The Productivity Commission was asked to report on the Implementation of Ecologically Sustainable Development (ESD) by Commonwealth Departments and Agencies. The inquiry was to cover all Commonwealth departments and agencies with major responsibility for implementing EDS, or whose activities have significant consequence for its achievement. The terms of reference for the inquiry stated that 'the Government is keen to ensure Commonwealth departments and agencies show leadership in the processes by which economic, social and environmental goals are integrated'. The Commission has been requested to make recommendations designed to further implement the objectives and principles of the National Strategy for Ecologically Sustainable Development. The Commission found that there are numerous impediments to better implementation of ESD, including lack of clarity regarding what ESD means for government policy.