Recommendations & Conclusions
13 items
4
Recommendation
Twenty-Third Report - Measuring and rep…
Accepted
We are not convinced that departments are making effective use of the emissions data to drive decision-making. Central government and other public sector bodies need to use emissions data to decide priorities and assess the affordability of plans. While the NAO report highlighted examples of good practice, the maturity of …
Read more
We are not convinced that departments are making effective use of the emissions data to drive decision-making. Central government and other public sector bodies need to use emissions data to decide priorities and assess the affordability of plans. While the NAO report highlighted examples of good practice, the maturity of decarbonisation plans across the public sector is variable. At a central level, BEIS has not used the wealth of data at its disposal to develop estimates of the potential cost of decarbonising the public sector or to check whether resources are being effectively targeted. For example, it is issuing the £1.425 billion of funding from Phase 3 of the Public Sector Decarbonisation Scheme on a first-come-first-served basis rather than using data to assess whether the funding is reaching the parts of the public sector and activities most in need. It has yet to set out how it will monitor and evaluate the success of the scheme or how it will share good practice so that public sector bodies can learn from one another. Recommendation: BEIS should make full use of the data it collates to plan its decarbonisation activities and establish a process to regularly identify and share examples of good practice and learning in decarbonisation across central government and the wider public sector.
Show less
Government response AI summary
The government has based its plans for decarbonising the public sector on the best available data, including good practice case studies. It awards PSDS funding on a first-come-first-served basis which enables quick assessment and balances deliverability considerations.
Read full response →
HM Treasury
6
Conclusion
Twenty-Third Report - Measuring and rep…
Accepted
In addition to the BEIS dataset that covers the entire public sector, Defra publishes an annual progress report for the Greening Government Commitments (GGCs). Alongside the government’s other environmental measures, this shows the progress made by central government departments and their arm’s-length bodies in reducing their scope 1 and 2 …
Read more
In addition to the BEIS dataset that covers the entire public sector, Defra publishes an annual progress report for the Greening Government Commitments (GGCs). Alongside the government’s other environmental measures, this shows the progress made by central government departments and their arm’s-length bodies in reducing their scope 1 and 2 emissions, as well as emissions from business travel which fall under scope 3.9 The latest set of GGC targets cover the period 2021–25 however BEIS was unable to confirm whether the targets were sufficient to put government on target to meet its longer-term emissions reduction ambitions set for 2032 and 2037.10 Neither BEIS nor Defra seem to take action when departments fail to meet their GGC targets. BEIS and Defra regard transparent reporting in the public domain as a sufficient mechanism to secure accountability.11
Show less
Government response AI summary
The government claims that Greening Government Commitments (GGCs) emissions reduction targets are negotiated with departments and 2 partner organizations, aligning to longer-term decarbonisation trajectories as much as possible. Permanent Secretaries and Chief Executives are accountable for GGCs target delivery and reporting requirements and transparent reporting …
Read full response →
HM Treasury
7
Conclusion
Twenty-Third Report - Measuring and rep…
Accepted
BEIS has not spelt out the assumptions underpinning its ambitions to decarbonise the public sector, in particular the extent to which it is relying on technological innovation to meet its long-term targets. BEIS told us that it expects electric heat pumps to fall to around the same price as gas …
Read more
BEIS has not spelt out the assumptions underpinning its ambitions to decarbonise the public sector, in particular the extent to which it is relying on technological innovation to meet its long-term targets. BEIS told us that it expects electric heat pumps to fall to around the same price as gas boilers by 2030 and that hydrogen may also play a role in decarbonising the public estate, although the relevant technology is not yet mature.12 Although its impact will be broader than public sector decarbonisation, BEIS stated that it expects to have four functioning carbon capture and storage clusters in place by 2030.13 We accept that predicting future costs and developments in technology is challenging and uncertain, which is why it is important for government to be clear about any assumptions it makes in this area.14 Setting standards for measurement and reporting
Show less
Government response AI summary
The government agrees, stating its plans are based on the best available data and new data is reviewed. It highlights existing mechanisms like working groups and steering boards for identifying and sharing learning across the public sector.
Read full response →
HM Treasury
8
Conclusion
Twenty-Third Report - Measuring and rep…
Accepted
At present, only central government departments and their arm’s-length bodies are required to measure and report their emissions in accordance with HM Treasury’s Sustainability Reporting Guidance, which leaves huge areas of the public sector, including 5 C&AG’s Report, para 1.2 6 Q 5 7 C&AG’s Report, para 12 8 Qq …
Read more
At present, only central government departments and their arm’s-length bodies are required to measure and report their emissions in accordance with HM Treasury’s Sustainability Reporting Guidance, which leaves huge areas of the public sector, including 5 C&AG’s Report, para 1.2 6 Q 5 7 C&AG’s Report, para 12 8 Qq 15–16, 39–40 9 C&AG’s Report, para 9 & 1.13 10 Qq 23–24 11 Qq54–56, C&AG’s Report, para 3.12 12 Qg 16, 34 13 Qq 42–45 14 Q 69 10 Measuring and reporting public sector greenhouse gas emissions schools, local government and hospitals, to develop their own approaches.15 There are some parts of the public sector, such as the NHS, where work is going on to encourage more thorough reporting, but the lack of central guidance has led to patchy and inconsistent action.16 The National Audit Office has previously reported, for example on inconsistent approaches to emissions reporting in local government.17 BEIS acknowledged that the government’s recent net zero strategy had committed it to issuing ‘comprehensive guidance across the public sector as a whole’ but it did not provide us with a clear timetable as to when this would be produced.18
Show less
Government response AI summary
The government agrees with the recommendation and will set out a timetable in summer 2023 for further work towards a coherent measurement and reporting framework, taking into account international reporting standards and views from relevant authorities across the public sector.
Read full response →
HM Treasury
9
Recommendation
Twenty-Third Report - Measuring and rep…
Accepted
The current reporting requirements for central government focus on scope 1 and scope 2 emissions; for example the gas used in boilers and electricity used across the government estate.19 The only scope 3 emissions that are captured by current mandatory reporting are those arising from business travel undertaken by government …
Read more
The current reporting requirements for central government focus on scope 1 and scope 2 emissions; for example the gas used in boilers and electricity used across the government estate.19 The only scope 3 emissions that are captured by current mandatory reporting are those arising from business travel undertaken by government employees.20 However, scope 3 emissions can be highly significant and can, for certain organisations, account for the bulk of their carbon footprint.21 For example, National Highways has estimated that its scope 3 emissions, which include the emissions generated in the production of the cement, concrete, steel and asphalt it uses, are several times higher than its scope 1 and 2 emissions.22
Show less
Government response AI summary
The government agrees to consider which bodies should report scope 3 emissions and how best to do this, with requirements potentially set out in the 2026-30 GGCs. Target implementation date is Autumn 2025.
Read full response →
HM Treasury
10
Recommendation
Twenty-Third Report - Measuring and rep…
Accepted
By contrast, there are already greater requirements placed on some private sector firms to measure and report their scope 3 emissions. Firms bidding, for example, for government contracts worth over £5 million are required to report five categories of scope 3 emissions (in total there are 15 categories of scope …
Read more
By contrast, there are already greater requirements placed on some private sector firms to measure and report their scope 3 emissions. Firms bidding, for example, for government contracts worth over £5 million are required to report five categories of scope 3 emissions (in total there are 15 categories of scope 3 emissions).23 Since 2019, the reporting requirements set by BEIS for the private sector highly recommend, but do not mandate, larger firms to report their scope 3 emissions.24 The government expects that the recommendations of the international Taskforce on Climate-related Financial Disclosures will be fully mandatory across the UK by 2025, which will require greater consideration to be given to scope 3 emissions.25
Show less
Government response AI summary
The government agrees to align public sector reporting requirements with net zero objectives, including considering scope 3 emissions reporting, with implementation targeted for Autumn 2025 through the GGCs.
Read full response →
HM Treasury
11
Recommendation
Twenty-Third Report - Measuring and rep…
Accepted
Elsewhere in the public sector we have heard that some bodies are going further to report scope 3 emissions and therefore are providing a fuller picture of their carbon footprint. BEIS told us that for some time the NHS has had reporting requirements that include some elements of scope 3 …
Read more
Elsewhere in the public sector we have heard that some bodies are going further to report scope 3 emissions and therefore are providing a fuller picture of their carbon footprint. BEIS told us that for some time the NHS has had reporting requirements that include some elements of scope 3 emissions in place and confirmed to us after the session that the NHS current tracking and reporting covers all three scopes in full. This includes all indirect emissions that occur in producing and transporting NHS goods and services, including the full supply chain.26 The devolved administrations in Wales and Scotland have more stringent emissions reporting requirements that capture more scope 15 Q 35, C&AG’s Report, para 5, 1.15, 2.5, 2.8 16 Qq 35–36, C&AG’s Report, para 12 17 Comptroller and Auditor General, Local government and net zero in England, Session 2021–22, HC 304, 16 July 2021 (para 11) 18 Q 35 19 C&AG’s Report, para 4 20 C&AG’s Report, para 10 21 Qq 3–4 22 Qq 3–4, C&AG’s Report, para 3.5 23 Q 78 24 C&AG’s Report, para 1.12 25 C&AG’s Report, para 1.11 26 Qq 81–82, Letter dated 26 July 2022 from BEIS to the Committee. Measuring and reporting public sector greenhouse gas emissions 11 3 emissions and could provide useful lessons for the UK government to learn from.27 BEIS told us that scope 3 emissions are likely to be captured in some form in future iterations of the GGCs.28 27 Qq 89–90 28 Q 4 12 Measuring and reporting public sector greenhouse gas emissions 2 Leadership and oversight Responsibilities within Whitehall
Show less
Government response AI summary
The government agrees to align public sector reporting requirements with net zero objectives, including considering scope 3 emissions reporting, with implementation targeted for Autumn 2025 through the GGCs.
Read full response →
HM Treasury
13
Recommendation
Twenty-Third Report - Measuring and rep…
Accepted
Central government bodies are required to report their emissions in two ways: through the GGCs following guidance set by Defra; and in their annual reports following the Sustainability Reporting Guidance set by HM Treasury.32 These two sets of guidance are meant to be consistent, but there are differences between them …
Read more
Central government bodies are required to report their emissions in two ways: through the GGCs following guidance set by Defra; and in their annual reports following the Sustainability Reporting Guidance set by HM Treasury.32 These two sets of guidance are meant to be consistent, but there are differences between them which makes departmental reporting of emissions more difficult than it needs to be. For example, HM Treasury’s guidance requires central government bodies to report emissions by scope, whereas the GGCs requires them to divide them in a different way.33 BEIS accepted that these inconsistencies need to be sorted out and agreed to come back to us with a timetable as to when this would be done.34
Show less
Government response AI summary
The government agrees to consolidate, simplify, and clarify current measuring and reporting guidance with clear expectations for reporting and processes for addressing non-compliance; new processes ensuring reporting from all bodies in scope were set out in the updated GGCs Reporting Requirements, and a GGCs exemptions …
Read full response →
HM Treasury
14
Recommendation
Twenty-Third Report - Measuring and rep…
Accepted
In addition to these inconsistencies, we note that the reporting guidance is not currently easy to use. For example, the NAO found that HM Treasury’s Sustainability Reporting Guidance was vaguely worded and did not make it clear which reporting elements were mandatory and which were not. It also did not …
Read more
In addition to these inconsistencies, we note that the reporting guidance is not currently easy to use. For example, the NAO found that HM Treasury’s Sustainability Reporting Guidance was vaguely worded and did not make it clear which reporting elements were mandatory and which were not. It also did not include things like checklists, which would be useful. This has contributed to poor levels of compliance, with fewer than half of departments complying fully with the mandatory elements of HM Treasury’s reporting requirements.35
Show less
Government response AI summary
The government agrees to consolidate, simplify, and clarify current measuring and reporting guidance with clear expectations for reporting and processes for addressing non-compliance; new processes ensuring reporting from all bodies in scope were set out in the updated GGCs Reporting Requirements, and a GGCs exemptions …
Read full response →
HM Treasury
15
Recommendation
Twenty-Third Report - Measuring and rep…
Accepted
We are concerned that there is a lack of active leadership in this area, which is leading to non-compliance with guidance and undermining efforts to produce complete, robust emissions data. Defra, which has overall responsibility for administering the GGCs, does not have a list of which government bodies were exempt …
Read more
We are concerned that there is a lack of active leadership in this area, which is leading to non-compliance with guidance and undermining efforts to produce complete, robust emissions data. Defra, which has overall responsibility for administering the GGCs, does not have a list of which government bodies were exempt from reporting. This has led to Defra failing to take action when some bodies have failed to submit data.36 Defra told us that, in addition to tightening the exemption criteria, it is working towards having a full list of exempted bodies and is engaging with departments to ensure they understand the new rules.37 29 C&AG’s Report, para 1.15–16 30 Q 13, Letter dated 26 July 2022 from BEIS to the Committee. 31 Q 1 32 C&AG’s Report, para 5 33 Q 7 34 Qq 7–8 35 Q 62, C&AG’s Report, para 2.14–17 36 C&AG’s Report, para 2.6 37 Q 9 Measuring and reporting public sector greenhouse gas emissions 13 Using emissions data to inform priority-setting
Show less
Government response AI summary
The government agrees to consolidate, simplify, and clarify current measuring and reporting guidance with clear expectations for reporting and processes for addressing non-compliance; new processes ensuring reporting from all bodies in scope were set out in the updated GGCs Reporting Requirements, and a GGCs exemptions …
Read full response →
HM Treasury
16
Recommendation
Twenty-Third Report - Measuring and rep…
Accepted
Robust data can be used to prioritise action and assess whether policies are affordable, but we are not convinced that departments are making sufficient effective use of the emissions data that they are already collecting and reporting. We asked BEIS, HM Treasury and Defra how they were using their own …
Read more
Robust data can be used to prioritise action and assess whether policies are affordable, but we are not convinced that departments are making sufficient effective use of the emissions data that they are already collecting and reporting. We asked BEIS, HM Treasury and Defra how they were using their own emissions data to inform policy and were not convinced that they were using it to full effect. HM Treasury noted that it had focused on reducing the number of business flights taken and the amount of paper it uses.38 It also confirmed that a major reason it had achieved emissions reduction targets in the past was because of wider work to decarbonise electricity generation in the UK.39 BEIS told us it had reduced emissions by 81%, but in terms of actions only mentioned installing solar panels, installing energy efficient light bulbs and setting up energy monitoring software.40
Show less
Government response AI summary
The government has based its plans on the best available data, reviews new data as decarbonisation maturity increases, and shares learning through working groups and steering boards, with sectoral caps introduced in 2022 to support funding distribution.
Read full response →
HM Treasury
17
Conclusion
Twenty-Third Report - Measuring and rep…
Accepted
The main source of funding currently available to help public sector bodies implement decarbonisation measures is the Public Sector Decarbonisation Fund, which will be distributing £1.425 billion of grant funding across the sector for the current spending review period.41 We were encouraged to hear that BEIS has been using data …
Read more
The main source of funding currently available to help public sector bodies implement decarbonisation measures is the Public Sector Decarbonisation Fund, which will be distributing £1.425 billion of grant funding across the sector for the current spending review period.41 We were encouraged to hear that BEIS has been using data from earlier projects to assess how best to divide funding between energy efficiency measures, such as insulation, and decarbonisation measures such as replacing boilers with electric heat pumps.42 However, we are not sure how much this has contributed to better targeting of the Public Sector Decarbonisation Scheme as funding is being distributed on a first- come-first-served basis.43 We also note that BEIS has yet to decide how it will monitor and evaluate the scheme to ensure that it has achieved value for money.44
Show less
Government response AI summary
The government has based its plans on the best available data, reviews new data as decarbonisation maturity increases, and shares learning through working groups and steering boards, with sectoral caps introduced in 2022 to support funding distribution.
Read full response →
HM Treasury
18
Conclusion
Twenty-Third Report - Measuring and rep…
Accepted
Given that the public sector faces a significant challenge in decarbonising at the rates required, the centre of government could be doing more to share examples of good practice. We are encouraged that BEIS intend to use the local net zero forum to spread the lessons arising from the Public …
Read more
Given that the public sector faces a significant challenge in decarbonising at the rates required, the centre of government could be doing more to share examples of good practice. We are encouraged that BEIS intend to use the local net zero forum to spread the lessons arising from the Public Sector Decarbonisation Scheme.45 38 Q 25 39 Q 26 40 Q 29 41 Q 70 42 Q 31 43 Qq 30, 31, C&AG’s Report, para 3.14 44 Q 48 45 Q 37 14 Measuring and reporting public sector greenhouse gas emissions
Show less
Government response AI summary
The government agrees to make full use of emissions data to plan decarbonisation activities and establish a process to regularly identify and share examples of good practice and learning. There are regular mechanisms to identify and share learning through working groups and cross-government steering boards, …
Read full response →
HM Treasury