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Preparing for Net Zero Goals in Public Procurement


Essential strategies for sustainable purchasing in the UK public sector as contracts align with net zero targets. Learn how suppliers and government agencies are adapting to new requirements and driving change across industries.


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The Imperative of Net Zero in Public Procurement


Ambitious National Targets

The UK government has legally committed to reaching net zero emissions by 2050, making public procurement a critical driver for achieving this nationwide transformation.

Mandatory Supplier Requirements

All suppliers bidding for major government contracts (over £5 million) must now demonstrate their commitment to net zero through detailed Carbon Reduction Plans and clear implementation strategies.

Growing Investment Impact

Public sector commitment is evidenced by over £559 million invested in net zero contracts during 2021, signalling strong market opportunities for sustainable suppliers.

Economic Growth Potential

Strategic green public procurement is projected to generate £6 trillion in GDP growth through 2050, creating substantial opportunities for innovative businesses while advancing sustainability goals.

Understanding Public Procurement Notices (PPN 06/21)



PPN 06/21 Overview

Landmark procurement policy mandating carbon reduction requirements for major government contracts, affecting all central government departments, executive agencies, and non-departmental public bodies

Key Requirements

Suppliers must demonstrate a clear commitment to Net Zero by 2050, publish a comprehensive Carbon Reduction Plan detailing their scope 1, 2, and 3 emissions, and outline specific decarbonization strategies

Implementation Date

Policy enforcement began 30 September 2021, requiring all new qualifying procurement contracts to include detailed environmental considerations and carbon reduction commitments

Strategies for Carbon Reduction in Procurement

Implementing Carbon Reduction Plans

Key elements include baseline emissions data, reduction targets, planned initiatives, and implementation timelines. Regular monitoring and reporting are crucial for tracking progress and identifying areas for improvement.

Sustainable Procurement Practices

Set minimum environmental standards, use whole-life costing, prioritize eco-labelled products, and encourage low-carbon innovation. Train staff on sustainable procurement principles and work closely with sustainability experts.

Encouraging Supplier Engagement

Host supplier workshops, offer incentives for meeting sustainability targets, provide resources on emissions reporting, and facilitate knowledge-sharing between suppliers. Build long-term partnerships to drive continuous improvement.

Integrating Social Value into Procurement


Social Value Frameworks

Guide buying choices with goals for local jobs, fair wages, and community support. Some frameworks use point systems to compare bids based on social benefits.

Environmental Factors

Consider carbon impact, recycled materials, eco-friendly delivery, and energy efficiency. Some buyers request carbon footprint reports to compare options.

NHS Example

The NHS has set net zero goals for its procurement, looking at the carbon impact of products and services across its supply chain.

Assessing Carbon Footprints in Supply Chains

1

Scope 3 Value Chain Emissions

Represent up to 80% of total corporate emissions impact

2

Strategic Supplier Engagement

Build partnerships to ensure accurate emissions reporting

3

Science-Based Targets

Establish clear, measurable carbon reduction pathways

4

Digital Assessment Solutions

Deploy standardized tools for consistent measurement

By implementing these comprehensive assessment strategies, organizations can effectively measure and analyze their supply chain emissions, enabling data-driven procurement decisions and accelerating progress toward ambitious net zero commitments. Regular monitoring through these frameworks helps identify high-impact reduction opportunities and validate supplier performance.

 Role of Central Government in Driving Change

Set Targets and Policies

Establish clear, measurable carbon reduction targets and develop comprehensive policies to ensure accountability across public sector organizations

Create Action Plans

Design detailed roadmaps with specific milestones, timelines, and responsibilities for reducing emissions throughout operations and procurement

Provide Funding

Allocate dedicated resources and create incentive programs to accelerate adoption of sustainable practices and clean technologies

 

Establish Standards

Implement rigorous procurement criteria and compliance frameworks that prioritize suppliers committed to carbon reduction and sustainability

 

Effective Contract Management

Clean Technologies

Adopt electric vehicles, energy-efficient systems, and low-carbon building materials

Research Investment

£4.2 billion planned for net zero research and innovation from 2022-2025

Innovation Focus

Develop renewable energy, energy storage, sustainable transport, and carbon capture technologies

Energy Efficiency and Renewable Energy Applications

Renewable Energy Transition

Shift to solar, wind, and biomass power sources

Electric Vehicle Integration

Replace petrol and diesel fleets with EVs

Energy Efficiency Upgrades

Implement LED lighting, smart building systems, and insulation improvements

Heat Pump Adoption

Replace gas boilers with efficient heat pump systems

Decarbonising Transport and Industrial Sectors

Electric Vehicle Integration

  • 2030 ban on new petrol and diesel car sales
  • Expanding charging infrastructure
  • Transitioning delivery and bus fleets to electric

Industrial Emission Reduction

  • Carbon capture and storage technology
  • Low-carbon hydrogen production
  • Electrification of industrial processes
  • Aim for first net zero industrial cluster by 2040


Frequently Asked Questions


Public organisations face several key questions when aligning procurement with net zero goals. These include developing carbon reduction plans, implementing supplier roadmaps, and adopting frameworks for net zero strategies.


Public bodies can take several steps to align procurement with net zero goals.

They can require Carbon Reduction Plans from suppliers bidding for major contracts. This ensures suppliers commit to achieving net zero by 2050.

Organisations can also set sustainability criteria in tenders. This might include energy efficiency standards or low-carbon material requirements.

A Carbon Reduction Plan for public procurement should include several key elements.

It must outline the supplier's current emissions across Scopes 1, 2 and 3. The plan should also detail specific carbon reduction targets and timelines.

Suppliers need to describe their planned emissions reduction measures. These could involve renewable energy adoption or more efficient transport methods.

The NHS can implement a supplier roadmap through several strategies.

It can set clear emissions reduction targets for different supplier categories. The NHS may also require suppliers to report their carbon footprint regularly.

Providing support and guidance to suppliers on emissions reduction can be helpful. The NHS might offer training or resources on sustainable practices.

Organisations can adopt various frameworks for net zero procurement.

The Science Based Targets initiative provides guidelines for setting emissions reduction goals. The Greenhouse Gas Protocol offers standards for measuring and reporting emissions.

Some organisations use the Task Force on Climate-related Financial Disclosures framework. This helps assess climate-related risks and opportunities in procurement.

Core principles for public sector net zero goals include transparency and accountability.

Entities should openly report their emissions and progress towards targets.

Collaboration is another key principle. Public bodies can work with suppliers and other stakeholders to achieve shared sustainability goals.

Best practices for monitoring net zero progress include regular data collection. Organisations should track emissions across their supply chain consistently.

Using standardised reporting frameworks helps ensure comparability. The UK government recommends specific Carbon Reduction Plan templates for major contracts.

Setting clear key performance indicators (KPIs) is crucial. These might include percentage reductions in emissions or increases in renewable energy use.