Climate Change Risk: National Audit Office Guidance

Lord Whitty Excerpts

Monday 25th October 2021 Lords Chamber

[Lord Browne of Ladyton]

To ask Her Majesty’s Government what steps they have taken to ensure government departments and other public bodies have regard to the latest National Audit Office guidance Climate change risk: A good practice guide for Audit and Risk Assurance Committees, published on 5 August.

[Lord Whitty (Lab)]

My Lords, on behalf of my noble friend Lord Browne of Ladyton and with his permission, I beg leave to ask the Question standing in his name on the Order Paper.

[Viscount Younger of Leckie (Con)]

My Lords, the National Audit Office is the primary distribution channel for this guidance, publishing directly on its website to maintain its independence from the Government. The NAO presented its findings to officials at the heads of risk network event on 7 September and will present the guidance at the government internal audit agencies event for audit and risk assurance committee members on 4 November. The Government Finance Function promoted the guidance through news articles on its digital platform, OneFinance.

[Lord Whitty (Lab)]

My Lords, I thank the Minister for that, but this NAO report examined the audit and risk committees of public organisations and found that over half of them do not have a climate or sustainability risk policy. Does he agree that it is an urgent issue that this gap in public governance is at odds with the Government’s net-zero strategy? Also, the NAO reported in early August. How many audit and risk committees have adopted such policies since then?

[Viscount Younger of Leckie (Con)]

I am aware of the noble Lord’s question to the extent that the Government are very conscious of the importance of climate change risk and governance. In April 2021, the Government’s internal audit agency published its cross-government insight on sustainability, which offered recommendations on governance structures having accountability for climate change risks. The Treasury publishes the Orange Book and the Managing Public Money guidance on risk management for central government. Further support is offered by the risk management centre. I will write to the noble Lord regarding his specific question on the take-up.