Source · Select Committees · Public Accounts Committee
Recommendation 10
10
Accepted
By contrast, there are already greater requirements placed on some private sector firms to measure...
Recommendation
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
Government Response 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.
Government Response
Accepted
HM Government
Accepted
5. PAC recommendation: BEIS and HM Treasury should ensure that the reporting requirements placed on the public sector are aligned with their objective to lead by example in delivering net zero. This should include consideration of which bodies should report their scope 3 emissions and how best this should be done. 5.1 The government agrees with the Committee’s recommendation. Target implementation date: Autumn 2025 5.2 The public sector has ambitious emission reductions targets and is working to reduce its direct emissions by 50% by 2032 and by 75% by 2037 against 2017 levels. Other targets and reporting requirements, including the GGCs, are negotiated to align with these decarbonisation trajectories as much as possible within the deliverability constraints of individual organisations. 5.3 Central government annual reports already include limited reporting on scope 3 emissions, in line with the GGCs. The SRG includes further voluntary guidance on reporting other scope 3 emissions. Work to develop the next set of GGCs targets will consider if and how further scope 3 reporting requirements should be included. This work will take place throughout 2023-25, with requirements set out in the 2026-30 GGCs and amendments made in SRG updates as appropriate. 5.4 It is important to note that there are certain challenges and considerations around scope 3 reporting. The public sector is large and varied, and emissions profiles vary significantly depending on each public sector organisation’s operations and characteristics. The potential impact and value of scope 3 emissions measurement, as well as the ability to provide the necessary resource to comply with any requirements will vary between organisations, and government must ensure requirements are proportionate and prioritised to have the most useful impact while ensuring public resource is used efficiently and minimising reporting burdens.