The NHS Evergreen Sustainable Supplier Assessment was announced in 2023, coinciding with the NHS’ internal commitments to sustainability. The aim was to encourage suppliers to adopt sustainable practices, aligning with the NHS’s goal to become a net-zero health system.
For UK businesses, especially those in healthcare, seeking to gain procurement contracts with the NHS, understanding this assessment is critical.
This framework offers a systematic method to evaluate the environmental, social, and governance (ESG) standards of businesses providing goods and services to the NHS. By aligning their operations with these criteria, suppliers can showcase their dedication to sustainability, which is becoming increasingly significant in public procurement.
The NHS Net Zero Supplier Roadmap
- As of April 2022, all NHS procurements now incorporate a minimum 10% net zero and social value weighting.
- As of April 2023, for contracts exceeding £5 million per annum, suppliers are required to publish a Carbon Reduction Plan addressing their UK Scope 1 and 2 emissions, as well as a subset of scope 3 emissions.
- From April 2024, the NHS will extend the Carbon Reduction Plan requirement to cover all procurements.
- By April 2027, suppliers will be mandated to publicly report targets, emissions, and publish a Carbon Reduction Plan addressing their global emissions. These efforts must align with the NHS net zero target and encompass Scope 1, 2, and 3 emissions.
- Starting April 2028, new obligations will be introduced to ensure the provision of carbon footprint information for individual products supplied to the NHS.
- By 2030, suppliers will be eligible for NHS contracts only if they can demonstrate progress through published reports on their advancements and continued carbon emissions reporting via the Evergreen sustainable supplier assessment.
– Roadmap taken from Greenly.
Why It Matters for UK Businesses
The NHS has ambitious goals to become the world’s first net-zero national health system and is utilizing its supply chain to achieve these objectives. Essentially, suppliers that are able to demonstrate their commitment to sustainability are more likely to secure contracts with the NHS.
Being proactive in adopting sustainable practices boosts the likelihood of winning NHS contracts while positioning your business as a responsible and forward-thinking partner. Sustainability is now a critical factor in procurement decisions, and not meeting these standards may lead to missed opportunities.
Conclusion
As the NHS advances toward a more sustainable future, UK businesses aligning with its objectives will enjoy improved reputations, stronger customer relationships, and greater chances of securing contracts. If your business works with the NHS, engaging with the Evergreen Sustainable Supplier Assessment is a crucial step for businesses aiming to succeed in today’s environmentally-aware market.