Select Committee on Environmental Audit Minutes of Evidence


Supplementary Memorandum submitted by the Department of Trade and Industry

ROLE OF GREEN MINISTER IN THE DEPARTMENT

  Q1. What administrative arrangements have been established to ensure that sustainable development considerations are factored into all DTI's policies and programmes?

  A. DTI is committed to ensuring that Sustainable Development is properly integrated into all its policy-making. We have already established a staff awareness programme which aims to first educate staff and then provide guidance on environmental and sustainable development issues. The education programme includes:

    —  development of a Sustainable Development contact network throughout DTI;

    —  planning a number of staff training sessions in the near future on how to conduct environmental appraisals;

    —  promotion of DTI's revised Green Housekeeping Guide to all staff;

    —  creation of a new post in Environment Directorate's Sustainable Development section to help take this programme forward.

  Q2. What are the mechanisms for informing the Green Minister of all policy developments which may impact on the environment?

  A. The Green Minister is informed of all policy-developments which may impact on the environment by the Department's system of environmental appraisals. Environmental appraisals are conducted in DTI as an integrated part of policy-making by those responsible for each policy area in line with "Policy Appraisal and the Environment" (PAE). Expert advice is drawn appropriately from relevant internal and external sources including scientists, economists and statisticians.

  We will shortly be widely circulating the new DETR PAE guidance throughout the Department with revised advice to staff on how best to continue implementing such appraisals. A number of staff training sessions on how to conduct EAs are planned for the near future. Environment Directorate have already established a Sustainable Development network throughout DTI and provide a central contact point for advice and information on all environmental issues including PAE.

SUSTAINABLE DEVELOPMENT STRATEGY

  Q3. How will the sustainable development strategy DTI is intending to produce relate to the Government's sustainable development strategy?

  A. DTI officials have continuously been in regular contact through meetings and correspondence with DETR's Sustainable Development Unit (SDU) in drafting "Opportunities for Change". We have established good rapport with the SDU and will build on this in devising the more detailed "Business and Sustainable Development" consultation paper. DTI is also represented on all the industry-related Sustainable Development Indicators groups and so is contributing to the development of the proposed new set of indicators and future targets. Building on this, it is intended to produce later this year a sustainable development strategy for DTI setting out how we will handle sustainability issues within DTI's responsibilities.

  Q4. Will the strategy set environmental targets for industry, for example on emissions of CO2 and then show DTI's policies and programmes which contribute to meeting those targets?

  A. DTI is in favour of establishing appropriate and realistic industry targets (to measure how far sectors have gone/are moving towards the goal of Sustainable Development). The approach will very much depend on the industry sector(s) involved as well as the outcome of the Sustainable Developments review (especially the responses to the "Business and Sustainable Development" consultation exercise but also the establishment of Sustainable Development indicators that will be used in measuring progress towards any targets). Although progress is being made, it is presently, however, somewhat premature to be establishing such targets prior to completion of the review and the establishment of such indicators.

  On climate change, DTI is working with DETR and OGDs to produce a consultation document on meeting our legally binding target for reducing greenhouse gas emissions arising from the Kyoto Protocol, and moving towards our aim of reducing CO2 emissions to 20 per cent below 1990 levels by 2010. It is planned to publish the consultation document in July.

  Q5. Will the strategy also include housekeeping strategy?

  A. Yes, that strategy will include housekeeping strategy.

RESOURCE ACCOUNTING

  Q6. How will DTI account for its environmental policies and performance in its Resource Accounts?

  Under resource accounting the DTI will prepare accounts on a commercial style accruals basis. This means that expenditure and income will be brought to account when expenditure is incurred and income is generated, not when cash is actually paid and received as in the present cash accounting regime. The Department is following the principles set out by the Treasury in the Resource Accounting Manual.

  The DTI, like other departments, will prepare and publish an annual report and accounts beginning with the financial year 1999-2000. The accounts will include a statement setting out all the Department's assets and liabilities, including those arising from environmental issues. The present lists and valuations will be reviewed before inclusion in the resource accounts. The Department is preparing trial accounts for the current year.

  Q6. (part 2) Will the conclusions of the CSR affect work already undertaken in preparation for resource accounting?

  The conclusions of the CSR may affect some work already undertaken in preparation for resource accounting. For example resource accounting requires departments to set high level objectives and to account for how resources are allocated to each objective. Further work on resource accounting in the DTI will need to take account of the aims and objectives for the departments which are being finalised as part of the CSR.

ENVIRONMENTAL APPRAISAL

  Q7. What instructions and training have staff been given on environmental appraisal since the DoE guidance on Policy Appraisal and the Environment was introduced in 1991?

  A. In March 1996 all Heads of Management Units were advised on how to ensure that environmental considerations are taken into account in the development of DTI policy. Environment Directorate has been the central contact point for advice and information on all environmental issues including PAE.

  Subsequently Environment Directorate established a Sustainable Development network throughout DTI.

  Q8. Will there be environmental appraisals of current major policy reviews (such as the various energy policy reviews) and will they be made publicly available and in what form?

  A. Environmental appraisals of all major policy reviews are conducted in DTI as an integrated part of policy-making by those responsible for each policy area in line with "Policy Appraisal and the Environment" (PAE). Expert advice is drawn appropriately from relevant internal and external sources including scientists, economists and statisticians.

  The integration of environmental appraisal in wider policy appraisal does not, however, always lend itself to separate public reporting. But the Department would be happy to co-operate with the production of an overview report of environmental appraisal within Government. DTI continues to work towards establishing the most appropriate ways of how best to publish EAs in line with PAE guidance.

  Q9. How does the DTI carry out Strategic Environmental Assessment?

  A. Strategic environmental assessment (SEA) is the assessment of the effects on the environment of policies, plans or programmes. It is different from, and more difficult than, the environmental impact assessment (EIA) of individual projects such as highway or building schemes.

  The Department already undertakes assessment of the effects on the environment through the practice of environmental appraisals. These are conducted as an integrated part of policy-making by those responsible for each policy area in line with "Policy Appraisal and the Environment" (PAE).

  Q10. If the draft Directive on Strategic Environmental Assessment agreed in its current form what impact would it have on DTI, the Government Offices for the Regions and the Regional Development Agencies, and on industry?

  A. The UK Government is committed to the integration of environmental considerations in decision making at all levels. However, there are problems with scope and practicability of the draft Directive. We are not convinced and nor are a number of other Member States—that a European Directive is the best way to ensure that environmental concerns are integrated into strategic decision making processes. This is a fast changing field. In particular, ideas for sustainable development assessment are emerging. To put a statutory system in place which only partially met the requirements for sustainable development assessment could hinder the latter's realisation.

HOUSEKEEPING STRATEGY

  Q11. When was the current Green Housekeeping Strategy last revised?

   Does DTI plan to make a commitment to reviewing it and revising it regularly in the future?

  A. The updating of the Green Housekeeping Strategy is and has been a continuous, ongoing process. It is continually reviewed and revised and this will continue.

  A. The strategy has already been revised to include more targets (e.g., toner cartridges and recycling of paper) and we will be considering more targets at every revision.

ENVIRONMENTAL MANAGEMENT SYSTEMS

  Q12. When does DTI expect to have addressed the shortcomings in its environmental management systems which were identified by consultants in 1995?

  A. The consultants recommended that DTI should:

    (ii)  improve environmental communications;

    (iii)  review and implement a purchasing policy with key procurers throughout DTI to ensure that environmental considerations are taken into account in purchasing activities;

    (iv)  compile and assess environmental data addressing the environmental impact of the DTI London HQ;

    (v)  identify and assess potential sources of environmental risk and liability associated with the DTI London HQ.
  (i)(iii)(iv) and (v) are being addressed as part of the environmental management manual that is being devised by Turner Townsend. The manual will be completed by September. In response to (ii) Environment Directorate has distributed the revised Guide to Green Housekeeping to all staff and will publish an article on it for the monthly DTI staff publication. On (iii) procurement advice on environmental issues is available in the Procurement Manual to staff. To encourage the implementation we have a Procurement Officer (PO) network, who hold copies of all the guidance to which staff can refer. The Manual and EC Procurement Directives guidance will be rolled out on the Department's intranet, Project Mandrin in the near future. Further advice is circulated in Bulletins via POs who disseminate it to those who procure. Although POs are not experts in procurement they act as signposts to sources of advice, be it the guidance or specialist directorates such as Finance Resource Management, Internal Audit and Legal Services Directorate.

PROCUREMENT

  Q13. Does the Department collect information on what purchases are being made by the individual management units and audit the extent to which the Department's environmental policy is being followed?

  A. No statistics are currently collected on purchases by individual Management Units. However, we hope the position will change with the advent of the resource accounting and budgeting (RAB) systems, which have an associated purchasing module. Central collection of procurement data should, therefore, be possible in the future.

  No audit of the implementation of the Department's procurement policy is currently carried out, as it falls to individual Heads of Management Units (HMUs) to ensure the necessary checks and balances are in place. Heads of Management Units (HMUs) have delegated authority, and in a devolved arrangement we have to rely on them to ensure systems are in place.

ENERGY EFFICIENCY

  Q14. What energy efficiency requirements has the Department been following in its procurement of IT equipment?

  A. Past purchasing activity has resulted in the installation of "Energy Star" compliant PCs throughout the OSPREY community. Energy Star is a recognised standard for low energy usage. In addition, these PCs have a further power saving feature which is being tested in our Information Management Technology Directorate and other Directorates including Environment. Assuming those tests conclude successfully, this will be rolled out to the rest of the OSPREY community (the Department's networked office automated system) towards the end of June.

  The specification for ELGAR (the successor to OSPREY) includes statements that (paragraph 5.4.19) the DTI is committed to a green housekeeping policy aimed at reducing energy consumption and emissions, addressing areas such as energy consumption, emissions, magnetic field, thermal emissions and noise levels. Further, at paragraph 5.4.20, it states that suppliers should provide details of policies currently in place within their own organisation to address the green housekeeping issues identified above.

  A. We do not, currently, have figures available on the energy savings that have resulted following the purchase of energy saving IT equipment. However as part of a major PC replacement exercise that took place last year, the Department has installed Energy Star compliant PCs. Energy Star is a recognised standard for lower energy usage. Approximately 2,500 Dell PCs and 800 Ergo Pro PCs were installed. Both contain a power saving feature which, when activated, save energy. Following successful completion of this feature in the Department's Information Management Technology Directorate and other Directorates including Environment, it will be rolled out to the rest of the OSPREY community in the near future.

WASTE

  Q15. Why did the Department not set a target for minimising its office waste by the end of 1996 in accordance with the Government's aim in Making Waste Work?

  The Department had an audit carried out in September 1996 and the resulting report from the consultant was received in mid October 1996. It was of course necessary then to evaluate these findings and decide on the priority areas for the Department. We then looked at dealing with each waste stream systematically rather than come up with a total overall figure which may appear to be meaningless to staff. We also wanted to made sure that systems were in place in order to monitor the waste streams so that we could be confident of showing any improvements. We also felt that this was a better method of getting staff co-operation in adopting new schemes and practices.

  Following the audit the Department has set targets for specific areas: recycling paper—75 per cent of input; and toner cartridges—100 per cent of cartridges; implemented a new paper recycling scheme; is monitoring targets and is looking at the feasibility of measuring other waste.

  A. The consultant identified the following: 78 per cent of waste is paper related; 13 per cent of white paper was being recycled; waste costs are very high; most paper is only used on one side; there is scope for re-using paper for drafting; scope for reducing paper costs by reducing use and re-using for drafting and finally, no hazardous waste was discovered.

    —  Did the auditors suggests a target for waste minimisation?

  A. An overall target figure was not given although the following were suggested by the consultants as being achievable: 75 per cent of paper could be recycled; a reduction of 20 to 30 per cent in the use if over a two-year period and waste costs could be reduced substantially.

GREEN TRANSPORT

  Q16. What objective has been set for the Green Transport Co-ordinator and what actions have been taken to date?

  The Department has recently agreed to prepare Green Transport Plans for all key headquarters offices (central headquarters offices include Agencies and NDPBs that are major occupiers of premises) by March 1999 and to prepare GTPs for all remaining major sites (other regional offices where the Department is the major occupier with over 50 staff) to be completed by March 2000.

  The Department has conducted a Travel to Work Survey in HQ buildings which showed that staff predominately use public transport to work (85 per cent use public transport, 4 per cent cycle, 4 per cent car share, 4 per cent car use and 3 per cent walk).

EXECUTIVE AGENCIES AND NDPBS

  Q17. Which of DTI's NDPBs have direct environmental impacts such as emissions or significant use of non-renewable resources?

  A. NDPBs operate at arm's length from the Department with the Chief Executive responsible for the day-to-day running of the body. The Department is responsible for the science Research Councils and for the United Kingdom Atomic Energy Authority (UKAEA), all of which have direct environmental impacts. The UKAEA, like other parts of the nuclear industry is heavily regulated. Safety at UKAEA'S licensed nuclear sites is regulated by the Health and Safety Executive's Nuclear Installations Inspectorate under the Nuclear Installations Act 1965. Under the Radioactive Substances Act 1993 UKAEA are required to report details of emissions. The Environment Agency, the Scottish Environmental Protection Agency and MAFF are also required to produce reports on emissions which include data from UKAEA sites in England and Scotland. All of the Research Councils have some environmental impact, ranging from the common impacts of all organisations, such as the use of resources for heating and lighting, to impacts directly related to research, such as the use of chemicals, genetic modifications of organisms, geological surveys, and use and limited generation of radiation and radioactive materials. It is also the case that, via their research into such issues as sustainability, the Councils have a direct positive impact. In terms of reporting on direct environmental impacts the Research Councils, like all NDPBs, are free to include this in their Annual publications.

  Another of the Department's NDPBs, the Coal Authority, has environment-related liabilities and responsibilities as a result of past coal mining. The Coal Authority is undertaking a range of activities to deal with this. In particular, it deals with subsidence damage and a range of surface hazards, such as mine-gas, caused by former coal mining; and is undertaking a programme, agreed with the Environment Agency and the Scottish Environment Protection Agency, to deal with polluting minewater discharges from former coal mines operated and closed by British Coal.

  Q18. Has the Department required its Agencies and NDPBs to identify their environmental impacts and set policies to address them?

  A. Although the Department does not require its Executive Agencies and NDPBs to identify their environmental impacts and set policies to address them, it encourages them to do so by making them aware of environmental best practice and guidance. Advice is given to them as appropriate Executive Agencies and NDPBs operate at arms length from the Department with the Chief Executive responsible for day to day running of the body. They follow Departmental policy tailored to their individual circumstances. All out Executive Agencies manage fuel, utilities and consumables to minimise their impact on the environment. Like Executive Agencies, our NDPBs are diverse bodies. Whereas some of the larger executive bodies already have well-developed green policies others will be limited to including environmental considerations in their office management. In terms of reporting on environmental impacts and performance, EAs and NDPBs are free to include this in their Annual publications.

  Q19. What arrangements DTI established to ensure that the Engineering and Physical Sciences Research Council manage their nuclear facilities to minimise the risks and the costs of their decommissioning which will fall to the Department?

  A. The Research Councils, including the Engineering and Physical Sciences Research Council, receive grant-in-aid through the Office of Science and Technology in the DTI, and are independent bodies established by Royal Charter. As an NDPB, the EPSRC operates at arm's length from the Department with the Chief Executive responsible for its operation. The Engineering and Physical Sciences Research Council does not itself own or operate nuclear facilities.

May 1998


 
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Prepared 19 June 1998