The NHS is Setting the Standard for Net Zero Supply Chains: Is Your Business Ready?
Businesses are under increasing pressure from a range of sources to measure and disclose their greenhouse gas (GHG) emissions. In particular, this pressure is coming from customers down the supply chain demanding greater transparency around emissions data.
A leading example of this shift was the UK government’s introduction of Procurement Policy Note 06/21 (PPN 06/21), which requires suppliers bidding for major government contracts (valued at over £5 million) to commit to achieving Net Zero and to publish a Carbon Reduction Plan (CRP). This plan must include scope 1 and 2 emissions, as well as five key categories of scope 3 emissions.
The NHS has set an ambitious target, committing to reaching Net Zero by 2045 for all emissions generated through the goods and services they purchase from suppliers. To drive this, they have developed a roadmap which will ensure suppliers align with their Net Zero goals.
What are the requirements for NHS suppliers?
- Since April 2023, NHS suppliers with contracts over £5 million have been required to comply with PPN 06/21 (see above).
- From April 2024, suppliers with contracts valued between £10,000 and £5 million must set Net Zero commitments.
- From April 2026, all new suppliers below that threshold will also need to have Net Zero commitments in place.
- By April 2027, all suppliers will be required to publish a CRP covering scope 1, 2 and 3 emissions.
- By April 2028, the NHS plans to introduce requirements on the carbon footprint of individual products.
- From 2030, suppliers will only qualify for NHS contracts if they can demonstrate measurable progress through published updates and ongoing emissions reporting.
To support this, suppliers are being asked to complete the Evergreen Sustainable Supplier Assessment, an online self-assessment tool that enables them to share sustainability information directly with the NHS.
While the NHS is currently leading the way in embedding sustainability into procurement, it’s expected that many other organisations will adopt similar standards. Businesses that fail to measure and reduce their emissions risk being left behind and unprepared for these evolving supplier requirements.
Beyondly’s tailored support will allow you to navigate these complex stakeholder requirements with confidence; from measuring your emissions, developing a CRP, and setting science-based targets or Net Zero commitments. Get in touch with our experts today to start your carbon management journey by visiting here or contacting [email protected]
Reference: Greener NHS
