Government will only award contracts to zero carbon suppliers under new green strategy
Fleets will be in the frontline of a government plan to restrict the bidding process for public sector contracts to suppliers that have a detailed zero carbon strategy
Businesses will be required to officially commit to net zero carbon emissions before they can bid for major government contracts under a tough new green strategy.
Suppliers will have to commit to be net zero by 2050 and publish “clear and credible” carbon reduction plans before they can join the bidding process for billions of pounds worth of government contracts.
The government spends more than £290 billion on procurement every year, so the strategy will have a significant impact on its ambitions to transform the UK to a zero-carbon economy.
The rules are likely to affect all tenders worth more than £5 million and will come into force in September this year.
The UK government is the first in the world to put a carbon requirement in place in a bid to underline the country’s global leadership in tackling climate change.
Minister for Efficiency and Transformation Lord Agnew said:
“Requiring companies to report and commit to reducing their carbon emissions before bidding for public work is a key part of our world-leading approach.”
A carbon reduction plan sets out where an organisation’s emissions come from and 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.
The new rules will go further, requiring the reporting of some Scope 3 emissions, including business travel, employee commuting, transportation, distribution, and waste.
All companies bidding for major government contracts will need to comply with the measure, not just those who are successful in winning contracts.
The measures will apply to all central government departments and some external departments.
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The government plans to end the sale of petrol and diesel vehicles by 2035, starting in 2030 with a ban on the sale of all vehicles powered solely by petrol or diesel.
For details on the wealth of vehicles available on flexible terms from Reflex Vehicle Hire, review our Vehicle Hire page or contact one of our expert team members to discuss your emission reduction requirements.
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