Advanced Research and Invention Agency Bill

Lord Ravensdale Excerpts

2nd reading
Tuesday 2nd November 2021 Lords Chamber

[Lord Ravensdale (CB)]

My Lords, I very much welcome the Bill, and it comes at an extraordinary time for scientific progress in the UK and around the world. I first declare my interests as an engineer and project director working for Atkins, and as a director of Peers for the Planet.

As we look to accelerate R&D spend in the UK, it is right that the Government look at the means of delivering that spend, learning from the most successful similar institutions around the world, notably DARPA, from which ARIA takes its inspiration, as many noble Lords have said. ARIA certainly takes one lesson of DARPA to heart: getting bureaucracy out of the way and letting a high-calibre team deliver high-risk, high-reward research. But there are two other lessons of DARPA that are important: first, a clear purpose for the organisation—in DARPA’s case, national security; and, secondly, a client to take on and translate the innovations produced by that organisation—in DARPA’s case, the DoD. This perhaps becomes more important for ARIA. The £800 million is a generous amount of funding, but relatively small in the overall R&D landscape. To maximise the impact of this funding, the Government must carefully consider what the organisation is driving at, as the noble Lords, Lord Patel and Lord Bethell, and others, have said.

The question then becomes: what should the purpose of ARIA be? It should be aligned with the strategic priorities of the nation, and foremost among these are the UK’s net-zero targets and environmental goals, as the noble Lord, Lord Davies, said at the end of his speech. Giving ARIA a sustainable purpose will still allow a flexible approach to research, while at the same time aligning with the innovation strategy, which highlights the need to direct innovation towards

“our top priority societal missions … like the climate and biodiversity crises”.

The recently published UK Net Zero Research and Innovation Framework does not mention ARIA, but stresses the importance of a whole-system approach to address the challenge of net zero. I would be grateful if the Minister would confirm how, without mention of our net-zero or environmental goals, ARIA will align with the Government’s broader objectives of net zero and, in addition, the mission suggested by the new Council for Science and Technology.

I have recently spoken with Professor Richard Jones, who has been involved in much of the thinking on the formation of ARIA, and a number of other academics who agreed with alignments with net zero and environmental goals being a suitable focus for the organisation. This represents an excellent opportunity for the Government to maximise the benefit from the £800 million funding; to demonstrate to international partners post-COP a new model for climate and net-zero R&D; and to develop the new technologies which we will need to help the UK and the rest of the world achieve our targets.

A final point is about how this organisation fits into the levelling-up agenda. The Government must carefully consider the location of the headquarters of ARIA. Another lesson learned from DARPA was that its headquarters location was fortuitously away from some of the main research centres of the United States, thus avoiding inevitable capture of research funding from institutions in a particular area and encouraging take-up of ideas from all parts of the country. I would be grateful if the Minister can add something in his summing up on how the Government intend to select a location for ARIA HQ.

As we all know, DARPA was formed in response to the panic following the launch of Sputnik in 1957. I believe that the response to the climate and nature crises should mirror the response so long ago to a very different threat in rethinking our innovation systems, and I hope that ARIA has a key part to play in that response. I look forward to putting forward amendments in these areas as we move forward to Committee.

Advanced Research and Invention Agency Bill

Lord Ravensdale Excerpts

Committee stage
Wednesday 17th November 2021 Grand Committee

Moved by

[Lord Ravensdale]

1: After Clause 1, insert the following new Clause—
“ARIA’s purpose
ARIA’s purpose is to fund projects with high transformational potential in pursuit of a sustainable and resilient society, planet and economy.”Member’s explanatory statement
The purpose of this amendment is to provide a broad sustainability purpose for ARIA which will ensure that it funds projects which align with core strategic challenges such as decarbonisation and which are sustainable.

[Lord Ravensdale (CB)]

My Lords, I shall also speak to Amendment 26 in my name. I thank the noble Lords, Lord Fox and Lord Browne, for their support for these amendments. I declare my interest as a director of Peers for the Planet and as an engineer and project director for Atkins.

There was much discussion at Second Reading of DARPA, the agency that has inspired ARIA. DARPA succeeded in changing the world because it took enormous gambles, failing often but with a few projects that succeeded, more than justifying the payouts and creating trillions of dollars in value. This freedom to take risks and to fail is its most important characteristic. That is exemplified by the second project that DARPA funded, Project Orion: a proposal for a manned spacecraft propelled by nuclear explosions. The head of DARPA at the time astutely stated that one of the main challenges was doing that in such a way that the occupants were not killed. While that particular high-risk project did not succeed, for obvious reasons, many others did: the internet, stealth technology and Moderna’s Covid-19 vaccine, to name but a few.

ARIA certainly takes that lesson from DARPA to heart, as described in the Bill: getting bureaucracy out of the way and giving a high-calibre team based on programme managers the freedom to deliver high-risk, high-reward research. But there is another vital lesson to take from DARPA which I referred to on Second Reading: a clear purpose for the organisation. Everything that DARPA does is defined by its aim of ensuring the technological supremacy of the United States armed forces. In 1958, the USA fortuitously hit upon a combination of factors for a research organisation—a clear purpose, freedom to fail, programme-manager-led—that literally changed the world. The US has taken this purpose-oriented approach in all its DARPA derivatives since, including ARPA-E and HSARPA.

To have the longevity and political staying power that DARPA has demonstrated, ARIA needs to have a purpose, and that purpose needs to be closely coupled to the strategic goals of the nation. Foremost among those strategic goals are the UK’s net-zero and environmental goals. Giving ARIA a broad sustainable purpose will allow a flexible approach to research, while at the same time being aligned with the innovation strategy that highlights the need to direct innovation towards

“our top priority societal missions … like the climate and biodiversity crises”.

It will also ensure that projects and proposals that would be contrary to those strategic goals do not progress.

Attempting to reverse engineer DARPA is not a guaranteed route to success, but we need to take the benefit of real-world experience in learning the lessons of why DARPA succeeded and giving ARIA the best chance of success, which is what we all want.

We know how vital R&D is to achieving our net-zero and environmental targets. For example, the International Energy Agency has stated that almost half the emissions reductions required by 2050 are expected to rely on technologies that have not yet reached the market. In this area, what must be done—the key enabler to make net zero politically possible across the world—is to create green energy at a price point that is cheaper than fossil fuels. So, we need nothing less than revolution in net zero and environmental R&D to make our goals possible.

That brings me to the specifics of my Amendments 1 and 26. Amendment 1 is very simple. It states:

“ARIA’s purpose is to fund projects with high transformational potential in pursuit of a sustainable and resilient society, planet and economy.”


This amendment would give ARIA a broad sustainability purpose in line with the points I have made, and in that sense, I believe, would fulfil the need to orient ARIA towards alignment with the most important strategic goal of the nation, and indeed the world.

In crafting the amendment, I have listened carefully to feedback from the Minister during the progress of the Bill in the other place, in that the Government do not wish to unduly constrain ARIA. That is why the amendment is written around a broad sustainability purpose, not a specific net-zero objective or mission. My amendment is not about saying that other streams of research not specifically related to net zero or the environment cannot progress; just that any such streams must not be contrary to, and preferably support, the core strategic challenges. Having a broad purpose and key priorities in setting the direction of the organisation is what the amendment seeks to achieve, while still retaining the flexibility the Government want for ARIA.

My Amendment 26 would ensure that consideration for our climate and environmental goals is embedded within ARIA’s functions. It is modelled on similar government provisions in other legislation, including most recently in the Skills and Post-16 Education Bill. As noble Lords will be aware, the Committee on Climate Change, given the advice that there is a need for a coherent approach to achieving net zero, has made it a priority recommendation for 2021 to ensure that all government policy decisions are compatible with the Government’s climate commitments.

In this sense, the amendment would align this Bill with other amendments the Government have put forward across a range of recent legislation, such as the skills Bill, the Financial Services Act and the Pension Schemes Act. To meet our goals, we need carefully to consider the systems aspects of net zero and ensure that consideration of these goals is embedded into all government policy and legislation where it is practical to do so.

Given how critical R&D is to achieving our goals, I hope the Government will agree that such considerations really need to be present in this Bill in order to align it with their broader strategy. It is not about stopping projects that are not directly related net zero; rather, it is about ensuring that the impacts in the context of compatibility with our climate commitments have been properly considered and factored into decision-making. It is a question of consistency with other legislation.

In summary, consideration of sustainability goals and functions in the Bill has wide support across the academic community, including from Professor Richard Jones, the science policy expert who has been involved in much of the thinking around the formation of ARIA. The amendment provides an excellent opportunity for the Government to maximise the benefit from the £800 million of funding, to demonstrate to international partners at this critical point post COP a new model for climate and net-zero aligned R&D, and to develop the new technologies that we will need to help the UK and the rest of the world achieve our targets. Finally, it would ensure longevity and long-term political support for the organisation, irrespective of the Government of the day, something the whole of Parliament can get behind. I beg to move.

[Lord Lansley (Con)]

My Lords, I am very pleased to follow the noble Lord, Lord Ravensdale. Two of the amendments in this first group are in my name, Amendments 25 and 27, and I want to speak to Amendment 27 first. It is grouped with Amendment 1 because we start by debating, quite properly, the purposes of ARIA as an agency. What is it here to achieve?

As the noble Lord, Lord Ravensdale, said, we are not seeking to replicate DARPA but to learn from it. DARPA said that its sense of mission was part of the reason for its success. However, that mission in this context was originally

“to prevent and create technological surprise”.

That is an interesting concept—to prevent technological surprise happening to the American Government and, at the same time, to create technological surprise on its own part. One might say that you could substitute “create technological advantage” in the latter case. Interestingly, in more recent years, when DARPA staff were asked what they regarded as their mission, they said it was to be part of “shaping the future”. Indeed, I think that is where our starting point should be. We want ARIA as an agency to be part of shaping the future.

My problem with Amendment 1—actually, I do not have a problem with Amendment 1, because you could stretch the language of sustainability anywhere; that is its advantage but also its problem. I am not sure I understand what the board of ARIA, or its leading members, would interpret as being outside the scope of the sustainability criterion. Does it actually help them? I am not sure that it does. If anything, they might feel that it constrains them towards certain missions. The DARPA example we ought to learn from is that, in practice, it set out to define for itself a range of missions within the organisation.

I note that sitting next to the noble Lord, Lord Ravensdale, is the noble Lord, Lord Broers. I take from his Second Reading speech the thought that the programme managers are at the heart of this system, and the programme managers are chosen in relation to the programmes that DARPA is pursuing. I suspect the same will have to be true for ARIA—that it has to decide, “What are our programmes?” The programmes, in my view, might be mission-led—for example, related to adaptation to climate change—but at the same time they might be technology-led. For example, they might be to pursue AI and the data economy or to look at cell or gene therapy. There is a range of those possibilities. We need to give ARIA, as an organisation, the flexibility to decide the missions that it thinks fulfils its purposes. The missions will develop over time, but the legislation cannot change repeatedly over time, so the legislation should be sufficient to enable ARIA to select the missions it wants for the future.

My Amendment 27 is in this group. A report of July 2016 produced for DARPA about innovation in DARPA isolated four “sources of success”, as it put it, the first of which was the “limited tenure” of the leading executive members

“and the urgency it promotes”—

nobody was appointed for a period exceeding five years. The second was a “sense of mission”, which I was just talking about. The third was “Trust and autonomy”—both giving DARPA autonomy but also within the organisation trusting and giving autonomy to the programme managers in particular. The fourth was:

“Risk-taking and tolerance of failure”,


which of course we are setting out to incorporate into this legislation for ARIA. I add that DARPA interpreted this as meaning “Move fast and take risks”—do not spend a great deal of time trying to assess all the risks, because you could lose the opportunities in the process.

Amendment 27 seeks to replace the language of Clause 3, not because I have any objection to the purposes set out in Clause 3; my objection is to the drafting. It says:

“ARIA may give particular weight”—


I am afraid I do not understand what is meant by “particular weight” or how people who read it subsequently will know what that means in this context—

“to the potential for significant benefits”.

We are all agreed about “significant benefits” and we know what they are because they are in Clause 2(6) above. It then refers to

“research … that carries a high risk of failure.”

It is awfully close to being a piece of legislation that says that ARIA should look for projects that are quite likely to fail because those are likely to give the most significant benefits.

This is not the approach that legislation should take. Legislation should be more deliberate. I thought: what are Ministers actually looking to do in this clause? I agree with the noble Lord, Lord Ravensdale, in his Amendment 1. Ministers—and we—are looking for ARIA to seek to have transformational effects. I think we are agreed about that. That is why Amendment 27 refers to “transformational effects”. I have also included a reference to the possibility of technological advance through

“the development and exploitation of … research”.

I do not think that is mentioned elsewhere but I think it is helpful because, actually, many of the advances that have occurred, including in DARPA’s programmes, were not themselves the object of the mission but were the result of the process of discovery and curiosity and the exploitation of research.

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I hope I have provided noble Lords with all the reassurances they need that ARIA will be an organisation with the clear strategy and purpose of pursuing the most ambitious research and innovation, led by people of the highest calibre with an extraordinary vision to define what we hope will be a unique approach. I hope, on that basis, that the noble Lord will feel able to withdraw his amendment.

[Lord Ravensdale (CB)]

I thank all noble Lords who have taken part in this excellent and illuminating debate. I think it has demonstrated a clear feeling that there is a problem to be addressed in terms of what ARIA is to do—

“a brand in search of a product”,

as was said in the report of the House of Commons Science and Technology Committee. The real advantages for the Government in considering the purpose of the organisation are that it is all about maximising the chances of ARIA’s success as we take it forward.

I will draw out a few key points. The noble Lord, Lord Lansley, got to the heart of the matter in asking whether the organisation should be technology-led or mission or purpose-led. He made some very strong arguments, but I come back to what the deputy director of DARPA said in his evidence to the House of Commons Science and Technology Committee:

“having national security as the mission frames everything”

that DARPA does, having that high-level purpose within which the technology is developed.

I also emphasise some of the points made by the noble Baroness, Lady Brown, and the noble Lord, Lord Broers, about the value of setting that goal and creating some inspiration behind the organisation—using it to inspire and bring in the right people—and the importance to its success of the programme directors.

The noble Lord, Lord Oates, emphasised the importance of that sense of purpose, and the competition with the Soviet Union, for DARPA when it was set up in 1958 in response to the launch of Sputnik. It is easy to forget the panic at that time; it was Lyndon Johnson who envisioned a day when the Soviets would be

“dropping bombs on us from space like kids dropping rocks onto cars from freeway overpasses.”

For very different threats, we need to take the same approach that the US did in 1958, rethinking our innovation systems to meet our climate goals. The noble Baroness, Lady Chapman, emphasised the importance of bringing the whole of Parliament along with this organisation, and building support across Parliament for it in the long term. Taking that long-term view is another key point.

We will come back to this, and I look forward to further discussions with the Minister. On that basis, I beg leave to withdraw my amendment.

Amendment 1 withdrawn.

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[Baroness Noakes (Con)]

My Lords, I will comment on Amendment 4 in the name of the noble Baroness, Lady Randerson. We must not lose sight of the fact that the board is there to contribute to the total purpose or mission of the organisation, and we need to be very clear, when looking at getting those with some relationship to the devolved Administrations, precisely why they are there. I question whether there is a devolved dimension to, for example, the focus of ARIA or determinations about particular projects. These should transcend any issues that arise at the national level.

In addition, the amendment says that there should be

“a representative of the Welsh Government”.

I believe very strongly that boards should not have representatives of anybody on them. Board members should be selected because of their contribution to the totality. Indeed, if we look at examples of boards that do have individuals nominated either by or with the consent of the devolved Administrations, those people are never ever drafted as representatives. They are usually drafted as members who are appointed in a particular way. It is really important that we do not lose sight of the fact that we are trying to create a unitary board dedicated to the mission of the organisation. I query whether there needs to be input from the devolved nations to that process because of the nature of ARIA, but even if there were, I am absolutely clear that they should not be “representatives”.

Furthermore, if we look at the size of the board, which I addressed in the previous group of amendments, if there are four executives there are likely to be five non-executives, and that includes the chairman. So there would be a chairman, four executives and three people appointed who are in some ways related to the devolved Administrations—although none, under this formulation, representing England—but none, or perhaps one, appointed for the general skills and abilities they bring to the party. I hope that noble Lords will think carefully about whether it is appropriate in this instance to act in accordance with the way the noble Baroness’s amendment is drafted.

[Lord Ravensdale (CB)]

My Lords, as co-chair of the Midlands Engine APPG, I am very supportive of the levelling-up agenda and have a lot of sympathy with the amendments in the name of the noble Baroness, Lady Chapman. My only concern is the additional bureaucracy inherent in looking at the regional distribution of investment.

Building on the point made by the noble Viscount, Lord Stansgate, another lesson learned from DARPA was that the headquarters of DARPA was located away from many of the main research centres of the United States, which avoided the inevitable capture of research funding by institutions in a particular area and really encouraged the take-up of ideas from all parts of the country. I thank the Minister for writing to me on this but I hope that the Government will look further at how the location of the ARIA headquarters fits into the levelling-up agenda.

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[Baroness Chapman of Darlington (Lab)]

I think this set of amendments really gets to the meat of our concerns. These amendments are all about transparency and the ability to scrutinise what ARIA does. I am pretty confident that we will return to this as the Bill progresses.

I will quickly run through the six amendments in my name in this group. Amendment 11 requires the NAO to produce

“a value for money study of ARIA.”

Since tabling this, I have spoken to the noble Lord, Lord Morse, who unfortunately has had to leave us. He says that this can be incorporated into the usual audit. Can the Minister confirm this? In that case, I would be very happy to agree that this amendment would not be necessary.

Amendment 12 would ensure that the annual report includes

“a list of all projects supported in the financial year.”

This is the least we should be asking for. I thank the Minister for providing a draft SI that would require members of ARIA to disclose any relevant interests. That is helpful and welcome, but I am not quite sure what his sending it means. I note that he said in the email accompanying it that it is for illustrative purposes, so I do not quite understand what he is saying. Will members of ARIA be required to register their interests or not? Either way, without a published list of supported projects it is not possible to tell whether any published interest—if that is what the Minister is proposing; I am not sure that is what he is saying—conflicts with a decision of ARIA. We need to be able to make sure that it does not.

Amendment 13

“would ensure that the annual report includes whether any funds have been given by ARIA to companies which list members of Parliament in their company registers.”

Given recent events, it is probably obvious to noble Lords why this amendment has been tabled. We are keen to ensure that parliamentarians do not lobby for companies in which they have an interest and which then become beneficiaries of grants from ARIA. It is very obvious why we want to do that at this point. I accept that the register could be cross-checked with the list of grants awarded but it is far more transparent and straightforward if the existence of any recorded interest could be highlighted in the report that ARIA makes itself. I assume it would be helpful to the board of ARIA too to be aware of any such interests so that it can take them into account and assure itself that the proper processes are being followed.

Amendment 14 would ensure that the annual report includes whether any funds have been given by ARIA to companies listed in the Electoral Commission’s register of donations and loans to political parties. Similarly to the last amendment, this one would help ARIA to assure itself that no lobbying or purchasing of influence could possibly have taken place.

Amendment 15 would ensure that a Minister of the Crown must make a Statement to both Houses of Parliament on its annual report. This is important because, as we said on the first group of amendments, MPs and Peers would be interested in a project supported by the public purse. Ministers should see this as an opportunity to promote the work of ARIA and to celebrate the inventions and research projects made possible by the agency. Of course, there are bound to be awkward questions—when are there not?—arising from projects that have not worked. But Ministers should not worry about that, as they can argue that the risk is built in, that Parliament has agreed and understood, that many ideas will fail, at least initially, and that we have supported that approach. We want adventurous research, but many of us want to know what is being done. That is because we are curious, supportive and interested in this area of activity, and we want a chance to discuss it.

I shall leave the noble Lord, Lord Ravensdale, to speak on his Amendment 16, but I indicate our support for that as well. Developing an environmental and social governance strategy is a really good idea and may address many of the concerns that I have had previously about regional inequality. ARIA is in any case going to have to devise a decision-making process and criteria to help it make its decisions, so an environmental and social governance strategy could be very helpful, I imagine, in teasing out a means by which ARIA can ensure maximum benefits in relation to our desire to combat climate change and reduce regional inequality. We would be very happy to support that.

[Lord Ravensdale (CB)]

My Lords, I shall speak to Amendment 16 in my name. I thank the noble Lord, Lord Browne, for his support with this amendment and the noble Baroness, Lady Chapman, for the support she indicated.

This amendment is closely related to the sustainability amendments that I discussed in the first group. The arguments made there on alignment of ARIA with these objectives apply, so I shall not repeat them here. It simply calls for ARIA to develop its own environmental, social and governance strategy to consider the impacts of the exercise of its functions and the projects that it funds. It is another means of embedding climate and sustainability considerations in the organisation, alongside my Amendments 1 and 26 and Amendment 21. It would allow the board of ARIA to consider its own strategy for alignment with environmental and climate goals, so it is consistent with the other amendments.

Embedding sustainability goals in the governance structures of organisations is increasingly important to ensure that organisations consider the impact of their operations and set clear and measurable goals. That ties into a point that I made earlier about considering environment and net zero as a system: there is a need to embed climate considerations across all companies and all public bodies to ensure that our overall goals are met.

ESG strategies are increasingly common across public and private companies, as noble Lords will be aware. I note that other government-created bodies are developing ESG strategies. For example, the Financial Conduct Authority has recently published an ESG strategy, and the national infrastructure bank has a requirement to develop an ESG strategy in its framework documents. Bringing ARIA in line with other government organisations would again ensure consistency and its playing its part in the principal strategic goal of the nation.

[Lord Browne of Ladyton (Lab)]

My Lords, I shall talk to Amendment 16, which I am hopeful that the Minister will tell us is unnecessary. I also strongly support my noble friend Lady Chapman in the amendments she has tabled, and I shall speak to that shortly.

I support Amendment 16 simply because, in today’s global arena, setting an environmental, social and governance strategy is seen as an important benchmark for how responsible organisations operate. This will be a responsible organisation and should comply with the norm that is increasingly being imposed on all organisations that operate in the economic environment.

Advanced Research and Invention Agency Bill

Lord Ravensdale Excerpts

Report stage
Tuesday 14th December 2021 Lords Chamber

Moved by

[Lord Ravensdale]

4: Clause 2, page 2, line 18, at end insert—
“(7) In exercising its functions ARIA must give due consideration to the following—(a) compliance with the duty imposed by section 1 of the Climate Change Act 2008 (UK net zero emissions target),(b) adaptation to climate change, or(c) meeting other environmental goals (such as restoration or enhancement of the natural environment).”Member’s explanatory statement
This amendment seeks to include the UK’s net zero target and environmental goals as matters which ARIA must give due consideration to when exercising its functions.

[Lord Ravensdale (CB)]

My Lords, in moving Amendment 4 I will speak to Amendment 19, in my name. I declare my interest as a director of Peers for the Planet and as an engineer and project director with Atkins.

I thank my supporters who have signed these amendments, the noble Baroness, Lady Chapman, and the noble Lords, Lord Browne and Lord Oates. Alongside them, I thank the noble Baroness, Lady Brown, and the noble Lords, Lord Lansley and Lord Broers, for their invaluable support and advice throughout this process. Like others, I pay tribute to the noble Lord, Lord Broers. His will be a huge loss to the House; we will much miss his expertise. I particularly pay tribute to his work leading the All-Party Parliamentary Engineering Group, which is all about getting schoolchildren excited about engineering and exposing them to the latest ideas. It has made a huge difference, as I know from the involvement of a school that is local to me. Maybe one day we will see some of those children pushing new frontiers with ARIA—who knows?

I spoke at Second Reading and in Committee on the progenitor organisation for ARIA, DARPA. In 2013, DARPA took the gamble of awarding a small firm called Moderna $25 million to develop the idea of using messenger RNA to make vaccines. So I had reason to be personally thankful for the work of DARPA at the weekend, having received my Moderna booster on Saturday. I could also mention the GPS technology that guided me to the vaccination clinic, and the internet that I used to book the appointment—innovations that were both seeded by DARPA. DARPA has literally changed the world in so many ways, creating trillions of dollars of value. We all look forward to ARIA doing the same within the UK.

Starting with Amendment 4, I thank the Minister for taking the time to meet me to discuss the amendment, and for all the work that he and his team have done to investigate its implementation. As I stated at that meeting, I want to clarify a potential misconception about my amendments. I am not seeking to implement a mission or purpose for ARIA. I listened carefully to what the Minister said in Committee. It is clear that the Government want to maintain flexibility for ARIA, and so I have withdrawn my original Committee amendment, which attempted to implement one. Instead, I am looking to put a “have regard to” statement in the UK’s primary strategic goal of climate and the environment, similar to the other statements in Clause 2(6) of the Bill on ARIA’s functions, which talk about economic growth, promoting scientific innovation and improving quality of life. ARIA would still be free to choose whatever missions it likes within the constraints of Clause 2(6) and this proposed new subsection, as the Government intend.

Part of the argument for this amendment is consistency. The Government have sought to implement similar climate and environmental amendments across a whole range of recent legislation—the Skills and Post-16 Education Bill, the Pension Schemes Act and the Financial Services Act—and these are all “have regard to” amendments. My amendment uses the same wording as these amendments, specifically using wording from government amendments to the skills Bill.

I know that the Government want to ensure that they are taking a systems view of net zero, with climate as a golden thread through all relevant legislation. This certainly is relevant, given that we know how important R&D is to our net-zero and environmental targets and how important ARIA could be to those. As we know, the International Energy Agency stated that almost half of the needed emissions reductions for 2050 are expected to rely on technologies that have not yet reached the market. This is a great opportunity for the Government, given the focus on delivery post COP. It is a minor but beneficial amendment which would ensure that the organisation has regard to the primary strategic goal of the UK, but which does not detract from what the Government want from ARIA overall.

Amendment 19 simply calls for ARIA to develop its own environmental and social governance, or ESG, strategy, to consider the impacts of the exercise of its functions and the projects which it funds. It would allow the board of ARIA to consider their own strategy for alignment with the environmental and climate goals, and so is consistent with the other amendment. I note that other government-created bodies are also developing ESG strategies. For example, the FCA recently published an ESG strategy, and the national infrastructure bank has a requirement to develop an ESG strategy in its framework document. Bringing ARIA in line with other government organisations would again ensure consistency and that it is playing its part in the principal strategic goal of the nation.

Finally, these points relate to a substantive proposal that the Minister has offered relating to both amendments, so I look forward to hearing his proposal in detail when he sums up. I beg to move.

Amendment 5 (to Amendment 4)

Moved by

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Amendment 5 (to Amendment 4) withdrawn.

[Lord Ravensdale (CB)]

My Lords, I am most grateful to the Minister for his proposal and for ensuring that ARIA will be asked to demonstrate through integrated reporting how sustainability is an essential characteristic within its strategic objectives, operations and policy-making. I believe that this proposal meets the intent of my original amendments through implementation in the framework document. It will ensure that ARIA has regard to the areas set out in my original amendment; it will be asked to consider and demonstrate how it has met them. In particular, as he said, it will ensure that ARIA has regard to its projects contributing to our climate change targets and environmental goals. Through working together with the Government, we have reached a good compromise on this issue. I again thank the Minister, his team and my supporters and beg leave to withdraw my amendment.

Amendment 4 withdrawn.