On World Environment Day, the Government announced a new requirement for businesses to commit to the UK’s 2050 net zero target before they can bid for major government contracts. They will also be required to publish ‘credible’ carbon reduction plans on their website, and specify each of their carbon reduction schemes in their tender.
These new rules will apply to all Government contracts worth more than £5m from September 2021, and any firms that fail to comply with these measures will be prohibited from bidding on these contracts. As the government spends over £290 billion a year on procurement, it’s expected that this announcement will encourage hundreds of businesses to publish a net zero target and put a plan in place for achieving it.
Some businesses were already required to report on their Scope 1 emissions – direct emissions from owned or controlled sources – and Scope 2 emissions – any indirect emissions from the generation of purchased electricity, steam or heating. However, all businesses bidding for major contracts will now need to outline their existing carbon footprint, including their Scope 3 emissions, which are the indirect emissions created throughout their value chain.
Whether your organisation supplies the Government or not, it’s wise to ensure you’re actively working to reduce your Scope 1, 2 and 3 emissions, as more businesses are seeking to lower emissions throughout their supply chain. Switching to Bryt Energy’s zero carbon, 100% renewable energy is a great way to minimise your Scope 2 emissions – to find out more, click here.