Stakeholder perceptions of public sector sustainability reporting – views from IPSASB consultations

Purpose To determine the potential of stakeholder engagement to shape sustainability reporting standards for public sector organisations (PSOs), this paper aims to examine stakeholder responses to the International Public Sector Accounting Standards Board’s (IPSASB) most recent consultation paper on the topic. Design/methodology/approach This study conducts a qualitative thematic analysis of stakeholder submissions to the IPSASB’s first consultation paper on sustainability reporting for PSOs, published in 2022, using NVivo software. Findings While initial stakeholder responses appeared to align with the IPSASB proposals, many also expressed significant concerns. These included a lack of sustainability reporting guidance tailored to PSOs, doubts over the “legitimacy” of IPSASB to set the standards, as well as its failure to include Indigenous perspectives, broader sustainability expertise and collaboration with other international accounting bodies in the standard-setting process. Practical implications This study emphasises the critical need for stakeholder concerns to be addressed in the development of standards for PSOs. These insights could inform public policy and guide IPSASB in producing inclusive, effective standards for PSOs to achieve and report on their sustainability goals. Social implications Inclusive decision-making in standard-setting is fundamental to serving the public interest. By reflecting diverse stakeholder perspectives, including those of Indigenous peoples and sustainability experts, the resulting standards will provide better sustainability guidance to PSOs. Originality/value This paper contributes to the theories informing sustainability reporting and standard-setting with its combination of theoretical approaches and practical implications for standard-setters. By providing a comprehensive analysis of stakeholder feedback on the IPSASB consultation paper, highlighting the critical importance of inclusive stakeholder engagement, this study addresses a gap in the literature, thereby amplifying the call for robust, globally recognised sustainability reporting standards tailored specifically for PSOs.