The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Net-Zero Commitments Mandatory to Bid for Government Contracts 

Net-Zero Commitments Mandatory to Bid for Government Contracts 
07 June 2021
 

New measures will require businesses to commit to net-zero by 2050 and publish clear and credible carbon reduction plans before they can bid for major government contracts.

By September 2021, prospective suppliers bidding for contracts above £5 million a year will need to have committed to the government’s target of net zero by 2050 and have published a carbon reduction plan. Firms that fail to do so will be excluded from bidding for the contract.

Boris Johnson and Business and Energy Secretary Kwasi Kwarteng have additionally urged every small business in the UK to take small, practical steps to cut their emissions as part of the UK’s journey to net-zero, through the "Together for our Planet Business Climate Leaders" campaign. This is a new drive to encourage small and micro businesses to commit to cutting their emissions in half by 2030 and to net-zero by 2050 or sooner through the new UK Business Climate Hub.

 

Ethical Procurement and Corporate Social Responsibility

 

The government spends more than £290 billion on procurement every year, so requiring companies to report and commit to reducing their carbon emissions before bidding for public work will be a key part of promoting ethical procurement.

The approach is similar to the prompt payment measure introduced in 2019, which allowed a supplier’s performance in paying their subcontractors promptly to be taken into account when bidding for government work. 

 

Image

 

Carbon Reduction Plans

 

A carbon reduction plan sets out where an organisation’s emissions come from and the environmental management measures that they have in place. Some large companies already self-report parts of their carbon emissions, known as Scope 1 (direct) and Scope 2 (indirect owned) emissions.

The new rules will go further, requiring the reporting of some Scope 3 emissions, including business travel, employee commuting, transportation, distribution and waste. Scope 3 emissions represent a significant proportion of an organisation’s carbon footprint.

Picture: a photograph of Big Ben

Article written by Ella Tansley | Published 07 June 2021

Share



Related Articles

Why is Sustainable FM Procurement Such a Challenge?

FM procurement is known for being variable and complex, so how can sustainable practices be improved in this area?   Watch the...

 Read Full Article
Social Enterprise Day – Buying Responsibly to Reach ESG Goals

Ethical consumerism has become a big trend in recent years as consumers are becoming more concerned about where their money is going, and it’s not just...

 Read Full Article
Social Value a Key Component in Winning Public Sector Contracts

In order to win government work, organisations must be able to prove how they’ll deliver on social value. As set out in the procurement policy note:...

 Read Full Article
HVAC and Retrofit Experts Needed for Public Sector Decarbonisation Framework

Consultants and specialists in energy efficiency, HVAC and renewables are being urged to apply to the new public sector Retrofit and Decarbonisation (N9)...

 Read Full Article
OCS Awarded Place on CCS Healthcare FM Framework

OCS Group has been successfully awarded a place on the CCS Framework for RM6331 Healthcare Soft FM Services. The company, which announced new growth plans this year,...

 Read Full Article
Scheme to Improve Public Sector Procurement in Construction Launches

Constructing Excellence and King’s College London have launched a verification scheme to improve public sector construction frameworks. The scheme,...

 Read Full Article
Contractors Appointed to New Building Safety Framework Named

The companies successfully appointed to a new public sector construction framework to deliver building safety and maintenance work have been named.  The Asset...

 Read Full Article
Almost £100m Spent With Social Enterprises in Buy Social Corporate Challenge

A project supported by FM and commercial property companies such as Amey, CBRE, Compass, Equans, Mitie, Wates Group and Willmott Dixon has hit a £99 million...

 Read Full Article
Contractors Needed for £260m Public Sector Framework

A framework to deliver a range of housing and non-residential refurbishment and retrofit works in the UK is now available for contractors to apply for. LHC Procurement...

 Read Full Article
The UK Public Sector’s Top FM Suppliers

Find out which facilities management companies are leading the way in public sector contracts with Tussell's “Meet the FM Titans”...

 Read Full Article