10 November 2023

Are you ready for the new NetZero requirements?

With over 80,000 suppliers impacting 60% of the NHS’s carbon footprint, the Net Zero Supplier Roadmap signals a paradigm shift in public procurement. As the UK’s leading healthcare bid consultancy, Bidding Ltd (HealthBid) is here to keep you ahead of crucial NHS bidding requirements.

We’ve kept this blog very simple – with key milestones and actionable information for NHS Suppliers.

The NHS Net Zero Supplier Roadmap:

Key Milestones:
– April 2023: Contracts over £5 million/year have already begun to require bidders’ commitment to net zero by 2050 via a Carbon Reduction Plan (CRP).
– Future Planning: Suppliers encouraged to set a 2045 target, anticipating stricter milestones.

CRP Requirements:
– Commitment: Net zero by 2050 for UK operations.
– Emissions Reporting: Scope 1, 2, and a defined subset of Scope 3 emissions, covering various aspects such as transportation, waste, and more.
– Targets: Projected carbon reduction over the next five years.
– Environmental Measures: Showcase implemented or planned projects.
– Board Sign-off: CRP approval from the board of directors.

When is a CRP Needed?
– Threshold: Contracts above £5 million/year averaged over the contract life.
– Selection Criteria: CRPs form part of the selection criteria with a pass/fail outcome.

What’s Next on the NHS Supplier Roadmap?
– April 2024: CRP requirements extend to most NHS public procurements.
– April 2027: Suppliers align with NHS’s 2045 net zero goal (five years earlier than the government’s 2050 goal).
– Planning Ahead: Businesses committing to 2050 must prepare for a 2045 shift in only four years.
– April 2028: NHS explores individual product carbon footprint oversight, collaborating with suppliers and regulators.

We would urge any active or potentional NHS suppliers to proactively build out a robust Carbon Reduction Plan to ensure qualification on NHS bids after April 2024.

Given our significant experience in large NHS contracts, we’ve been helping our clients build these since April 2023 when the first requirements came in for bigger award values. Now that the requirement for CRPs is expanding to all procurement, we can help you too.