Overview

This bill mandates that large companies in the UK create and publicly share yearly reports detailing their efforts to reduce their carbon footprint throughout their supply chains. The goal is to increase transparency and accountability regarding environmental impact.

Description

The Company Transparency (Carbon in Supply Chains) Bill requires large commercial organizations to produce annual "carbon statements."

Who is affected?

The bill affects commercial organizations (companies and partnerships) with a turnover exceeding a threshold set by the Secretary of State. This threshold will be defined through secondary legislation.

What must be reported?

Carbon statements must describe actions taken to reduce the organization's net carbon footprint across its supply chains and its own operations. They may also include information on the organization's structure, policies, due diligence processes, risk assessments, performance indicators, and staff training related to carbon footprints and climate change. If an organization takes no such steps, that must also be stated.

Reporting Requirements

The statement must be approved by the appropriate governing body (e.g., board of directors) and signed by an authorized individual. If the organization has a website, the statement must be published there. If not, a copy must be provided to anyone who requests it within 30 days.

Enforcement

The Secretary of State can take civil action in the High Court (or equivalent in Scotland) against non-compliant organizations.

Definitions

The bill defines key terms like "net carbon footprint," "greenhouse gas," and "commercial organization," largely referencing definitions already established in the Climate Change Act 2008.

Government Spending

The bill itself doesn't specify any direct government spending figures. However, there will be costs associated with the bill's implementation, including the creation and enforcement of regulations, and the potential need for government guidance and support for businesses in complying with the new requirements. The exact financial impact is yet to be determined.

Groups Affected

The following groups will be affected:

• Large Commercial Organizations: Will incur costs related to preparing and publishing carbon statements. The impact will vary depending on the size and complexity of their supply chains and existing environmental management practices.
• Consumers: May benefit from increased transparency, potentially influencing purchasing decisions.
• Investors: May use the carbon statements to assess environmental risks and opportunities.
• Government Agencies: Will have responsibility for developing regulations, setting the turnover threshold, enforcing compliance, and potentially providing support to businesses.

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