Data: Provides baselines, tracks performance over time, and models future scenarios to support strategy development. 
   

• Engineering Support: EP&T’s experienced team helps public sector clients configure reporting outputs and set measurable improvement targets. 
   

• Customised Dashboards: Tailored views aligned with IPSASB metrics and narrative structures, ready for integration into official reports. 
   

Why Now Is the Time to Act 

With the IPSASB draft standard expected to advance toward finalisation, early action will set leading public sector organisations apart. 

By investing now in actionable energy data, public sector bodies can: 

• Get ahead on compliance readiness. 
   

• Strengthen their credibility with the public and stakeholders. 
   

• Unlock tangible carbon reduction opportunities through operational improvements. 
   

Public sector organisations bear a dual responsibility: to achieve operational excellence while demonstrating environmental leadership. Accurate, auditable energy data is no longer a "nice to have" — it is foundational to both.