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
A change to adoptive architecture
Effects of global weather warming on architectural detailing, material choice and human interaction.
How big is the problem and what can we do to mitigate the effects?
Overheating guidance and tools for building designers
A number of cool guides to help with the heat.
The UK's Modern Industrial Strategy: A 10 year plan
Previous consultation criticism, current key elements and general support with some persisting reservations.
Building Safety Regulator reforms
New roles, new staff and a new fast track service pave the way for a single construction regulator.
Architectural Technologist CPDs and Communications
CIAT CPD… and how you can do it!
Cooling centres and cool spaces
Managing extreme heat in cities by directing the public to places for heat stress relief and water sources.
Winter gardens: A brief history and warm variations
Extending the season with glass in different forms and terms.
Restoring Great Yarmouth's Winter Gardens
Transforming one of the least sustainable constructions imaginable.
Construction Skills Mission Board launch sector drive
Newly formed government and industry collaboration set strategy for recruiting an additional 100,000 construction workers a year.
New Architects Code comes into effect in September 2025
ARB Architects Code of Conduct and Practice available with ongoing consultation regarding guidance.
Welsh Skills Body (Medr) launches ambitious plan
The new skills body brings together funding and regulation of tertiary education and research for the devolved nation.
Paul Gandy FCIOB announced as next CIOB President
Former Tilbury Douglas CEO takes helm.
UK Infrastructure: A 10 Year Strategy. In brief with reactions
With the National Infrastructure and Service Transformation Authority (NISTA).
Ebenezer Howard: inventor of the garden city. Book review.
Airtightness Topic Guide BSRIA TG 27/2025
Explaining the basics of airtightness, what it is, why it's important, when it's required and how it's carried out.