Overview

This bill mandates that large companies in the UK prepare and publicly disclose annual statements detailing their efforts to reduce carbon emissions throughout their supply chains. The aim is to increase transparency and encourage businesses to take greater responsibility for their environmental impact.

Description

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

Which Companies are Affected?

This applies to commercial organisations (companies and partnerships) that:

• Supply goods or services
• Have a turnover exceeding a threshold set by the Secretary of State (the exact amount will be determined through regulations).

The bill defines "commercial organisation" broadly, encompassing various corporate and partnership structures, both UK and internationally based, operating within the UK.

Content of Carbon Statements

The carbon statement must detail steps taken to reduce the net carbon footprint across the organisation's supply chains and its own operations. If no such steps have been taken, this must also be stated. The statement may also include information on the company's structure, policies, due diligence processes, risk assessments, performance indicators, and staff training related to carbon footprints and climate change.

Publication and Enforcement

Companies with websites must publish their carbon statements online, prominently linking to them from their homepages. Those without websites must provide a copy upon request. The Secretary of State can enforce compliance through civil proceedings, seeking injunctions or specific performance.

Regulations

The Secretary of State will issue regulations to define thresholds, determine how turnover is calculated, and provide further details on carbon statement requirements. These regulations require parliamentary approval.

Government Spending

The bill doesn't directly specify government spending figures. However, costs are expected to arise from the creation and enforcement of the regulations, and from the provision of guidance and support. Conversely, there may be savings in the long run if emission reduction goals are achieved.

Groups Affected

The main groups affected are:

• Large Companies: Will face new reporting obligations and may need to invest in processes for data collection and carbon footprint reduction.
• Supply Chain Businesses: Will likely experience pressure from larger companies to improve their sustainability practices.
• Investors and Consumers: Will have access to more transparent information on company emissions, potentially influencing investment decisions and consumer choices.
• Government Agencies: Will be responsible for regulating and enforcing the legislation.

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