In 2020 the NHS set stringent goals to become a net zero healthcare service. The NHS is requiring its suppliers to demonstrate their commitments to improving their sustainability performance in line with NHS requirements.
The NHS expect suppliers to comply with their ‘five asks’. The five asks allow suppliers to comply with the NHS Net Zero Supplier Roadmap. The roadmap outlines milestones of what suppliers need to do to meet the minimum requirements of the NHS Net Zero Supplier Roadmap and when this needs to be done by. Suppliers must demonstrate compliance with the five asks.
The five asks are:
- Carbon Reduction Plan
- Social Value Requirements
- Evergreen Assessment
- NHS England Supplier Roadmap
- Modern Slavery PPN 02/23
Carbon Reduction plan
From April 2024 the NHS requires current suppliers to have a full Carbon Reduction Plan (CRP) to bid for procurements of high value (defined as ‘£5m per annum exc. VAT and above) and new suppliers to have a CRP irrespective of the value of the contract.
The NHS also require suppliers to have a Net Zero Commitment for procurements of lower value (defined as ‘below £5m per annum exc. VAT and above £10k exc. VAT).
Suppliers must comply with the following requirements:
- Follow the PPN 06/21 template.
- Publish a carbon reduction plan on your website or supply a PDF copy if you do not have a website.
- Update your carbon reduction plan at least every 12 months.
- If you do not have all of the required information then you will need to provide an explanation including why you do not have the data, your plan for obtaining the data and a timescale for having this data.
Social Value Requirements
NHS procurements will now include a minimum of 10% net zero and social weighting. As of the 1st of April 2022, the NHS has adopted the Government’s Social Value Model as a measure for awarding NHS contracts.
The social value requirements are based on the following themes and will be assessed by the NHS using the NHS Supply Chain Social Value Tool.
- Fighting climate change
- COVID-19 recovery
- Tackling economic inequality
- Equal opportunity
- Wellbeing
Suppliers should consider the following when answering the supply chain social value questions:
- What you can do during the period of the contract in relation to social value.
- Demonstrate that you understand the impact of the product or service you are offering.
- Include KPIs in which you will monitor over the course of the contract.
Evergreen Assessment
The Evergreen Sustainable Supplier Assessment is an online assessment tool enabling suppliers to engage with the NHS on their sustainability journey. Once suppliers have completed the assessment, they will receive a maturity score which signposts suppliers current position and pathway to progress.
The assessment must be completed on a 12 monthly basis prior to the tender close date. Suppliers can update their assessment throughout the year with any significant updates.
Net Zero Supplier Roadmap
The NHS England Public Board have approved a framework to help suppliers align with the NHS’s net zero ambition between now and 2030. Suppliers are being encouraged to begin thinking about what steps they will take in future to align with the Net Zero Supplier Roadmap.
- From April 2027 all suppliers will be required to publicly report on the following: targets, emissions and publish a carbon reduction plan for global emissions aligned with the NHS net zero target.
- From April 2028 the NHS will begin introducing guidance in relation to carbon footprints for individual products supplied to the NHS.
- From 2030: Suppliers will only be able to qualify for NHS contracts if they can demonstrate progress towards the Net Zero Supplier Roadmap. This can be demonstrated through published progress reports, carbon emissions reporting and the Evergreen Supplier Assessment.
Modern Slavery
From April 2023 the NHS has adopted PPN 02/23 which requires the risk of Modern Slavery to be identified for each procurement including due diligence to manage these risks.
Suppliers are required to complete the Modern Slavery Assessment Tool (MSAT) on a 12-month basis prior to the tender close date and you must score at least 41%.
Companies with an annual turnover of more than £36 million or more must produce a modern slavery statement. The modern slavery statement should include the following as recommended by the Modern Slavery Act:
- Organisation structure and supply chains
- Policies in relation to human trafficking and slavery
- Due diligence processes
- Risk assessment and management
- Key performance indicators to measure progress and effectiveness of steps being taken
- Training on trafficking and modern slavery
How Can Achieve Goal 12 Help?
- Strategy development in line with the NHS requirements and other applicable legislation, certification schemes and general best practice.
- Creation and development of a carbon reduction plan in line with PPN/06/21.
- Completion of the Evergreen assessment including data collection and completing the questionnaire.
- Writing tailored answers to social value questions specifically for your organisation and products.
- Developing and updating documents in line with the Modern Slavery Assessment Tool (MSAT) and providing guidance when completing the MSAT.
https://www.gov.uk/guidance/publish-an-annual-modern-slavery-statement