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The supply chain can account for over 70% of a public body’s total greenhouse gas emissions, and one study by Oxygen Finance in 2022 set this figure at 96% for some local authorities (data from England and Wales), making it an important area to address for net zero.  

Emissions in the supply chain come under Scope three – indirect emissions. For public organisations contracting supply chain activities it’s assumed responsibly will be taken elsewhere: for the organisation supplying goods or services emissions fall under Scope one or two. 

The Scottish Government’s Sustainable Procurement Duty sets out the expectations for the public sector to make best use of public money and increase sustainable economic growth. By taking responsibility for supply chain emissions and creating their own policies on emissions reductions for procurement, public bodies can have a significant impact on their contribution to the climate emergency, speeding up the decarbonisation of their supply chains.  

  • Generally, Scottish public sectors bodies have a target to reach net zero by 2045; this won’t be possible without decarbonising the supply chain. 

    As the easier steps such as switching to renewable electricity have been made, the next step is decarbonising the more difficult areas.  

    Supply chains can be large and complex, which obscures where the emissions are produced. Sometimes, there are situations where the supply chain might be relatively straightforward – for example when procuring from local suppliers or outsourcing to local tax or bus companies. As domestic transport is now the UK’s highest source of emissions it’s likely to be one of the highest sources of emissions within the supply chain, too.  

    The Scottish public sector spends over £16 billion annually on goods, services, and works. This is a large amount of buying power, which public sector bodies can leverage when aiming for lower emissions: a coordinated approach between public sector bodies in Scotland and across the UK can force suppliers to reduce their emissions to remain eligible for contracts. Not awarding contracts to those not making progress towards net zero sends a strong message.  

  • Since the supply chain has many people and organisations involved, reducing emissions here can have a big impact locally, nationally and even globally.  

    Public sector bodies can set an example by encouraging the development of skills and technologies which can help reduce emissions. When they change how they buy goods and services to prioritise greener options, they send a strong message to suppliers: reduce emissions or risk losing custom. 

    On a local level, reduced emissions generally lead to reduced air pollution and traffic congestion. Public sector bodies can help create more demand for decarbonisation technologies such as electric vehicle charging infrastructure, bringing more private investment into their local public charging network as well.  

  • Procurement refers to any purchasing done by a public sector body. This can be for things such as the purchase of tools and equipment required for employees, one-off events such as catering, or an outsourced service such as a school bus.  

    Public bodies are responsible for their own procurement decisions, including how procurement can help tackle the climate emergency.  

    The Sustainable Procurement Duty set out in the Procurement Reform (Scotland) Act 2014, requires public sector bodies to consider how they can improve the social, environmental and economic wellbeing of their area, and facilitate the involvement of SMEs, third sector bodies, and supported businesses.  

    For more information, please see: 

    The public sector is expected to consider the impacts of procurement on the climate emergency through: 

    • whether to buy at all 
    • what to buy 
    • how to buy 
    • how much to buy 
    • end of life, recycle or reuse options 

    The Scottish Government Sustainable Procurement Tools are for public sector organisations to support this sustainable procurement.  

    The Climate Change – Vehicles guidance aims to minimise or, where possible, avoid emissions. There is a distinction between contracts for which vehicle usage (and therefore emissions) presents a core aspect of the activity – for example a service contract involving regular movement of people.  

    Public bodies can take opportunities to reduce or eliminate emissions by having requirements such as alternatives to vehicle use, using electric vehicles, or route optimising. Care needs to be taken that any requirements do not disadvantage smaller businesses, though there is also support available to produce relevant sustainability plans.  

  • As public bodies are responsible for their own procurement decisions, you can include clauses and policies within procurement tenders specifically designed to reduce emissions in the supply chain. It is important to be clear in what is expected of suppliers and working with them as much as possible so they can comply. It is also important to be consistent, not proceeding with a supplier if they do not comply with the necessary requirements. Creating a more sustainable supply chain may involve slightly higher costs of procurement, and potentially some risk. However, many sustainable technologies will save on costs, especially long term. 

    Below are some examples of policies that could be included in a procurement tender. These would not be applicable to all types of suppliers, and the public body must consider their specific case, and whether it disadvantages specific suppliers, before pursuing a policy.  

    Public bodies can also make more open requests, such as asking suppliers to explain how they will reduce their emissions for the duration of the contract, how it will be recorded and reported, and thresholds for success.  

    Example policies for procurement

    • 20% of vehicles used must zero-emission battery electric.  For taxi or bus transport service.
    • Goods must be delivered between 11am and 3pm (off-peak).  For the purchase of goods.
    • Goods must be delivered by cargo/e-cargo bike. For the purchase of goods.
    • The supplier must complete a record of all emissions produced, on a life cycle analysis basis. For any procurement.
    • The supplier must provide a carbon reduction plan for the duration of the contract. For any procurement.
    • Goods vehicles used must operate at full load capacity. For the purchase of goods.
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10.0. Decarbonising the public sector supply chain
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10.2. Decarbonising road freight