Most Scottish public sector organisations have committed to achieving net zero emissions by 2045. Reaching this goal will require action across supply chains, as these emissions often represent a significant proportion of an organisation’s overall carbon footprint.

Many organisations have already implemented more straightforward decarbonisation measures, such as switching to renewable electricity. The next challenge is addressing more complex sources of emissions, including those associated with procurement and supply chains.

Supply chains are often large and complex, making it difficult to identify where emissions occur. In some cases, however, supply chain emissions may be easier to understand and influence, particularly where services are provided locally. Examples include contracts with local suppliers, taxi operators or bus companies. As domestic transport is one of the UK’s largest sources of greenhouse gas emissions, transport-related activities are likely to be a significant source of emissions within many supply chains.

The Scottish public sector spends more than £16 billion each year on goods, services and works. This considerable purchasing power can be used to encourage emissions reductions across supply chains. A coordinated approach by public sector organisations in Scotland and across the UK can incentivise suppliers to reduce emissions in order to remain competitive for public sector contracts. Embedding net zero requirements within procurement processes can send a strong signal to suppliers and help accelerate supply chain decarbonisation.

Because supply chains involve many organisations and activities, reducing emissions within them can have significant environmental benefits at local, national and global levels.

Public sector organisations can lead by example by supporting the development of skills, services and technologies that help reduce emissions. By adapting procurement practices to prioritise lower-emission goods and services, they send a clear signal to suppliers that decarbonisation is becoming an increasingly important requirement for winning and retaining contracts.

At a local level, reducing transport-related emissions can help improve air quality and reduce traffic congestion. Public sector demand can also help accelerate the deployment of decarbonisation technologies, such as electric vehicle charging infrastructure, creating opportunities for additional private sector investment in local charging networks.

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: 

• Ensuring compliance with environmental, social and labour laws: SPPN 09/2016 
• Public procurement – taking account of climate and circular economy considerations: SPPN 3/2022 

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, they can include clauses and policies within procurement tenders that are designed to reduce emissions across the supply chain. It is important to clearly set out expectations for suppliers and work with them wherever possible to support compliance. Public bodies should also apply requirements consistently and avoid proceeding with suppliers that do not meet the agreed standards.

Creating a more sustainable supply chain may involve higher procurement costs and some additional risk. However, many sustainable technologies can deliver cost savings over the longer term.

The examples below illustrate policies that could be included in a procurement tender. These will not be suitable for every procurement exercise. Public bodies should consider their specific circumstances and whether any requirements could disadvantage particular suppliers before introducing them.

Public bodies can also take a more flexible approach by asking suppliers to explain how they will reduce emissions over the lifetime of the contract, how emissions will be measured and reported, and what success criteria will be used.

Example procurement policies

• At least 20% of vehicles used must be zero-emission battery electric vehicles. Suitable for taxi or bus transport services.
• Goods must be delivered between 11am and 3pm (off-peak hours). Suitable for the procurement of goods.
• Goods must be delivered using cargo bikes or electric cargo bikes. Suitable for the procurement of goods.
• The supplier must maintain a record of all emissions using a life cycle assessment approach. Suitable for all procurement activity.
• The supplier must provide a carbon reduction plan covering the duration of the contract. Suitable for all procurement activity.
• Goods vehicles must operate at full load capacity wherever practicable. Suitable for the procurement of goods.