Source · Select Committees · Public Accounts Committee
Recommendation 13
13
Acknowledged
The Bank told us it is currently developing several Key Performance Indicators (KPIs) to measure...
Conclusion
The Bank told us it is currently developing several Key Performance Indicators (KPIs) to measure its success. For its two policy objectives, these include carbon emissions abated, jobs created and productivity. The Bank told us it expects to abate 2 million tonnes of CO2 and create or support 3,900 jobs from the 10 deals it has made so far. The Bank still does not have targets or other success criteria for these KPIs. The Bank has yet to establish ways of measuring its contribution to productivity.35 The Bank added that it was developing other potential impact metrics and that these metrics will be reported, on an aggregate basis, in the Bank’s annual report. The Bank has started to develop ways of measuring wider aspects of additionality, which will include providing a narrative for each transaction it does.36
Government Response Summary
The Bank will work with the Treasury and UKGI to ensure that future metrics are clear and stretching to ensure the Bank continues to deliver against its strategic objectives, and expects to publish a further document setting out its Impact Framework in the summer of 2023.
Government Response
Acknowledged
HM Government
Acknowledged
6.1 The government agrees with the Committee’s recommendation Target implementation date: March 2024 6.2 From the outset, the Bank has had a clear set of metrics related to its performance, that reflected its position as a growing organisation. The Bank has already reported on this initial set of metrics in its Strategic Plan and in its first Annual Report and Accounts. The Bank will work with the Treasury and UKGI to ensure that future metrics are clear and stretching to ensure the Bank continues to deliver against its strategic objectives, and across its remit. These metrics and targets are developed annually and approved by the Board of Directors as well as Treasury ministers. 6.3 The Bank and the Treasury recognise the importance of transparency around how the Bank’s performance is assessed, which is why key documents such as the Strategic Plan are published. In addition, both the Bank’s and the Treasury’s Annual Reports and Accounts are laid in Parliament and cover the full suite of operations and performance. 6.4 On additionality, the Bank has already published guidance in October 2022 on how it assesses additionality, and it expects to publish a further document setting out its Impact Framework in the summer of 2023. This will cover both metrics and the Bank’s plan for evaluation.