Government failing on pledge to lead the way to net zero, says PAC

The UK Government’s commitment that the public sector should “lead by example” on the road to net zero is not being met, says MPs.

In a report today the Public Accounts Committee is critical of the poor quality of emissions measuring and reporting across central government.

Responsibility for emissions reporting is split across three departments and the guidance issued is too vague, the committee says. This contributes to compliance on reporting standards being low across central government.

Despite the time and resources being committed by central government bodies, the Committee is not convinced that they or the wider public sector are using emissions data to drive decision-making.  

Fewer than half of departments comply fully with the mandatory elements of HM Treasury’s reporting requirements. The Department for Business, Energy and Industrial Strategy, has overall responsibility for delivering net zero, but does not “hold individual departments to account”.

Outside of central government there are currently no agreed reporting principles or standards. Different parts of the public sector have been developing their own approaches to measuring and reporting their emissions. The public sector as a whole risks falling behind on the emissions reporting and “could learn from developing practice in the private sector and the devolved administrations”.

Dame Meg Hillier MP, Chair of the Public Accounts Committee, said: “The targets set to maintain our world in a liveable state are not ‘nice to have’. Government made a legally binding commitment to deliver net zero by 2050.

“Government promised to lead the way to national decarbonisation but isn’t even putting its own house in order. Vague guidance and lack of follow up make it hard for the public to hold the Government to account. A free for all on reporting veils progress or lack of it. Government needs to be clearer and must publish consistent standards for measuring and reporting emissions across the public sector so that it can be properly held to account”

 PAC report conclusions and recommendations

1. BEIS is not communicating progress on decarbonisation in the public sector clearly enough and does not hold individual departments to account. BEIS publishes annual estimates on direct public sector emissions from buildings, but this data is not sufficiently granular to identify which parts of the public sector are doing well and which are lagging behind. It also agrees emissions reduction targets with central government departments through the Greening Government Commitments (GGCs) and Defra publishes data showing progress against these annually. However, BEIS does not know whether the GGC targets for 2021 to 2025 are aligned with the longer-term decarbonisation targets for the public sector and does not hold departments to account if they fall behind. BEIS has not published what assumptions underpin its plans for public sector decarbonisation so neither Parliament nor the public know what future technological advances it is relying on.  

Recommendation: BEIS should regularly publish data setting out the progress the public sector is making on decarbonisation and how this compares to the required trajectory. It should also set out what it will do if individual departments and parts of the public sector are under-performing in this area. 

1. 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 produced mandatory reporting guidance for central government. Some parts of the wider public sector are issuing their own guidance, such as the NHS which looks to be encouraging a more complete form of emissions reporting when compared to that required of central government. However, despite these areas of good practice, the lack of agreed central standards has led to inconsistent approaches to reporting emissions across the wider public sector, such as in local government. These inconsistencies make published emissions data difficult to understand, as users do not know if they are comparing like with like. The government has previously stated that it will issue guidance for the wider public sector to support the accurate and consistent measurement and reporting of emissions but it has not set a timetable for doing so. We acknowledge that international reporting standards are evolving rapidly in this area, but clear and consistent reporting requirements would benefit all parties. 

Recommendation: BEIS and HM Treasury should set a timetable for issuing consistent standards for measuring and reporting emissions that is applicable to the entire public sector. 

1. 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 not consistent nor is it user-friendly as it is scattered across several different publications.  For example, HM Treasury’s Sustainability Reporting Guidance requires bodies to classify emissions in terms of what are known as ‘scopes’ for annual report purposes, a classification used internationally and by the private sector, whereas Defra’s Greening Government Commitments (GGCs) require emissions to be reported by emission source, making it difficult for stakeholders to reconcile the two data sets. The fragmented and difficult-to-use nature of the guidance means that some central government bodies do not know what is required of them. For example, the wording of HM Treasury’s guidance is vague and does not include a checklist setting out which elements are mandatory, which contributes to poor levels of compliance. Defra’s oversight of the GGCs is limited. It does not have a central list of which organisations are exempt from reporting and has not acted when arm’s-length bodies with no formal exemption have failed to submit data. 

Recommendation: BEIS, HM Treasury and Defra should work together to consolidate, simplify and clarify current measuring and reporting guidance. This should set out clear expectations for reporting across central government as well as the processes that will be followed in addressing non-compliance. 

1. 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. 

1. 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 sectors and the devolved administrations are already doing more to promote fuller reporting of emissions. Parts of the private sector are seeking to measure and report on the indirect emissions attributable to their operations, known as scope 3 emissions, for example arising from goods and services purchased from external suppliers.  The centre of government has not mandated public sector bodies in England to report their scope 3 emissions which can, in some cases, be large. Some central government bodies have taken the initiative to report their scope 3 emissions on a voluntary basis and the NHS has taken steps to promote the reporting of scope 3 emissions, but elsewhere in the public sector reporting is patchy. This means that much of the data currently published does not capture the full carbon impact of the public sector’s activities. By contrast, firms bidding for government contracts worth more than £5 million already have to report scope 3 emissions more fully and it is expected that all large private sector firms will be required to give greater consideration to scope 3 emissions from 2025. The devolved administrations in Wales and Scotland have taken steps to increase the scope of public sector emissions reporting to include more scope 3 emissions. 

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.