Source · Select Committees · Public Accounts Committee
Twenty-Third Report - Measuring and reporting public sector greenhouse gas emissions
Public Accounts Committee
HC 39
Published 2 November 2022
Recommendations
2
Deferred
The public sector as a whole lacks clear standards for measuring and reporting emissions.
Recommendation
The public sector as a whole lacks clear standards for measuring and reporting emissions. BEIS has set expectations that all public sector bodies should consistently measure and report their emissions, but BEIS, HM Treasury and Defra have so far only …
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Government Response Summary
The government will set out a timetable for further work towards a coherent measurement and reporting framework in summer 2023, dependent on views from other relevant authorities across the public sector who are responsible for setting their own reporting requirements.
HM Treasury
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3
Acknowledged
Leadership and oversight of emissions measurement and reporting in central government is fragmented and ineffective.
Recommendation
Leadership and oversight of emissions measurement and reporting in central government is fragmented and ineffective. At present, there are at least three departments issuing guidance to central government bodies on how to measure and report emissions. However, the guidance is …
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Government Response Summary
The government acknowledges that there are cases where different documents may be required for different purposes. In late 2022, the updated GGCs Reporting Requirements resolved terminology differences between the GGCs and SRG, and HM Treasury has provided further clarifications in the recently published SRG 2022-23.
HM Treasury
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4
Accepted
We are not convinced that departments are making effective use of the emissions data to...
Recommendation
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 …
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Government Response 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.
HM Treasury
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5
Deferred
The public sector risks falling behind on the reporting of its emissions but could learn...
Recommendation
The public sector risks falling behind on the reporting of its emissions but could learn from developing practice in private sector and the devolved administrations. While the UK government has committed to leading by example in efforts to decarbonise, other …
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Government Response Summary
The government agrees to consider scope 3 emissions reporting requirements for the public sector, but this will be addressed during 2023-25, with any requirements set out in the 2026-30 GGCs and amendments made in SRG updates as appropriate.
HM Treasury
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9
Accepted
The current reporting requirements for central government focus on scope 1 and scope 2 emissions;...
Recommendation
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 …
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Government Response 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.
HM Treasury
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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 …
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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.
HM Treasury
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11
Accepted
Elsewhere in the public sector we have heard that some bodies are going further to...
Recommendation
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 …
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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.
HM Treasury
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13
Accepted
Central government bodies are required to report their emissions in two ways: through the GGCs...
Recommendation
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 …
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Government Response 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 audit will be published with the 2021-22 GGCs Annual Report. Target implementation date is Summer 2023.
HM Treasury
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14
Accepted
In addition to these inconsistencies, we note that the reporting guidance is not currently easy...
Recommendation
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 …
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Government Response 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 audit will be published with the 2021-22 GGCs Annual Report. Target implementation date is Summer 2023.
HM Treasury
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15
Accepted
We are concerned that there is a lack of active leadership in this area, which...
Recommendation
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 …
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Government Response 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 audit will be published with the 2021-22 GGCs Annual Report. Target implementation date is Summer 2023.
HM Treasury
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16
Accepted
Robust data can be used to prioritise action and assess whether policies are affordable, but...
Recommendation
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, …
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Government Response 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.
HM Treasury
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Conclusions (7)
1
Conclusion
Not Addressed
On the basis of a report by the Comptroller and Auditor General, we took evidence from the Department for Business, Energy & Industrial Strategy (BEIS), the Department for Environment. Food & Rural Affairs (Defra) and HM Treasury on how the public sector measures and reports its greenhouse gas emissions (emissions).1
Government Response Summary
The government response consists of correcting a factual error in the committee's conclusion regarding the date of the hearing and publication of the report.
6
Conclusion
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 …
Government Response 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 encourages progress. The government states that departments work with DEFRA and BEIS when deadlines are missed or progress is stalling.
7
Conclusion
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 …
8
Conclusion
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 …
Government Response 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.
12
Conclusion
Acknowledged
At present, BEIS, Defra and HM Treasury play important roles in setting expectations for public sector emissions reporting, with a number of other bodies, such as the Department for Transport and Office for Government Property also playing more minor roles in issuing guidance.29 BEIS explained that it is the lead …
Government Response Summary
Government acknowledges the fragmented leadership and agrees to consolidate, simplify, and clarify current measuring and reporting guidance. A timeline for this will be set out in Summer 2023.
17
Conclusion
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 …
Government Response 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.
18
Conclusion
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 …
Government Response 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, with high-performing departments leading sessions on best practice.