Committee on Climate Change

Annual Report and Accounts
1 April 2020 to 31 March 2021

Presented to Parliament pursuant to Paragraph 24 of Schedule 1 of the Climate Change Act 2008 Ordered by
the House of Commons to be printed 20 July 2021
HC 399SG/2021/16

Climate Change Committee – Annual Reports & Accounts 2020-212© Crown copyright 2021
This publication is licensed under the terms of the Open Government Licence v3.0 except where otherwise
stated. To view this licence, visit nationalarchives.gov.uk/doc/open-government-licence/version/3
Where we have identified any third party copyright information you will need to obtain permission from the
copyright holders concerned.
This publication is available at www.gov.uk/official-documents and www.theccc.org.uk/publications
Any enquiries regarding this publication should be sent to us at the Committee on Climate Change at our
registered office: 1 Victoria Street, London, SW1H 0ET
ISBN 978-1-5286-2569-2 CCS0321271706
Printed on paper containing 75% recycled fibre content minimum
Printed in the UK by the APS Group on behalf of the Controller of Her Majesty’s Stationery Office3

Chairman’s Foreword
I must begin by paying my respects to Professor Dame Georgina Mace, who sadly
passed away in September 2020. Georgina was a much-loved and respected
member of our Adaptation Committee. Baroness Brown, chair of the Adaptation
Committee commented at the time that through Georgina’s unrivalled knowledgeof the natural environment “she consistently challenged us to think more logically,
more analytically, and our advice to Government has been all the better for it.” I
can think of no tribute more fitting. My thanks to Professor Kate Jones who has
stepped in to join the Adaptation Committee as an expert advisor on the naturalenvironment until a permanent replacement is appointed.
The past year, amid the COVID-19 pandemic, has challenged us all and I thank myfellow Committee members and the secretariat for their tireless work to deliver a
successful work programme. Despite the postponement of COP26 to November
2021, the momentum for action on climate change has continued to build and theadvice of my Committee has played a significant role in driving ambition and
Government policy.
Our influence is perhaps most evident in establishing a pathway to Net Zeroemissions for the UK. In December, my Committee advised on the Sixth Carbon
Budget, the limit for greenhouse gas emissions for the period 2033-37. This is thecritical period for determining progress. Our advice provided the most detailedroute map to Net Zero of any nation. I’m pleased, therefore, that the Government
has accepted our recommendations in full.
The implications of the Sixth Carbon Budget are hugely significant. We are now
committed to a reduction in greenhouse gas emissions of almost 80% by 2035
compared to 1990 levels, placing the UK as one of the most ambitious countries
globally in tackling climate change. Delivering this will require a major investment
programme across the country, coupled with action across the board; fromindividuals and from government, and from businesses large and small. We all
have a role to play in the Net Zero – and we must get real about achieving it.
So it is to the task of delivery that my Committee must now turn its attention. The
political attention over the next six months will be on COP26. This is the critical
period to put ambitious and realistic policies in place to deliver against the UK’s
new targets. We must grab that opportunity. My Committee will be at the forefrontof the call to deliver with urgency.
My final word is to thank all the individuals and organisations who have supported
our work in this momentous year, and helped us develop the evidence that
underpins all of our analysis and advice. Your work and insights will be even more
important as we embark on our new delivery-focused programme in the year
ahead.

Lord Deben
Chairman of the Climate Change Committee
15 July 2021
Climate Change Committee – Annual Reports & Accounts 2020-21

4

5

Contents
Chairman’s Foreword

4

Performance Report7

1.1 Overview

9

1.2 Performance Analyis

12

Accountability Report
2.1 Corporate Governance Report

21

2.2 Chief Executive’s Report22

2.3 Governance Statement24

2.4 Remuneration and staff report32

2.5 The Certificate And Report of the Comptroller and Auditor General to the Houses of Parliament

42

Financial Statements
1. Notes to the Accounts

51

2. Analysis of net expenditure by segment55

3. Staff numbers and related costs

56

4. Other expenditure56

5. Property, plant and equipment

57

6. Intangible assets

58

7. Financial Instruments

59

8. Trade receivables and other current assets

59

9. Cash and cash equivalents

59

10. Trade payables and other current liabilities

60

11. Provision for liabilities and charges

60

12. Capital and other financial commitments

61

13. Commitments under operating leases

61

14. Related-party transactions

62

15. Events after reporting period

63

Climate Change Committee – Annual Reports & Accounts 2020-21

6

Section 1

Performance Report

Climate Change Committee – Annual Reports & Accounts 2020-21

Climate Change Committee – Annual Reports & Accounts 2020-21

8

1.1 Overview
1.1.1 Chief Executive’s message
This was the pandemic year, and I’m pleased that we responded quickly and kept
the team safe. The swift transition to remote working forced us into new ways ofworking, but we have made a real success of it, opening new possibilities for the
CCC in the future. When we return to the office later this year, we will work in a‘hybrid’ model, mixing online and physical working. That permits us to work more
remotely through choice and to develop a team that is more distributed aroundthe UK and more representative of the country.
Our most prominent work this year was the Sixth Carbon Budget advice, theculmination of more than three years of analysis to determine a comprehensive
path to Net Zero by 2050 for the UK. We published in December and the impact
has been stunning. I’m delighted that the Government has now accepted ourrecommendations on the Sixth Carbon Budget, and on the 2030 NDC target. But I
am particularly pleased that our long-standing recommendation to include
international aviation and shipping emissions in the UK’s carbon budgets has been
accepted. The UK now has a comprehensive target framework for the emissions
produced in the UK.
I hope we will now have a similar impact with the third climate change risk
assessment for the UK, published on 16th June. It kicks-off a new five-year cycle ofplanning and action on adaptation under the Climate Change Act. We badly
need to make more progress; we are not seeing the same momentum on
adaptation in the UK as we have seen for Net Zero, despite the critical climate risks
we now face. In our independent assessment, we’ve emphasised eight priorities for
Government in the next set of national adaptation plans. A realistic response tothese climate risks – and others – needs to be a more prominent part of climate
policy in the UK.
As the reality of a prolonged pandemic dawned, we committed to use online
channels to communicate our findings as widely as possible. It has been arevelation. In October 2020, we co-organised a successful online conference on
climate risks and adaptation in the UK. Our Sixth Carbon Budget online launch
attracted thousands of views and the subsequent ‘Path to Net Zero’ webinar series
has been able to reach thousands more, far greater numbers than would bepossible with traditional meetings or seminars. We intend to continue to use these
online tools long after the pandemic, alongside our traditional reports and talks.
The next six months will centre on COP26 in Glasgow, a major moment for the
global effort on climate change. In the Presidency, part of the UK’s ‘offer’ is thestrong legal framework for climate action. The Climate Change Act enshrines
impartial, evidence-based advice from the CCC, so we have a role in sharing thatexperience with other countries. With the support of BEIS and FCDO, we haveinitiated an international programme, which has included the publication of eight‘Insights’ briefings to provide a practical overview of the workings of the CCC andthe UK Climate Change Act. I look forward to doing more support a successful
COP26 in the coming months.
This has been a year of target-setting and raising political ambition. But setting
targets is one thing, delivering them is quite another. ‘Delivery’ is now thechallenge for Government and so it must become the challenge for the CCC too.
Climate Change Committee – Annual Reports & Accounts 2020-21

As we complete our work on our annual Progress Report to Parliament, we are
beginning to plan and commission our new work programme, one more focusedon real-world progress, public engagement and delivery. We will publish an
exciting new programme for the coming years in the autumn of 2021.
My sincere thanks to the wonderful secretariat team at the CCC. I’m remindeddaily of the privilege of working with them and learning from them.

Chris Stark
Chief Executive
Climate Change Committee
15 July 2021

1.1.2 Committee role and structure
The Committee on Climate Change (CCC) is an independent, statutory nondepartmental public body established under the Climate Change Act 2008. Our
purpose is to advise the UK government, Parliament and the devolved
administrations on cutting emissions and preparing for climate change. The CCC
consists of two committees: a committee (the Committee) advising on how to
reduce greenhouse gases in line with legislative requirements and an Adaptation
Committee (AC) which advises the risks from climate change and actions the UK
should take to adapt.
Our strategic priorities are:Provide independent advice togovernment on setting and meetingcarbon budgets and preparing forclimate change

Monitor progress in reducing emissions,achieving carbon budgets andpreparing for climate change

Strategic Priorities

Conduct independent analysis into
climate change science, economics
and policy

Engage with stakeholders to promote
understanding and inform anevidence-based debate on climatechange and its impacts

The Committee comprises a Chairman and eight independent members. The
Committee is sponsored by the Department for Business, Energy and Industrial
Strategy (BEIS), the Northern Ireland Executive, the Scottish government and theWelsh government.
The AC, also established under the Climate Change Act, advises the UK
government and devolved administrations on their assessment of the risks andopportunities from climate change. It also reports to the UK Parliament on progress
Climate Change Committee – Annual Reports & Accounts 2020-21

10

in adaptation, particularly in relation to the UK government’s National Adaptation
Programme (mainly covering England only).
The Adaptation Committee comprises a Chairman, who also sits on theCommittee, and five independent members. The Adaptation Committee is jointly
sponsored by the Department for Environment, Food and Rural Affairs (Defra), theNorthern Ireland Executive, the Scottish government and the Welsh government.

1.1.3 Adoption of the going concern basis
The statement of financial position at 31 March 2021 shows net liabilities of £353,399(2019-20, net liabilities of £269,662). This reflects the inclusion of liabilities falling due
in future years that may be only met by future Grants-in-Aid from BEIS, Defra anddevolved administrations. The conventions applying to parliamentary control overincome and expenditure require that Grants-in-Aid may not be issued in advanceof need.
The future financing of the CCC is to be met by Grants-of-supply from BEIS, Defra
and the devolved administrations as well as the application of future income, bothof which are approved on an annual basis by Parliament.
Indicative grants-of-supply for 2021-22 have already been given and there is no
reason to believe that future approvals will not be forthcoming. The Government
Financial Reporting Manual (FReM) states that for non-trading entities the
anticipated continuation of the provision for that service is normally sufficientevidence of going concern. It has accordingly been considered appropriate to
adopt a going concern basis for the preparation of these financial statements.

Climate Change Committee – Annual Reports & Accounts 2020-21

1.2 Performance Analyis
1.2.1 Key performance indicators for 2020-21
Box 1
Key performance indicators for 2020 - 2021
Indicator

Actions

Fulfilling our statutory duties as set
out in the Climate Change Act
2008, including reporting on progress
made on meeting carbon budgets,and reporting on preparedness toadapt to climate change

•
•

•
•

Ensuring that the Committee’s
governance arrangements are fit for
purpose, meeting statutoryand otherrequirements, and that it continues
to operate as a responsible andeffective NDPB

Providing advice on the UK’s long-term climatechangetargets by considering how and by when the UK caneffectively eliminate carbon emissions from its economy
Completing the Committee’s Progress Report which details
the UK’s progress in reducing greenhouse gas emissions
and meeting carbonbudgets
Publishing sector specific reports with policy
recommendations
Responding to advice requests from thedevolved
administrations• Ensuring adequate financial reporting andaccounting
arrangements are in place• Maintaining an appropriate internal control andgovernance framework• Implementing corporate and human resources policies
which facilitate the hiring, retention and development of askilled and motivated team
• Maintaining a security policy, business continuityplan andrisk management plan

An assessment of the key risks and issues faced by the CCC is provided in the
Governance Statement which is shown in the Performance report in section 2:3.

Climate Change Committee – Annual Reports & Accounts 2020-21

12

1.2.2. Analysis of our performance in 2020–21
Progress towards reducing emissions
In June 2020 the Committee published its annual Progress Report to Parliamentassessing progress in reducing UK emissions. The report included new advice to the
UK Government on securing a green and resilient recovery following the COVID-19
pandemic and expanded on its May 2020 advice to the Prime Minister highlighting
five key investment priorities:•

Low-carbon retrofits and buildings that are fit for the future•

Tree planting, peatland restoration, and green infrastructure•

Energy networks must be strengthened•

Infrastructure to make it easy for people to walk, cycle, and work remotely•Moving towards a circular economy.

The Committee also identified opportunities to support the transition and therecovery by investing in the UK’s workforce, and in lower-carbon behaviours andinnovation:•

Reskilling and retraining programmes•

Leading a move towards positive behaviours•

Targeted science and innovation funding

The Sixth Carbon Budget
The Sixth Carbon Budget report, published in December 2020, was based on an
extensive programme of analysis, consultation and consideration by theCommittee and its staff and builds on the evidence published in the 2019 Net Zeroadvice. The CCC also provided advice to the devolved administrations in respectof their contribution to the UK Net Zero target.
The Committee recommended a pathway which requires a 78% reduction in UK
territorial emissions between 1990 and 2035. In effect, bringing forward the UK’s
previous 80% target by nearly 15 years.
The Sixth Carbon Budget can be met through four key steps:•

The phasing out of high carbon options and take up of low-carbon
solutions. For example, by the early 2030s all new cars and vans and all
boiler replacements in homes and other buildings are low- carbon – largely
electric.

•

The expansion of low-carbon energy supplies. For example, UK electricity
production to be zero carbon by 2035 with offshore wind becoming the
backbone of the whole UK energy system.

•

Reducing demand for carbon-intensive activities by reducing reliance on
high-carbon goods. For example, improving insulation in buildings acrossthe UK.

•

By transforming agriculture and the use of farmland and developing
greenhouse gas removals.

Climate Change Committee – Annual Reports & Accounts 2020-21

In October 2020 the Committee published the ninth annual Progress Report to the
Scottish Parliament, required under the Climate Change (Scotland) Act 2009. The
report showed that Scotland’s greenhouse gas emissions fell by 31% from 2008 to
2018. This was primarily due to action to reduce emissions in the power sector,
where Scottish renewable electricity generation
has tripled and fossil-fuelled generation has fallen by more than 70% in the last
decade. However, greenhouse gas emissions increased by 2% in 2018, compared
to a reduction of 3% in 2017
The report set out a number priority areas to put Scotland on course to become a
Net Zero economy by 2045.
In December 2020 the Committee published two joint reports, required under theEnvironment (Wales) Act 2016 to the Welsh Government.
The Advice Report provided recommendations on the actions that are needed inWales, including the legislation of a Net Zero target and a package of policies todeliver a Net Zero target.
The Progress Report looked back at progress made in Wales since the 2016
Environment (Wales) Act was passed and made an assessment of whether Wales ison track to meet its currently legislated emissions reductions targets.

During 2021 the CCC has held a series of online events looking at how the UK can
get to Net Zero and the opportunities and challenges ahead. The topics covers
have included:
The UK’s international contribution – the Sixth Carbon Budget and Net Zero
This session explored the CCC’s advice on the Sixth Carbon Budget as a fair andambitious contribution to tackling climate change, considering how and why the
Sixth Carbon Budget and the UK’s 2050 Net Zero target represent genuine global
ambition to keep warming to the 1.5⁰C – well below 2⁰C limit as set out in the Paris
Agreement.

Climate Change Committee – Annual Reports & Accounts 2020-21

14

The Economics of Net Zero
This event considered the CCC’s advice on the Sixth Carbon Budget and exploredpotential implications for UK jobs and the wider economy.
Financing Net Zero
The CCC’s Sixth Carbon Budget identified a need for a programme of low-carbon
investment reaching £50 billion/year by 2030. This event considered our advice on
how to finance the Net Zero transition as part of the Sixth Carbon Budget.
Policies to meet Net Zero
This event considered our advice on policy as part of the Sixth Carbon Budget andconsidered how to deliver the Net Zero transition in practice.
Net Zero: The role of individual action
This event considered how behaviour change, including in delivering emissions
reductions from housing, agriculture and transport, will play a key role in delivering
Net Zero.
Net Zero: The role of businessThis event considers the Climate Change Committee’s advice on the Sixth Carbon
Budget, and how businesses can help deliver the UK’s national Net Zero ambition.
Net Zero: The role of local action
This included discussion of a new supplementary report, published alongside the
Sixth Carbon Budget, looking at the role of the UK’s local authorities in delivering
the Net Zero transition.
Net Zero: The need for joint action on adaptation
This event focussed on areas where action on adaptation can and should
complement steps to reduce UK emissions, resulting in multiple benefits.
The Infrastructure Act 2015 requires the Committee to provide advice to the UK
Government on compatibility of onshore petroleum with UK carbon budgets every
five years. At present there is a moratorium on hydraulic fracturing (‘fracking’) for
onshore oil and gas but in March 2021, to fulfil its statutory duty, the Committee
provided advice to address the potential case in which concerns over seismicity
are overcome at a future date.
The Committee recommended that policies must be put in place to reduce directemissions from fossil fuel consumption across the UK energy system, consistent withthe path to Net Zero set out in our Sixth Carbon Budget advice.
The Committee also recommended that the UK should adopt a policy to limit thegreenhouse gas emissions from the production/supply of fossil fuels consumed in
the UK, irrespective of where the emissions occur.
Further, the Committee stated that the moratorium on UK shale production should
not be lifted without an in-depth independent review of the evidence on the
climate impact of UK shale production.

Climate Change Committee – Annual Reports & Accounts 2020-21

Managing and adapting to climate change risks
The Committee continued preparations for the publication of two statutory reports
published in June 2021; the independent assessment of UK climate risks (comprising
40 separate reports including the Committee’s Advice Report), and the latest
adaptation progress report for England.
As part of this continuing work, the Committee published a set of supporting
analytical reports for the Climate Change Risk Assessment on a dedicated new ‘UK
Climate Risk’ website:•

Projections of future flood risk•

Projections of future water availability•

Understanding how behaviours can influence climate change risks•

Climate-driven threshold effects in the natural environment•

Interacting risks in infrastructure, the built and natural environments•

A consistent set of socioeconomic dimensions•

Advice on improving the accessibility of the Climate Change Risk
Assessment

The Committee also held an invite-only national conference on adapting to higher
levels of warming in October 2020, jointly organised with the National Centre for
Atmospheric Science and the Climate Resilience Programme at the University ofLeeds.
Financial performance and governance arrangements
Analysis of the CCC’s financial performance can be found in section 2:2 of the
Accountability Report. This together with information provided in the GovernanceStatement, section 2:3 of the Accountability Report, provides information on our
performance against our second Key Performance Indicator, which is to ensure
the CCC’s governance arrangements are fit for purpose, meet statutory and otherrequirements, and that it continues to operate as a responsible and effective
NDPB.

Climate Change Committee – Annual Reports & Accounts 2020-21

16

1.2.2 Sustainability report
Our emissions
As a small organisation with less than 40 staff, our emissions principally derive fromthe gas and electricity used to run our IT and to regulate the temperature of ouroffice. Business travel, water-use and waste comprise the other main sources ofemissions.
Our scope 1 and 2 carbon emissions have reduced significantly over time, as
shown in the chart below. Reducing emissions, building in resilience and prioritisingsustainability is a key objective for all our operational decisions and we are proud
to be able to demonstrate a significant, sustained reduction in emissions.

Figure 1 CCC carbon emissions
60,00050,00040,00030,00020,000

KgCO2e10,0002013-14 2014-15 2015-16 2016-17 2017-18 2018-19 2019-20 2020-21
Gas & electricity

Transport & waste

Source: CCC

During 2020-21, following Covid guidance, our stakeholder engagement andreport launches have been held on-line. These events have enabled us to reach amuch wider audience whilst also reducing our emissions. We anticipate that we will
move towards greater virtual and on-line engagement going forward.
The CCC uses the Defra IT service which in 2020-21 has accelerated their carbon
reduction strategy and delivered a 10% reduction by moving to renewable energy
sources and 8% carbon emissions reduction. No items were sent to landfill and in
52% of redundant hardware was remarketed and redeployed and recycled 48%
recovering precious minerals such as Ferrous (12,000 kg), Gold (0.41 kg), Copper(2100 kg), Aluminium (599kg), and Plastic (22 kg).
Our strategy
We recognise the opportunity for us to do more and our strategy document setsout our commitments and priorities to help us ensure we deliver against ourrecommendations and advice wherever possible.
During 2021-22 we plan to complete an assessment of our scope 3 emissions. These
principally include emissions from purchased goods and services and employee
commuting. Once we have assessed our scope 3 emissions we will commit to andimplement a plan to reduce those emissions.
Climate Change Committee – Annual Reports & Accounts 2020-21

We have commenced a Carbon Neutral certification process and will work with
our landlord, the Government Property Agency (GPA), to implement a carbon
reduction strategy to achieve Carbon Neutral certification.
We will also focus on improving our organisation’s resilience by maintaining abusiness continuity plan for extreme weather which accounts for projected climate
impacts for both 2 and 4°C of global temperature rise and takes into account thelatest information on present-day and future risk from expert sources such as the
Met Office and Environment Agency.

Chris Stark,
Accounting Officer
15 July 2021

Climate Change Committee – Annual Reports & Accounts 2020-21

18

Section 2

Accountability Report

19

Climate Change Committee – Annual Reports & Accounts 2020-21

Climate Change Committee – Annual Reports & Accounts 2020-21

20

2.1 Corporate Governance Report
2.1.1 Statement of Accounting Officer’s responsibilities
Under schedule 1, Section 24 (2) of the Climate Change Act 2008, the Secretary ofState for Business, Energy and Industrial Strategy has directed the CCC to prepare
for each financial year a statement of accounts in the form and on the basis set
out in the Accounts Direction. The accounts are prepared on an accruals basis
and must give a true and fair view of the state of affairs of the CCC and its income
and expenditure, changes in taxpayers’ equity and cash flows for the financialyear.
In preparing the accounts, the Accounting Officer is required to comply with therequirements of the government Financial Reporting manual and in particular to:
Observe the Accounts Direction issued by the Treasury, including the relevant
accounting and disclosures requirements, and apply suitable accounting policies
on a consistent basis;•

Make judgements and estimates on a reasonable basis;•

State whether applicable accounting standards as set out in thegovernment Financial Reporting manual have been followed, and discloseand explain any material departures in the accounts; and•Prepare the accounts on a going concern basis.

The Sponsoring Accounting Officer of BEIS has designated the Chief Executive as
Accounting Officer of the CCC. The responsibilities of an Accounting Officer,
including responsibility for the propriety and regularity of the public finances forwhich the Accounting Officer is answerable, for keeping proper records and forsafeguarding the CCC’s assets, are set out in Managing Public Money publishedby the HM Treasury.
As far as I am aware there is no relevant audit information of which the CCC's
auditors are unaware and as Accounting Officer I have taken all the steps that
ought to have been taken to make myself aware of any relevant audit informationand to establish that the CCC's auditors are aware of that information.
I confirm that the Annual Report and Accounts as a whole gives a fair, balanced
and understandable view of the CCC's activities for the year ended 31 March 2021
and its financial position as at 31 March 2021.
I confirm also that I am personally responsible for this Annual Report and Accounts
and the judgments required for determining that it is fair, balanced andunderstandable.

21

Climate Change Committee – Annual Reports & Accounts 2020-21

2.2 Chief Executive’s Report
2.2.1 Financial position
An overview of our expenditure
The CCC received a resource allocation of £4,785,013 (2019-20: £5,086,146) and acapital allocation of £nil in 2020-21 (2019-20: £300,000), which was wholly fundedby our Sponsor Organisations, BEIS, Defra and the devolved administrations. The
Corporate and Business Plan, which is published on the CCC website, provides a
split of the resource allocation provided by our Sponsor Organisations. The Grantin-Aid funding drawn down during the year was £4,595,073 (2019-20: £5,354,002).
The CCC’s net operating cost for the year were £4,678,810 (2019-20: £5,119,694).
Financial position
The accounts show a Statement of Comprehensive Net Expenditure of £4,678,810
for the year ended 31 March 2021 and net liabilities of £353,399 on the Statementof Financial Position (principally driven by our trade and other payables, which
include liabilities falling due in futures years that may only be met by future grantsin-aid.
The CCC has non-current assets of £103,635 at 31 March 2021 (£225,270 at 31
March 2020).
Going concern
Our indicative allocation for 2021-22 is assessed to be sufficient to enable the CCC
to meet its statutory duties and contractual obligations. On this basis we consider it
appropriate to prepare these financial statements on a going concern basis. The
funding for 2021-22 covers the reported liabilities as at 31 March 2021 of £353,399.
Events since the end of the financial year
On 1 April 2021 the CCC entered into an agreement with the GPA to occupy
office accommodation at 1 Victoria Street, London, SW1W 0ET. The commitments
relating to this agreement are disclosed in note 13 to the Financial S tatements.
No other events have occurred since the end of the financial year which would
materially affect the contents of these financial statements.
The Annual Report and Accounts were authorised for issue by the Accounting
Officer on 15 July 2021.
Service arrangements
The CCC has procured the following service arrangements for its operations:•

Payroll, procurement, accounting and human resources through Shared
Services Connected Limited (SSCL)•

IT infrastructure and services through the Defra IT contract

Climate Change Committee – Annual Reports & Accounts 2020-21

22•

Accommodation on the first floor of 151 Buckingham Palace Road leased
from the Government Property Agency. This arrangement ceased on 31
March 2021 and a new agreement for space at 1 Victoria Street London
was entered into with effect from 1 April 2021.

Priorities for accommodation, IT and shared services delivery are kept under review
to ensure they remain efficient, effective and provide value for money.
Prompt payment
The CCC uses SSCL to administer payments to suppliers on its behalf. The standard
terms of payment for all contracts is 30 days from receipt of a valid invoice. SSCL iscommitted to the government’s prompt payment target to pay valid invoices
within 5 days of receipt.
According to the statistics provided by SSCL 82.14% of valid invoices received
between 1 April 2020 and 31 March 2021 by the CCC were paid within the 5-day
target (88.83% in 2019-20).
Regularity of expenditure (This section has been subject to audit)
There were no losses or special payments made by the CCC in the financial year.
Remote contingent liabilities (This section has been subject to audit)
The Committee on Climate Change does not have any Remote Contingent
Liabilities in 2020-21 (2019-20, none).
Register of Interests
The CCC publishes a register of interests listing interests held by Committee
Members and our Chief Executive. It is available on the CCC website at thisaddress: https://www.theccc.org.uk/about/transparency/

23

Climate Change Committee – Annual Reports & Accounts 2020-21

2.3 Governance Statement
Introduction
This governance statement sets out how the CCC is governed and considers therisk management of the CCC and its internal controls. It applies to the financial
year 1 April 2020 to 31 March 2021 and up to the date of the approval of theAnnual Report and Accounts.
As Chief Executive I am nominated to be the Accounting Office for the CCC andhave responsibility for maintaining and reviewing the effectiveness of ourgovernance arrangements, risk management and internal control arrangements. I
am personally responsible for safeguarding the public funds in my charge and for
ensuring propriety and regularity in the handling of those funds.
Specifically, I am tasked with ensuring that the CCC:•

Operates within the requirements of the Climate Change Act (2008) andthe Concordat and Framework Agreements agreed jointly by the UK
government and devolved administrations.

•

Is run on the basis of the standards, in terms of governance, decisionmaking and financial management that are set out in HM Treasury’s‘Managing Public Money’.

•

Operates in line with the requirements of the Freedom of Information Act
2000 and complies with Data Protection legislation.

Our governance structure
The CCC’s corporate governance structure is framed by the requirements of the
Climate Change Act which sets out both the legal duties of the CCC and thefunctions and broad governance structure of the organisation. This primarylegislation is supported by the CCC’s Framework Document which describes how
we are accountable to BEIS, Defra and the devolved administrations, ourgovernance arrangements, and our management and budgeting processes.
The roles and responsibilities of our key Committees are set out below:

The Committee
Chair

Lord Deben

Frequency

MonthlyRole
The Committee is responsible for the delivery of independent, evidence- based advice on reducing carbon emissions.
An annual work programme is agreed with the Secretariat and the Committee meets regularly to assess progressagainst the work programme. Members of the secretariat attend committee meetings to hear relevant discussions,present evidence and answer questions.
Key activities during the year under review•

The publication of the 6th Carbon Budget Advice in December 2020 represented the culmination of a significant
work programme of analysis and consultation to recommend a pathway to Net Zero and consequently was a key
area of focus for the Committee throughout this year.
Climate Change Committee – Annual Reports & Accounts 2020-21

24

•The Committee has published a range of statutory reports as described in the Performance Section of this report.
Additionally, theCommittee has provided written advice to Ministers on key events, such as Covid 19 and the
proposed new Cumbrian coal mine.

•

The Committee has also heard evidence from a range of external stakeholders.

The Adaptation Committee
Chair

Baroness Brown of Cambridge

Frequency

MonthlyRole
The Adaptation Committee (AC) is responsible for the delivery of advice on climate risk and the UK’s preparedness forclimate change. The Committee agrees an annual work programme which includes the delivery of a range of statutory
and non-statutory reports, letters and consultation responses. The Committee also run adaptation -related events andspeak at stakeholder events on its work programme and adaptation, as well as to the media.
Members of the Secretariat attend Committee meetings to present their progress and recommendations.
Key activities during the year under review•

In preparation for the publication of the AC’s independent assessment of climate risk evidence report, published insummer 2021, the Committee coordinated the work programme to produce the 2,000 page CCRA Technical
Report and supporting analysis (39 reports in total), and reviewed the evidence to inform its own Advice Report togovernment.

•

The AC also prepared the biennial Progress Report, published in June 2021, alongside a work programme to review
and update its assessment indicators, in collaboration with Defra and the Office for National Statistics.

•

In preparation for COP26, the AC has also appointed a dedicated staff member to lead on international
engagement activities in the run up to the conference, who is working closely with Defra and Foreign,
Commonwealth & Development Office (FCDO).

Audit & Risk Assurance Committee
Chair

Rosalyn Schofield

Frequency

Quarterly

Role
The Committee is responsible for advising the Accounting Officer on the adequacy of our internal control and risk
management framework and the governance of the internal and external audit processes. The ARAC also provides
assurance on the quality of the CCC’s Financial Statements.
Representatives from External Audit (the National Audit Office), Internal Audit (the Government Internal Audit Agency)
and our Sponsor Group attend each meeting.
Key activities during the year under review
Focus was given to the following key areas:•

Challenging and gaining assurance around the CCC’s management of key areas of reputation risk•

Reviewing and updating the terms of reference•

Reviewing the Annual Report and Accounts and providing independent oversight and challenge on its content•

Considering the work of Internal and External Audit•

Approving a range of corporate policies for implementation

25

Climate Change Committee – Annual Reports & Accounts 2020-21

Senior Management Team
Chair

Chief Executive

Frequency

MonthlyRole
Our Senior Management Team has responsibility of the overall management of the CCC. It is responsible for making any
necessary and appropriate decisions relating to the day-to-day performance of the CCC’s business, and for theeffective management of our staff.
Key activities during the year under review
In response to the rapid transition to remote working triggered by Covid-19 management team meetings wereincreased to a frequency of twice a month. This helped the team to monitor staff well-being and to assess any potential
impacts on the delivery of our agreed work programmes.
The management team review the Corporate Risk Register on a monthly basis to identify emerging risks which have notbeen captured, to update the assessment of the likelihood and impact of risks and to agree mitigating actions. The
team have actioned a number of new work-streams including:•

A review of the CCC’s Sustainability and Carbon Emissions Strategy•

The development of a Diversity & Inclusion Strategy•

The introduction of an annual staff survey

The table below shows attendance at meetings held by the Committee,
Adaptation Committee and the AC during 2020-21.
Committee Meetings
attended out of
those eligible

AC
Meetings attended outof those eligible

ARAC
Meetings attended outof those eligible

Lord Deben

13 out of 13

Baroness Brown ofCambridge

12 out of 12

Professor Keith Bell13 out of 13

Professor Nick Chater

13 out of 13

3 out of 3

Professor Piers Forster

13 out of 13

1 out 1Dr Rebecca Heaton

12 out of 13

1 out of 1

Paul Johnson

13 out of 13

Professor Corinne Le Quéré

12 out of 13

Professor Richard Dawson

11 out of 11

0 out of 2
11 out of 11

Climate Change Committee – Annual Reports & Accounts 2020-21

26

Professor Michael Davies

1 out of 1

11 out of 11

Professor Dame Georgina
Mace

4 out of 4

Ece Ozdemiroglu

11 out of 11

Rosalyn Schofield

10 out 11

3 out of 3

Compliance with the Corporate Governance CodeOur governance structure has been designed, where relevant, to be consistent
with the principles of the Corporate Governance Code of Good Practice forCentral Government Departments, published by HM Treasury. Smaller organisations
such as the CCC, are encouraged, as far as is possible, to adopt the practices set
out in the Code or to explain non-compliance under the ‘comply or explain’
principle.
Risk management
Risk management is an essential part of our governance and fundamental to how
our organisation is managed. Principal risks are considered and discussed by the
Senior Management Team monthly and reported to the ARAC.
The Senior Management Team is supported by a Professional Standards Council
which provides challenge around our ongoing activities with an objective ofidentifying emerging areas of reputation risk and to monitor developments oncurrent areas of reputation risk as identified in the corporate risk register.
Significant challenges and issues in 2020-21
Risks affects the ability of our organisation to fulfil its objectives. The table below
sets out further detail on key in-year challenges which have been actively
managed and monitored during 2020-21.
Topic

DetailKey mitigations

Covid-19

Following government guidance, the CCC
implemented remote working for all staff in March
2020. It is expected staff will continue to work
remotely until our new office is ready foroccupation in early summer 2021.

Practical arrangements to enable and support
remote working were implemented quickly,
helping us to achieve a smooth transition toremote working.

This sustained period of remote working could
adversely impact the well-being and effectivenessof our team.
Illness and additional caring responsibilities resulting
from lockdown measures have also reduced
capacity within our team.

27

The planned work programme was reviewed andadjusted to manage the reduction in capacity. A
staff survey was introduced to gain a better
understanding of the impacts on our staff.
Additional capacity with our Employee Assistance
Programme has been procured.
A flexible working policy has been developed, andwill be introduced when lock down restrictions
allow, to give staff the option to work more flexibly
on a longer-term basis.

Climate Change Committee – Annual Reports & Accounts 2020-21

Reputation
risk

The CCC's creditability as an independent advisor
is negatively impacted by a perceived or actual
failure to operate within environmental or otherstandards expected of our organisation or by realor perceived conflicts of interest.

Following a deep-dive session by the ARAC in
October 2020 a series of actions have been
agreed. Key actions include:•

Developing a policy to reduce CCC emissions
and demonstrating best practice in assessing
and preparing for climate risks•

Creating a Professional Standards Council tomonitor developments on current andemerging risks and to report their findings on aquarterly basis to the Senior Management
team. The Senior Management Team will be
responsible for identifying and implementing
mitigating actions. The ARAC will review anannual report to bring independent challenge
and to assess the adequacy of our response.

Resourcing

That we have sufficient resources to delivery our
statutory duties and to effectively manage theincreased scrutiny and interaction with the media
and public resulting from the high profile of climatechange issues.

We are undertaking a comprehensive review ofour future work programme and the resources
need to deliver the programme. We will continue
to work with our Sponsor Organisations to ensure
the CCC is adequately resourced.

SecurityThat IT or physical security policies in place are notsufficient to withstand attacks.

A review of our IT security will becommissioned in
2021 with an independent assessment of theadequacy of the arrangements to be completed.
The CCC has a suite of policies in place designed
to maintain a secure environment for our staff thesewill be reviewed in preparation for the move to our
new office.

Climate Change Committee – Annual Reports & Accounts 2020-21

28

Other governance activity Information Security
The CCC procures its information technology services through Defra’s Information
Technology (IT) contracts.
As part of the COVID-19 response work has been completed by our IT suppliers tosignificantly increase the network capacity and to provide additional mobile
devices to help staff work remotely more effectively.
Work to improve the resilience and security of the Defra IT network continues andwill be reviewed by the CCC as part of the planned assessment of the adequacyof our Information Security.
No reportable data loss incidents occurred during 2020-21 and the CCC continues
to take a proportionate approach to the management of security risks in line withthe low volume of sensitive and personal information handled.
Shared Services
The CCC procures its Shared Service provision through a contract with Shared
Services Connect Ltd (SSCL), a joint venture between Sopra Steria (a private sector
company) and the Cabinet Office. The service provides the majority of the CCC’s
financial, procurement and human resource processes.
The CCC receives assurance from the Cabinet Office over the processes andcontrols operated by SSCL, including the results of the annual ISAE3402 report. No
significant risks have been identified which would require disclosure in thestatement following the assurance work completed by PricewaterhouseCoopers
LLP.
Quality assurance modellingTo deliver our objectives it is critical the CCC’s advice is supported by robust
analysis and based upon sound assumptions. Quality Assurance (QA) is therefore
embedded in all our analytical work. All projects and business critical models areallocated a Senior Responsible Owner, who is accountable for quality of data andanalysis.
All analysis undergoes challenge from individuals outside the immediate project
team and, where appropriate, outside the organisation. There is a requirement forsenior analytical clearance of work prior to presentation and a responsibility for risks
and uncertainties, data limitations and any limitations in the QA process to be
drawn to the attention of the CCC.
Consultants contracted to provide work for the CCC are expected to meet QA
requirements, as set out in Invitations to Tender, which includes senior review andsign-off.
The CCC has reviewed the recommendations arising from the MacPherson Reviewof Quality Assurance and is compliant with the recommendations made. The CCC
reports that it is compliant with the Aqua Book which provides guidance on
producing quality analysis for government.

29

Climate Change Committee – Annual Reports & Accounts 2020-21

Independent oversight of assurance arrangements
The CCC is subject to independent oversight in a number of areas including:•National Audit Office reports and the audit report for the Annual Reportand Accounts•

Internal Audit reviews but the Government Internal Audit Agency (GIAA)•

Review and challenge by our Sponsor Group which includes
representatives from BEIS, Defra and the devolved administrations

The internal audit programme is closely linked to the key risks of the CCC and theservice complies with the Public Sector Internal Audit Standards. The internal audit
function provides the Chief Executive and the ARAC with a clearer view on themes
emerging from their work and ensures they are made aware of any significant
issues which indicate that key risks are not being effectively managed.
The GIAA has provided an annual opinion on the adequacy and effectiveness of
the CCC’s framework for governance, risk management and control to me, as
Accounting Officer, and the ARAC. The audit opinion was that the framework ofgovernance, risk management and control provides moderate assurance.
Managing conflicts of interest
The CCC has a policy for the declaration and management of interests in place
for all staff and Committee Members which adheres to the requirements of the
Civil Service Management Code. Our policy for Managing Conflicts of Interest canbe found at https://www.theccc.org.uk/about/transparency/.
At the beginning of every Committee meeting, all members are asked to declare
any new potential conflicts of interest. These are noted in the minutes along withthe appropriate action taken to manage them. All Committee Members andemployees are asked to review and update their conflict of interest record at least
annually. The list of Committee Members interests can be found athttps://www.theccc.org.uk/about/transparency/
Any significant interest held by Committee Members or management, where there
is a link with the CCC, is included in Note 14 on Related Party Transactions.
Fraud awareness
Our Fraud Policy and Response Plan was revised and updated during 2019-20 toensure our approach to managing fraud risk remains in line with best practicerecommended across central government. Our employees have been required tocomplete fraud training to raise their awareness of fraud risks and the updated
policy during the year. No fraudulent activity was identified during the year.
Whistle blowing
The CCC operates a whistleblowing policy which complies with the key elementsof the Civil Service Employee Policy Whistleblowing and Raising a Concern. No
reports under the whistleblowing policy have been made by employees during theyear ended 31 March 2021.

Climate Change Committee – Annual Reports & Accounts 2020-2130Chris Stark,
Accounting Officer
15 July 2021

31

Climate Change Committee – Annual Reports & Accounts 2020-21

2.4 Remuneration and staff report
2.4.1 Service contracts
Staff
The Constitutional Reform and Governance Act 2010 requires Civil Service
appointments to be made on merit on the basis of fair and open competition. The
Recruitment Principles published by the Civil Service Commission specify thecircumstances when appointments may be made otherwise.
Unless otherwise stated below, the officials covered by this report holdappointments which are open-ended. Early termination, other than for
misconduct, would result in the individual receiving compensation as set out in the
Civil Service Compensation Scheme.
Further information about the work of the Civil Service Commission can be found atwww.civilservicecommission.org.uk
Chief Executive
The Chief Executive is on a permanent contract that may be terminated by the
CCC or the Chief Executive by giving three months’ notice, unless agreed
otherwise by both parties.
Committee members
All appointments to the Committee are made jointly by the Secretary of State for
Business, Energy and Industrial Strategy and Ministers in the devolved
administrations. Appointments to the Adaptation Committee are made jointly by
the Secretary of State for Environment, Food and Rural Affairs and Ministers in the
devolved administrations. These appointments are made in accordance with theCode of Practice for Ministerial Appointments to Public Bodies issued by the Officeof the Commissioner for Public Appointments.
Chairs and committee members are normally appointed for a fixed period up to
five years. Either party may terminate an appointment for any reason upon giving
three months’ notice in writing or the appointment may be terminatedimmediately by mutual consent. The Departments (BEIS or Defra) may also
terminate an appointment immediately should the member be guilty of any
conduct that, in the opinion of the Department, renders them unsuitable tocontinue.
The remuneration for the Committee on Climate Change is determined jointly by
all funders. In 2020-21, the Chairman of the Committee of Climate Change waspaid £1,000 per day with an average time commitment of three days per month.
Committee members were paid £800 per day with an estimated time commitmentof two days per month.
The remuneration for the Adaptation Committee is made jointly by all funders. In
2020-21, the Chairman of the Adaptation Sub-Committee was paid £650 per daywith an average time commitment of three and half days per month. Committee
members were paid £550 per day, with an estimated time commitment of two or
three days per month.

Climate Change Committee – Annual Reports & Accounts 2020-21

32

2.4.2 Remuneration policy
The Chief Executive’s remuneration is determined by the Committee. This is on thebasis of a performance evaluation by the Chair of the Committee and with regard
to recommendations by the Senior Salaries Review Body regarding senior civil
service pay.
Up to 6% of the Chief Executive’s remuneration is subject to meeting agreed
performance criteria measured against delivery of objectives set by theCommittee at the beginning of the year and is only triggered if all the main
performance targets are exceeded.
None of the remuneration of any Committee Member is subject to performance
conditions.

33

Climate Change Committee – Annual Reports & Accounts 2020-21

2.4.3 Remuneration (including salary) and pension entitlements(This section has been subject to audit)
The following sections provide details of the remuneration and pension interest of
the Chief Executive and the Committee Members.
Table 1: Remuneration payments to Committee members during 2020-21£'000
2020-21£'000
2019-20£'000
2020-21£'000
2019-20

Chief Executive
Chris Stark

135 - 140

135 - 140

5 – 10

5 – 10Committee on
Climate Change
Committee Chair
Lord Deben

35 - 40

30 – 35––

15 - 20
20 - 25

20 – 25
15 – 20––––

15 - 20
10 - 15

15 – 20
0–5

–
–

–
–

10 - 15
20 - 25
15 - 20

10 – 15
15 – 20
10 – 15

–
–
–

–
–
–

0–5

–

–

–

Adaptation SubCommittee
Committee Chair
Baroness Brown ofCambridge**

10 – 15

15 – 20––

Committee Members
Professor Michael
Davies15 – 20

10 – 15––

5 - 1020 - 25
5 - 1015 – 20
10 – 15
5 – 10–––15 - 20

15 – 20–

Committee Members
Baroness Brown ofCambridge
Professor Nick Chater
Dr Rebecca
Heaton****Paul Johnson
Professor Corinne Le
Quéré
Professor Piers Forster
Professor Keith Bell
Professor Michael
Davies *Professor Georgina
Mace***Ece Ozdemiroglu
Rosalyn Schofield
Professor Richard
Dawson£2020-21£2019-20£'000
2020-21£'000
2019-20£'000
2020-21£'000
2019-20–56

56

200 - 205

200 - 205–––

35 - 40

30 – 35

500
400

300
1,500

–
–

–
–

15 - 20
20 - 25

20 – 25
15 – 25

300

100
-

–
–

–
–

15 - 20
10 - 15

15 – 20
0–5

600
2,400

2,400
6,400
2,400

–
–
–

–
–
–

10 - 15
20 - 25
20 - 25

10 – 15
20 – 25
15 – 20

–

–

–

–

0–5

–

–

–

–

10 – 15

15 – 20400––

15 – 20

10 – 15

–
–
–

–
–
–

–
–
–

–
–
–

5 - 1020 - 25
5 - 1015 – 20
10 – 15
5 – 10

–

3,600

–

–

15 - 20

15 – 20–400* Professor Michael Davies is a member of the Committee on Climate Change from March 2021 and the Adaptation

Sub-Committee. He received separate remuneration for both committees.
** Baroness Brown ceased being a member of the Committee on Climate Change in February 2021 and the
Adaptation Sub-Committee. She received separate remuneration for both committees.
*** Deceased in September 2020**** Dr Heaton resigned as a Member of the Mitigation Committee and ARAC from 30 June 2021
Climate Change Committee – Annual Reports & Accounts 2020-21

34

Salary‘Salary’ includes gross salary; overtime, reserved rights to London weighting or
London allowances; recruitment and retention allowances and any otherallowance to the extent that it is subject to UK taxation. This report is based on
accrued payments made by the Committee and thus recorded in these accounts.
Bonuses
Bonuses are based on performance levels attained and are made as part of theappraisal process. Bonuses relate to the performance in the year in which they
become payable to the individual. The bonuses reported in 2020-21 relate toperformance in 2020-21 and the comparative bonuses reported for 2019-20
related to performance in 2019-20.
Benefits in kind
The monetary value of benefits in kind covers any benefits provided by theemployer and treated by HM Revenue and Customs as a taxable emolument. The
Committee members were reimbursed for travel and subsistence costs incurred
whilst attending committee meetings, on which the CCC also paid the tax due.
The accounting of the CCC’s benefits in kind reimbursed during the year is doneon a cash basis.
Pay multiples (this section has been subject to audit)
Reporting bodies are required to disclose the relationship between the
remuneration of the highest-paid director in their organisation and the median
remuneration of the organisation’s workforce.

Highest paid Director’s Total
Remuneration
Median Total Remuneration
Ratio£
2020-21£2019-20140k - 145k
53,652140k - 145k
52,0752.7

2.7

The banded salary of the highest paid director in the CCC in the financial year
2020-21 was £140k - £145k (2019-20, £140k-£145k). This was 2.7 times (2019-20, 2.7)
the median salary of the workforce, which was £53,652 (2019-20, £52,075).
Remuneration in 2020-21 ranged from the following bands £20,000 - £25,000 to£140,000 - to £145,000 (2019-20: £20,000-£25,000 to £140,000-£145,000). In 2020-21
no employees (2019-20, 0) received remuneration in excess of the highest-paid
director.
Total remuneration includes salary, non-consolidated performance-related pay
and benefits-in-kind. It does not include severance payments, employer pension
contributions and the cash equivalent transfer value of pensions.

35

Climate Change Committee – Annual Reports & Accounts 2020-21

Pension benefits (this section has been subject to audit)
Accruedpension at
pension as at
31/3/21 andrelated lump
sum

£'000

Real increase inpension andrelated lumpsum at pension
age

£'000

CETV at31/3/21£'000

CETV 31/3/20

Real increase in
CETV

Employercontribution topartnership
pensionaccount

£'000

£'000

Nearest £100

Chief Executive

Chris Stark

35 – 40 plus a 2.5 – 5 plus alump sum of lump sum of 0
60 - 65
– 2.5

498

452

22

–

Committee members are not members of any pension scheme and nocontributions are paid towards an individual’s personal pension plan.
Civil Service Pensions
Pension benefits are provided through the Civil Service pension arrangements.
From 1 April 2015 a new pension scheme for civil servants was introduced – the Civil
Servants and Other Pension Scheme (CSOPS), or alpha, which provides benefits on
a career average basis with a normal pension age equal to the member’s State
Pension Age (or 65 if higher). From that date all newly appointed civil servants andthe majority of those already in service joined alpha. Prior to that date, civil
servants participated in the Principal Civil Service Pension Scheme (PCSPS). The
PCSPS has four sections: 3 provide benefits on a final salary basis (classic, premiumor classic plus) with a normal pension age of 60; and one provides benefits on awhole career basis (nuvos) with a normal pension age of 65.
These statutory arrangements are unfunded with the cost of benefits met bymonies voted by Parliament each year. Pensions payable under classic, premium,classic plus, nuvos and alpha are increased annual in line with Pension Increase
legislation. Existing members of the PCSPS who were within 10 years of their normal
pension age on 1 April 2012 remained in the PCSPS after 1 April 2015. Those who
were between 10 years and 13 years and 5 months from their normal pension age
on 1 April 2012 will switch into alpha sometime between 1 June 2015 and 1
February 2022. All members who switch to alpha have their PCSPS benefits‘banked’, with those with earlier benefits in one of the final salary sections of the
PCSPS having those benefits based on their final salary when they leave alpha. The
pension figures quoted show pension earned in PCSPS or alpha as appropriate.
Where the official has benefits in both the PCSPS and alpha the figure quoted isthe combined value of their benefits in the two schemes. Members joining from
October 2002 may opt for either the appropriate defined benefit arrangement ora ‘money purchase’ stakeholder pension with an employer contribution(partnership pension account).
Employee contributions are salary-related and range between 4.6% and 8.05% formembers of classic premium, classic plus, nuvos and alpha. Benefits in classic
accrue at the rate of 1/80th of final pensionable earnings for each year of service.
In addition, a lump sum equivalent to three years initial pension is payable on
retirement. For premium, benefits accrue at the rate of 1/60th of final pensionableearnings for each year of service. Unlike classic, there is no automatic lump sum,classic plus is essentially a hybrid with benefits for service before 1 October 2002
calculated broadly as per classic and benefits for service from October 2002
worked out as in premium. In nuvos a member builds up a pension based on his
pensionable earnings during their period of scheme membership. At the end of thescheme year (31 March) the member’s earned pension account is credited with
2.3% of their pensionable earnings that scheme year and the accrued pension is
uprated in line with Pensions Increase legislation. Benefits in alpha build up in asimilar way to nuvos except that the accrual rate is 2.32%.
Climate Change Committee – Annual Reports & Accounts 2020-21

36

In all cases members may opt to give up pension for a lump sum up to the limits set
by the Finance Act 2004.
The partnership pension account is a stakeholder pension arrangement. The
employer makes a basis contribution of between 8% and 14.75% (depending on
the age of the member) into a stakeholder pension product chosen by theemployee from a panel of providers. The employee does not have to contribute,but where they do make contributions, the employer will match these up to a limit
of 3% of pensionable salary (in addition to the employer’s basic contribution).
Employers also contribute a further 0.5% of pensionable salary to cover the cost ofcentrally-provided risk benefit cover (death in service and ill-health retirement).
Employers’ contributions to all pension schemes in 2021-22 is expected to be in theregion of £473,240.
The accrued pension quoted is the pension the member is entitled to receive
when they reach pension age, or immediately on ceasing to be an active
member of the scheme if they are already at over pension age. Pension age is 60
for members of classic, premium and classic plus, 65 for members of nuvos, andthe higher of 65 or State Pension Age for members of alpha.
Further details about the Civil Service pension arrangements can be found at thewebsite www.civilservicepensionscheme.org.uk.
The Principal Civil Service Pension Scheme (PCSPS) and the Civil Servant and Other
Pension Scheme (CSOPS) – known as “Alpha” – are unfunded multi-employer
defined benefit schemes but the CCC is unable to identify its share of theunderlying assets and liabilities. The scheme actuary valued the PCSPS as at 31
March 2012. You can find details in the resource accounts of the Cabinet Office:
Civil Superannuation at www.civilservicepensionscheme.org.uk/about-us/resourceaccounts/
For 2020-21, employers’ contributions of £473,240 were payable to the PCSPS (201920, £453,277) at one of four rates in the range 26.6% to 30.3% (2019-20 26.6% to30.3%) of pensionable earnings, based on salary bands. The Scheme Actuary
reviews employer contributions usually every four years following a full scheme
valuation. The contribution rates are set to meet the cost of the benefits accruing
during 2020-21 to be paid when the member retires and not the benefits paid
during this period to existing pensioners.
Employees can opt to open a partnership pension account, a stakeholder pension
with an employer contribution. Employers’ contributions of £8,950 (2019-20,£11,048) were paid to the appointed stakeholder pension provider. Employer
contributions are age-related and ranged from 8% to 14.75%. Employers also
match employee contributions up to 3% of pensionable earnings. In addition,
employer contributions of £1,175 (2019-20, £401), 0.5% of pensionable pay, were
payable to the PCSPS to cover the cost of the future provision of lump sum benefits
on death in service or ill health retirement of these employees.
Contributions due to the partnership pension providers at the balance sheet datewere £330 (2019-20, £2,821). Contributions prepaid at that date were £0 (2019-20,£0)Cash Equivalent Transfer Values
A Cash Equivalent Transfer Value (CETV) is the actuarially assessed capitalised
value for the pension scheme benefits accrued by a member at a particular point
in time. The benefits valued are the member’s accrued benefits and any
contingent spouse’s pension payable from the scheme.

37

Climate Change Committee – Annual Reports & Accounts 2020-21

A CETV is a payment made by a pension scheme or arrangement to secure
pension benefits in another pension scheme or arrangement with the members
leaves a scheme and chooses to transfer the benefits accrued in their former
scheme. The pension figures shown related to the benefits that the individual has
accrued as a consequence of their total membership of the pension scheme, notjust their service in a senior capacity to which the disclosure applies.
The figures include the value of any pension benefit in another scheme orarrangements with the member transfers to the Civil Service pension
arrangements. They also include any additional pension benefit accrued to themember as a result of their buying additional pension benefits at their own cost.
CETVS are worked out in accordance with the Occupational Pension Schemes(Transfer Values) (Amendment) Regulations 2008 and do not take into account of
any actual or potential reduction to benefits resulting from Lifetime Allowance Tax
which may be due when pension benefits are taken.
Real increase in CETVThis reflects the increase in CETV that is funded by the employer. It does not include
the increase in accrued pension due to inflation, contributions paid by theemployee (including the value of any benefits transferred from another pension
scheme or arrangement) and uses common market valuation factors for the startand end of the period.

Climate Change Committee – Annual Reports & Accounts 2020-21

38

2.4.4 Staff report
The CCC is committed to the Civil Service Recruitment principles of fair and open
competition and selection on merit. Our staff have been recruited externally aswell as from within the civil service. We promote equality of opportunity for all staff
irrespective of their race, sex, disability, age, sexual orientation or religion.
Staff Costs (this section has been subject to audit)
2020-21Total

2020-21
Permanent
staff*

2020-21
Other*

2020-21
Committee
members

Year to31 March
2020
Total

£

£

£

£

£

Committee Members’ remuneration**
Wages and salaries***
Social security costs
Other pension costs
Sub total

244,518
1,932,362
234,241
483,0312,894,152–
1,631,403
187,707446,404
2,265,514–
300,959
17,89836,627355,484

244,518–
28,636–273,154

231,116
1,762,615
221,837
465,7142,681,282

Less recoveries for secondments
Total net costs–
2,894,152–
2,265,514–
355,484–
273,154–
2,681,282

Exit packages (this section has been subject to audit)
No severance payments were made in the financial year (2019-20, £nil).
Compensation for loss of office (this section has been subject to audit)
No compensation payments for loss of office were made to Committee members
during the reporting year.
Off-payroll engagements
The CCC did not have any off-payroll engagements in the financial year (2019-20,£nil).
Expenditure on consultancy
The CCC’s spend on consultancy during the financial year 2020-21 is £nil (2019-20,£nil).
Health, safety and wellbeing
During the period ended 31 March 2021 the average number of working days lost
due to sickness absence was 0.54 days per full time equivalent (2019-20, 0.56 days).
The CCC has a good record in providing a safe and supportive work environment,
and there are no accidents to report in accordance with the Reporting of Injuries,
Diseases and Dangerous Occurrences Regulations 2013.
The CCC provides employee assistance support services, occupational healthassistance and workplace assessments to help ensure the health and wellbeing of
our staff.

* ‘Permanent’ comprises staff employed on a permanent basis on the Committee’s terms and conditions. ‘Other’comprises staff either employed by other government departments or agencies, whether recharged or not,inclusive of VAT where applicable or employed directly on a short/ fixed term basis by the CCC. This also includes
temporary staff.
** Remuneration for Committee members are fees paid for attending meetings and other work performed on behalfof the Committee during the period 1 April 2020 to 31 March 2021.
*** Wages and salaries include an accrual of £40,000 (2019-20 £41,045) for total performance payments relating to
2020-21 and a movement of (£7,009) in staff leave accrual (2019-20, £4,626).

39

Climate Change Committee – Annual Reports & Accounts 2020-21

Diversity and inclusion
Inclusion is important and creating a diverse workforce is key towards ensuring adiverse, inclusive organisation. The CCC monitors staff diversity data, pay awards
and promotions to assess for unconscious bias and to help ensure our organisation
remains as diverse and inclusive as possible.
The CCC has also agreed an implement a Diversity and Inclusion Strategy during
2020-21.
The CCC recognises the importance of ensuring equality of opportunity for all
disabled staff. As part of the CCC’s job application process candidates who havea disability who apply for a post at the CCC (under the Guaranteed Interview
Scheme) will automatically be put forward to the interview stage provided theysatisfy the minimum criteria. The CCC makes this clear in its job adverts andapplication forms.
The CCC engages with staff on key policies affecting staff, such as performance
management policies.
Personal data related incidents
There were no personal data related incidents for the year ended 31 March 2021
(2019-20, nil).
Health and safety incidents
There were no health and safety incidents for the year ended 31 March 2021 (201920, nil).

Climate Change Committee – Annual Reports & Accounts 2020-21

40

Staff numbers (this section has been subject to audit)
The average number of staff during the period is shown below:
2020-21
Total

Chief Executive Office
Adaptation Committee
Committee
Corporate Team
Total

1.0
5.0
20.3
7.4
33.7

2020-21
Permanent
staff

1.0
4.3
16.5
5.9
27.7

2020-21
Others2019-20
Total

–
0.7
3.8
1.5
6.0

2019-20
Permanent
staff

1.8
4.9
19.1
5.3
31.1

2019-20
Others

1.8
3.7
14.3
4.6
24.4

–
1.2
4.8
0.7
6.7

Staff composition
The composition of staff as at 31 March 2021 is shown below:
FemaleMale

Directors - Chief Executive andCommittee Members

68

Senior Civil Servants (pay bands 1 & 2)
Secretariat
Corporate Team
Total

2
13
2
23

2
13
4
27

Staff turnover
The staff turnover rate for 2020-21 was 29% (2019-20, 21%).

Chris Stark,
Accounting Officer
15 July 2021

41

Climate Change Committee – Annual Reports & Accounts 2020-21

2.5 The Certificate And Report of the Comptroller and Auditor
General to the Houses of Parliament
Opinion on financial statements
I certify that I have audited the financial statements of the Committee on Climate
Change for the year ended 31 March 2021 under the Climate Change Act 2008.
The financial statements comprise: Statements of Comprehensive Net Expenditure,
Financial Position, Cash Flows, Changes in Taxpayers’ Equity; and the related notes,
including the significant accounting policies. These financial statements have been
prepared under the accounting policies set out within them. The financial
reporting framework that has been applied in their preparation is applicable law
and International Accounting Standards as interpreted by HM Treasury’s
Government Financial Reporting Manual. I have also audited the information in the
Accountability Report that is described in that report as having been audited.
In my opinion, the financial statements:•

give a true and fair view of the state of the Committee on Climate
Change’s affairs as at 31 March 2021 and of its net expenditure for the year
then ended; and•have been properly prepared in accordance with the Climate Change Act
2008 and Secretary of State directions issued thereunder.

Opinion on regularity
In my opinion, in all material respects, the income and expenditure recorded in thefinancial statements have been applied to the purposes intended by Parliament
and the financial transactions recorded in the financial statements conform to theauthorities which govern them.
Basis for opinions
I conducted my audit in accordance with International Standards on Auditing(ISAs) (UK), applicable law and Practice Note 10 ‘Audit of Financial Statements of
Public Sector Entities in the United Kingdom’. My responsibilities under thosestandards are further described in the Auditor’s responsibilities for the audit of thefinancial statements section of my certificate. Those standards require me and mystaff to comply with the Financial Reporting Council’s Revised Ethical Standard
2019. I have also elected to apply the ethical standards relevant to public interest
entities. I am independent of the Committee on Climate Change in accordancewith the ethical requirements that are relevant to my audit of the financial
statements in the UK. My staff and I have fulfilled our other ethical responsibilities inaccordance with these requirements. I believe that the audit evidence I haveobtained is sufficient and appropriate to provide a basis for my opinion.
Conclusions relating to going concern
In auditing the financial statements, I have concluded that the Committee on
Climate Change’s use of the going concern basis of accounting in the preparationof the financial statements is appropriate. Based on the work I have performed, I
have not identified any material uncertainties relating to events or conditions that,
individually or collectively, may cast significant doubt on the Committee on
Climate Change's ability to continue as a going concern for a period of at least
twelve months from when the financial statements are authorised for issue.

Climate Change Committee – Annual Reports & Accounts 2020-21

42

My responsibilities and the responsibilities of the Committee and the Accounting
Officer with respect to going concern are described in the relevant sections of thiscertificate. The going concern basis of accounting for the Committee on Climate
Change is adopted in consideration of the requirements set out in International
Accounting Standards as interpreted by HM Treasury’s Government Financial
Reporting Manual, which require entities to adopt the going concern basis ofaccounting in the preparation of the financial statements where it anticipated thatthe services which they provide will continue into the future.
Other Information
The other information comprises information included in the annual report, butdoes not include the parts of the Accountability Report described in that report as
having been audited, the financial statements and my auditor’s certificate
thereon. The Committee and the Accounting Officer is responsible for the otherinformation. My opinion on the financial statements does not cover the otherinformation and except to the extent otherwise explicitly stated in my certificate, I
do not express any form of assurance conclusion thereon. In connection with myaudit of the financial statements, my responsibility is to read the other information
and, in doing so, consider whether the other information is materially inconsistent
with the financial statements or my knowledge obtained in the audit or otherwise
appears to be materially misstated. If I identify such material inconsistencies orapparent material misstatements, I am required to determine whether this gives
rise to a material misstatement in the financial statements themselves. If, based on
the work I have performed, I conclude that there is a material misstatement of thisother information, I am required to report that fact. I have nothing to report in thisregard.
Opinion on other matters
In my opinion, based on the work undertaken in the course of the audit:•

the parts of the Accountability Report to be audited have been properly
prepared in accordance with Secretary of State directions made under the
Climate Change Act 2008; and•the information given in the Performance and Accountability Reports forthe financial year for which the financial statements are prepared isconsistent with the financial statements.

Matters on which I report by exception
In the light of the knowledge and understanding of the Committee on Climate
Change and its environment obtained in the course of the audit, I have not
identified material misstatements in the performance and Accountability report, I
have nothing to report in respect of the following matters which I report to you if, in
my opinion:

43•

adequate accounting records have not been kept or returns adequate formy audit have not been received from branches not visited by my staff; or•the financial statements and the parts of the Accountability Report to beaudited are not in agreement with the accounting records and returns; or•certain disclosures of remuneration specified by HM Treasury’s Government
Financial Reporting Manual are not made; or•I have not received all of the information and explanations I require for myaudit; orClimate Change Committee – Annual Reports & Accounts 2020-21

•

the Governance Statement does not reflect compliance with HM Treasury’s
guidance.

Responsibilities of the Committee and Accounting Officer for the financial
statements
As explained more fully in the Statement of Accounting Officer’s Responsibilities,
the Committee and the Accounting Officer, is responsible for:•the preparation of the financial statements in accordance with theapplicable financial reporting framework and for being satisfied that theygive a true and fair view;•internal controls as the Committee and the Accounting Officer determine isnecessary to enable the preparation of financial statement to be free frommaterial misstatement, whether due to fraud or error.

•

assessing the Committee on Climate Change’s ability to continue as agoing concern, disclosing, as applicable, matters related to going concern
and using the going concern basis of accounting unless the Committee
and the Accounting Officer anticipates that the services provided by theCommittee on Climate Change will not continue to be provided in the
future.

Auditor’s responsibilities for the audit of the financial statements
My responsibility is to audit, certify and report on the financial statements inaccordance with the Climate Change Act 2008. My objectives are to obtainreasonable assurance about whether the financial statements as a whole are freefrom material misstatement, whether due to fraud or error, and to issue acertificate that includes my opinion. Reasonable assuranceis a high level ofassurance but is not a guarantee that an audit conducted in accordance with
ISAs (UK) will always detect a material misstatement when it exists. Misstatements
can arise from fraud or error and are considered material if, individually or in theaggregate, they could reasonably be expected to influence the economic
decisions of users taken on the basis of these financial statements. I design
procedures in line with my responsibilities, outlined above, to detect material
misstatements in respect of non-compliance with laws and regulation, including
fraud.
My procedures included the following:• Inquiring of management and those charged with governance, including
obtaining and reviewing supporting documentation relating to theCommittee on Climate Change’s policies and procedures relating to:– identifying, evaluating and complying with laws and regulations andwhether they were aware of any instances of non-compliance;– detecting and responding to the risks of fraud and whether they haveknowledge of any actual, suspected or alleged fraud; and– the internal controls established to mitigate risks related to fraud or– non-compliance with laws and regulations including the Committeeon Climate Change’s controls relating to the Climate Change Act 2008
and Managing Public Money;•

discussing among the engagement team regarding how and where fraud
might occur in the financial statements and any potential indicators of

Climate Change Committee – Annual Reports & Accounts 2020-21

44

fraud. As part of this discussion, I identified potential for fraud in thefollowing areas: posting of unusual journals;•

obtaining an understanding of the Committee on Climate Change’s
framework of authority as well as other legal and regulatory frameworks
that the Committee on Climate Change operates in, focusing on thoselaws and regulations that had a direct effect on the financial statements orthat had a fundamental effect on the operations of the Committee on
Climate Change. The key laws and regulations I considered in this context
included Climate Change Act 2008, Managing Public Money, Employment
Law.

In addition to the above, my procedures to respond to identified risks included thefollowing:•

reviewing the financial statement disclosures and testing to supporting
documentation to assess compliance with relevant laws and regulations
discussed above;•

enquiring of management concerning actual and potential litigation andclaims;•reading minutes of meetings of those charged with governance and theBoard;•

in addressing the risk of fraud through management override of controls,
testing the appropriateness of journal entries and other adjustments;
assessing whether the judgements made in making accounting estimates
are indicative of a potential bias; and evaluating the business rationale ofany significant transactions that are unusual or outside the normal course ofbusiness.

I also communicated relevant identified laws and regulations and potential fraudrisks to all engagement team members including internal specialists and significant
component audit teams and remained alert to any indications of fraud or noncompliance with laws and regulations throughout the audit. A further descriptionof my responsibilities for the audit of the financial statements is located on the
Financial Reporting Council’s website at: www.frc.org.uk/auditorsresponsibilities.
This description forms part of my certificate. In addition, I am required to obtainevidence sufficient to give reasonable assurance that the income andexpenditure reported in the financial statements have been applied to the
purposes intended by Parliament and the financial transactions conform to theauthorities which govern them. I communicate with those charged withgovernance regarding, among other matters, the planned scope and timing of
the audit and significant audit findings, including any significant deficiencies ininternal control that I identify during my audit.
ReportI have no observations to make on these financial statements.
Gareth Davies
16 July 2021
Comptroller and Auditor General
National Audit Office157-197 Buckingham Palace Road London, SW1W 9SP

45

Climate Change Committee – Annual Reports & Accounts 2020-21

Section 3

Financial Statements

Climate Change Committee – Annual Reports & Accounts 2020-21

46

Statement of Comprehensive Net Expenditure
For the year ended 31 March 2021
Note
Expenditure
Staff costs
Depreciation, amortisation and loss
on disposal£
2020-21£2019-202,32,894,152

2,681,282

5,6
4
4

114,071–
1,670,587
4,678,810

55,816(32,000)
2,414,596
5,119,694

Net operating expenditure

4,678,810

5,119,694

Interest payable/receiv able
Net expenditure for the year–
4,678,810–
5,119,694£
2020-21£2019-20

Non c ash expendi ture
Other e xpen diture
Total operating expenditure

Other Comprehensive Expenditure
Note
Other Compre he nsi ve Expenditu re
Total Comprehensive Expenditure–
4,678,810–
5,119,694

All income and expenditure is derived from continuing operations.
There were no gains and losses or comprehensive expenditure other than thatshown above.
The notes on pages 51 – 63 form part of these accounts.

47

Climate Change Committee – Annual Reports & Accounts 2020-21

Statement of Financial Position
As at 31 March 2021£
Note
Non-current assets
Property, plant & equipment
Intangible assets
Total non-current assets
Current assets
Trade and other receivables
Cash and cash equivalents
Total current assets
Total assets
Current liabilities
Trade and other payables
Total current liabilities
Non-current assets plus/less net
current assets/liabilitie s
Non-current liabilities
Provisions
Other payables
Total non-current liabilities
Total assets less total liabilities

5
6£2020-21££2019-20

99,7203,915

217,024
8,246
103,6358
923,159630,679

225,270

40,494
500,561
653,838
757,47310

11
10(1,071,772 )(996,887)(1,071,772)(996,887)(314,299)(230,562)(39,100)–

Taxpayers' equity
General reserve
Total Equity

541,055
766,325(39,100)–(39,100)(353,399)(39,100)(269,662)(353,399)(353,399)(269,662)(269,662)

The financial statements on pages 47 – 50 were approved by the Committee on 15
July 2021 and signed on its behalf by:

Chris Stark,
Accounting Officer
15 July 2021
The notes on pages 51 – 63 form part of these accounts.
Climate Change Committee – Annual Reports & Accounts 2020-21

48

Statement of Cash Flows
For the year ended 31 March 2021£
2020-21£2019-20(4,678,810)(5,119,694)

5,6
11

114,071–

55,816(32,000)

8

17,335(32,091)

10

74,885(73,052)(4,472,519)(5,201,021)

5,707
1,857

(270,366)(1,857)7,564(272,223)

4,595,073
4,595,073

5,354,002
5,354,002

130,118(119,242)9

500,561

619,8039630,679

500,561

Note
Cash flows from operating activities
Net operating expenditure after
interest
Adjustme nt s for depreciation andamortisation
Release of provisio n(Increase)/Decrease in trade andother receivables
Increase/(Decrease) in trade
payablesNet cash outflow from operating
activities
Cash flows from Investing activities
Purchase of property plant andmachinery
Purchase of Intangibles
Net cash inflow/ (outflow) frominvesting activities

5
6

Cash flows from financing activities
Grant from sponsoring departme nt
Net Financing
Net increase/(decrease) in cash andcash equivalents in the period
Cash and cash equivalents at the
beginning of the period
Cash and cash equivalents at the endof the period

The notes on pages 51 – 63 form part of these accounts.

49

Climate Change Committee – Annual Reports & Accounts 2020-21

Statement of Changes in Taxpayers’ Equity
For the year ended 31 March 2021

Balance at 31 March 2019
Changes in Taxpayers’ Equity 2019-20
Grants from sponsoring department
Comprehensive Expenditure for the year
Balance at 31 March 2020
Changes in Taxpayers’ Equity 2020-21
Grants from sponsoring department
Comprehensive Expenditure for the year
Balance at 31 March 2021£
General Reserve(503,970)

5,354,002(5,119,694 )(269,662)

4,595,073(4,678,810 )(353,399)

The notes on pages 51 – 63 form part of these accounts.

Climate Change Committee – Annual Reports & Accounts 2020-2150

1. Notes to the Accounts
1. Statement of accounting policies
These financial statements have been prepared in accordance with the 2020-21
government Financial Reporting Manual (FReM) issued by HM Treasury. The
accounting policies contained in the FReM apply International Financial ReportingStandards (IFRS) as adapted or interpreted for the public sector context.
Where the FReM permits a choice of accounting policy, the accounting policy
which is judged to be most appropriate to the particular circumstances of the
CCC for the purposes of giving a true and fair view has been selected. The
particular policies adopted by the CCC are described below. They have been
applied consistently in dealing with items that are considered material to theaccounts.
1.1 Accounting convention
These accounts have been prepared under the historical cost convention
modified to account for the revaluation of property, plant and equipment,
intangible assets and certain financial assets and liabilities.
The preparation of the accounts in conformity with IFRS requires the use of certain
critical accounting estimates. It also requires management to exercise its
judgement in the process of applying the accounting policies.
1.2 Changes in accounting policy and disclosures– a) Changes in accounting policies
There were no changes in accounting policies during the year.
– b) Applicable accounting standards issued but not yet adopted andFReM changes for 2020-21
IFRS16 Leases
In preparation for the initially planned 1 April 2020 implementation date for IFRS 16,
the CCC carried out an impact assessment of this standard to its financial
statements. Due to the outbreak of Covid-19 on 11th March 2020, the Financial
Reporting Advisory Body (FRAB) deferred the implementation of IFRS 16 forgovernment departments to 1 April 2021. The CCC will review and revise impact
assessment prior to that new implementation date. The CCC does not intend toearly adopt IFRS 16.
When implemented eventually, IFRS 16 will impact the recognition of leases in the
CCC’s financial statements. The standard provides a single lessee accounting
model, requiring lessees to recognise assets and liabilities for all leases unless thelease term is 12 months or less or the underlying asset has a low value. Lessors
continue to classify leases as operating or finance, with IFRS 16’s approach to lessor
accounting substantially unchanged from its predecessor, IAS 17.
On transition, the CCC will recognise, measure, present and disclose the right-ofuse asset under leases previously classified as operating leases, at an amount51

Climate Change Committee – Annual Reports & Accounts 2020-21

equal to the lease liability, adjusted by the amount of any prepaid or accrued
lease payments relating to that lease, recognised in the statement of financial
position immediately before the date of initial application. As at the end of thefinancial year, the CCC’s operating lease obligations were £2.742m foraccommodation, which will give rise to right-of-use assets.
IFRS 17 Insurance Contracts
IFRS 17 requires a discounted cash flow approach to accounting for insurance
contracts. Subject to EU adoption, it may come into effect for accounting periods
commencing on, or after, 1 January 2021 and should be included in the 2021-22
FReM at the earliest.
This standard is not expected to have a material impact on the OBR’s financial
statements because the CCC does not have, or plan sign to sign any insurance
contracts in the foreseeable future.
There are no other IFRS or IFRIC interpretations not yet effective that would be
expected to have a material impact on the CCC.
1.3 Significant judgements and estimates
The CCC has had no significant accounting judgements during financial year
2020-21. The provision for the dilapidations remained at £39,100 pending future
decisions.
1.4 Property, plant and equipment
Assets are capitalised as property, plant and equipment if they are intended foruse on a continuing basis and their original purchase cost, on an individual orgroup basis, is £2,000 or more, including VAT. These assets are reported at fairvalue.
The CCC does not hold any financial interest in land or buildings. During the period
covered by these financial statements, the CCC rented premises from theGovernment Property Agency (GPA).
The FReM states that all non-current assets should be valued using the revaluation
model as prescribed in IAS 16.
In accordance with the FReM, the CCC has opted to value the remaining nonproperty assets on a depreciated historical cost (DHC) basis, as a proxy for fairvalue as these assets have short useful lives or are of low value or both. Internallydeveloped property, plant and equipment are recognised as assets underconstruction (AUC) and treated as capital expenditure but not depreciated until
the completed asset is brought into service. AUC are not revalued.
1.5 Depreciation
Property, plant and equipment assets are depreciated at rates calculated to write
them down to their estimated residual value on a straight-line basis over theirestimated useful lives. Depreciation is not charged on assets under construction.
Assets are normally depreciated over the following periods:– Furniture and fittings:

18 months – 5 years– Information technology: 3–5 years
Climate Change Committee – Annual Reports & Accounts 2020-21

52

A full month’s depreciation is charged to the net expenditure account in themonth following acquisition and in the month of disposal.
Management reviews the residual values and estimated lives of property, plantand equipment at least annually at each reporting date.
1.6 Intangible assets
Intangible assets are stated at cost less accumulated amortisation and net ofaccumulated impairment losses as a proxy for fair value. The cost of intangible
assets comprises the purchase cost and any directly attributable costs incidental totheir acquisition. Intangible assets are capitalised where expenditure of £2,000 or
more is incurred.
Intangible assets are amortised over the shorter of their useful economic life or five
years. Amortisation of intangible assets is charged to the Statement ofComprehensive Net Expenditure on a straight-line basis when the assets areavailable for use so as to allocate the carrying amounts of the intangible assets
over their estimated useful economic lives.
1.7 Financial Instruments
A financial instrument is any contract that gives rise to a financial asset of one
entity and a financial liability or equity instrument of another entity. Financial assets
and financial liabilities are recognised in the Statement of Financial Position when
the CCC becomes a party to the contractual provisions of an instrument.
The CCC has no borrowings and relies primarily on Grant-in-Aid from BEIS, Defra
and the devolved administrations for its cash requirements and is therefore notexposed to liquidity risks. All material assets and liabilities are denominated insterling therefore it is not exposed to currency risk.
1.8 Grant-in-aid
Grant-in-Aid which is used to finance activities and expenditure supporting thestatutory and other objectives of CCC is regarded as a contribution from acontrolling party, treated as financing and credited directly to the General
Reserve.
1.9 Income
Operating income relates directly to the operating activities of the CCC and ismeasured at the fair value of consideration received or receivable. Operating
income is recognised when the CCC has performed its contractual obligations, theincome can be measured reliably, and it is probable that the economic benefits
will flow to the CCC.
1.10 Pensions
Pension benefits are provided through the Civil Service pension arrangements.
From 1 April 2015 a new pension scheme for civil servants was introduced – the Civil
Servants and Other Pension Scheme (CSOPS), or alpha, which provides benefits on
a career average basis with a normal pension age equal to the member’s State
Pension Age (or 65 if higher). From that date all newly appointed civil servants andthe majority of those already in service joined alpha. Prior to that date, civil
servants participated in the Principal Civil Service Pension Scheme (PCSPS).

53

Climate Change Committee – Annual Reports & Accounts 2020-21

The PCSPS has four sections: 3 provide benefits on a final salary basis (Classic,
Premium or Classic Plus) with a normal pension age of 60; and one provides
benefits on a whole career basis (Nuvos) with a normal pension age of 65.
PCSPS disclosures are set out in full in the Remuneration report.
1.11 Employee Benefits
Short term benefits such as salaries and ways or post-employment benefits resulting
from employment and long-term benefits such as long service awards and pension
benefits are recognised at the cost of providing the benefit in the period in which itis earned by the employee, rather than when it is paid or becomes payable.
IAS 19 (‘Employee Benefits’) requires the CCC to recognise the expected cost of
the annual leave entitlement of its employees that is accrued at the end of eachfinancial year. The CCC estimates this accrual by calculating using average
employee salary cost based on a working year of 260 days.
1.12 Value added tax (VAT)The CCC is not registered for VAT purposes and therefore all expenditure is shown
including the irrecoverable VAT.
1.13 Leases
Leases are classified as either finance leases or operating leases based on thesubstance of the arrangement. The lease of land and buildings is split at inceptionof the lease into a separate lease of land and a lease of buildings.
Operating Leases
Leases in which a significant portion of the risks and rewards of ownership are
retained by the lessor are classified as operating leases. Payments are made underoperating leases (net of any incentives received from the lessor) are charged to
the SoCNE expenditure on a straight-line basis over the period of the lease. Any upfront payments for a leasehold interest classified as an operating lease arerecognised as a lease prepayment in the SoFP and amortised over the lease term.

Climate Change Committee – Annual Reports & Accounts 2020-21

54

2. Analysis of net expenditure by segment

Staff Costs
Committee members
Staff
Total Staff Costs
Other Costs
Research
Rentals under operatingleasesOccupancy
Shared services
IT service costs
Communications
Travel and subsistence
Corporate services
Learning and development
Telephony
Web development andhosting
Conferences and events
Auditor’s remuneration
Other
Total
Non-Cash Items
Depreciation / amortisation
Loss on disposal
Increase/(decrease) in
provision
Total Other Costs
Total Net Operating Costs

Committee on
ClimateChangeAdaptation
Committee£
2020-21£2020-21

Total

Committee on
ClimateChangeAdaptation
Committee

Total£
2020-21£2019-20£
2019-20£
2019-20

157,860
2,107,321
2,265,181

86,658542,313628,971244,518
2,649,634
2,894,152

140,694
1,930,122
2,070,816

90,422520,044
610,466

231,1162,450,166
2,681,282

242,899

412,157

655,056

654,610

960,804

1,615,414

400,049
20,084(4,878)
101,489
65,729137
134,191
20,620637

83,70336,174
1,007
25,664
11,422
91
98,336929
339

483,752
56,258(3,871)
127,153
77,151
228
232,527
21,549976

327,925
60,04049,54669,881
36,064
11,01862,253
20,697
4,584

48,87315,006
13,211
17,49912,546
4,966
13,115
1,452
792

376,798
75,04662,75787,38048,61015,98475,36822,1495,376––
14,8001,046
996,803

–
–
3,700
262
673,784––
18,5001,308
1,670,587

4,032
930
14,800–1,316,380

1,008
400
3,700
4,844
1,098,216

5,040
1,330
18,5004,844
2,414,596

103,667
10,404––

103,667
10,40455,816––
1,784,658
4,678,810(32,000)
1,340,196
3,411,012–
1,110,874
3,376,055–
673,784
1,302,755–––
1,098,216
1,708,682

55,816–(32,000)
2,438,412
5,119,694

The split between the Committee and the Adaptation Committee is based on
actual figures, where available. For elements where the cost is shared it has been
apportioned on the basis of headcount. All assets and liabilities are held centrally
by the CCC and therefore not appropriate to apportion.

55

Climate Change Committee – Annual Reports & Accounts 2020-21

3. Staff numbers and related costs
Information on staff numbers and related costs are disclosed in section 2:4:4 of theRemuneration Report.
Information on the pension costs of staff is disclosed in section 2:4:3 of theRemuneration Report.

4. Other expenditure££2020-21

Administratio n costs
Research
Rentals under operating leases
Occupancy
Shared services
IT service costs
Communicati ons
Travel and subsistence
Corporate services
Learning and development
Telephony
Web development and hosting
Conferences and events
Auditor’s remuneration
Other

Total Expenditure

Climate Change Committee – Annual Reports & Accounts 2020-21£
2019-20

655,056
483,752
56,258(3,871)
127,153
77,151
228
232,527
21,549976––
18,5001,308

Non-Cash Items
Depreciation / amortisation
Loss on disposal
Provision written back£

1,615,414
376,798
75,04662,75787,38048,61015,98475,36822,149
5,376
5,040
1,330
18,5004,844
1,670,587

2,414,596

103,667
10,404–55,816–(32,000)

1,784,658

2,438,412

56

5. Property, plant and equipment

2020-21

Furniture andFittings
£

Total
£

Cost
At 1 April 2020
Additions / transfers
Disposals

258,949(7,547)(123,605)

11,4171,840–

270,366(5,707)(123,605)

At 31 March 2021

127,797

13,257141,054

Depreciation
At 1 April 2020
Charged in year
Disposals(52,448)(98,542)
113,201(894)(2,651)–(53,342)(101,193)
113,201

At 31 March 2021
Net Book Value at 31 March 2021
Net Book Value at 31 March 2020

(37,789)
90,008
206,501(3,545)
9,712
10,523(41,334)
99,720217,024

Asset financing
Owned
Finance leased
Net Book Value at 31 March 2021

90,008–90,008

9,712
–
9,712

99,720–99,7202019-20

Furniture and£57

Technology£

Technology
£

Total
£

Cost
At 1 April 2019
Additions
Disposals

177,554258,949(177,554)–
11,417–

177,554
270,366(177,554)

At 31 March 2020

258,949

11,417

270,366

Depreciation
At 1 April 2019
Charged in year
Disposals(177,554)(52,448)
177,554–(894)–(177,554)(53,342)
177,554

At 31 March 2020
Net Book Value at 31 March 2020
Net Book Value at 31 March 2019

(52,448)
206,501–(894)
10,523–(53,342)
217,024–

Asset financing
Owned
Finance leased

206,501–

10,523–217,024–

Net Book Value at 31 March 2020

206,501

10,523217,024

Climate Change Committee – Annual Reports & Accounts 2020-21

6. Intangible assets

2020-21

SoftwareLicences
£

Total
£

Cost
At 1 April 2020
Additions / transfers
Disposals
At 31 March 2021

14,225(1,857)–
12,36814,225(1,857)–
12,368

Amortisation
At 1 April 2020
Charged in year
Disposals
At 31 March 2021
Net Book Value at 31 March 2021
Net Book Value at 31 March 2020

(5,979)(2,474)–(8,453)
3,915
8,246

(5,979)(2,474)–(8,453)
3,915
8,246

Asset financing
Owned
Finance leased

3,915
–

3,915
–

Net Book Value at 31 March 2021

3,915

3,915

2019-20

SoftwareLicences

Total

£

£

12,3681,857–
14,225

12,3681,857–
14,225Charged in year
Disposals
At 31 March 2020
Net Book Value at 31 March 2020
Net Book Value at 31 March 2019

(3,505)(2,474)–(5,979)
8,246
8,863

(3,505)(2,474)–(5,979)
8,246
8,863

Asset financing
Owned
Finance leased

8,246
–

8,246
–

Net Book Value at 31 March 2020

8,246

8,246

Cost
At 1 April 2019
Additions
Disposals
At 31 March 2020
Amortisation At 1 April 2019

Climate Change Committee – Annual Reports & Accounts 2020-21

58

7. Financial Instruments
As the cash requirements of CCC are met through Grant-in-Aid provided by BEIS,
Defra and devolved administrations, financial instruments play a more limited rolein creating and managing risks than would apply to a non-public sector body.
The majority of financial instruments relate to contracts to buy non-financial items
in line with the CCC’s expected purchase and usage requirements and the CCC istherefore exposed to little credit, liquidity or market risk.
In general, financial assets and liabilities are generated by day-to-day operational
activities and are not held to change the risks facing the CCC in undertaking its
activities.

8. Trade receivables and other current assets£
31 March
2021
Amounts falling due within one year:
Trade receivables and otherreceivables
Deposits and advances

5,589
3,360

Other receivables
Prepayments and accrued income
Balance at 31 March£
31 March
2020

13,42913,59090
14,12023,159–13,47540,494

9. Cash and cash equivalents£
31 March
2021
Balance at 1 April
Net change in cash and cash
equivalent balances
Balance at 31 March£
31 March
2020

500,561

619,803130,118(119,242)

630,679

500,561

630,679

500,561

630,679

500,561

The following balances at 31 March
were held at:Government banking service
accounts
Balance at 31 March

59

Climate Change Committee – Annual Reports & Accounts 2020-21

10. Trade payables and other current liabilities£
31 March
2021£
31 March
2020

Amounts falling due within one year:
Other taxation and social security
Trade payables
Capital creditors and accruals

67,180160,001
12,92770,971
53,741
15,312

Accruals and deferred income
Pension contributions

684,871
55,612

719,723
52,96891,181
1,071,772

84,172996,887

Staff unpaid leave accrualBalance at 31 March

11. Provision for liabilities and charges£
31 March
2021£
31 March
2020

Dilapidations balance:

39,10071,100

Provision utilised
Provisions written back–––
(32,000)

Provided for in year
Balance at 31 March–
39,100–39,100The dilapidation provision relates to the CCC’s previous premises at Holbein Place.
The provision was re-assessed during 2019-20 following the vacation of the premises
by building consultants CBRE Ltd and represents the obligation to make good thecondition of the premises. The balance for 2022-21 remains unchanged from theprevious year and it is expected that the provision will be utilised in 2021-22.
£
31 March
2021
Expected timing of cash flows:
No later than one year
Later than one year and not later
than five years
Later than 5 years
Total

Climate Change Committee – Annual Reports & Accounts 2020-21£
31 March
2020

39,10039,100––––39,10039,10060

12. Capital and other financial commitments£
31 March
2021£
31 March
2020

Other financial commitme nts
comprise:
Not later than one year
Later than one year and not later
than 5 years
Later than five years

100,000

42,385––22,097–

Total

100,000

64,482The CCC did not commit to any capital commitments in the financial year (201920, Nil).
The figures provided are the total payments to which the CCC is committed at 31
March 2021, analysed by the period during which the payments are made.

13. Commitments under operating leases
Total future minimum lease payments under operating leases are given in the tablebelow:
Land &
Buildings£

Land &
Buildings
£

Other
£
2020-21

Obligations under operating leases
comprise:
Not later than one year
Later than one year and not later
than 5 years
Later than five years
Total

Other
£
2019-20

263,483–

589,140–

1,053,932
–

–
–

–
–

–
–

1,317,415–

589,140–

The lease payments represent the future lease commitments for 1 Victoria Street,through to 31 March 2026. The lease expires on 30 January 2031, with the first breakclause at 31 January 2024.

61

Climate Change Committee – Annual Reports & Accounts 2020-21

14. Related-party transactions
The Committee on Climate Change is a non-departmental public body of BEIS
and receives its Grant-in-Aid funding from BEIS, on behalf of BEIS, Defra and thedevolved administrations comprising the Scottish government, the Welsh
government and the Northern Ireland Executive.
These bodies are regarded as related parties with which the NDPB has had various
material transactions during the year. In addition, the NDPB has had a small
number of transactions with other government departments and other central
government bodies.
The quantum of the transactions between the CCC and these bodies was asfollows:
Grant in Aid

Project Funding£
2020-21£2019-20

4,595,073

5,354,002

Purchased services£
2020-21£2019-20£
2020-21£2019-20

–

–

–

–

Related parties:
Department of Business,
Energy and Industrial
Strategy/ Department ofEnergy and Climate Change
Department for Environment,
Food and Rural Affairs
Foreign and Common
Wealth Office
Heritage Lottery Fund
Government Property
AgencyCarbon Trust Limited
University College London
University of Leeds
Shared Services Connected
Limited

–

–

–

–

127,153

87,380

–
–

–
–

–
–

–
–

–
–

–
53,090

–
–

–
–

–
–

–
–

405,085–

378,5023,600
37,620(7,500)

–

1,030

–

–

(3,871)62,757

No Committee member, key manager or other related parties not alreadydisclosed above or in the Remuneration Report has undertaken any materialtransactions with the NDPB during the year.
The following Committee members have an interest in the bodies noted above:•

Baroness Brown of Cambridge: Carbon Trust Limited•

Prof Georgina Mace: University College London•

Prof Michael Davies: University College London•

Piers Forster: University of Leeds

BEIS has provided a consolidated Annual Report and Accounts for the reporting
period 2020-21 incorporating its NDPBs within the consolidation boundary. The
Committee does not form part of this consolidation due to materiality.

Climate Change Committee – Annual Reports & Accounts 2020-21

62

15. Events after reporting period
The CCC entered into an agreement with the Government Property Agency tosecure office accommodation at 1 Victoria Street, London, from 1 April 2021. There
are no other reportable events after the reporting period.
The Accounting Officer authorised these financial statements on the date of theComptroller and Auditor General’s signature.

63

Climate Change Committee – Annual Reports & Accounts 2020-21

Climate Change Committee – Annual Reports & Accounts 2020-21

64

65

Climate Change Committee – Annual Reports & Accounts 2020-21

Climate Change Committee – Annual Reports & Accounts 2020-21

66