Overview

This bill mandates that large companies in the UK prepare and publicly disclose annual statements detailing their efforts to reduce carbon emissions within their operations and supply chains. The aim is to increase transparency and encourage businesses to take action against climate change.

Description

This bill requires commercial organizations with a turnover exceeding a threshold (set by the Secretary of State) to create yearly carbon statements. These statements must detail steps taken to decrease the net carbon footprint across their supply chains and internal operations, or declare that no such steps were taken.

Statement Contents

Statements can include information on company structure, policies regarding carbon footprint reduction, due diligence processes, risk assessments of high-emission areas, performance indicators, and staff training on climate change. The statement's format and content will be guided by the Secretary of State's instructions.

Statement Publication & Approval

For bodies corporate, the statement must be approved by the board and signed by a director (or equivalent). The statement must be published on the company's website (if it has one), or provided to anyone upon written request.

Enforcement

The Secretary of State can bring civil proceedings in the High Court (England & Wales) or seek specific performance in Scotland for non-compliance.

Definitions

The bill defines key terms, such as "net carbon footprint" (total emissions minus offsets/sequestration), and "greenhouse gas," aligning with existing legislation (Climate Change Act 2008). It covers various types of commercial organizations, including corporations and partnerships. Regulations concerning turnover thresholds and statement specifics will be defined later.

Government Spending

The bill doesn't directly specify government spending. The costs will likely relate to the creation and implementation of the regulations, enforcement, and possibly the production of guidance documents. No figures are provided in the bill text.

Groups Affected

Large commercial organizations (turnover above a specified threshold): Required to prepare and publish carbon statements, potentially incurring costs associated with data collection, reporting, and implementation of emissions-reduction strategies.

The general public: Will have access to information regarding companies' environmental performance, fostering greater transparency and enabling informed consumer choices.

Government agencies: Will be responsible for defining regulations, providing guidance, and enforcing compliance.

Environmental groups: Will likely benefit from improved data transparency, aiding in their monitoring of corporate environmental responsibility.

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