I just got it! I think they literally mean “issuing identity documents.”
But it allows for a totalitarian mission creep. You could easily shift from “provision of identity” to keeping records of every shopping trip and website accessed, CCP style. Who’s to say that’s not your job, if your job is “provision of identity?”
Whereas if your job is issuing driver’s licenses, the matter is much clearer.
It’s a very sinister phrase; I wonder who coined it.