No more major public contracts to businesses without net zero goals

In a new policy shake-up, the government has announced authorities will take account carbon reduction plans of suppliers who bid for major public contracts

Pathway to COP26 report

Businesses without clear carbon reduction targets will not be able to bid for major government contracts worth more than £5 million from September onwards.

The government has announced firms that seek public sector contracts will have to publish carbon reduction plans stating their current greenhouse gas emissions, including power consumption, staff travel and fuel usage.

More specifically, businesses will be excluded from bidding processes if:

  • they fail to commit to reducing their emissions and achieving net zero by 2050
  • they fail to declare their organisation greenhouse gas emissions
  • they haven’t provided a carbon reduction plan with all the needed details for the environmental management measures that will be deployed to achieve the goals

The Cabinet Office said contracting authorities must verify that successful suppliers meet the criteria before a contract can be awarded.

Officials may also request the evidence at any time during the procurement process.

The government announcement coincided with World Environment Day and the move is believed to be the first to be launched globally.

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