Net zero commitment will be required for major government contracts
Contents |
[edit] Introduction
Measures announced by the Government on 7 June 2021 will require businesses to commit to net zero by 2050 before they can bid for major public contracts.
The measure has been designed not to overly burden and potentially exclude small and medium sized enterprises (SMEs) from bidding for government work. It is also intended to serve as a tangible reinforcement of the Government’s plan to build back greener.
[edit] Specifics of the measures
Under the arrangement, prospective suppliers that bid 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 which fail to do so will be excluded from bidding for the contract.
The initiative, which is scheduled to become effective in September 2021, will also require firms to publish clear and credible carbon reduction plans. A carbon reduction plan sets out where an organisation’s emissions come from and presents 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.
Under the September 2021 plan, the rules will go further, requiring the reporting of some Scope 3 emissions. These include business travel, employee commuting, transportation, distribution and waste. Scope 3 emissions represent a significant proportion of an organisation’s carbon footprint.
[edit] Supporting behavioural change
The approach is similar to the prompt payment measures introduced in 2019, which allowed a supplier’s performance in paying their subcontractors promptly to be taken into account when bidding for government work.
All companies bidding for major government contracts will need to comply with the measure - not just those who are successful in winning contracts. This further widens the impact of the measure, as more and more suppliers commit to achieving net zero.
The measures will apply to all central government departments and arms length bodies as well.
[edit] Reaction
Tom Thackray, Director of Infrastructure and Energy, at the Confederation of British Industry (CBI) said, “The CBI has long supported using procurement policy to ensure government spending supports the UK’s environmental objectives, and these changes will encourage more firms across the country to demonstrate their own commitment to net zero when bidding for government contracts.”
A representative from the Business Services Association (BSA) added, “Harnessing the power of public procurement is one important tool at the government’s disposal. That’s why the BSA welcomes this move. We and our members contributed to the process of drawing it up. It is another important step on the road to net zero.”
Ref https://www.gov.uk/government/news/firms-must-commit-to-net-zero-to-win-major-government-contracts
[edit] Related articles on Designing Buildings Wiki
Featured articles and news
ECA Industry Awards 2024 shortlist revealed
22 leading businesses from across the electrotechnical and engineering services sector.
Government unveils Skills England strategy
Skills England to transform opportunities and drive growth.
New Government Hub for York Given Planning Green Light
For up to 2,600 civil servants, due for completion by 2028.
Construction Skills Certification Scheme cards
July update on Professionally Qualified and Academically Qualified Person Cards.
BSRIA Briefing 2024, November 22
Sustainable Futures: Redefining Retrofit for Net Zero Living.
The CLC on driving competency in the retrofit sector
Previously published roadmap on skills for net zero.
The first labour government King's speech in fifteen years
Construction industry reactions, support and some concern.
CIOB Retrofit of Buildings Technical Information Sheet
What retrofit is, the approach to be taken and processes to be followed.
Adapting Historic Buildings for Energy and Carbon Efficiency
Historic England advice note 18, free download published.
10 retrofit projects revisited 10 years after completion.
Information orders, building liability orders and SPVs
Key BSA terms and how they impact special purpose vehicles.
Listed despite problems with its design.
Zen and the art of cycling exploration.
Design Council Homes Taskforce launched
To support government 1.5 million homes target within UK climate commitments.