An Open Letter to the Incoming Government

As we look towards the future, the incoming government has a crucial role to play in addressing carbon emissions and steering the country towards a net-zero goal by 2050. There are several key actions that should be prioritised:

1. Enhanced Reporting Requirements for Large Companies
   One of the primary steps should be to strengthen the Streamlined Energy and Carbon Reporting (SECR) framework for large companies. Currently, large companies, defined as those with over £35 million turnover or 200 employees, are required to report their Scope 1 and Scope 2 emissions. However, it is imperative that these companies not only report their emissions but also take active steps to reduce and counteract remaining emissions. Although some bodies argue that achieving net-zero in Scopes 1 and 2 is impractical, the government should encourage these efforts and also allow for Scope 3 emissions to be offset with high integrity carbon credits. Implementing tax incentives could further motivate businesses to engage in these activities.
   
   
2. Mandatory Carbon Footprint Reporting
   The government should mandate carbon footprint reporting for both large and medium size companies as part of their annual accounts. It’s already estimated they are responsible for 60% of all emissions. This transparency will help businesses understand their environmental impact and take necessary actions to reduce it. As we move towards standardised reporting requirements, more businesses will be captured under this umbrella, making it a norm rather than an exception. This step is essential for the country's overall strategy to achieve net-zero emissions by 2050.
   
   
3. Tax Incentives for Carbon Offsetting
   To further support businesses in their carbon reduction efforts, the government should introduce tax incentives for companies that purchase carbon credits to offset their Scope 3 emissions from approved platforms. This approach not only encourages businesses to take responsibility for their carbon footprint but also promotes investment in carbon projects, which can also have wider environmental and social benefits
   
   
4. Education and Support for Businesses
   There is a need for greater education and support to help businesses understand and manage their carbon emissions. The government should work closely with industry bodies to provide clear guidance and resources, making the reporting and reduction processes straightforward and accessible. Simplifying the complexity around carbon reporting can encourage more businesses to actively participate in these initiatives.
   
   
5. Dialogue and Collaboration with Businesses
   The government should engage in ongoing dialogue with businesses about their environmental strategies and the SECR requirements. By fostering a collaborative environment, the government can better understand the challenges businesses face and work together to develop practical solutions that align with the net-zero goals.

6. The Consumer
   ‍We face substantial climate challenges ahead and cannot rely solely on businesses to address them. We believe Consumers have a significant role to play in achieving net-zero targets. While many agree on the importance of this responsibility, many Consumers do not know how to contribute effectively. Understanding that our buying habits contribute to the carbon footprint, there is a compelling argument for introducing a simple 1% “for the planet” eco-contribution on goods and luxury items.  Although businesses could incorporate this cost into Consumer prices, doing so without transparency does not address the core issue. Levying it separately, we bring the issue to the forefront of Consumers' minds, potentially driving additional sales towards the circular economy, which should also receive greater tax incentives

The incoming government has a pivotal role in leading the charge towards a sustainable future. By lowering limits and enhancing reporting requirements, providing generous tax incentives, assist in supporting the educational side, and fostering collaboration, we can make significant strides in reducing carbon emissions and achieving net-zero by 2050. It is not only a policy imperative, but a necessary commitment to future generations.

Yours sincerely

‍

Greg Gormley & Mark Stringer
Founders 
SkootEco | B-Corp