Procurement & Net Zero

Source : UN.Org

What is net zero?

Put simply, net zero means cutting greenhouse gas emissions to as close to zero as possible, with any remaining emissions re-absorbed from the atmosphere, by oceans and forests for instance.

Why is net zero important?

The science shows clearly that in order to avert the worst impacts of climate change and preserve a livable planet, global temperature increase needs to be limited to 1.5°C above pre-industrial levels. Currently, the Earth is already about 1.1°C warmer than it was in the late 1800s, and emissions continue to rise. To keep global warming to no more than 1.5°C  – as called for in the Paris Agreement – emissions need to be reduced by 45% by 2030 and reach net zero by 2050.

How can net zero be achieved?

Transitioning to a net-zero world is one of the greatest challenges humankind has faced. It calls for nothing less than a complete transformation of how we produce, consume, and move about. The energy sector is the source of around three-quarters of greenhouse gas emissions today and holds the key to averting the worst effects of climate change. Replacing polluting coal, gas and oil-fired power with energy from renewable sources, such as wind or solar, would dramatically reduce carbon emissions.

Is there a global effort to reach net zero?

Yes, a growing coalition of countries, cities, businesses and other institutions are pledging to get to net-zero emissions. More than 70 countries, including the biggest polluters – China, the United States, and the European Union – have set a net-zero target, covering about 76% of global emissions. More than 3,000 businesses and financial institutions are working with the Science-Based Targets Initiative to reduce their emissions in line with climate science. And more than 1000 cities, over 1000 educational institutions, and over 400 financial institutions have joined the Race to Zero, pledging to take rigorous, immediate action to halve global emissions by 2030.

How do we ensure commitments are turned into action?

The growth in net-zero pledges has been accompanied by a proliferation of criteria with varying levels of robustness. To develop stronger and clearer standards for net-zero emissions pledges by non-State entities such as businesses, investors, cities and regions, and speed up their implementation, UN Secretary-General António Guterres in March 2022 established a High-Level Expert Group on the Net-Zero Emissions Commitments of Non-State Entities. The Expert Group presented its recommendations at COP27 on 8 November 2022.

Are we on track to reach net zero by 2050?

No, commitments made by governments to date fall far short of what is required. Current national climate plans – for 193 Parties to the Paris Agreement taken together – would lead to a sizable increase of almost 11% in global greenhouse gas emissions by 2030, compared to 2010 levels. Getting to net zero requires all governments – first and foremost the biggest emitters – to significantly strengthen their Nationally Determined Contributions (NDCs) and take bold, immediate steps towards reducing emissions now. The Glasgow Climate Pact called on all countries to revisit and strengthen the 2030 targets in their NDCs by the end of 2022, but only 24 new or updated climate plans were submitted by September 2022.

~end UN source~

According to the National Grid Scope 1-3 emissions

Scope 1 emissions

Scope 1 covers emissions from sources that an organisation owns or controls directly – for example from burning fuel in our fleet of vehicles (if they’re not electrically-powered).

Scope 2 emissions

Scope 2 are emissions that a company causes indirectly when the energy it purchases and uses is produced. For example, for our electric fleet vehicles the emissions from the generation of the electricity they’re powered by would fall into this category.

Scope 3 emissions

Scope 3 encompasses emissions that are not produced by the company itself, and not the result of activities from assets owned or controlled by them, but by those that it’s indirectly responsible for, up and down its value chain. An example of this is when we buy, use and dispose of products from suppliers. Scope 3 emissions include all sources not within the scope 1 and 2 boundaries.

Source: https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/1054374/PPN-0621-Taking-account-of-Carbon-Reduction-Plans-Jan22__1_.pdf

Procurement Policy Note – Taking Account of Carbon Reduction Plans in the procurement of major government contracts
Action Note PPN 06/21 05/06/2021
Issue

1. The UK Government amended the Climate Change Act 2008 in 2019 by introducing
   a target of at least a 100% reduction in the net UK carbon account (i.e. reduction of
   greenhouse gas emissions , compared to 1990 levels) by 2050. This is otherwise known as
   the ‘Net Zero’ target. This Procurement Policy Note (PPN) sets out how to take account of
   suppliers’ Net Zero Carbon Reduction Plans in the procurement of major Government
   contracts.
   Dissemination and Scope
2. This PPN applies to all Central Government Departments, their Executive Agencies
   and Non Departmental Public Bodies. These organisations are referred to in this PPN as
   ‘In-Scope Organisations’. Please circulate this PPN within your organisation, drawing it to
   the attention of those with a commercial and procurement role.
3. In-Scope Organisations should take action to apply this PPN when procuring goods
   and/or services and/or works with an anticipated contract value above £5 million per annum3
   (excluding VAT) which are subject to the Public Contracts Regulations 2015 save where it
   would not be related and proportionate to the contract.
4. This PPN applies to framework agreements and dynamic purchasing systems only
   where it is anticipated that the individual value of any contract to be awarded under the
   3 Based on advertised contract value, averaged over the life of the contract, e.g. a contract with a 4 year term with a total
   contract value of £21m would be in scope, even if the value in the first year was under £5m.
   2 When the reporting of GHG emissions is measured, it is often done so in carbon dioxide equivalent units (CO2e). The use of
   CO2e allows for more accessible reporting and straightforward tracking and reporting of emissions over time. CO2e includes
   all of the greenhouse gases defined within the Kyoto protocol: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O),
   hydrofluorocarbons (HFC), perfluorocarbons (PFC), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3). Each of these
   greenhouse gasses have a conversion factor as published by DEFRA:
   https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2020 When the phrase ‘Net Zero
   Carbon’ is used, it is referring to both CO2 and CO2e emissions and means net zero GHG rather than net zero CO2.
   1 Climate Change Act 2008: www.legislation.gov.uk/ukpga/2008/27/contents
   framework agreement or dynamic purchasing system is greater than £5 million per annum
   (excluding VAT).
5. Contracting Authorities may verify that the supplier remains committed to achieving
   Net Zero prior to entering into any contract awarded under a framework agreement.
   Timing
6. In-Scope Organisations must apply the provisions of this PPN to relevant
   procurements advertised on or after 30 September 2021.
   Action
7. As part of assessing a supplier’s technical and professional ability, In-Scope
   Organisations should include, as a selection criterion, a requirement for bidding suppliers to
   
   provide a Carbon Reduction Plan (using the template at Annex A) confirming the supplier’s
   commitment to achieving Net Zero by 2050 in the UK, and setting out the environmental
   management measures that they have in place and which will be in effect and utilised
   during the performance of the contract. The CRP should be specific to the bidding entity, or,
   provided certain criteria are met, may cover the bidding entity and its parent organisation. In
   order to ensure the CRP remains relevant, a CRP covering the bidding entity and its parent
   organisation is only permissible where the detailed requirements of the CRP are met in full,
   as set out in the Technical Standard and Guidance , and all of the following criteria are met:
   ● The bidding entity is wholly owned by the parent;
   ● The commitment to achieving net zero by 2050 for UK operations is set out in the
   CRP for the parent and is supported and adopted by the bidding entity, demonstrated
   by the inclusion in the CRP of a statement that this will apply to the bidding entity;
   ● The environmental measures set out are stated to be able to be applied by the
   bidding entity when performing the relevant contract; and
   ● The CRP is published on the bidding entity’s website.
   Bidding entities must take steps to ensure they have their own CRP as soon as reasonably
   practicable and should note that the ability to rely on a parent organisation’s Carbon
   Reduction Plan may only be a temporary measure under this selection criterion.
8. Carbon Reduction Plans must meet the required standard as set out by the
   supporting guidance to this PPN. This includes, but is not limited to:
   ● Confirming the bidding supplier’s commitment to achieving Net Zero by 2050 for their
   UK operations.
   ● Providing the supplier’s current emissions for the sources included in Scope 1 and 2
   of the GHG Protocol, and a defined subset of Scope 3 emissions.
   Guidance can be found at:
   https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/991623/Guidance_on_adopting_and_applying_PPN_06_21___Selection_Criteria___3_.pdf Technical Standard can be found at:
   https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/991625/PPN_0621_Technical_standard_for_the_Completion_of_Carbon_Reduction_Plans__2_.pdf
   Bidding supplier or ‘bidding entity’ means the organisation with whom the contracting authority will enter into a contract if it is successful.
   ● Providing emissions reporting in CO2e (Carbon Dioxide Equivalent) for the six
   greenhouse gases covered by the Kyoto Protocol .
   
   ● Setting out the environmental management measures in effect, including certification
   schemes or specific carbon reduction measures you have adopted, and that you will
   be able to apply when performing the contract and that support achieving Net Zero
   by 2050.
   ● Publication of the CRP on the supplier’s website.
9. Environmental considerations and carbon reduction will be a factor in most, if not all,
   contracts and therefore it is expected that in the majority of cases, the application of this
   PPN will be relevant. This may include, but is not limited to:
   ● Contracts which have a direct impact on the environment in the delivery of the
   contract;
   ● Contracts which require the use of buildings by staff engaged in the delivery of the
   contract;
   ● Contracts which require the transportation of goods or people used in the delivery of
   the contract;
   ● Contracts which require the use of natural resources in the delivery of the contract.
10. In-Scope Organisations should make their own assessment of the measure’s
    applicability on a case by case basis.
11. When applying the contents of this PPN, In-Scope Organisations must ensure they
    act transparently and in accordance with the principles of equal treatment and
    non-discrimination.
    Background
12. The UK has a proud record of global leadership in tackling climate change and
    supporting clean growth. In 2006, the UK published the first global review into the economics
    of climate change . This led to the Climate Change Act 2008, which established a
    comprehensive legal framework for delivering emission reductions in the UK, including a
    2050 carbon reduction target and the introduction of carbon budgets.
13. Between 1990 and 2017, the UK reduced its emissions by 42% while growing the
    economy by more than two thirds . In 2019 the UK Government amended the Climate
    Change Act 2008 by increasing the target for reducing greenhouse gas emissions in the UK
    to at least 100% lower than 1990 levels by 2050. This is otherwise known as the Net Zero
    target. The UK became the first major economy to set this target.
14. The UK’s 2050 Net Zero target is one of the most ambitious in the world and was
    recommended by the Committee on Climate Change, the UK’s independent climate advisory
    9 Clean Growth Strategy 2018:
    https://www.gov.uk/government/publications/clean-growth-strategy/clean-growth-strategy-executive-summary
    8 HM Treasury’s review into funding the transition to a net zero greenhouse gas economy:
    https://www.gov.uk/government/publications/net-zero-review-terms-of-reference/hm-treasurys-review-into-funding-the-transitionto-a-net-zero-greenhouse-gas-economy-terms-of-reference
    7 Carbon dioxide (CO2), Methane (CH4), Nitrous Oxide (N2O), Hydrofluorocarbons (HFCs), Perfluorocarbons (PFCs), and
    Sulphur Hexafluoride (SF6) body. Net Zero requires a reduction in emissions and (if necessary) that any emissions generated are balanced by schemes to offset an equivalent amount of greenhouse gases from the atmosphere, such as planting trees or using technology like carbon capture and
    storage.
15. BEIS instituted a reporting regime in 2018 that requires quoted companies, large
    unquoted companies (including charitable companies) and large Limited Liability
    Partnerships (LLPs) to self-declare their Scope 1 and 2 emissions under the Streamlined
    Energy and Carbon Reporting from 1st April 2019. This measure therefore does not require
    any changes to the data companies are already submitting under SECR or to current
    procurement regulations.
16. The government is committed to continuing its efforts to reduce greenhouse gas
    emissions and deliver on its carbon budget commitments, while keeping costs down for
    consumers and supporting the creation of good jobs and growing the economy. As
    environmental and carbon considerations feature in the aspects of delivery of most public
    contracts, this is an opportunity for us to take steps to support that commitment and reduce
    emissions through public procurement.
    CARBON REDUCTION PLAN GUIDANCE
    Notes for Completion
    Where an In-Scope Organisation has determined that the measure applies to the
    procurement, suppliers wishing to bid for that contract are required at the selection stage to
    submit a Carbon Reduction Plan which details their organisational carbon footprint and
    confirms their commitment to achieving Net Zero by 2050.
    Carbon Reduction Plans are to be completed by the bidding supplier and must meet the
    reporting requirements set out in supporting guidance, and include the supplier’s current
    carbon footprint and its commitment to reducing emissions to achieve Net Zero emissions by
    2050.
    The CRP should be specific to the bidding entity, or, provided certain criteria are met, may
    cover the bidding entity and its parent organisation. In order to ensure the CRP remains
    relevant, a Carbon Reduction Plan covering the bidding entity and its parent organisation is
    only permissible where the detailed requirements of the CRP are met in full, as set out in the
    Technical Standard and Guidance , and all of the following criteria are met:
    
    ● The bidding entity is wholly owned by the parent;
    ● The commitment to achieving net zero by 2050 for UK operations is set out in the
    CRP for the parent and is supported and adopted by the bidding entity, demonstrated
    by the inclusion in the CRP of a statement that this will apply to the bidding entity;
    ● The environmental measures set out are stated to be able to be applied by the
    bidding entity when performing the relevant contract; and
    ● The CRP is published on the bidding entity’s website.
    Bidding entities must take steps to ensure they have their own CRP as soon as reasonably
    practicable and should note that the ability to rely on a parent organisation’s Carbon
    Reduction Plan may only be a temporary measure under this selection criterion.
    The Carbon Reduction Plan should be updated regularly (at least annually) and published
    and clearly signposted on the supplier’s UK website. It should be approved by a director (or
    equivalent senior leadership) within the supplier’s organisation to demonstrate a clear
    12 Guidance can be found at:
    https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/991623/Guidance_on_adopting_and_applying_PPN_06_21___Selection_Criteria___3_.pdf
    11 Technical Standard can be found at:
    https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/991625/PPN_0621_Technical_standard_for_the_Completion_of_Carbon_Reduction_Plans__2_.pdf
    10 Bidding supplier or ‘bidding entity’ means the organisation with whom the contracting authority will enter into a contract if it is successful.
    commitment to emissions reduction at the highest level. Suppliers may wish to adopt the key
    objectives of the Carbon Reduction Plan within their strategic plans.
    A template for the Carbon Reduction Plan is set out below. Please complete and publish
    your Carbon Reduction Plan in accordance with the reporting standard published alongside
    this PPN.
    Carbon Reduction Plan Template
    Supplier name: ………………………………………………………………….
    Publication date: ……………………………………………………………………….
    Commitment to achieving Net Zero
    [Supplier name] is committed to achieving Net Zero emissions by 20XX.
    Baseline Emissions Footprint
    Baseline emissions are a record of the greenhouse gases that have been produced in the
    past and were produced prior to the introduction of any strategies to reduce emissions.
    Baseline emissions are the reference point against which emissions reduction can be
    measured.
    [Instructions to Suppliers:
    Please provide details of your organisation’s baseline emissions below. If your organisation
    has not previously assessed or reported emissions, please detail this below and use your
    first reporting period as your Baseline.]
    Baseline Year: 20XX
    Additional Details relating to the Baseline Emissions calculations.
    [Instructions to Suppliers:
    Add commentary regarding your Baseline Emissions as required: e.g. historic baseline which
    deviates from the requirements under this measure (e.g. no prior Scope 3 emissions
    reporting), where there is no previous reporting and the creation of a new baseline due to
    substantial organisational change or restructuring]
    Baseline year emissions:
    EMISSIONS TOTAL (tCO2e)
    Scope 1 XX
    Scope 2 XX
    Scope 3
    (Included Sources)
    XX
    Total Emissions XX
    Current Emissions Reporting
    Reporting Year: 20XX
    EMISSIONS TOTAL (tCO2e)
    Scope 1 XX
    Scope 2 XX
    Scope 3
    (Included Sources)
    XX
    Total Emissions XX
    Emissions reduction targets
    [Instructions to Suppliers:
    If existing emissions reduction targets are in place for your organisation, please provide
    details below.
    If you have no previous emissions reduction commitment, or if this is your organisation’s first
    carbon footprint, please provide targets for your organisation]
    In order to continue our progress to achieving Net Zero, we have adopted the following
    carbon reduction targets.
    We project that carbon emissions will decrease over the next five years to XX tCO2e by
    20XX. This is a reduction of XX%
    Progress against these targets can be seen in the graph below:
    Carbon Reduction Projects
    Completed Carbon Reduction Initiatives
    The following environmental management measures and projects have been completed or
    implemented since the 20XX baseline. The carbon emission reduction achieved by these
    schemes equate to XX tCO2e, a XX%ge reduction against the 20XX baseline and the
    measures will be in effect when performing the contract
    [Instructions to Suppliers:
    Briefly provide details of some of your completed carbon reduction projects. This is for
    information only.
    This may include environmental management measures such as certification schemes like
    ISO14001 or PAS 2060, signing up to SBTI or specific measures you have taken such as;
    the adoption of LED/PIR lighting controls, changes to policy resulting in a reduction in
    company travel and flights or the electrification of the company fleet.]
    In the future we hope to implement further measures such as:
    [Instructions to Suppliers:
    Briefly provide details of some of any likely/proposed future carbon reduction projects. This
    is for information only.]
    Declaration and Sign Off
    This Carbon Reduction Plan has been completed in accordance with PPN 06/21 and
    associated guidance and reporting standard for Carbon Reduction Plans.
    Emissions have been reported and recorded in accordance with the published reporting
    standard for Carbon Reduction Plans and the GHG Reporting Protocol corporate standard
    and uses the appropriate Government emission conversion factors for greenhouse gas
    company reporting .
    Scope 1 and Scope 2 emissions have been reported in accordance with SECR
    requirements, and the required subset of Scope 3 emissions have been reported in
    accordance with the published reporting standard for Carbon Reduction Plans and the
    Corporate Value Chain (Scope 3) Standard .
    
    This Carbon Reduction Plan has been reviewed and signed off by the board of directors (or
    equivalent management body).
    Signed on behalf of the Supplier:
    ………………………………………………………………….
    Date: ……………………….……….
    

SQ Questions

Assessment Methodology:

3. The key issue to be assessed is whether a bidder has taken steps to understand
   their environmental impact and carbon footprint relevant to the delivery of the
   contract.
4. A supplier should only be excluded if they:
   a. fail to make an organisational commitment to reduce their emissions over
   time to achieve Net Zero by 2050
   b. fail to declare their organisational Greenhouse Gas emissions in accordance
   with the required reporting standard
   c. fail to provide a Carbon Reduction Plan which has been appropriately signed
   off
   d. fail to provide details within the Carbon Reduction Plan of the environmental
   management measures that will be applied in the performance of the contract
   e. fail to provide a Carbon Reduction Plan which meets the Technical Standard
   for completing a Carbon Reduction Plan.
   2 When the reporting of GHG emissions is measured, it is often done so in carbon dioxide equivalent units (CO2e). The use of
   CO2e allows for more accessible reporting and straightforward tracking and reporting of emissions over time. CO2e includes
   all of the greenhouse gases defined within the Kyoto protocol: carbon dioxide (CO2), methane (CH4), nitrous oxide (N2O),
   hydrofluorocarbons (HFC), perfluorocarbons (PFC), sulphur hexafluoride (SF6) and nitrogen trifluoride (NF3). Each of these
   greenhouse gasses have a conversion factor as published by DEFRA:
   https://www.gov.uk/government/publications/greenhouse-gas-reporting-conversion-factors-2020 When the phrase ‘Net Zero
   Carbon’ is used, it is referring to both CO2 and CO2e emissions and means net zero GHG rather than net zero CO2.
   1 Climate Change Act 2008: www.legislation.gov.uk/ukpga/2008/27/contents
   Further detail on the assessment methodology, including how to deal with
   circumstances where it may not be possible for a supplier to meet the full CRP
   requirements, can be found in Table 1.
   Self-Declaration Questions (Q1 and Q2)
5. Questions 1, and 2 should be assessed on a pass/fail basis based on
   self-declarations by the supplier.
6. Contracting authorities must confirm that the supplier has self-certified that their
   submitted Carbon Reduction Plan conforms to the required reporting methodology as
   defined in the Technical Standard for the completion of Carbon Reduction Plans, and
   that their reporting period is no more than 12 months prior to the date of
   commencement of the procurement.
   Supplier Carbon Emissions Declaration
7. Suppliers should detail their current and baseline GHG emissions in Questions 3 and
   Question 4.
8. Contracting authorities should note the supplier’s responses to Questions 3 and 4 as
   they are for information only. The provided emissions data is not to be used as a
   basis for assessment in the procurement process, but may be used to track
   suppliers’ progress in reducing their emissions over time.
9. The evaluation methodology to be applied for the measure is set out below. You must
   ensure this is included within the tender documentation so that suppliers are aware of
   the required assessment criteria.
   Table 1:
   Supplier Response
   Assessment
   Criteria
   Outcome
   1 Carbon Reduction Plan submitted which: confirms the supplier’s commitment to achieving Net Zero by 2050, contains emissions reported for all required Scopes (in accordance with the required methodology), indicates the environmental management measures that the supplier will be able to apply when performing the contract and reporting period is falls no more than 12 months prior to the date of commencement of the procurement
   Where the CRP applies to the supplier and its parent, please see requirements detailed in box 2 below Supplier has met the requirement

Technical standards https://assets.publishing.service.gov.uk/government/uploads/system/uploads/attachment_data/file/991625/PPN_0621_Technical_standard_for_the_Completion_of_Carbon_Reduction_Plans__2_.pdf

Procurement & Net Zero

Procurement plays a crucial role in managing the journey to net zero by implementing sustainable and environmentally conscious practices within the supply chain. Here are some key steps and strategies that procurement can adopt:

1. Establish a sustainability strategy: Develop a clear and comprehensive sustainability strategy that aligns with the organization’s overall net zero goals. This strategy should outline the objectives, targets, and timelines for reducing greenhouse gas emissions and promoting sustainable procurement practices.
2. Conduct a carbon footprint assessment: Understand the organization’s current carbon footprint and identify the emissions associated with the procurement function. This assessment will help identify areas of improvement and prioritize actions.
3. Set sustainability criteria for supplier selection: Incorporate sustainability criteria into the supplier selection process. Evaluate suppliers based on their environmental performance, such as their carbon emissions, waste management practices, use of renewable energy, and adherence to sustainability certifications or standards.
4. Engage suppliers and foster collaboration: Work closely with suppliers to promote sustainability and encourage them to adopt environmentally friendly practices. Establish open lines of communication and collaborate on initiatives such as reducing emissions, optimizing transportation routes, and promoting circular economy principles.
5. Include sustainability clauses in contracts: Integrate sustainability requirements into procurement contracts. This can include commitments from suppliers to measure and report their carbon emissions, use environmentally friendly materials, and comply with relevant environmental regulations.
6. Promote sustainable product and service innovation: Encourage suppliers to develop and offer sustainable products and services. Foster innovation by requesting environmentally friendly alternatives, promoting the use of renewable materials, and supporting suppliers in their transition to greener practices.
7. Implement responsible sourcing practices: Ensure that suppliers adhere to ethical and responsible sourcing practices. This includes avoiding suppliers engaged in deforestation, human rights abuses, or unethical labor practices.
8. Monitor and track progress: Establish key performance indicators (KPIs) and metrics to monitor the progress toward net zero goals. Regularly measure and report on the environmental impact of the procurement function, including emissions reduction, waste reduction, and sustainable procurement spend.
9. Collaborate with internal stakeholders: Work closely with internal stakeholders, such as sustainability teams, finance, and operations, to align procurement practices with overall sustainability objectives. Foster cross-functional collaboration to drive sustainable initiatives throughout the organization.
10. Continuous improvement and learning: Stay updated on emerging sustainability trends, best practices, and technologies. Attend industry events, engage with sustainability networks, and seek opportunities to learn from peers and experts. Continuously improve procurement processes and strategies based on new insights and knowledge.

By adopting these strategies, procurement can effectively manage the journey to net zero and contribute to the overall sustainability goals of the organization.

1. Supplier Sustainability Questionnaire:
   • Purpose: Evaluate suppliers based on their sustainability practices.
   • Key Sections: Environmental management, carbon emissions, waste management, renewable energy usage, certifications, responsible sourcing, innovation.
   • Sample Questions: How do you measure and reduce your carbon emissions? Do you have any sustainability certifications or accreditations? How do you promote responsible sourcing within your supply chain?
2. Sustainable Procurement Contract Clause:
   • Purpose: Integrate sustainability requirements into procurement contracts.
   • Key Sections: Environmental commitments, reporting obligations, renewable materials, compliance with regulations, ethical sourcing.
   • Sample Clause: The supplier shall measure and report their carbon emissions annually and provide a plan for reducing emissions. The supplier shall comply with all applicable environmental regulations and promote the use of renewable materials in their products/services.
3. Supplier Performance Dashboard:
   • Purpose: Monitor and track the sustainability performance of suppliers.
   • Key Metrics: Carbon emissions, waste generation, use of renewable energy, sustainability certifications, compliance with ethical sourcing guidelines.
   • Sample Dashboard: Supplier Name, Carbon Emissions (metric tons CO2e), Waste Generated (metric tons), Renewable Energy Usage (%), Sustainability Certifications, Ethical Sourcing Compliance.
4. Sustainability Action Plan:
   • Purpose: Outline the organization’s sustainability objectives and actions for procurement.
   • Key Sections: Objectives, targets, actions, responsible parties, timelines, KPIs.
   • Sample Actions: Implement sustainable supplier selection criteria. Collaborate with suppliers to reduce transportation emissions. Promote circular economy principles in procurement practices.
5. Sustainability Training Program:
   • Purpose: Provide training to procurement team members on sustainability and net zero concepts.
   • Key Sections: Training modules/topics, learning objectives, training methods (e.g., workshops, online courses), responsible trainers.
   • Sample Modules: Introduction to sustainability in procurement, sustainable supplier selection, carbon footprint measurement, ethical sourcing guidelines.

Remember to customize these suggestions to fit your organization’s specific requirements and goals. They serve as a starting point, and you can modify them as needed to suit your procurement processes and sustainability objectives.

Promoting net zero in your organization requires a comprehensive approach that involves engaging stakeholders, setting clear targets, implementing sustainable practices, and fostering a culture of sustainability. Here are some steps to help you promote net zero within your organization:

1. Raise Awareness and Commitment:
   • Educate employees about the concept of net zero and its importance in addressing climate change.
   • Communicate the organization’s commitment to achieving net zero emissions and the benefits it brings.
   • Foster a sense of ownership and shared responsibility for sustainability goals across all levels of the organization.
2. Set Clear Targets and Develop a Roadmap:
   • Establish measurable and time-bound targets for achieving net zero emissions.
   • Develop a roadmap that outlines the steps and initiatives required to reach those targets.
   • Ensure alignment with global frameworks and initiatives like Science-Based Targets (SBTs) or the United Nations’ Sustainable Development Goals (SDGs).
3. Conduct a Carbon Footprint Assessment:
   • Assess the organization’s current carbon footprint and identify the major sources of emissions.
   • Use the assessment findings to prioritize areas for emission reduction and inform decision-making.
4. Implement Energy Efficiency Measures:
   • Identify opportunities for energy efficiency improvements across operations, facilities, and processes.
   • Implement energy-saving technologies, such as LED lighting, smart thermostats, and efficient equipment.
   • Encourage employees to adopt energy-saving behaviors, such as turning off lights and equipment when not in use.
5. Invest in Renewable Energy:
   • Explore and invest in renewable energy sources like solar, wind, or geothermal power.
   • Install on-site renewable energy systems or consider purchasing renewable energy from off-site sources through Power Purchase Agreements (PPAs) or Renewable Energy Certificates (RECs).
6. Engage Suppliers and Partners:
   • Collaborate with suppliers and partners to assess their environmental impact and encourage them to adopt sustainable practices.
   • Include sustainability criteria in procurement processes and consider working with suppliers who align with net zero goals.
7. Promote Sustainable Transportation:
   • Encourage the use of low-emission vehicles or alternative transportation methods, such as public transport, cycling, or carpooling.
   • Establish policies that support remote work or flexible working hours to reduce commuting emissions.
8. Implement Waste Reduction and Circular Economy Practices:
   • Reduce waste generation by implementing recycling programs, composting, and waste segregation.
   • Encourage the use of sustainable packaging and promote the circular economy by reusing or recycling materials.
9. Monitor, Measure, and Report:
   • Establish systems for tracking and measuring progress towards net zero goals.
   • Regularly report on emissions reductions, energy consumption, and sustainability initiatives.
   • Share success stories and engage stakeholders through transparent reporting.
10. Employee Engagement and Training:

• Provide training and awareness programs to employees to foster a culture of sustainability.
• Encourage employee participation in sustainability initiatives and empower them to contribute their ideas and suggestions.

11. Collaboration and Partnerships:

• Engage with industry associations, sustainability networks, and other organizations to share knowledge, best practices, and collaborate on sustainability initiatives.
• Participate in collaborative initiatives such as industry working groups or sustainability-focused events.

12. Continuous Improvement:

• Continuously review and update sustainability goals, strategies, and initiatives based on feedback, new technologies, and emerging best practices.
• Encourage innovation and seek opportunities for further emissions reductions and sustainable practices.

Promoting net zero requires a long-term commitment and a holistic approach. By implementing these steps, you can create a sustainable and environmentally conscious organization while contributing to global efforts to combat climate change.