Commit To Net Zero To Win Government Contracts.

Commit To Net Zero To Win Government Contracts.

June 9, 2021
Procurement

….So says the Cabinet Office, with new measures released on World Environment Day that will require businesses to publish clear and credible carbon reduction plans before they can bid for major government contracts.

The Government claims the new rules will support their build-back greener plans, with potential government suppliers required to publish plans to reduce carbon emissions across their operations in order to bid for major government contracts.

These new measures will make the UK Govenrment the first in the world to put such net-zero requirements in place, something they say signals UK Government leadership in tackling climate change.

Under the new conditions, by September, prospective suppliers bidding for contracts above £5million 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.

It’s important to note that these new measures specify the winning of ‘large’ contracts, and spark concern that perhaps the complex requirements to prove compliance may exclude SMEs from bidding on larger contracts.

The new measures have received immediate support from Tom Thackray, Director of Infrastructure and Energy at CBI, and The Business Services Association.

All companies bidding for major government contracts will need to comply with these new requirements, not just those who are successful in winning contracts. We look forward to reviewing the new measures in more detail and understanding the implications for current and potential suppliers to government.

The Spend Network team are experts in government procurement data. For help with your procurement data needs, drop us a line.

Photo by Mike Marrah on Unsplash

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