The NHS has publicly committed to Net Zero carbon emissions across the health service by 2040. Their network of suppliers, which accounts for 52% of their emissions, is at the core of this transformation.
What?
Bid requirements requiring NHS suppliers to submit their plans on reducing emissions are being introduced from April 2024 (see timeline below). These template disclosures will need to follow the Procurement Policy Note 06/21, which outlines how the UK government is addressing Net Zero through public procurement.
This push for transparency and accountability is a positive step towards a more sustainable sector. However, it does carry a significant risk for suppliers, as those who do not provide the necessary emission reduction disclosure will automatically have their bid failed from the moment the new rules are implemented.
How?
For contracts over £5m per annum, a Carbon Reduction Plan (CRP) will need to be submitted with any tender. For service bids between £5m and £139,000, a Net Zero Commitment (NZC) will be required.
When?
What does a Carbon Reduction Plan (CRP) include?
A Carbon Reduction Plan is a template set out as part of the UK government’s PPN 06/21. It includes the following information:
Baseline emissions - Scope 1, 2, and part of Scope 3 emission in line with the GHG protocol. Read more about these here.
Planned initiatives to reduce these emissions
The target year to reach Net Zero emissions
What is a Net Zero Commitment (NZC)?
A Net Zero Commitment is a website disclosure communicating your Net Zero target-year and confirming board approval. The template is set as follows:
[Supplier name] is committed to achieving Net Zero emissions by 20[XX] for emissions scopes 1, 2 and 3. The commitment was made on [DD/MM/YY] by the [approving board/equivalent management body].
If you are a supplier to the NHS, these requirements do apply to you.
If you are unsure of how to go about it or need assistance with your Carbon Reduction Plan and Net Zero Commitment, don't hesitate to get in touch.