Get ready for the new net zero rules for NHS suppliers
From April 2024, companies wanting to do business with the NHS will need to demonstrate action on net zero. The rules have been in place for major contracts since 2023, but these will soon be extending to smaller suppliers. We’ve got a summary of what’s coming up.
What’s changing in April 2024?
From April 2024, the requirements are:
- Suppliers bidding for NHS contracts of £5m per annum and above will need a full Carbon Reduction Plan. This has been in place since 2023 (aligning with government policy note PPN 06/21) and also applies to any new procurement frameworks set up after this date, “where relevant and proportionate”.
- New: Suppliers bidding for NHS contracts above £10k per annum and below £5m per annum will need to make a public commitment to achieve Net Zero, ideally by 2045, but at least by 2050. This needs to be signed by the board or a company director – and should be published on your website. While this amounts to around 30 words of text, it’s important to note that suppliers should be able to provide evidence of activities taken to reduce their emissions, if asked for by the contracting authority.
Future requirements
The rules are set to tighten further, as part of a roadmap to help the NHS meet its net zero goals.
- Before April 2026: The NHS is set to review the policy and extend it to procurements below the relevant thresholds.
- From April 2027: ALL suppliers (regardless of contract value) will be required to publish a Carbon Reduction Plan, for all of their Scope 1, 2 and 3 emissions.
- From April 2028: New requirements will be introduced overseeing the provision of carbon footprinting for individual products supplied to the NHS.
More information
The message is clear: if you want business from the NHS, you’ll need a carbon reduction plan; or at the very least, be able to show proof of action on carbon reduction, when asked.
The NHS has enormous purchasing power – far greater than any other UK organisation, so it pays to understand the new procurement rules. For advice on building a carbon reduction plan that meets NHS requirements, get in touch.
The NHS Net Zero Supplier roadmap is on the government website.
