From 1st April 2022, all NHS providers will be required to adopt the Government’s Social Value Model and include a minimum of 10% weighting on net zero and social value into tenders, the NHS Procurement Transformation team within NHS England and Improvement has stated.
This month, new guidance has been published for procurement teams to apply the model into tenders and procurements inline with any of five themes: fighting climate change; COVID-19 recovery; tackling economic inequality; equal opportunity; and wellbeing.
Initially from next month the model will be adopted into any procurement process, ahead of a deadline of April 2023 for all new contract awards above £5million per annum to publish a carbon reduction plan for their direct emissions. From April 2024, the requirement will expand for all new contracts, irrespective of value.
The guidance highlights that at the ‘earliest opportunity’ procurement teams should select the relevant themes to be included in a tender, and determine a net zero and social value weighting at or above the 10% minimum. This includes using relevant questions and evaluations for this area as part of the tender process.
However, the Unit states: “We recognise that not all suppliers are at the same stage of their net zero journeys. While many will welcome this approach, some may face challenges. We will continue to work closely with regulators, suppliers and supporting industry bodies in order to shape our approach and give all suppliers the opportunity to align with our net zero ambition.
“A two-year grace period on the key milestones and requirements leading up to the 2030 deadline will apply for Small and Medium Enterprises (SMEs) and Voluntary, Community and Social Enterprises (VCSEs).”
The Greener NHS website highlights that the NHS uses products from more than 80,000 suppliers, with more than 60% of the NHS carbon footprint based within the NHS supply chain, therefore playing a key role to reach net zero by 2045.
Last year the Government published its roadmap and requirements up to 2030, noting suppliers will only be able to qualify for NHS contracts if they can demonstrate their progress through published progress reports and continued carbon emissions reporting through the supplier framework.
