Annual Report 2009-10 Sustainable Development Commission

Annual Report &

Accounts 2009-10
Sustainable Development Commission
Published by TSO (The Stationery Office) and available from:

Online
www.tsoshop.co.uk

Mail, telephone, fax and email

TSO
PO Box 29, Norwich NR3 1GN
Telephone orders/general enquiries: 0870 600 5522
Order through the Parliamentary Hotline Lo-Call 0845 7 023474
Fax orders: 0870 600 5533
Email: customer.services@tso.co.uk
Textphone: 0870 240 3701

The Parliamentary Bookshop

12 Bridge Street, Parliament Square,
London SW1A 2JX
ISBN 978-0-10-296603-9
Telephone orders/general enquiries: 020 7219 3890
Fax orders: 020 7219 3866
Email: bookshop@parliament.uk
Internet: http://www.bookshop.parliament.uk

TSO@Blackwell and other accredited agents

Customers can also order publications from: 9 780102 966039

TSO Ireland
16 Arthur Street, Belfast BT1 4GD
Telephone orders/general enquiries: 028 9023 8451
Fax orders: 028 9023 5401
Sustainable Development Commission

Annual Report &

Accounts 2009-10
For the period ending 31 March 2010

Company registration no.6798740

© Sustainable Development Commission (2010)

The text of this document (this excludes, where present, the Royal Arms and all departmental and agency logos)
may be reproduced free of charge in any format or medium providing that it is reproduced accurately and not in
a misleading context.

The material must be acknowledged as Sustainable Development Commission copyright and the document title specified.
Where third party material has been identified, permission from the respective copyright holder must be sought.

2 — Annual Report & Accounts 2009-10 – Sustainable Development Commission

Contents
Introduction from the Chair and CEO 5
Vice Chairs’ introductions 6
About the Sustainable Development Commission 8
Who we are 9
Highlights of the year 12

Holding Government to account 14

Government operations and procurement 14
Helping Government to assess its wider plans, policies and performance 15
Public Service Regulators 16

Building organisational capacity 17

Health and education 17
Sustainable Development Action Plans 18
Working with civil servants 19

Achieving policy breakthroughs 20

Sustainable places 20
Low Carbon Wales 20
Energy 21
Planning 21
Sustainable economy 22
Sustainable lives 23
Sustainable diets 23
Sustainable travel 23
Tackling health inequalities 24
Sustainable communities 24
Breakthroughs for the 21st Century 25
Incredible edible communities 25
Greater Manchester Retrofit Plus 25
Outdoor Experiences for all children in the UK 26

3
 Governance 27
Corporate Governance Framework 27
Governance arrangements 27
Board 27
Audit Committee 28
Commissioners 28
Management Team 28

Directors’ Report 29
Review of activities during the financial year and developments for the future 30
Statement of Directors’ responsibilities 32

Auditor’s Report 33

Financial Statements 35

Notes to the Financial Statements 37

4 — Annual Report & Accounts 2009-10 – Sustainable Development Commission

Introduction from the Chair and CEO
In a year dominated by the global economic crisis and
the downturn in the UK economy, it has sometimes
been assumed that the pursuit of sustainable
development is a “nice to have” – a luxury to return
to in easier times. The opposite is true. The long term
wellbeing of people, and the need for us to live within
global environmental limits, are enduring goals, and
ones which can help lift us out of recession and put us
on the path to a more sustainable recovery.
Improving the quality of our neighbourhoods for our
children, creating renewable heat and power, making our
homes energy efficient, enabling us to make better travel
choices, and improving our health by designing more
physical activity into our lives: all these things have the
potential to create millions of new jobs and to stimulate
enterprise and investment. A more sustainable economy,
stronger social networks, and a richer environment will all
make us more resilient as a society, and, in a developed
country where the constant thirst for more “stuff” is verging
on a credit-fuelled obsession, give us the space to find more
diverse routes to happiness.
The Sustainable Development Commission (SDC) exists
to help Government move in this direction, in the way it
develops policy and the way it manages its own operations.
This year, our advice, scrutiny and support has helped many
departments, regulators, and public services like the NHS,
to become more efficient and effective by examining the
full social, environmental and economic impacts of their
work. As a catalyst for change, our modest interventions
can help deliver big benefits – from real cash savings to
better quality public services and more motivated staff.
In addition to working on the issues listed above, we were
delighted to take on more independent status within
Government on 1 February 2009; still sponsored by the
Department for Environment, Food and Rural Affairs (Defra)
but better able to develop relationships across Whitehall
Departments, and with the administrations in Scotland,
Wales and Northern Ireland.
Over the past year, the SDC has seen increasing evidence
of the benefits secured within the parts of Government
which have tried to adopt a sustainable development
approach. As with any change process, confidence is being
gained from these first steps. However, we anticipate that
much bigger challenges are to come, and the full potential
for sustainable development to deliver much needed
improvements to services, more effective polices and more
efficient operations is simply huge and largely untapped to
date. This is not a party political issue. Our Business Plan for
2010-11 anticipated this containing five themes enduring
and relevant for any Government. They are:
• Making Government more sustainable;
• The transition to a sustainable economy;
• Shaping sustainable places;
• Fairness in sustainable development; and
• Enabling more sustainable lives.
It was a Conservative Government which first embedded
sustainable development into its thinking; a Labour
Government which built on it, and a coalition Government
that will inherit these strong foundations. They will be
needed now more than ever.
However on the 22 July 2010, Caroline Spelman MP, the
Secretary of State for Environment, Food and Rural Affairs,
announced the withdrawal of funding to the SDC from
1 April 2011, whilst reiterating the UK Government’s
commitment to sustainable development. She noted that:
“The Government is committed to delivering sustainable
development and becoming the greenest government
ever, promoting economic development, environmental
protection and improving quality of life for everyone
in the UK. We want to mainstream sustainability,
strengthen the Government’s performance in this area
and put processes in place to join-up activity across
government much more effectively.”
She also highlighted that:
“Together with Chris Huhne I am determined to play the
lead role in driving the sustainability agenda across the
whole of government and I am not willing to delegate
this responsibility to an external body.”
As Chair and Chief Executive we emphasised that we felt
this was an unwise decision and one which will have a
significant negative impact on the ability of Government
to make continued progress on sustainable development.
However, we have also given our assurance that we will
work constructively to transfer learning and any functions
as part of this work to mainstream sustainability, while also
managing any wind up of SDC’s own work and functions.
Arrangements for continuing work on sustainable
development in Wales, Scotland and Northern Ireland
have yet to be decided, and these may be based around
the SDC, involve bespoke organisations in those places, or
even see functions absorbed into the respective devolved
administrations.
Will Day Chairman
Andrew Lee Chief Executive November 2010
Introduction — 5
Vice Chairs’ introductions
SDC Northern Ireland – Building strong foundations
The SDC has had a busy and rewarding year in Northern
Ireland, with progress around many of our key objectives
and increased traction with our most important
stakeholders. Our work has ranged from the transition
to a low carbon economy, to transport and infrastructure
and working with government departments on the
development of an overarching sustainable development
strategy for Northern Ireland.
There are encouraging signs of progress in many areas,
not least in the construction sector. From our engagement
with groups like the Royal Society of Ulster Architects, with
whom we’ve worked to raise the profile of sustainable
design and to create a sustainable design guide for
architects, we believe that enthusiasm is growing in
Northern Ireland for sustainable development thinking.
In all aspects of our work we are finding increased interest
not only from industry and the public, but from Ministers
and government departments. Whether that involves
SDC Scotland – A year of commitments with a long term future
Looking at Scotland from a sustainable development point
of view, there is much to be optimistic about. The Scottish
Government has garnered unanimous support from the
Parliament for some of the toughest climate targets in
the world. NHSScotland is committed to becoming a
Good Corporate Citizen, which means reviewing its entire
operations, supply chain and patient and staff relations
to focus on sustainable development. Climate Challenge
Funded communities all over Scotland are coming together
to share a vision and build determination to change bad
habits and work towards resilient neighbourhoods.
SDC Scotland is proud to play a part in these processes.
I believe that there is a momentum for sustainable
development thinking in Scotland and the circle of
interested government colleagues and stakeholders
has grown again this year. The range of projects we are
involved in and the nature of the policy focus suggests that
SDC Scotland is forming deep and lasting partnerships with
Government as it seeks to transform itself and the nation.
Not everything, however, is going well. Transport policy
continues to fail on sustainable development criteria.
6 — Annual Report & Accounts 2009-10 – Sustainable Development Commission
particular projects – such as the inclusion of sustainability as
a key aspect of new school development plans – or in the
wider policy framework that will form our new SD Strategy,
the SDC is seen as a trusted advisor to government.
The past year therefore, has been more than one of
consolidation. It has been a year of real positive movement,
real progress and increasing impact. As a result, we can
look back on a successful year for the SDC in Northern
Ireland and look forward to the next with increased
optimism.
Our work in with government this year has opened up a
number of avenues of opportunity which we are exploring
further in 2010-11. We hope that this, alongside the new
Sustainable Development Strategy, will further embed
sustainable development principles in government, and
embolden both the public and private sectors to embrace
the opportunities inherent in our agenda.
Jim Kitchen Head of SDC Northern Ireland, July 2010
Health inequalities still affect the significant proportion of
the population living in deprived areas. Fuel poverty and
bad housing continue to affect many people’s quality of life.
SDC Scotland has a unique relationship with the Scottish
Government. We are independent and authoritative, but
we also seek to be collaborative and visionary. As a UK wide
organisation working with all the four governments in the
UK, we can contribute the latest in UK and international
research and thinking on sustainability. Likewise, we are
able to demonstrate that in some areas Scotland is at the
forefront of developing sustainable policies so that others
can take learning and inspiration from what happens here.
With the Climate Change (Scotland) Act in place and a
stated purpose of creating a country for all to flourish, the
Scottish Government has made clear its aspirations.
The task ahead of us is large and urgent, and the problems
and solutions interconnected. Following sustainable
development principles is the only way to create a fairer,
greener economy and society.
Prof. Jan Bebbington SDC Vice Chair – Scotland, July 2010
SDC Wales – Moving from vision to reality
While the economy naturally took centre stage in
government activity in Wales this year, Wales also took
significant steps towards delivering a more sustainable
future. As the country marked ten years since devolution,
the Welsh Assembly Government strengthened its legal
duty to promote sustainable development through the new
One Wales: One Planet strategy, which firmly positioned
sustainable development as the “central organising
principle” of government.
One Wales: One Planet is rightly ambitious, and provides
the vision for Wales to lead the world on sustainable
development. However, the visions are only the start.
It is now vital that we see the strategy turned into action,
with sustainable development at the heart of every part
of government in Wales and guiding every decision – from
regeneration to transport and from the NHS to business
support.
Over the past year the SDC has clearly demonstrated its
value in addressing these challenges, bringing government
and others together to solve problems and drawing on its
expertise from across the UK to provide quality advice to
government. The launch of our Low Carbon Wales report
provided clear advice on how each part of Wales can
cut carbon emissions in ways most appropriate to that
area. Our work supporting the Low/Zero Carbon Hub has
brought the construction sector together, and is making
progress on delivering the low carbon buildings the Welsh
Assembly Government wants to see. We have also used
our independent convening role to raise discussions on the
economy and sustainable diets, helping government deal
with some of the most pressing challenges of our time.
There are several notable examples of Welsh Assembly
Government decisions harnessing the benefits of
sustainable development this year. These include the Heads
of the Valleys Low Carbon Zone, which demonstrates a
sustainable approach to tackling fuel poverty and climate
change while strengthening the area’s economy. And, while
questions remain about what a sustainable Welsh economy
looks like, the Green Jobs Strategy and the Economic
Renewal Programme present a superb opportunity to take
a step in the right direction. On transport, the decision
not to go ahead with the M4 relief road was the right one
given the economic and environmental concerns, and the
announcement of Môn a Menai as a sustainable travel area
should lead to benefits both to health and the environment.
That said, we are still a long way from sustainable
development being fully embedded as the central
organising principle. Our concerns were supported by
the Wales Audit Office, which said that sustainable
development “… is seen as one of a number of competing
priorities, rather than the means by which the Assembly
Government manages its competing priorities.” It is also
important that government leads by example, and the
Welsh Assembly Government has taken the welcome step
of asking us to carry out the first Sustainable Development
in Government (SDiG) assessment of its operations
and estate – the first we have carried out in a devolved
administration. This is a major step towards government
both improving its operations and demonstrating good
practice to others.
Wales, like the rest of the UK, will have to face significant
public spending cuts over the next few years. This will
dramatically increase the pressure on government to
put sustainable development into practice. Joined-up
government and public services will be essential to deliver
maximum value for every pound that comes to Cardiff
Bay. In doing so, we must build a more resilient Wales,
one which emerges from recession better equipped to
withstand future shocks. Our greatest challenges – such as
tackling poverty, addressing climate change and promoting
health – are closely linked.
I look forward to building on the strong relationship
between the Welsh Assembly Government and the SDC.
Through our unique and independent role, we will continue
to help government succeed in its commitment to make
sustainable development its central organising principle.
Peter Davies SDC Vice Chair –Wales, July 2010
N.B. A
 s we go to press the three Devolved Administrations are
still in the process of deciding the future arrangements
for sustainable development in Scotland, Wales and
Northern Ireland following the Defra decision to withdraw
funding for the SDC in Whitehall. It is likely that these
arrangements will vary.
Introduction — 7
 About the Sustainable Development Commission

The SDC holds Government to account to ensure the needs We are jointly owned by the UK Government, the Scottish
of society, the economy and the environment are properly Government, the Welsh Assembly Government and the
balanced in the policy decisions it makes and the way it Northern Ireland Executive, reporting directly to the Prime
runs itself. Minister and First and Deputy First Ministers.

We are the only organisation charged with reporting
publicly, independently and impartially on the extent to
which Government decisions contribute towards a fair,
healthy and prosperous future for everyone.
The SDC has existed under this name since 2000, when
it took on the roles previously performed by the British
Government Panel on Sustainable Development and the UK
Round Table on Sustainable Development which had been
established in 1994 and 1995 respectively.

What is sustainable development?

We take as our starting point the five principles of We work with the UK’s four Governments to ensure each
Sustainable Development (see below) agreed by the UK has the evidence and the skills needed to deliver a better
Government and the Devolved Administrations in Scotland, quality of life for everyone today, without endangering the
Wales, and Northern Ireland in 2005. chances of future generations.

Living within environmental limits
Respecting the limits of the planet’s environment,
resources and biodiversity – to improve our environment
and ensure that the natural resources needed for life are
unimpaired and remain so for future generations.
Ensuring a strong, healthy and just society
Meeting the diverse needs of all people in existing and
future communities, promoting personal wellbeing, social
cohesion and inclusion, and creating equal opportunity.

Achieving a sustainable economy
Building a strong, stable and sustainable
economy which provides prosperity
and opportunities for all, and in which
environmental and social costs fall on those
who impose them (polluter pays), and efficient
resource use is incentivised.
Using sound science responsibly
Ensuring policy is developed and implemented
on the basis of strong scientific evidence,
whilst taking into account scientific uncertainty
(through the precautionary principle) as well
as public attitudes and values.
Promoting good governance
Actively promoting effective, participative
systems of governance in all levels of
society – engaging people’s creativity,
energy and diversity.

8 — Annual Report & Accounts 2009-10 – Sustainable Development Commission

ndd 1 13/11/09 17:28:24

Who we are
Commissioners
Our Commissioners are public appointments and provide
insight and policy guidance, specialist expertise and
leadership for the SDC’s work. In accordance with the rules
for such appointments, they are now only allowed to serve
for a maximum of two three-year terms, so we have had a
substantial turnover in 2009-10. Recommendations for six
new Commissioners through the approvals system were
delayed due to the General Election and will not now go
ahead.
Chair (from 27 July 2009) – Will Day
Chair (to 26 July 2009) – Jonathon Porritt
Vice-Chair (Scotland) – Jan Bebbington
Vice-Chair (Wales) – Peter Davies
Vice-Chair (Whitehall) – Rebecca Willis
Vice-Chair (Northern Ireland) – position vacant
Bernard Bulkin (to December 2009)
Lindsey Colbourne (to October 2009)
Anna Coote (to October 2009)
Stewart Davies
Ann Finlayson
Tess Gill
Tim Jackson
Alan Knight (to October 2009)
Tim Lang
Alice Owen
Anne Power (to October 2009)
Hugh Raven (to March 2010)
Waheed Saleem (to July 2009)
Board of Directors
Jonathon Porritt (to 26th July 2009)
Will Day
Jan Bebbington
Peter Davies
Tess Gill
Andrew Lee
(Paul Rew – from April 2010)
(John Schultz – from April 2010)
Chair (from 27 July 2009) – Will Day
Will Day is a Senior Associate of the University of Cambridge
Programme for Sustainability Leadership, a part-time
Sustainability Advisor to PricewaterhouseCoopers in the UK
and a Special Advisor to the United Nations Development
Programme (UNDP). He was Chief Executive of Care
International and was instrumental in the establishment of
Comic Relief.
Chair (to 26th July 2009) – Jonathon Porritt
Jonathon Porritt is co-founder and Programme Director of
Forum for the Future, Co-Director of The Prince of Wales’
Business and Environment Programme, and an eminent
writer, broadcaster and commentator on sustainable
development. Jonathon retired from the SDC in 2009,
having led its work for nine years.
Vice-Chair (Scotland) – Jan Bebbington
Jan Bebbington is Professor of Accounting and Sustainable
Development in the Centre for Social and Environmental
Accounting Research at the University of St Andrews. Jan’s
research interests focus around the themes of corporate
reporting on sustainable development, full cost accounting
and modelling as well as governance for sustainable
development.
Introduction — 9
Vice-Chair (Wales) – Peter Davies
Formerly at Business in the Community, Peter Davies
established the Project Development Partnership in 2005,
providing project consultancy to business, government
and the voluntary sector. Peter coordinates the work of The
Prince’s Charities in Wales and is chair of the West Wales
branch of The Institute of Welsh Affairs.
Vice-Chair (Whitehall) – Rebecca Willis
Rebecca Willis is an independent researcher on
sustainability issues and formerly Director of Green
Alliance. Her work focuses on environmental politics and
policymaking at both a national and regional level. As Vice-
Chair for Whitehall, Rebecca represents the SDC in central
government, working with government ministers, advisors
and officials to ensure that government policy reflects
sustainability goals.
Bernard Bulkin (to December 2009)
Bernie Bulkin retired as the SDC’s Commissioner for Energy
and Transport in December 2009 to become Chair of the
Office for Renewable Energy Deployment at the Department
of Energy and Climate Change (DECC). Formerly chief scientist
at BP, he is a non-Executive Director of AEA Technology plc,
serves on numerous charitable boards, and has written
extensively on the areas of energy and transport.
Lindsey Colbourne (to October 2009)
Lindsey Colbourne was the SDC’s Commissioner for
Engagement, retiring in October 2009. She established
the NGO Vision 21 in 1993 and is now also coordinator
of InterAct, an alliance committed to using engagement
techniques to promote sustainable development.
Anna Coote (to October 2009)
Anna Coote was the SDC’s Commissioner for Health, retiring
in October 2009. She is Head of Public Sector Policy at the
new economics foundation. Anna was Deputy Director of
the Institute for Public Policy Research (IPPR) from 1993-
1997, where she led the Institute’s work on health and
social policy. Thereafter she worked for the Healthcare
Commission.
10 — Annual Report & Accounts 2009-10 – Sustainable Development Commission
Stewart Davies
Dr. Stewart Davies is the SDC’s Commissioner for Business.
Stewart has over twenty years’ experience in general
management and strategy in industry, including Managing
Director roles for Corus, Rugby Cement, Serco and currently
Romec Ltd. He is also a member of the governing board of
the Technology Strategy Board, to which he was appointed
in June 2009.
Ann Finlayson
Ann Finlayson is an independent advisor on social change,
and the SDC’s Commissioner for Education and Capability
Building. Ann has worked in the environmental field for
over thirty years. Formerly Head of Social Change for WWF-
UK, she has established and is Director of the charity SEEd –
Sustainability and Environmental Education.
Tess Gill
Tess Gill is the SDC’s Commissioner for Work and Skills.
She is a leading barrister specialising in employment,
particularly discrimination, industrial law, and human
rights. Tess is a part-time Employment Judge and trained
Mediator and has held posts in a wide number of voluntary
organisations concerned with issues of diversity and social
justice.
Tim Jackson
Tim Jackson is Professor of Sustainable Development in
the Centre for Environmental Strategy at the University of
Surrey. Tim’s current research interests include consumer
behaviour, sustainable energy systems, ecological
economics and environmental philosophy. He is the SDC’s
Commissioner for Economics.
Alan Knight (to October 2009)
Alan Knight is sustainability advisor to the Virgin Group,
and has also advised SAB Miller, Wyeville Garden Centres
and the Kingfisher Group on supply chain issues. He was
instrumental in creating the Forest Stewardship Council and
is a fellow of WWF-UK. Alan was the SDC’s Commissioner for
Business and Sustainable Consumption, retiring in October
2009.
Tim Lang
Tim Lang is Professor of Food Policy at City University,
specialising in how public and private policy shape the
food supply chain, what people eat and the societal,
health, and environmental consequences. Tim is the SDC’s
Commissioner for Natural Resources and Land Use.
Alice Owen
Alice Owen is the SDC’s Commissioner for Local and
Regional Government. Formerly at Yorkshire Forward,
an RDA, Alice is now Associate Director of Ove Arup and
Partners, where she leads the firm’s environmental and
sustainability consulting work from Leeds.
Anne Power (to October 2009)
Anne Power is Professor of Social Policy at the London
School of Economics and Deputy Director of the Centre
for Analysis of Social Exclusion. Since 1965 she has been
involved in European and American housing and urban
problems. Anne was the SDC’s Commissioner for the Built
Environment, retiring in October 2009.
Hugh Raven (to March 2010)
Hugh Raven is Director of the Soil Association Scotland
and is special advisor to the Esmée Fairbairn Foundation
on the environment. He also helps run Ardtornish, his
family’s estate in north Argyll and is active in the Slow
Food movement. Hugh retired from the Commission in
March 2010.
Waheed Saleem (to July 2009)
Waheed Saleem is Locality Director with responsibility
for Practice Based Commissioning and Children’s
Commissioning at Birmingham Eastern and North Primary
Care Trust. His interests are in social policy, especially
health, social exclusion, crime and youth. Waheed was
the SDC’s Commissioner for Young People. He retired from
the Commission in July 2009.
Chief Executive Officer – Andrew Lee
Andrew Lee, the Chief Executive of the SDC, serves on the
Board as Accounting Officer. An environmental biologist
by training, he worked for the previous twenty years of
his career in the NGO sector – as Campaigns Director and
formerly Policy Director for WWF-UK, and before that
leading the Sussex Wildlife Trust. He is a trustee of Global
Action Plan, an NGO specialising in behaviour change.
In addition to the Commissioners who have Board
membership, two Non-Executive Directors, Paul Rew and
John Schultz, were appointed to the Board of the SDC with
effect from 1 April 2010.
Paul Rew
Paul Rew is a non-executive director of the Met Office
and a member of the Business School Advisory Board
of the University of Exeter. He was formerly a partner
in PricewaterhouseCoopers and the sector leader for
Energy and Utilities and for Renewables. Paul led the PwC
Sustainability and Climate Change Assurance business.
John Schultz
John Schultz has recently retired after 16 years as Chief
Executive of Stockport Council – a high-performing local
authority that has for many years given a high priority
to sustainability issues. John has served on a number of
advisory bodies at national, regional and city level.
Introduction — 11
 Highlights of the year
This report covers the period from 1 February 2009, when the SDC was made independent of Defra, through to 31 March 2010.

February July

The SDC becomes an independent Non-Departmental Public HRH the Prince of Wales and key Ministers from Whitehall
Body (NDPB) jointly owned by the UK Government, the and the Welsh Assembly Government join Anna Ford,
Northern Ireland Executive, the Scottish Government and Jonathan Dimbleby and 400 delegates as the SDC
the Welsh Assembly Government. showcases 19 ideas for Breakthroughs for the Twenty-
First Century.
The SDC welcomes government plans for home energy
efficiency in line with recommendations in our 2006 After nine years at the helm, founder SDC Chair Jonathon
report Stock Take. Porritt steps down and is succeeded by Will Day.

March September

The SDC’s Sustainable New Deal identifies the potential In its Review of Public Service Regulators, the SDC
to create 800,000 jobs by upgrading existing housing, commends the Audit Commission and Ofsted for a solid
promoting sustainable travel and renewable energy, start on prioritising sustainability, but find the Care Quality
de-carbonising the public sector and investing in Commission has ‘significant ground to cover’.
sustainable skills.
The SDC’s partnership with the Department for Children,
Schools and Families (DCSF) is shortlisted from a record
number of entries for this year’s Civil Service Awards.
April
The Scottish Sustainable Development Forum, working
Review of public service regulators

with SDC Scotland, launches its Green List. The final list of
50 individuals making the most positive contribution to
Scottish sustainability are profiled in the Scotsman. Review of
public service
www.sd-commission.org.uk
regulators
May

The SDC report Sustainable Development England

in Government
(Main office)

2008: Challenges for Government calls on Government

55 Whitehall
London SW1A 2HH
020 7270 8498

to transform its internal operations to meet climate change

enquiries@sd-commission.org.uk

Scotland
ambitions. Osborne House
1 Osbourne Terrace, Haymarket
Edinburgh EH12 5HG
0131 625 1880
Scotland@sd-commission.org.uk
The SDC publishes Prosperity without Growth?, its
www.sd-commission.org.uk/scotland

groundbreaking examination of the linksWalesbetween

Room 1, University of Wales,
University Registry, King Edward VII Avenue,
wellbeing, consumption, environmental limits and
Cardiff, CF10 3NS
Sustainable Development Commission

029 2037 6956

global equity. Wales@sd-commission.org.uk

www.sd-commission.org.uk/wales

Northern Ireland
Room E5 11, OFMDFM
Castle Buildings, Stormont Estate,
Belfast BT4 3SR
028 9052 0196
N.Ireland@sd-commission.org.uk
www.sd-commission.org.uk/northern_ireland

12 — Annual Report & Accounts 2009-10 – Sustainable Development Commission

 November January

The SDC and Department of Health (DH) launch their Defra’s Food 2030 strategy draws on the SDC’s advice
updated Good Corporate Citizenship website, helping NHS on healthy, sustainable diets.
Trusts become more efficient while benefiting patients,
communities and the environment. By March 2010, over The Department for Transport welcomes the SDC’s
70% of NHS Trusts in England have signed up. Smarter Moves report, saying it will ‘help to shape
strategic thinking in DfT and in the transport policy
The Financial Times selects Prosperity Without Growth community more widely.’
as one of its Books of the Year.1

Welcoming the SDC’s Low Carbon Wales report, Andrew

Davies, Minister for Finance and Public Service Delivery at February
the Welsh Assembly Government, calls on Welsh regions
to ‘significantly scale up the good practice’ in line with our The SDC’s evidence on the health impacts of climate
recommendations. change emerges as a key theme of the Marmot Review
on Health Inequalities. The SDC published Sustainable
The Scottish Government publishes its Renewable Heat Development: The Key to Tackling Health Inequalities as
Action Plan, based on evidence provided by the SDC. a separate report.

December March

The SDC reports that sustainability in Whitehall’s operations A Scotland-specific version of our Good Corporate
has turned a corner, with departments in a strong position Citizenship model is rolled out in partnership with Health
to meet carbon targets for the first time ever. Facilities Scotland and the Scottish Government

Our Third Annual Assessment of sustainability in Scotland The new School Development Plans announced by the
finds progress on renewable energy and waste, but voices Northern Ireland Department for Education include a
concerns about transport, public health and inequality. specific focus on sustainable development, following the
SDC’s recommendations.
The SDC’s first Sustainable Development in Government
report on a devolved administration is published in
Wales, revealing a mixed picture in the Welsh Assembly
Government.
Prosperity without growth?

Low Carbon Wales Regional Priorities for Action

The Sustainable Development Commission is the

Government’s independent watchdog on sustainable
development, reporting to the Prime Minister, the First
Ministers of Scotland and Wales and the First Minister and
Deputy First Minister of Northern Ireland.
Through advocacy, advice and appraisal, we help put
The transition to a sustainable economy 2009

sustainable development at the heart of Government policy.

ion.org.uk

Prosperity
www.sd-commission.org.uk
England
(Main office)
55 Whitehall
London SW1A 2HH

Low
0300 068 6305

without
enquiries@sd-commission.org.uk

Scotland
Osborne House

growth ? Carbon
rg.uk 1 Osborne Terrace
Edinburgh EH12 5HG
0131 625 1880
Scotland@sd-commission.org.uk
ket
www.sd-commission.org.uk/scotland

g.uk
/scotland

,
Wales
Room 1, University of Wales
University Registry
King Edward VII Avenue
Cardiff CF10 3NS
Wales
ward VII Avenue,
029 2037 6956 Regional Priorities for Action
Wales@sd-commission.org.uk
Sustainable Development Commission

Sustainable Development Commission

uk www.sd-commission.org.uk/wales
/wales
Northern Ireland
The transition to a
Room E5.11, Castle Buildings
Stormont Estate,
state, Belfast BT4 3SR
sustainable economy
028 9052 0196
rg.uk N.Ireland@sd-commission.org.uk
/northern_ireland www.sd-commission.org.uk/northern_ireland

26/3/09 18:08:10
SDC_LCR_cover_litho.indd 1 3/12/09 13:24:42

Introduction — 13
 Holding Government
to account
The greener, fairer, healthier future we all want will not
come about by accident, and the government has pledged
to be its champion and to lead by example. The SDC has a
uniquely independent remit to hold the government
to account on the extent to which its operations are
becoming more sustainable. We have had considerable
success in helping to turn this performance around.
In 2005, our assessment showed that the carbon footprint
of Government offices was still rising rapidly on 1990
levels. By contrast, last year we were delighted to report
a 10% reduction in emissions from offices against the
baseline, and that the target for reducing emissions from
administrative road vehicles had been exceeded.
Government operations and procurement
The UK Government has an estate covering an area of
around half a million hectares, and responsibility for a
£180bn budget for goods and services. Decisions about
what it buys, how it runs its internal operations, and how
Ministers and civil servants travel have a huge influence on
the wider economy, communities and the environment.
To ensure things are moving in the right direction,
the Government set itself targets for operations and
procurement with its Sustainable Operations on the
Government Estate (SOGE) framework. Its 2005 Sustainable
Development strategy, Securing the Future, gave the
SDC the formal responsibility for reporting publicly on
Whitehall performance against these targets. This year for
the first time, the new Centre for Expertise in Sustainable
Procurement (CESP) which was created partly in response
to our recommendations, took the responsibility for data
collection, while the SDC continued to provide impartial
scrutiny of progress.
We were delighted to report for the first time that the
recently published data showed Government to be in a
strong position to meet its carbon reduction target of 12.5%
by March 2011. There were also major improvements in
progress towards targets on road transport, water, waste
and recycling.
This year was also the first time that the “Big Four” depart­
ments (the Ministry of Defence; the Ministry of Justice; the
Department for Work and Pensions (DWP) and Her Majesty’s
Revenue and Customs, which together represent 80% of
Government in terms of size) were all awarded four out of a
14 — Annual Report & Accounts 2009-10 – Sustainable Development Commission
These carbon savings are equivalent to £16m of savings
in public expenditure. Over the same period a reduction in
water consumption delivered savings of £13m.
In Scotland, our Annual Assessment of the sustainability
of the Scottish Government’s policies has been the
cornerstone of our work for the last three years, and
we published our first report on the Welsh Assembly
Government’s environmental sustainability this year.
And with the UK Government, we expanded our reporting
role to examine the contribution of three public service
regulators – the Audit Commission; Ofsted and the Care
Quality Commission – to sustainable development.
“It’s great to see the progress that has been
made in the last twelve months, thanks to
considerable efforts across Whitehall.
The next task for the Government is to get to
grips with its huge supply chain, and to look at
the performance of all its agencies, including
its non-departmental public bodies.”
Rebecca Willis
SDC Vice Chair for Whitehall
possible five stars for their performance against targets.
However, while these achievements are impressive, our
work shows that these improvements in Government’s
performance are just the tip of the iceberg. Much more can
and must be done, both to deliver efficiency savings and
to contribute to the UK’s ambitious climate change targets.
As the popular 10:10 campaign gains momentum across
the UK, our analysis shows clearly that for the Government
to meet such a commitment, it will require a major step
change in performance.
In Wales we carried out our first Sustainable Development
in Government assessment in a devolved administration,
publishing our report on the sustainability of the Welsh
Assembly Government’s operations, alongside Whitehall
data, in December 2009. Our findings were mixed.
We found good progress on targets for waste and recycling,
and noted that 85% of electricity supply contracts are now
on a green tariff. However, while overall carbon dioxide
emissions from the estate are decreasing, emissions from
road vehicles increased by 1.4%.
Our commentary on the Welsh Assembly Government’s
progress was published in its Sustainable Development
Annual Report, in which we highlighted the considerable
challenges in putting sustainable development at the heart
of decision making in government.
Committing Whitehall to more ambitious targets going
forward has been a consistent recommendation from the
SDC over a number of years; in March 2010 therefore, we
were pleased to see the adoption of a new framework of
targets beyond 2011. This brings carbon targets for the
Government estate into line with national policy targets
under the Climate Change Act, committing it to leading by
Helping Government to assess its wider plans, policies and performance
The decisions made by Government have an impact on the
sustainability of the UK which goes far beyond its internal
operations and procurement. Similarly, the SDC’s scrutiny
role covers not just operational areas, but also the impact of
plans and policies on sustainability, and the overall standing
of sustainable development in Government.
In Scotland, our Annual Assessment of sustainable
development in the Scottish Government’s policies is the
cornerstone of our work. We use its own performance
framework to analyse all policy areas, this year involving
officials from right across the executive in the development
of our Third Assessment. We found good progress in
areas including renewable energy and waste, but less on
public health. Some areas of economic performance were
still found to be weak, and there was no evidence of a
narrowing of the gap between highest and lowest earners,
all of which is worrying from a sustainable development
perspective.
Transport remains one of the most difficult areas, where it
is hard to see any moves towards sustainable development.
Our assessment of Scottish transport policy has led us to
formulate a vision for a sustainable transport system for the
country, which will be published in the summer of 2010.
In Whitehall, we piloted a brand new, and more holistic,
approach to assessing the sustainability of departments,
with the Permanent Secretary of DWP signing his
department up to be the first assessed. We looked at of
three areas of DWP policy critical to fairness and wellbeing:
health and well-being at work; improving access to work,
and responding to an ageing society, as well as looking
“We are the first Devolved Administration to
undergo this scrutiny and we hope it will
encourage all public bodies to be open about
their environmental performance. These steps
are not only good for the environment, but
make financial sense too as they will save
the taxpayer money.”
Jane Davidson
Minister for the Environment, Sustainability and Housing
Welsh Assembly Government
example on its aspirations for a low-carbon UK. We look
forward to continuing our support for this work and holding
it to account.
at traditional business areas. The aim is to enable the
department to meet its own policy goals as sustainably as
possible.
We also began work with Defra to review the set of
cross-Government indicators designed to assess how well
policy decisions contribute to sustainability, and conducted
a review of eight Impact Assessments – the process by
which UK Government Departments calculate the effect
of major policies on the environment, the economy and
communities. Several of our recommendations were
adopted by the Better Regulation Executive in its guidance
for policymakers, but there is still some way to go to
make sure the Impact Assessment process is asking the
right questions. Our work in this area has, however, led
the Government Economic Service to recommend a new
sustainable development test in its interim report on the
economics of sustainable development.
“Scotland’s future lies in developing, with our
partners, a low carbon economy. We welcome
the contribution SDC Scotland has made to that
debate and we have drawn on the conclusions
of their annual assessment to help inform
our policy on how to move to a low carbon,
sustainable economy.”
John Swinney
Cabinet Secretary for Finance and Sustainable Growth
Scottish Government
Holding Government to Account — 15
Public Service Regulators
Public services in the health, education and local authority
sectors employ one in seven workers in the UK, and
spend £88billion on goods and services. Their powers
to commission and deliver services also have immense
potential to affect communities, the environment and the
economy. The bodies that regulate these sectors have a
great influence over the work of Local Authorities, schools,
hospitals and Primary Care Trusts, and we believe that they
have a vital role to play in encouraging sustainability.
The SDC’s Review of public service regulators, published in
September 2009, was the culmination of two years’ work
with Ofsted, the Audit Commission and the Care Quality
Commission (CQC – formerly the Healthcare Commission).
The project highlighted the SDC’s dual role, in partnering
with organisations to develop the skills to enable change,
and in monitoring their journey towards that change.
We drew up challenging goals for each regulator, and
worked with them to help put sustainable development
at the heart of their assessment frameworks. We also
provided support to their staff in developing the skills to
achieve genuine progress on sustainability.
The ensuing report found a mixed picture, with strong
progress from the Audit Commission, moderate progress
16 — Annual Report & Accounts 2009-10 – Sustainable Development Commission
in Ofsted, but the CQC as yet unwilling to accept that
sustainability falls within its remit.
The Audit Commission and Ofsted are both implementing
our recommendations, and we continue to work with the
CQC to find areas of common ground where the benefits of
sustainable development can be made clear.
“Sustainable development is a high priority for
us. We welcome this report, and although it’s
clear we’re making great strides to become a
greener organisation, there is obviously more
to do. We’ve made it clear to councils and their
partners that greener working is no longer a
‘nice-to-have’, but a crucial element of any
area’s future success. But we have to make
sure we’re taking our own medicine, which is
why we are challenging our own business to
improve its green credentials.”
Michael O’Higgins
Chairman, Audit Commission
 Building organisational
capacity
The challenge of sustainability means that Government
departments, and the wider public sector, need to be
equipped with the fresh approaches and innovative skills to
make transformational change happen, and then apply this
perspective to every decision.
The SDC provides support ‘behind the scenes’ through a
combination of expert advice, hands-on partnership and
Health and education
The UK’s hospitals and schools consistently top the political
agenda. Applying sustainable development principles to
these crucial policy areas saves the public money, helps
deliver a better quality of life and paves the way to a
healthier and greener future.
This year saw the continuation of our highly successful,
multi-year partnerships with DH and DCSF, with significant
changes being made in both.
We also re-launched our groundbreaking Good Corporate
Citizenship Model website, developed in partnership with
the NHS, which enables Trusts to assess the environmental
and social impacts of their work and to benefit from the
collective experience of other trusts.
The NHS is responsible for more than 18 million tonnes
of CO2 per year – over 3% of England’s carbon emissions.
It spends £410 million every year on energy bills and
£70 million on disposing of waste. The Good Corporate
Citizenship Model goes beyond the obvious areas of
waste reduction, energy efficiency and operational issues,
encouraging measures that will prevent illness, cut
down on the need for treatment and promote healthier
communities – saving money in the longer term. It also
tackles procurement, stressing the benefits to communities,
local economies and the environment of local sourcing and
making the supply chain more sustainable.
By March 2010 we had achieved the highest ever uptake
of the Good Corporate Citizenship assessment model,
with over 70% of NHS trusts in England signed up. This
demonstrates a real appetite amongst health professionals
for tackling the issue of sustainability, a desire that the
assessment model will go a long way towards making a
reality.
robust challenge and, in 2009-10, we launched our new
strategy for capability building. During the year, we also
further strengthened our programmes of work with key
Government departments, developed innovative tools for
improving sustainability within the NHS and worked with
a host of departments on their Sustainable Development
Action Plans (SDAPs).
Encouraged by this success, we also rolled out the
Good Corporate Citizenship Model in Scotland this year.
Together with Health Facilities Scotland, SDC Scotland used
workshops and engagement with health boards to develop
a tailored version of the website, which went live in March
2010, along with a workshop pack for boards to get started.
It has been developed to work equally well for regional and
special boards. It has since become a statutory requirement
for all health trusts in Scotland to sign up to the model.
We are enthusiastic about the potential for this Good
Corporate Citizenship approach to contribute to the
transformation of other public sector organisations, and
our expertise is being put to use in our work with the
Scottish Government to support its Public Sector Duty under
Scotland’s Climate Change Act.
In Wales, we have maintained our close involvement with
NHS and health policy, and supported the Welsh Assembly
Government in putting sustainable development at the
centre of the newly-reorganised health service. The
Commission advised government officials on measuring the
carbon footprint of NHS Wales.
The SDC has taken the innovative approach of ‘embedding’
staff in partner departments since 2005, to help them put
sustainable development at the heart of their thinking.
This year, SDC staff were placed in both the Children
and Families Directorate (CFD) and the Young People’s
Directorate (YPD) in DCSF. The success of this approach was
reinforced when the partnership was shortlisted for this
year’s Civil Service Awards.
At DCSF, we helped create a checklist to put sustainability at
the heart of every policy decision on children and families,
and began work on a set of indicators for ‘Good Places
to Grow Up’, for use both by national policy makers and
Building Organisational Capacity — 17
local commissioners of children’s services. We have been
commissioned by DCSF to undertake a new study into the
links between sustainable development and ensuring
the best futures for young people. This work is due to be
published in the autumn of 2010.
Within DH, we worked closely with the department’s
Policy and Strategy Unit to review how decisions about
health policy are made. This review has the potential to put
sustainability at the forefront of all policy making across
DH. Two pilot projects are also under way, looking at how
sustainable development principles can help in decisions
about commissioning the best healthcare services, and in
creating a Healthier Food Mark for the NHS. We have also
begun preliminary work with DH on the biggest single
contributor to the NHS’s carbon footprint – pharmaceutical
production.
In Northern Ireland, following a meeting between the SDC
and Minister for Education Catriona Ruane MLA, there was
a groundbreaking announcement in the Department for
Education’s draft regulations for School Development Plans.
The draft specifically includes sustainable development as
a key component of the new regulations governing school
development plans across Northern Ireland.
Sustainable Development Action Plans
Since March 2005, all Central Government departments
and executive agencies have been required to produce a
Sustainable Development Action Plan (SDAP), a key way
of converting good intentions into action. These SDAPs set
out how they will contribute to the Government’s overall
sustainable development goals, through policymaking as
well as internal operations, procurement and workforce
management.
In addition to providing support to departments in
developing their SDAPs, the SDC reports publicly on the
quality of published plans, and monitors departments’
progress against the actions set out in their plans. In 2009-
10, the SDC provided support, guidance and assessment to:
• 15 departments
• 11 executive agencies
• 5 NDPBs
• 1 NHS trust.
In many instances, our assessments have led to real
change. For example, the Foreign and Commonwealth
Office (FCO) reinvigorated its whole approach to sustainable
18 — Annual Report & Accounts 2009-10 – Sustainable Development Commission
“By sharing leadership of sustainable
development in the school sector between
the department and the SDC, we have built
a strong web of partners and stakeholders
working and influencing progress at all levels
in the sector.”
Janice Lawson
Head of Sustainable Development, DCSF
The plans focus on the need to adopt a ‘whole school’
approach to sustainable development, to ensure that
sustainability runs through children’s education as well
as being embedded in all aspects of how schools are run.
Properly applied, they have the potential to put schools at
the centre of a healthy, equitable and sustainable society. 
The SDC also worked closely with local colleges in Northern
Ireland throughout the year. In particular, staff built strong
working relations with Newry Technical College when
advising on a project for the creation of a low carbon zone
in the border city. This innovative and collaborative project
will hopefully place Newry at the forefront of thinking and
planning for the transition to a low carbon society.
development. FCO’s new approach has included progress
towards putting sustainable development at the heart of
business planning and raising staff awareness of the issue.
Government departments are now also required to produce
individual plans for Carbon Reduction Delivery and Climate
Change Adaptation, and the SDC has worked with DECC and
Defra to streamline the links between SDAPs and these
plans.
“We are pleased the SDC recognises the work
we do to promote sustainable development
by embedding it in each of our departmental
strategic objectives and through our estates
management. We have changed our approach
to embedding SD in the FCO since the plan was
drawn up.”
Chris Bradley
Head of Chief Scientific Adviser’s Office
Foreign and Commonwealth Office
Working with civil servants
Government officials need the skills to put sustainable
development at the heart of policymaking. Helping them to
acquire those skills is one of the SDC’s key roles. We bring
together civil servants from across departments to share
best practice, identify common barriers to progress and
come up with creative, collaborative solutions to shared
problems. To this end, we have worked jointly with Defra’s
Sustainable Development Unit to develop a cross-Whitehall
network of sustainable development practitioners, and
we are continuing to work with the National School of
Government and Government Skills to put sustainability
into core government competencies.
In Wales, we drew on our Whitehall experience to
advise the Welsh Assembly Government’s Sustainable
Development Advocates Group. As part of our role as set
out in the One Wales programme for government, we
also continued to support the work of the Climate Change
Commission for Wales, carrying out a review of its first
year of operations and providing advice on stakeholder
engagement, best practice and how to tackle some of the
more difficult policy questions facing Wales.
In Northern Ireland, we have been engaging with officials
and Ministers from the Office of the First and Deputy First
Minister in developing the Northern Ireland Executive’s
new Sustainable Development Strategy. We have provided
advice and support through all aspects of planning and
drafting, and played a key advisory role in the Northern
Ireland wide public consultation. We continue to work
with officials on the final draft of the Consultation, and
are currently working with all government departments
and key stakeholders to create a dynamic but achievable
implementation plan.
We are also working closely with the Northern Ireland
Executive to develop a sustainable consumption strategy for
Northern Ireland.
In March we supported the Welsh Assembly Government’s
creation of its Wales Low/Zero Carbon Hub, a network
for the construction sector in Wales, designed to ensure
that new and existing buildings help the Welsh Assembly
Government achieve its aims of reducing greenhouse
gas emissions by 3% a year from 2011. SDC Wales played
pivotal role in this process, with a Building Research
Establishment Wales employee seconded to work with us
to provide advice and industry liaison.
“As our working relationship with the SDC in
Northern Ireland matures we are, on both
policy and operational levels, deepening the
sense of common purpose in progressing
the sustainable development agenda here.
I know the value the SDC has added to a range
of initiatives we have undertaken through its
inherent expertise and access to knowledge;
and I believe that its objectivity provides us
with both challenge and constructiveness in
equal measure.”
Damian Prince
Director of the Economic Policy Unit
Office of the First and Deputy First Minister of Northern Ireland
Building Organisational Capacity — 19
 Achieving policy
breakthroughs
The path to a fair and healthy future in a secure society
depends on the decisions of our policy-makers across the
UK. The SDC works with them to provide cutting-edge
policy analysis and advice, ensuring that Ministers are
well informed on the social, environmental and economic
impacts of the choices they make.
Sustainable places
The quality of the cities, towns and villages where we live
affects us all. Public health, psychological wellbeing, the
economy and the environment are all adversely affected
by low-quality housing, a lack of green space and poor
infrastructure in our communities. Improving those places
will be a key part of the transition towards a more resilient,
fairer and greener society.
The right changes to our existing built environment will be
critical to the UK’s success in meeting its ambitious targets
for reducing carbon emissions by 2050. At present, 40%
of the UK’s carbon emissions come from homes and other
physical infrastructure in our communities. In our 2006
report, Stock Take, the SDC identified that 80% of today’s
homes would still be in use in 2050.
This year, we began to look at how we might retrofit our
homes, public areas and other physical infrastructure to
help deliver not only carbon reductions, but much wider
benefits for local communities. Our research focused on
Low Carbon Wales
Our Low Carbon Wales project formed a major part of the
work of our Cardiff office. The Welsh Assembly Government
commissioned us to develop a definition of a ‘low
carbon region’ and to provide advice on how each part
of the country could achieve this. Our extensive research
and consultation with people in each region led to the
publication of Low Carbon Wales at the Wales Low Carbon
Summit in November 2009.
This report represents the first comprehensive vision of what
a truly low carbon region looks like. Following its launch, we
developed detailed, practical proposals for helping the
Welsh Assembly Government put our advice into practice.
20 — Annual Report & Accounts 2009-10 – Sustainable Development Commission
In 2009-10, the SDC’s work focused on how to make our
economy, our lifestyles, and the places where we live more
sustainable, from the structure of our economic system to
the food on our tables. We also showcased some of the
best ideas from around the UK in our Breakthroughs for the
Twenty-First Century project; ideas with the potential to
transform our society.
how an integrated neighbourhood approach could improve
both the quality of places and thereby the quality of life of
their residents. We also explored the kinds of delivery and
funding models needed to make those benefits a reality,
and found evidence of how local residents can lead and
drive the improvement of their communities.
The work was supported by a wide partnership including
DECC, the Department for Communities and Local
Government, the Homes and Communities Agency and
Energy Efficiency Partnership for Homes, drawing upon
on the knowledge of over 60 experts from a variety of
backgrounds, as well as more than 60 case studies of good
practice from Bristol to Stirlingshire.
Our final recommendations were published in July 2010,
providing the new Government and our funding partners
with the evidence which can make these innovative pilot
schemes the norm in future.
“This is a truly unique report. It’s the first time
that anyone has worked out how each region
of Wales can make the necessary cuts in carbon
emissions, in the ways best suited to that area.”
Peter Davies
SDC Vice Chair for Wales
Welcoming the report, Andrew Davies, then Minister for
Finance and Public Service Delivery at the Welsh Assembly
Government, called on Welsh regions to ‘significantly scale
up the good practice’ in line with our recommendations.
We also worked closely with the Welsh Assembly
Government on the new Wales Waste Strategy to help
ensure its sustainability, and advised on the Welsh
Assembly Government’s draft Climate Change Programme
of Action.
Energy
If the UK is to be at the forefront of the transition to a low
carbon world, tough decisions will be needed, both at the
community level and in national energy policy. The SDC
has provided Government with evidence on a number
of aspects of energy policy over the years. Our landmark
investigations into the role of wind and tidal power in the
UK’s energy mix have helped support and underpin policy
development in these areas.
In our report Turning the Tide, we calculated that the
proposed Cardiff-Weston barrage could supply 4.4% of
the UK’s electricity needs, and could be a sustainable
option, but only if certain key conditions were met, namely
safeguarding biodiversity and protecting the public interest.
Meeting the first of these means that any scheme must
comply with the EU Directive on Birds and Habitats. The
scale of the impacts involved, and the size and importance
of the Severn Estuary, mean that novel approaches would
be required to compensate for loss of habitats.
As part of DECC’s investigation into the feasibility of various
schemes for Severn Tidal Power, the SDC was commissioned
to investigate this issue in depth, bringing together experts
from a range of relevant fields. The SDC’s findings are due
for publication in autumn 2010, and will provide crucial
evidence for Government when making decisions about the
competing demands for sustainable land use.
Planning
We have continued to provide advice and support to all
government departments on the emerging National Policy
Statements and their associated Appraisals of Sustainability
as well as on ongoing planning reform at the national,
regional and local level.
In Scotland, two key policies – the Scottish National
Planning Framework 2 and the consolidated Scottish
Planning Policies (SPPs) – have provided an important
opportunity to ensure sustainability is properly considered
in planning processes. SDC Scotland was an instrumental
We also provided verbal and written evidence to the Energy
and Climate Change Select Committee on the suite of
Energy National Policy Statements.
In Scotland, we continued to work closely with the Scottish
Government to provide an authoritative evidence base
for its ambitious targets on energy policy. This year we
provided the background statistics on which it based its
Renewable Heat Action Plan, as well as evidence on the
potential for energy from waste. Both these reports have
provided the Scottish Government with the foundation from
which it can press ahead with innovative programmes to
make energy use more sustainable.
“The Scottish Government’s Renewable Heat
Action Plan is an excellent example of some
of the positive steps we can take to tackle
the impact of climate change and shows how
innovation and a willingness to invest in the
future can bring long-term economic benefits.”
Roseanna Cunningham
Environment Minister
Scottish Government
partner to the Scottish Government in developing both,
and we believe they will be valuable benchmarks to
ensure planning decisions take full account of the potential
long-term effects – good or bad – on communities and the
environment. Disappointingly, our Third Annual Assessment
concluded that this admirable focus on sustainable
development principles in policy has yet to filter through
and make a real difference to local planning decisions. We
intend therefore, to undertake a thorough examination of
the relationship between national and local government,
and how this helps or hinders sustainable development.
Achieving Policy Breakthroughs – 21
Sustainable economy
The deepest recession since the 1930s has forced us to ask
some hard questions of our current economic system. Can
the pursuit of continuous growth driven by debt-dependent
material consumption ever produce the economic stability
and social wellbeing our society needs, or does the current
system make collapse inevitable? And is such a system
viable in the face of an unprecedented ecological crisis?
To open up policy and public debate on these issues, the
SDC published Prosperity without Growth? The transition
to a sustainable economy, in March 2009. Authored by
our Economics Commissioner, Professor Tim Jackson, this
groundbreaking report examines the problems caused by
our addiction to consumption-driven growth for society,
the environment, and the stability of the economy itself.
The report recognises that growth is clearly still vital to
deliver basic standards of living and well-being to millions
of people in developing countries, and the need for a
transition to a low-carbon economy in developed countries.
It sets out twelve steps for the transition to a new and
more sustainable economic system which does not rely
on increasing consumption for its stability; which puts
ecological limits at the heart of economic decision-making,
and in which Government helps to create the conditions for
people to flourish.
“The facts marshalled by the SDC speak for
themselves. The analysis is sound. The
conclusion is troubling. There does seem to
be something profoundly wrong about our
system’s addiction to economic growth…
The commission is to be congratulated for
its brave report, which deserves the widest
debate.”
Nicholas Schoon
Editor, The ENDS Report, April 2009
The report has joined Joseph Stieglitz’s Beyond GDP, the
work of the Sarkozy Commission, and many others in
helping to open up a serious dialogue about the nature
of the transition to a much needed sustainable economy.
Selected as one of the Financial Times’ Books of the Year for
20091, Prosperity Without Growth has been downloaded
over 10,000 times in the past six months, and widely
acclaimed worldwide. It has attracted much attention in
Westminster, where over 120 Government, business and
NGO representatives – including members of both Houses of
22 — Annual Report & Accounts 2009-10 – Sustainable Development Commission
Parliament – gathered to debate the challenges it raises in
November 2009. Briefings have also been held with many
Whitehall Departments including Defra, the Department for
International Development, the Department for Business,
Innovation and Skills and Her Majesty’s Treasury.
Prosperity Without Growth? also provoked great interest
in Scotland, with over 50 senior Government officials
attending an Edinburgh debate. In Northern Ireland, 150
key figures from the political, civil service and business
communities attended a debate at Queens University. In
Wales, we launched our recommendations ahead of a
government economic summit in Swansea, later holding
meetings with the Welsh Minister for the Economy and
Transport and senior Welsh Assembly Government officials.
Work has begun this year to take forward two of the
report’s key recommendations. The SDC is working with
Defra and Government economists to ensure full account is
taken of environmental limits in the revision of the “Green
Book” – the official guide to calculating the costs and
benefits of spending and investment. We are also helping
to review the current sustainability indicators, to see how
these could take better account of people’s wellbeing
rather than relying just on conventional measures of
economic performance and development.
The SDC also contributed to the debate around a green
stimulus package in 2009. Our Sustainable New Deal
identified the potential to create up to 800,000 jobs from
steady investment in a low-carbon recovery, in particular
by focusing on upgrading existing housing stock; scaling
up renewable energy supply and improving distribution;
promoting sustainable mobility; de-carbonising the public
sector and investing in skills for the future
SDC Scotland is continuing to focus on the steps necessary
to build a low carbon economic recovery, or a ‘Green
New Deal’ in Scotland. We use our convening role to
bring together a broad coalition of business, trade union,
academic and government organisations to bring the
widest range of expertise to the discussions.
In Northern Ireland too, we continue to work alongside
the Northern Ireland Green New Deal Group, whose
recommendations to Government cover housing, travel,
energy, industry and skills. We believe that taking this
agenda seriously could help develop a low-carbon
economy; create jobs and address inequality.
Sustainable lives
Millions of citizens are already making changes towards a
more sustainable lifestyle, but it can be hard to know which
changes have the most impact. We may recycle, insulate
our lofts and use fewer carrier bags, but what would truly
sustainable lifestyles look like? And how can Government
best support us in making the right choices?
A key to this is presenting a positive and accessible vision
for a sustainable future. In Sustainable Lives: What will
sustainable lifestyles look like?, SDC Commissioner Alan
Sustainable diets
What we eat has a huge impact both on our health and on
the environment. Around 18% of the UK’s greenhouse gas
emissions are related to food consumption and production,
whilst an estimated 70,000 premature deaths could be
avoided in the UK each year if our diets matched nutritional
guidelines.
In July 2009, the SDC published a seven-point plan for a
more sustainable food system, arguing that rocketing food
prices, accelerating climate change, and a growing number
of environmental crises show that sustainability is the only
basis for food security. This led to a commission from Defra
to examine how changing patterns of food consumption
are affecting our health and the environment. This research
led to the publication of Setting the Table: Advice to
government on priority elements of sustainable diets in
December 2009.
The SDC’s report concludes that a more environmentally
friendly diet would benefit our health, and that eliminating
waste, cutting fatty and sugary foods and reducing carbon-
intensive meat and dairy consumption are the most
important steps we can take.
Sustainable travel
With 29% of UK carbon emissions coming from transport,
encouraging more sustainable travel is another key
challenge. In our report Smarter Moves: How Information
Communications Technology can promote Sustainable
Mobility, published in January 2010, the SDC investigated
ways in which Information Communications Technology
(ICT) could help Government meet that challenge.
Knight sought to explore one such vision, where lifestyle
choices deliver both a fairer, greener world and a good
life. This paper put forward ten key principles for a more
sustainable lifestyle, with the aim of provoking debate
about the future we’re aiming for, and the kind of changes
needed to bring it about.
These principles were debated on the SDC’s online forum,
where members of the public were invited to comment on
key topics, and this work will inform our future projects.
Our evidence made sustainable diets a major theme of
Defra’s Food 2030 strategy, launched in January 2010,
and we are now ensuring that these recommendations
are taken forward through working with Defra, DH and the
Food Standards Agency. In Wales, our Food Commissioner
Tim Lang met the Rural Affairs Minister Elin Jones, and
we hosted a roundtable discussion with a broad range of
stakeholders to inform our advice to the Welsh Assembly
Government on a specific agenda for Wales.
“Defra’s Food 2030 Strategy recognises the
need for us to consume and produce food in
much more sustainable ways, as the SDC has
been advocating for many years. It clearly
acknowledges that we can’t continue as we
are if we want to address the challenges of
unhealthy diets, climate change and global
food security.”
Tim Lang
SDC Commissioner for Natural Resources and Land Use
We found significant evidence that ICT solutions could
help reduce carbon emissions by enabling eco-driving and
video-conferencing, and by using measures like Intelligent
Speed Adaptation. Improvements in air quality, reductions
in noise levels and the number of deaths caused by road
accidents could all be improved by innovations that are well
within reach in 2010.
Achieving Policy Breakthroughs – 23
In Northern Ireland, we made recommendations to the
Regional Development Committee inquiry into Sustainable
Transport, focusing on issues such as accessibility – both in
rural and socially disadvantaged urban areas; the efficiency
of existing forms of transport, and a shift towards active,
low-carbon travel in the form of walking and cycling. The
Department of Regional Development’s ongoing review of
the Northern Ireland Regional Transportation Strategy gave
us a further opportunity to give advice on these issues.
Tackling health inequalities
Sustainable lives are healthy lives, and in a fair society
these healthy lives must be available to all. However, the
sad fact is that health inequalities are widening. Climate
change in particular will pose major risks to health, risks
that will be faced disproportionately by the poorest
“The health and wellbeing of today’s children,
and of those children when they become
adults, depend on us having the courage and
imagination to do things differently, to put
sustainability and well-being before a narrow
focus on economic growth and bring about a
more equal and fair society.”
Sir Michael Marmot
University College London and
Author of Fair Society, Healthy Lives – The Marmot Review
Sustainable communities
SDC Scotland continued its support programme for
the community projects funded through the Scottish
Government’s Climate Challenge Fund (CCF). Focused
on year-round learning and networking activities, with
supporting online and printed guides, this programme
provides support at every stage for communities which
have been awarded funds, especially through sharing the
very latest thinking on how to create and sustain behaviour
change.
We evaluate the programme continuously to ensure it
remains valuable and relevant throughout the lifecycle
community projects. The feedback has been extremely
positive and our events are usually oversubscribed. The
pioneering work taking place in many of the CCF funded
24 — Annual Report & Accounts 2009-10 – Sustainable Development Commission
“Improving access and connectivity whilst
reducing the amount we need to travel would
be a major prize. The Smarter Moves report
provides new evidence and insights that will
help to shape strategic thinking in DfT and in
the transport policy community more widely.”
Graham Pendlebury
Director of Environment and International
Department for Transport
communities. These were some of the findings laid out
in Fair Society, Healthy Lives – The Marmot Review,
published in February 2010. This was the final report of an
investigation commissioned by the Secretary of State for
Health in November 2008 and led by Professor Sir Michael
Marmot of University College London. The SDC was closely
involved in contributing to the sustainable development
and built environment aspects of the review. We also
published this work as a stand-alone report, Sustainable
development: The key to tackling health inequalities.
The SDC’s report calls on Government to put more emphasis
on tackling the environmental and social root causes of
ill health, a focus which would also yield benefits in the
fight against climate change. The report recommends the
promotion of active travel and healthy eating as well as
increasing the amount of green space in lower-income
communities. Climate change emerged as one of the two
key messages from the Marmot Review.
“The Climate Challenge Fund has empowered
232 communities to tackle their carbon
emissions at local levels, which is now
estimated to be a carbon reduction equivalent
to 225,000 cars off the road. We believe that
tailored approaches reflecting local needs
deliver the best results and we have seen some
truly inspirational ideas brought to the table.”
Richard Lochhead
Cabinet Secretary for Rural Affairs and Environment
Scottish Government
communities is also an important lesson for us to bring into
the work on the Public Engagement Strategy under the
Climate Change (Scotland) Act.
SDC Scotland also provides secretariat support for the
Scottish Sustainable Development Forum (SSDF), and
this work provides an important link with communities
and businesses. The Forum is a focus for thinking and
Breakthroughs for the 21st Century
Convinced that the best ideas are often being put into
practice at local level all across the UK, the SDC ran a
year-long project to uncover and showcase innovative
ideas for real ‘breakthroughs’ towards sustainability. This
came to a head on 1 July 2009, when over 400 delegates
from Government, business, academia, think-tanks and
community organisations gathered in London for the SDC’s
Breakthroughs for the Twenty-First Century event, which
was addressed by HRH the Prince of Wales as well as by
key Ministers from Whitehall and the Welsh Assembly
Government.
Incredible edible communities
Pioneered in the town of Todmorden in West
Yorkshire, where businesses, schools, farmers and
the local community have been working together
to increase the amount of local food grown in both
public and private spaces and eaten in the town.
Greater Manchester Retrofit Plus
A scheme to future-proof Greater Manchester’s
homes while providing employment, skills and
long-term investment opportunities. Some of these
ideas have been taken forward in the SDC’s work on
neighbourhood retrofit.
action for a more sustainable Scotland. In the last year,
it has strengthened its online presence through a new
web forum, regular newsletters and a workshop support
package for members. Membership has more than
doubled as a result, and the Forum provided a wide-
ranging network for the Scottish Government to engage
stakeholders in discussions around the delivery plan for the
Climate Change (Scotland) Act.
Almost 300 ideas were submitted by a whole range of
organisations and individuals from across the UK. A shortlist
of 40 ideas were then tested with a wider audience, and a
final 19 breakthrough ideas in the areas of sustainable lives,
sustainable places and sustainable economy were given
centre stage at the July event and in the accompanying
report.
Our final breakthrough ideas included:
“We believe that local food is the door to a sustainable
lifestyle, and a trigger for greater engagement with the
big issues like climate change and health. It cuts across
age, income, race and class. In Todmorden, vegetables
and fruit are springing up everywhere. Public flower
beds are being transformed into community herb
gardens and vegetable patches.”
Pam Warhurst
Incredible Edible Todmorden
“This idea connects benefits for the local economy
with future-proofing Greater Manchester’s existing
housing stock, three quarters of which will still be in
use in 2050.”
Mike Reardon
Association of Greater Manchester Authorities
Achieving Policy Breakthroughs – 25
Outdoor experiences for all children in the UK
Reversing the trend of children growing up with
no access to the natural environment, to increase
their health, confidence and well-being, and their
understanding of the relationship between their
choices and the world around them.
Breakthroughs for the Twenty-First Century demonstrates
how many great ideas are already being put into action
around the UK, with individuals and organisations showing
commitment and creativity in responding to the challenge
of creating a more sustainable society. The SDC will
continue to use its convening role to bring the best ideas to
the attention of Government and business to ensure ideas
like these have the best support to bring about real change
quickly.
26 — Annual Report & Accounts 2009-10 – Sustainable Development Commission
“Young people need outdoor experiences to nurture
their wellbeing – but a growing number aren’t getting
any. This project is about reversing their ‘nature deficit’
by bringing them into frequent contact with the natural
world, with proper follow-up, helping them develop
the values, understanding and knowledge that
underpin sustainable lifestyles.”
Dr Kate Rawles and Dr Chris Loynes
University of Cumbria
Submitter of the ‘outdoor experiences’ idea
Meanwhile, the Scottish Green List, launched in April
2009 by the Scottish Sustainable Development Forum in
partnership with SDC Scotland, proved hugely successful.
Celebrating 50 inspirational individuals and the work they
have done to make Scotland more sustainable, the final list
was published over four days in the Scotsman newspaper,
and individuals listed have reported a considerable increase
in the attention and interest their ideas have received as a
result.
 Governance
The Sustainable Development Commission Limited (SDC
Ltd.) is an executive non-departmental public body (NDPB)
established as a private company limited by guarantee to
be the Government’s independent advisor on sustainable
development and which was incorporated on 22 January,
2009. Prior to its incorporation, the SDC was an advisory
agency of Defra. Its functions relate to all parts of the United
Kingdom, and therefore, it addresses matters which are the
responsibility of the UK Government and matters which are
the responsibility of the Devolved Administrations.

Corporate Governance Framework

The SDC Ltd Corporate Governance Framework is the overarching governance document that ensures SDC Ltd aligns with
government guidance on transparency and accountability for non-departmental public bodies as well as taking a robust
approach to risk management.

Governance arrangements

The SDC Ltd is governed by its Board which is supported by the Audit Committee and the Commission, the latter comprises
the Chairman and a number of Commissioners recruited as public appointments and appointed by the Prime Minister.

Board

The SDC Ltd’s Board provides strategic oversight and direction to the organisation. The Board is specifically responsible for:

• establishing and taking forward the strategic aims
and objectives of SDC Ltd consistent with its overall
strategic direction and within the policy and resources
framework determined by the Secretary of State and
relevant ministers in the Devolved Administrations
• ensuring that the work programmes in all parts of the
UK are completed effectively and economically within
available resources and in accordance with the grant-
in-aid provision from each sponsor department
• ensuring that the responsible ministers are kept
informed of any changes which are likely to impact on
the strategic direction of SDC Ltd or on the attainability
of its targets, and determining the steps needed to
deal with such changes
• ensuring that any statutory or administrative
requirements for the use of public funds are complied
with; that the Board operates within the limits of
its statutory authority and any delegated authority
agreed with the sponsor departments, and in
accordance with any other conditions relating to the
use of public funds; and that, in reaching decisions,
the Board takes into account guidance issued by the
sponsor departments
• ensuring that the Board receives and reviews regular
financial information concerning the management
of SDC Ltd; is informed in a timely manner about any
concerns about the activities of SDC Ltd; and provides
positive assurance to the sponsor departments that
appropriate action has been taken on such concerns
• demonstrating high standards of corporate governance
at all times, including by using the independent audit
committee to help the Board to address key financial
and other risks.
The Members of the Board to 31 March 2010 were:
Jonathon Porritt – Chair (to 26 July 2009)
Will Day – Chair (from 27 July 2009)
Jan Bebbington – Vice Chair, Scotland
Peter Davies – Vice Chair, Wales
Tess Gill – Commissioner for Work, Skills and Health
Andrew Lee – Chief Executive.

Governance — 27
On 1 April 2010 two new Board members were appointed Paul Rew – Non-executive Director
in accordance with the provisions for the appointment of John Schultz – Non-executive Director
non-executive directors in Articles 10 and 11 of SDC Ltd’s
Memorandum of Association and not under the Companies
Act.

Audit Committee

The Sustainable Development Commission Ltd’s Audit
Committee supports the Board and the Chief Executive (as
Accounting Officer) in the discharge of his responsibilities
for the management of resources and assets, audit
arrangements, risk management, internal control,
governance and associated assurance. The Chair of the
Audit Committee submits a written report to the Board after
each Audit Committee and presents an annual report to the
Board.
The Members of the Audit Committee to March 2010 were:
Jan Bebbington – Chair
Peter Davies – Vice Chair, Wales
Tess Gill – Commissioner for Work, Skills & Health
From April, 2010 Paul Rew joined the Audit Committee
and in June assumed the role of Chair of the Committee.
The previous Chair, Jan Bebbington remains a Member of
the Committee. The current Members are:
Paul Rew – Chair
Jan Bebbington – Vice Chair, Scotland
Peter Davies – Vice Chair, Wales
Tess Gill – Commissioner for Work, Skills & Health
The Chief Executive is not a member of the Committee
but attends its meetings, as does the Director of Corporate
Resources, Defra Sustainable Development Unit partners
and representatives of SDC Ltd’s internal auditors (Moore
Stephens) and external auditors (National Audit Office).

Commissioners

The role of Sustainable Development Commissioners is to creative, evidence-based advice to Ministers, Government
use their knowledge and experience to steer and inform Departments, the Devolved Administrations, and the rest of
the work areas of the SDC Ltd and to be ambassadors for the public sector in the UK.
the SDC Ltd. They are also appointed to provide a source of

Management Team

The members of the Management Team during 2009-10 were:

Chief Executive – Andrew Lee

Director, Corporate Resources – Anne Moore to 2 September 2009

Maf Smith (Interim) 2 September 2009 to 1 February 2010
Geoff Gibbs from 1 February 2010

Director, Scotland – Maf Smith

Director, Policy and Research – Sue Dibb & Jake Reynolds (Interim) to 2 December 2009
Shirley Rodrigues from 2 December 2009

Director, Sustainable Development in Government – Minas Jacob (Interim and then permanent from 15 January)

28 — Annual Report & Accounts 2009-10 – Sustainable Development Commission

 Directors’ Report
for the period 1 February 2009 to 31 March 2010
Principal Activities
The Sustainable Development Commission Ltd holds
Government to account to ensure the needs of society, the
economy and the environment are properly balanced in the
policy decisions it makes and the way it runs itself.
We are the only organisation charged with reporting
publicly, independently and impartially on the extent to
which Government decisions contribute towards a fair,
healthy and prosperous future for everyone.
Structure
The SDC Ltd is an executive non-departmental public
body (NDPB) established as a private company limited by
guarantee to be the Government’s independent advisor
on sustainable development and which was incorporated
on 22 January, 2009. Prior to its incorporation, the SDC
The Sustainable Development Commission Limited
The SDC Ltd has five members: The Secretary of State for the
Environment, Food and Rural Affairs; The First Minister for
Wales; The First Minister for Scotland; The First Minister for
Northern Ireland; and the Deputy First Minister for Northern
Ireland.
The Board of the Company is comprised of six Directors:
a Chairman; a person appointed by the Secretary of State
for the Environment, Food and Rural Affairs; a person
appointed by the First Minister for Wales; a person
Financial results
The results for the period ending 31 March 2010 are given
in the financial statements on pages 35 and 36.
In its first accounting period as a private limited company,
the SDC Ltd aimed to break even. At the end of the fourteen
month period, the accounts show a surplus of £26,508 after
taking grant in aid received into account.
We are jointly owned by the UK Government, the Scottish
Government, the Welsh Assembly Government and the
Northern Ireland Executive, reporting directly to the Prime
Minister and First and Deputy First Ministers.
The SDC has existed under this name since 2000 when
it took on the roles previously performed by the British
Government Panel on Sustainable Development and the
UK Round Table on Sustainable Development which were
established in 1994 and 1995 respectively.
was an advisory agency of Defra. Its functions relate to all
parts of the United Kingdom, and therefore, it addresses
matters which are the responsibility of the UK Government
and matters which are the responsibility of the Devolved
Administrations.
appointed by the First Minister for Scotland; a person
appointed by the First Minister and Deputy First Minister for
Northern Ireland; and the Chief Executive.
A Register of Interests is maintained for The Sustainable
Development Commission Limited Directors and
Commissioners.
The details of the Board of Directors and Commissioners are
shown on pages 9-11.
Directors’ Report — 29
Review of activities during the financial year and developments for the future
A review of SDC Ltd’s activities appears on pages 5 to 26.
As noted in the Introduction from the Chairman and
Chief Executive, the Secretary of State for Environment,
Food and Rural Affairs announced on 22 July 2010 that
funding for the main part of SDC Ltd’s operations based
in Whitehall would cease at the end of the financial year
ending 31 March 2011. As a consequence, SDC Ltd revisited
its 2010-11 business plan with the view to either ceasing
those functions or transferring them to other government
departments by that date. Discussions are also in progress
with the Devolved Administrations to determine the future
1 Our people supported
The staff of SDC Ltd will be treated fairly and given
opportunity, advice and support to find new roles in
Government (as part of the new arrangements for
sustainable development) or elsewhere.
2 The future for sustainable development in
Whitehall assured
New arrangements for sustainable development in
Whitehall will be established (especially in Defra, the
Environmental Audit Committee and the Cabinet Office)
to ensure a credible and effective continuation of work
on sustainable development. SDC Ltd will work to
support maximum benefit and knowledge transfer from
SDC Ltd whilst it is still in existence.
3 Sustainable development maintained across the UK
There will be a smooth transition to new sustainable
development arrangements (once decided) in Scotland,
Wales and Northern Ireland. We will also want to ensure
some form of mechanism for sharing best practice and
resources across the four nations is in place.
30 — Annual Report & Accounts 2009-10 – Sustainable Development Commission
of activities currently performed by SDC Ltd for them and
of the offices based in Edinburgh, Cardiff and Belfast.
Dependent upon the outcome of those discussions, the
activities of SDC Ltd will either have ceased completely or
been radically reduced by the end of the current financial
year.
In these circumstances, SDC Ltd considers that its revised
business plan will identify and meet the needs of the
transition. SDC Ltd and Defra have agreed the following
outcomes that will govern the transition:
4 Our legacy secured
The current SDC Ltd Whitehall work programme will
be brought to a close by the end of 2010-11 with exit
strategies and/or handover agreed with UK Government
departments as appropriate.
5 Our knowledge preserved
The intellectual capital of SDC Ltd will be safeguarded,
made freely available and managed in perpetuity by
one or more other institutions.
6 Efficient and responsible wind-up
There will be an orderly and business-like wind-up,
which minimises the overall costs and financial liabilities
but is consistent with the other five outcomes.
Funding and Going Concern Basis of Accounting
The decision to withdraw funding by Defra, which will lead
to reduction or cessation of SDC Ltd’s activities, was taken
subsequent to the end of the 2009-10 financial year.
However these events now mean that SDC Ltd is no longer
a going concern and the accounts for 2009-10 have been
finalised on a break up basis. The impact of this decision
is significant and will give rise to considerable additional
liabilities, particularly in respect of the costs of redundancy.
Defra have undertaken that they will take on liability for
those extra costs which are conferred on SDC Ltd from its
Employees
The average number of persons employed by the company
during the period was 49.
decision to withdraw future funding and which cannot
be met from SDC Ltd’s 2010-11 budget. Defra have also
undertaken to discuss with colleagues in the Devolved
Administrations how to manage/share any liabilities
arising from their own decisions relating to SDC Ltd.
Based on these developments, the directors of SDC Ltd
have concluded that a break up basis should be adopted in
preparing the financial statements for the years ended 31
March 2010 and 31 March 2011.
Auditor’s appointment
Following status change, the Comptroller and Auditor
General (C&AG) was appointed to carry out SDC Ltd’s first
external audit in in relation to the fourteen month period
from 1 February 2009 to 31 March 2010.
Directors’ Report — 31
Statement of Directors’ Responsibilities
The Secretary of State of Defra has directed SDC Ltd to
prepare for each financial year a statement of accounts in
the form of abbreviated accounts under the Companies
Act which must conform to the accounting principles
and disclosure requirements of the Financial Reporting
Standards for Smaller Entities (FRSSE) (effective from April
2008). Company law also requires the Directors to prepare
financial statements for each financial year.
The Accounting Officer for Defra has designated the Chief
Executive of SDC Ltd as the Accounting Officer of SDC Ltd.
The responsibilities of an Accounting Officer, including
responsibility for the propriety and regularity of public
finances for which the Accounting Officer is answerable,
for keeping proper records and for safeguarding SDC Ltd’s
assets, are set out in Managing Public Money published by
HM Treasury.
The financial statements are required by law, the Accounts
Directive and the FRSSE to give a true and fair view of the
state of affairs and of the surplus or deficit of the Company
for that period. In preparing these financial statements, the
Directors are required to:
• Select suitable accounting policies and then apply
them consistently
• Make judgements and estimates that are reasonable
and prudent
Statement from Directors
At the time this Report is approved, the Directors are satisfied that:
• The Report has been prepared in accordance with the
provisions applicable to small companies’ regime;
• There is no relevant audit information of which the
auditors are unaware; and
Approved by the Board of SDC Ltd. and signed on its behalf by:
Andrew Lee
Chief Executive Officer
16 November 2010
Company registration no.6798740
32 — Annual Report & Accounts 2009-10 – Sustainable Development Commission
• State whether applicable accounting standards have
been followed, subject to any material departures
disclosed in the financial statements
• Prepare the financial statements on a going concern
basis unless it is inappropriate to presume that the
company will continue in business.
The Directors are responsible for keeping proper accounting
records which disclose with reasonable accuracy at any
time the financial position of the Company and enable
them to ensure that the financial statements comply with
the Companies Act 2006 and the Accounts Directives. They
are also responsible for safeguarding the assets of the
Company and hence for taking reasonable steps for the
prevention and detection of fraud and other irregularities.
Insofar as the Directors are aware:
• there is no relevant audit information of which the
Company’s auditors are unaware; and
• the Directors have taken all steps necessary to make
themselves aware of any relevant audit information
and to establish that the auditors are aware of that
information.
The Directors are responsible for the maintenance and
integrity of the corporate and financial information included
on the Company’s website. Legislation in the United
Kingdom governing the preparation and dissemination of
financial statements may differ from legislation in other
jurisdictions.
• The Directors have taken all necessary steps that
they ought to have taken as Directors to make
themselves aware of any relevant audit information
and to establish that the auditors are aware of this
information.
 Auditor’s Report
Independent Auditor’s Report to the Directors of the Sustainable
Development Commission Limited

I have audited the financial statements of The Sustainable
Development Commission Limited (“SDC Ltd”) for the
period ended 31 March 2010 which comprise the Profit and
Loss Account, the Balance Sheet and related notes.
The financial reporting framework that has been applied
in their preparation is applicable law and the Financial
Reporting Standard for Smaller Entities (effective April
2008) (United Kingdom Generally Accepted Accounting
Practice applicable to Smaller Entities).

Respective responsibilities of directors and auditors

As explained more fully in the Statement of Directors’
Responsibilities, the directors are responsible for
the preparation of the financial statements and for
being satisfied that they give a true and fair view.
My responsibility is to audit the financial statements in
accordance with applicable law and International Standards
on Auditing (UK and Ireland). Those standards require me
and my staff to comply with the Auditing Practices Board’s
Ethical Standards for Auditors.

Scope of the audit of the financial statements

An audit involves obtaining evidence about the amounts
and disclosures in the financial statements sufficient to
give reasonable assurance that the financial statements
are free from material misstatement, whether caused by
fraud or error. This includes an assessment of: whether
the accounting policies are appropriate to the company’s
circumstances and have been consistently applied and
adequately disclosed; the reasonableness of significant
accounting estimates made by the directors; and the overall
presentation of the financial statements.
In addition, I am required to obtain evidence sufficient to
give reasonable assurance that the expenditure and income
reported in the financial statements have been applied
to the purposes intended by Parliament and the financial
transactions conform to the authorities which govern them.

Opinion on financial statements

In my opinion:

• the financial statements give a true and fair view of • the financial statements have been prepared in
the state of the company’s affairs as at 31 March 2010 accordance with the requirements of the Companies
and of its profit for the period then ended; Act 2006.

• the financial statements have been properly prepared

in accordance with United Kingdom Generally Accepted
Accounting Practice applicable to Smaller Entities; and

Auditors Report — 33
Opinion on Regularity
In my opinion, in all material respects the expenditure and
income have been applied to the purposes intended by
Parliament and the financial transactions conform to the
authorities which govern them.
Opinion on other matter prescribed by the
Companies Act 2006
In my opinion the information given in the Directors’ Report
for the financial year for which the financial statements are
prepared is consistent with the financial statements.

Matters on which I am required to report by exception

I have nothing to report in respect of the following matters where the Companies Act 2006 requires me to report to you if, in
my opinion:

• adequate accounting records have not been kept; or
• the financial statements are not in agreement with the
accounting records and returns; or
• certain disclosures of directors’ remuneration specified
by law are not made; or
• I have not received all the information and
explanations we require for my audit; or
• the directors were not entitled to prepare the financial
statements and the directors’ report in accordance
with the small companies regime.

Amanda Measures Senior Statutory Auditor

Date

for and on behalf of the

Comptroller and Auditor General (Statutory Auditor)
157-197 Buckingham Palace Road
Victoria, London SW1W 9SP

34 — Annual Report & Accounts 2009-10 – Sustainable Development Commission

 Financial Statements
Profit and Loss Account

Notes 1 February 2009 to 31 March 2010

Turnover 1 5,851,687

Cost of sales (3,720,410)

Gross Profit/(Loss) 2,131,277

Administrative expenses (2,104,769)

Operating Profit/(Loss) 2 26,508

Profit/(loss) for the year 26,508

No statement of total recognised gains and losses is given as all gains or losses for the period passed
through the profit and loss account.

The notes on pages 37 to 43 form part of these financial statements.

Financial Statements — 35
Balance Sheet as at 31 March 2010

Note 31 March 2010

£ £

Fixed Assets

Tangible Assets 4 8,920

Current assets

Debtors 5 520,321

Cash at bank and in hand 650,939

1,171,260

Creditors

Amounts falling due within one year 6 (1,112,965)

Net current assets 58,295

Total assets less current liabilities 67,215

Reserves

Profit and Loss account 26,508

Capital Contribution 7 40,707

Equity 67,215

These accounts have been prepared in accordance with the special provisions relating to small companies within Part 15
of the Companies Act 2006 and with the Financial Reporting Standard for Smaller Entities (effective April 2008).

Approved by the Board: 16 November 2010

Signed on behalf of the Board of Directors

Will Day Andrew Lee

Chair Chief Executive Officer

36 — Annual Report & Accounts 2009-10 – Sustainable Development Commission

 Notes to the
Financial Statements
1 Principal Accounting Policies
Basis of preparation
The financial statements are intended, without limiting the
information given, to conform with the requirements of the
Companies Act 2006 and the Financial Reporting Standard
for Smaller Entities (effective April 2008).
The accounts follow the accruals concept of accounting, and
have been prepared under the historical cost convention.
They have been prepared on a break up basis as SDC Ltd
is not deemed to be a going concern (see further details
below).
Funding and Going Concern Basis of Accounting
The decision to withdraw funding by Defra, which will lead
to reduction or cessation of SDC Ltd’s activities, was taken
subsequent to the end of the 2009-10 financial year.
However these events now mean that SDC Ltd is no longer
a going concern and the accounts for 2009-10 have been
finalised on a break up basis. The impact of this decision
is significant and will give rise to considerable additional
liabilities, particularly in respect of the costs of redundancy.
Defra have undertaken that they will take on liability for
those extra costs which are conferred on SDC Ltd from its
decision to withdraw future funding and which cannot
be met from SDC Ltd’s 2010-11 budget. Defra have also
undertaken to discuss with colleagues in the Devolved
Administrations how to manage/share any liabilities
arising from their own decisions relating to SDC Ltd.
Based on these developments, the directors of SDC Ltd
have concluded that a break up basis should be adopted in
preparing the financial statements for the years ended 31
March 2010 and 31 March 2011.
The terms and conditions of the schemes under which
redundancy would be paid are not yet agreed but the
maximum liability based on uncapped unrestricted figures
is estimated at £1.3m.
Turnover
The principal form of income is grant-in-aid received
from Defra. This is treated as income in the accounts
as it is provided to enable SDC Ltd to provide services
which support the delivery of its objectives. The bulk of
the remaining turnover is core funding from the Scottish
Executive, the Welsh Assembly Government and the Office
of the First Minister and Deputy First Minister, Northern
Ireland.
The remainder of the turnover is in the form of
contributions to project work.
Turnover is stated net of VAT and trade discounts.
Share Capital
SDC Ltd is a company limited by guarantee and as such has
no share capital.
Tangible Fixed Assets
The minimum level of capitalisation is £2,000.
Depreciation is provided on all tangible fixed assets at rates
calculated to write off the cost or valuation of each asset by
the straight line method over the estimated useful life of
the asset and is charged in the month of disposal but not
in the month of purchase. Depreciation is not charged on
assets declared surplus to requirements. Lives are normally
in the following ranges:
Information technology 2 to 12 years
Office Equipment 5 to 11 years
Fixed assets costing less than £2,000 are charged to the
profit and loss account in the year of purchase. Impairment
costs of £21,089 have been included in administrative
expenses in respect of writing down fixed assets to
estimated net realisable value.
Notes to the Financial Statements — 37
Taxation
SDC Ltd is not trading with a view to profit and HM Revenue
and Customs has confirmed it has no liability for Corporation
Tax.
Foreign Exchange
Assets and liabilities in foreign currencies are translated
into sterling at the rates of exchange ruling at the balance
sheet date. Transactions in foreign currencies are translated
into sterling at the rate ruling at the date of the transaction.
Exchange differences are recognised in the profit and loss
account.
Leasing
Rental costs arising in respect of operating leases are
charged to the profit and loss account over the life of each
lease.
Pension costs
Principal Civil Service Pension Scheme (PCSPS)
Pension benefits for most employees of the SDC Ltd are
provided through the PCSPS. The PCSPS is an unfunded
multi–employer defined benefit scheme. SDC Ltd is unable
to identify its share of the underlying assets and liabilities.
The scheme actuary valued the scheme as at 31 March
2007. Details can be found in the Resource Accounts of the
Cabinet Office: Civil Superannuation.
For the period 1 February 2009 to 31 March 2010,
employer‘s contributions of £352,347 were payable to the
PCSPS at one of four rates in the range 16.7% to 24.3%
of pensionable pay, based on salary bands. The Scheme
Actuary reviews employer contributions usually every four
years following a full scheme valuation. From 2010–11, the
rates will be in the range 16.7% to 24.3%. The contribution
rates are set to meet the cost of the benefits accruing
during 2009–10 to be paid when the member retires,
and not the benefits paid during this period to current
pensioners.
38 — Annual Report & Accounts 2009-10 – Sustainable Development Commission
Other Pension Schemes
Employees can opt to open a partnership pension account,
a stakeholder pension with an employer contribution.
Employer‘s contributions of £15,600 for the period were
paid to one or more of the panel of three appointed
stakeholder pension providers. Employer contributions are
age–related and range from 3% to 12.5% of pensionable
pay. Employers also match employee contributions up to
3% of pensionable pay. In addition, employer contributions
of £841 for 2009–10, 0.8% 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 date
were £30,682. Contributions prepaid at that date were nil.
The current rate of SDC Ltd’s contributions is based on the
employee’s Full Time Equivalent (FTE) salary according to
the bands listed below.
Band 1 £19,500 and under 17.1%
Band 2 £19,501 to £40,500 19.5%
Band 3 £40,501 to £69,000 23.2%
Band 4 £69,001 and over 25.5%
The Chair is not entitled to a pension scheme.
SDC Ltd’s contributions to pension schemes for the period
are charged to the profit and loss account in the year.
Disclosure on Government Grants
Grant-in-aid received to support revenue expenditure is
credited to income in the profit and loss account for the year
to which it relates. Grants received outside of grant-in-aid
are matched to the corresponding project expenditure in
the year in which it is incurred. SDC Ltd does not receive
grant-in-aid for capital expenditure.
2 Operating Profit (Loss)

The operating profit (loss) is stated after charging:

For the period 1 February 2009

to 31 March 2010

£
Depreciation of tangible fixed assets 31,787

Auditor’s remuneration 40,000

Directors’ emoluments 134,321

Pension costs 368,788

3 Directors’ Emoluments

For the period 1 February 2009

to 31 March 2010

Directors’ emoluments 108,574

(includes salaries, fees, bonuses, expense allowance &
estimated non-cash benefits receivable)

Company contributions to money purchase schemes 25,747

in relation to Directors’ pensions

Total 134,321

Notes to the Financial Statements — 39

4 Tangible Fixed Assets

IT Equipment Office Equipment Total

£ £ £

Value of fixed assets transferred in

3,900 51,118 55,018
as at 1 February 2009 and as at 31 March 2010

Depreciation

On transferred fixed assets at 1 February 2009 596 13,715 14,311

Charge for the year 895 9,803 10,698

Impairment 989 20,100 21,089

At 31 March 2010 2,480 43,618 46,098

Net Book Values

At 31 March 2010 1,420 7,500 8,920

At 1 February 2009 3,304 37,403 40,707

On change of status and incorporation, SDC Ltd took over from Defra, IT and office equipment with a net book value of
£40,707. There were no disposals during the period. Following the decision that the SDC Ltd was not a going concern, the
fixed assets were written down to their likely realisable values as at 31 March 2011, the intended date of disposal.

5 Debtors

31 March 2010

£
Due within one year

Trade debtors 520,321

520,321

40 — Annual Report & Accounts 2009-10 – Sustainable Development Commission

6 Creditors – amounts falling due within one year

31 March 2010

£
Trade creditors 463,760

Other creditors 547,312

Taxation and social security 101,893

1,112,965

7 Capital Contribution

On transfer of the activities from Defra to SDC Ltd on 1 a Capital Contribution within Reserves at an amount
February 2009, certain fixed assets used in the business equivalent to their net book value at the time of £40,707.
were also transferred and have been accounted for as

8 Contingent Liabilities

SDC Ltd had no contingent liabilities at 31 March 2010.

9 Commitments

Capital Commitments

SDC Ltd had no capital commitments at 31 March 2010.

Lease commitments (operating leases)

Buildings Office Equipment

31 March 2010

£ £
Operating Leases which expire:

Within one year 1,697

Within 2 to 5 years 326,277

Notes to the Financial Statements — 41

10 Related Party Transactions

The company receives its grant-in-aid funding from the Department of Environment, Food and Rural Affairs (Defra) and
core and project funding from the Welsh Assembly Government, Scottish Government and Northern Ireland Executive.
The total transactions between the company and those bodies were as follows:

1 February 2009 to 31 March 2010

Organisation Grant-in-aid Project funding Services purchased from SDC

£ £ £
Defra 3,773,032 34,783 854,790

Scotland 343,551 330,375 39,123

Wales 251,942 10,000 0

Northern Ireland 140,100 0 0

Transactions with parties related to Commissioners were as follows:

1 February 2009 to
Individual Commissioner Position Organisation 31 March 2010

Alice Owen Associate Director Ove Arup and Partners Ltd 41,066

Jonathan Porritt Founder Director Forum for the Future 21,179

BT Leadership Panel
Jonathan Porritt Chairman of Panel
(BT in general)
5,771
Peter Davies Member of Panel BT Wales Advisory Panel

Will Day Ambassador WWF UK 5,000

Anna Coote Head of Public Sector Policy New Economics Foundation 2,000

Ann Finlayson CEO SEEd 1,080

Bernie Bulkin Member Green Alliance

Rebecca Willis Associate Green Alliance 287

Tim Jackson Member Green Alliance

Jonathan Porritt President Sustainability South West 160

Total 76,543

42 — Annual Report & Accounts 2009-10 – Sustainable Development Commission

11 Post Balance Sheet Events – Future Trading and the Current Economic Environment
As a result of the Ministerial announcement on 22 July
2010, stating that Defra was withdrawing its funding from
SDC Ltd at the end of the 2010-11 financial year, there is
now no likelihood that the Whitehall part of SDC Ltd will
continue in financial year 2011-12. The remaining three
members (the devolved administrations) are reviewing
12 Ultimate Controlling Party
The SDC Ltd is a private company limited by guarantee.
Its members, who act as guarantors, are the four
administrations:
• Defra
• The Welsh Assembly Government
• The Scottish Government
• The Northern Ireland Executive.
their own operations and funding arrangements in the
light of that announcement. Dependent upon the outcome
of those reviews, the activities of SDC Ltd will either have
ceased completely or been radically reduced by the end of
the 2010-11 financial year.
Funding is received from all four Governments but
the major sponsoring body is Defra who in 2009-2010
contributed over three quarters of the core funding from
the four administrations. For this reason Defra is considered
to be the ultimate controlling party.
43
The Sustainable Development Commission Limited Offices

London Registered office Belfast office

The Sustainable Development Commission Limited The Sustainable Development Commission Limited
Northern Ireland
55 Whitehall
Room E5.11
London SW1A 2EY
Castle Buildings
Tel 0300 068 6305; Fax 0300 068 6306
Stormont Estate
www.sd-commission.org.uk
Belfast BT4 3SR
028 9052 0196
Scotland office
The Sustainable Development Commission Limited Scotland
Cardiff office
Osborne House
The Sustainable Development Commission Limited Wales
1 Osborne Terrace
University of Wales
Edinburgh EH12 5HG
University Registry
Tel 0131 625 1880; Fax 0131 625 1889
King Edward VII Ave
Cardiff CF10 3NS
029 2037 6956

The Sustainable Development Commission Limited Information

Secretary Andrew Lee

Company registration no. 6798740

Auditor Comptroller and Auditor General

157-197 Buckingham Palace Road
London SW1W 9SP

Bankers Barclays Bank PLC

25 James Street, Harrogate HG1 1QX

Endnotes
1 FT, 29 November 2009, www.ft.com/cms/s/2/2fb47d30-dae5-11de-933d-00144feabdc0.html – the commercially published version of Prosperity without
Growth, published by Earthscan, was selected as one of the FT’s 16 Business and Economics Books of the Year.

44 — Annual Report & Accounts 2009-10 – Sustainable Development Commission

 Low Carbon Wales Regional Priorities for Action
The Sustainable Development Commission is the
Government’s independent watchdog on sustainable
development, reporting to the Prime Minister, the First
Ministers of Scotland and Wales and the First Minister and
Deputy First Minister of Northern Ireland.
Through advocacy, advice and appraisal, we help put
sustainable development at the heart of Government policy.

www.sd-commission.org.uk
England
(Main office)
55 Whitehall
London SW1A 2HH

Low
0300 068 6305
enquiries@sd-commission.org.uk

Scotland
Osborne House

Carbon
1 Osborne Terrace
Edinburgh EH12 5HG
0131 625 1880
Scotland@sd-commission.org.uk
www.sd-commission.org.uk/scotland

Wales
Room 1, University of Wales
University Registry
King Edward VII Avenue
Cardiff CF10 3NS
Wales
029 2037 6956 Regional Priorities for Action
Wales@sd-commission.org.uk
Sustainable Development Commission

www.sd-commission.org.uk/wales

Northern Ireland
Room E5.11, Castle Buildings
Stormont Estate,
Belfast BT4 3SR
028 9052 0196
N.Ireland@sd-commission.org.uk
www.sd-commission.org.uk/northern_ireland