Overview

This bill mandates that large companies in the UK annually report on their efforts to reduce their carbon footprint, encompassing their own operations and their supply chains. The goal is to increase transparency and encourage action to mitigate climate change.

Description

The Company Transparency (Carbon in Supply Chains) Bill requires commercial organizations exceeding a specified annual turnover to prepare yearly carbon statements. These statements must detail the steps taken to reduce their carbon footprint across their supply chains and internal operations, or declare that no such steps were taken. The bill outlines the information to be included, such as organizational structure, policies, due diligence processes, risk assessments, performance indicators, and staff training related to carbon footprint reduction. The statements must be approved by the relevant governing body and signed by an authorized individual. Companies with websites must publish the statements; those without must provide copies upon request. The Secretary of State can issue guidance on the information required and has enforcement powers through civil proceedings.

Key Definitions:

The bill defines key terms like "net carbon footprint," "greenhouse gas," "carbon dioxide equivalent," and "commercial organization," referencing existing legislation where applicable. The definition of "commercial organization" includes both corporations and partnerships operating within the UK.

Enforcement:

The Secretary of State is empowered to enforce compliance through civil legal action in the High Court (England and Wales) or Court of Session (Scotland).

Government Spending

The bill doesn't directly specify government spending figures. The main cost will likely be associated with the creation and enforcement of regulations, staff training, and potential legal proceedings. However, exact costs are not detailed within the provided text.

Groups Affected

Large Companies: Will be required to prepare and publish carbon statements, incurring administrative costs and potentially influencing their business strategies.
Supply Chain Businesses: May face pressure from larger companies to improve their carbon performance to meet reporting requirements.
Government: Will be responsible for setting regulations, issuing guidance, and enforcing compliance, potentially incurring administrative and legal costs.
Consumers: May benefit from increased transparency about corporate carbon emissions, informing purchasing decisions.
Environmental Groups: Could see this as a positive step toward greater corporate accountability for climate change.

Powered by nyModel