New greener rules for major government contracts

Energy-business-meeting Print publication


New rules set out in Procurement Policy Note 06/21 were introduced on 30 September 2021 requiring any businesses (not just those that are successful) bidding for government contracts worth more than £5 million a year to commit to achieving net zero emissions. The UK is the first country to introduce such a measure. Bidding suppliers are required to provide a ‘Carbon Reduction Plan’ confirming their commitment to achieving net zero by 2050 in the UK, and setting out the environmental management measures they have in place and which will be in effect and utilised during the performance of the contract. In completing their Carbon Reduction Plans, suppliers are required to detail certain Scope 3 emissions including business travel and employee commuting. See the press release.

In related news, the Local Government Association published a sustainable procurement toolkit for commissioners, procurement practitioners and contract managers to deliver local, economic, social and environmental priorities.