Government policy
The current economic environment will force a substantial reduction in UK government expenditure over the next few years, leading to focused efforts to drive down costs and improve efficiency across the public sector. However, as Government is also facing increasing pressure to respond to climate change and other sustainable development objectives, the case for a cost-effective, integrated approach to sustainability has never been greater.
The issues
- Public pressure - public interest in key issues such as climate change, recycling and transport congestion has grown in recent years.
- Legislation - the Climate Change Act 2008 has committed the UK to greenhouse gas emission reductions of at least 80% by 2050, and reductions in CO2 emissions of at least 34% by 2020, against a 1990 baseline.
- Regulation - from 2010, many government organisations will have to participate in the Carbon Reduction Commitment, being required to purchase permits for their carbon emissions and being ranked on performance. There are also a number of sector-specific regulations that place demands on Government departments and agencies, local authorities, NHS trusts and universities.
- Public expenditure - Natural, financial and human resources will need to be used more efficiently given pressure to cut costs.
- Reporting - Treasury is consulting on changes to the Financial Reporting Manual that would mandate quantified sustainability disclosures within annual reports. This will include reporting on carbon emissions, waste and the use of finite resources, and will require that sustainability be embedded into governance. The consultation includes requirements for external assurance.
- The UK Low Carbon Transition Plan - sets carbon budgets for government departments that aim for 34% reductions by 2020, based on 1990 levels. Departments must produce a plan by April 2010 setting out how they will meet their budget.
How we can support you
PwC offers comprehensive support in this area, from strategy and action planning, to target setting and performance management, and ultimately through to public reporting and scrutiny.
We have developed a diagnostic that can identify and prioritise improvement opportunities that can be built into a full transformation programme, and we also offer tailored products targeting the most immediate challenges: mandatory sustainability reporting and the Carbon Reduction Commitment Energy Efficiency Scheme.
Case study
Sheffield Teaching Hospitals Foundation Trust engaged us to design their Sustainable Development Management Plan. The plan covered sustainability governance, estates management, procurement and finance, and tools to embed sustainability into patient pathways and other clinical developments. We also identified procedures that recognise, implement and measure carbon and cost savings.
