Abstract :

This study assesses the pre-adoption readiness of six provincial environmental agencies on Java Island, Indonesia, to implement IPSASB Sustainability Reporting Standard 1 (SRS 1) Climate-related Disclosures before its mandatory effective date of January 2028, examining overall readiness levels, pillar-level development, and year-on-year change. A descriptive-comparative content analysis was applied to 12 Government Agency Performance Reports (GAPR) for 2023–2024 from all six Java provinces. A 12-indicator index operationalizing the four SRS 1 pillars (governance, strategy, risk management, and metrics and targets) was applied alongside a three-level scoring scheme (0 = absent; 1 = partial/general; 2 = specific/quantitative) and a conservative coding rule that excludes public climate program information from entity-level operational risk scores. Average readiness rose from 48.6% in 2023 to 53.5% in 2024, remaining at the intermediate stage, with marked inter-provincial heterogeneity (DI Yogyakarta: 70.8%; East Java: 29.2%). Strategy was the strongest pillar (62.5%) and risk management the weakest (37.5%). None of the 12 reports disclosed Scope 1, Scope 2, or Scope 3 operational greenhouse gas emissions at the entity level, revealing a fundamental gap between climate program reporting and entity-level fiscal risk disclosure. Pre-adoption investments should prioritize operational emissions inventories (Scopes 1–3), climate-specific risk registers, inter-agency governance coordination, and financial impact and scenario analysis capabilities. The findings support a phased implementation approach for subnational governments in developing countries.This study contributes the first SRS 1-specific pre-adoption readiness baseline for subnational governments in Indonesia, a replicable 12-indicator assessment instrument incorporating a conservative coding methodology, and empirical evidence to inform capacity-building strategies ahead of the standard’s effective date.

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Keywords :

climate disclosure, content analysis, IPSASB SRS 1, Local Government, public sector accounting.

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