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AcrossÌýthe Welsh public sector, sustainability is becoming aÌýhuge factorÌýin procurement decisions.ÌýThat means that businesses that canÌýdemonstrateÌýcredible environmental actionÌýare looked on favourably as potential partners,Ìýwhile those who do notÌýrisk being left behind.Ìý

The Welsh public sector has an ambition to achieve net zero by 2030, with Wales as a whole targeting net zero by 2050. This means thatÌýpublic sector organisations are under increasing pressure to reduce carbon emissions throughout their supply chains. That means theÌýgovernmentÌýisÌýlooking closely at the environmental performance of the businessesÌýit worksÌýwith.Ìý

For many SMEs, this canÌýseemÌýoverwhelming. Terms likeÌý‘netÌýzero’,Ìý‘carbon reporting’ÌýandÌý‘sustainability strategy’,Ìýmay be things you have yet toÌýencounterÌýbut the good news is that youÌýdon’tÌýneed to become an environmental expertÌýto navigate this new procurement landscape.ÌýÌý

There are practical steps you can take to ensure your business is competitiveÌýand desirable for public sector contracts.

What’sÌýyour impact?Ìý

If your business wants to work withÌýorganisations such as the Welsh Government, local authorities, the NHS, Welsh universities and colleges or public-funded projects,Ìýyou will increasingly be asked about your environmental impact, particularly for larger or higher-value contracts where sustainability scoring is formalised.ÌýIt’sÌýsomething that is increasingly on these organisations’ radar and something that should be onÌýyoursÌýtoo.ÌýThese expectations align with legislation such as the Well-being of Future Generations (Wales) Act, which requires public bodies to consider long-term environmental impact.Ìý

Your impact includes:Ìý

• Your energy useÌýÌý
• Carbon emissionsÌýÌý
• Waste managementÌýÌý
• Sustainable travel policiesÌýÌý
• Supply chain practicesÌýÌý
• Environmental targets and reportingÌýÌý

In some tenders, environmental scoring already contributes directly to whether you win or lose the contract.Ìý

It’sÌýimportant that you start keeping detailed records of these practicesÌýand ensuring that out-of-date policies are reviewed and renewed.

How big is your footprint?Ìý

One of the first things public sector buyers may ask is whether you understand your business’ carbon footprint.ÌýUnderstanding is the first step to improving, so ensuring you get to grips with your carbon footprint and what can be done to improve will put you ahead.Ìý

If youÌýdon’tÌýknow where to start, break it down into these elements:Ìý

• Electricity usageÌýÌý
• Gas or heating fuel usageÌýÌý
• Business travelÌýÌý
• Fleet fuel consumptionÌýÌý
• Waste generationÌýÌý
• Water useÌýÌý

These areas broadly fall into direct emissions (such as fuel use), indirect emissions from energy and supply chain impacts.Ìý

EvenÌýif you can draft aÌýsimple baselineÌýthis willÌýgive you something to improve against.Ìý

Many businesses delay this step because they think carbon accounting is only for large corporations.ÌýThisÌýisn’tÌýtrue.ÌýSMEsÌýcan get ahead of their competitors if they can show that they areÌýconsciouslyÌýmonitoringÌýtheirÌýenvironmental outputs and putting plans in place toÌýimprove their footprint.

Is there a policy in place?

A surprising number of businesses bidding for public contracts don’t have a formal environmental policy, even though an environmental policy is often a minimum requirement and a strong indicator of an environmentally conscious organisation.

A policyÌýdoesn’tÌýneed toÌýbeÌýlengthy or filled with technical jargon. BuyersÌýmainly wantÌýevidence that environmental responsibility is built into how your businessÌýoperates.Ìý

Your policy should clearly explain:Ìý

• Your commitment to reducing environmental impactÌýÌý
• How you manage waste and recyclingÌýÌý
• How you reduce energy useÌýÌý
• TheÌýsustainability targets you are working towardsÌýÌý
• WhoÌý(in your team)Ìýis responsibleÌýforÌýthese different elements. Ìý

Goals should remain realisticÌý

While it might be tempting to put down lofty goals that look impressive on paper,Ìýpublic sector organisations want to seeÌýaction not just promises.Ìý

It’sÌýalso important to avoid making vague claims such as ‘we care about sustainability’,Ìýinstead useÌýspecifics.Ìý

Examples of this could be:Ìý

• Reducing energy consumption by a certain percentageÌýÌý
• Switching to renewable electricity suppliersÌýÌý
• Introducing hybrid or electric vehiclesÌýÌý
• Reducing landfill wasteÌýÌý
• Encouraging remote or lower-carbon working practicesÌýÌý

YouÌýdon’tÌýhave to make a complete overhaul of your operations, two to three measurable environmental goals for the next year will be a great start.Ìý

Small improvements can make a big difference

You’d be forgiven for thinking thatÌýsustainability requires expensive investment, but some of the easiest, most impactfulÌýwins canÌýalsoÌýbe the most costÌýeffective.Ìý

SimpleÌýchanges such as switching to LED lighting, improvingÌýinsulationÌýor installing timers/sensors can oftenÌýreduce operating costs as well as emissions.

Is your supply sustainable?Ìý

Don’tÌýbe surprised if public sector buyersÌýask not just about your sustainabilityÌýbutÌýalso your suppliers’.ÌýÌý

When looking at new suppliers, or renewing existing contracts, ensureÌýyou’reÌýconsidering sustainability. Think ‘is this company following environmental standards?’ ‘Are they reducing packaging waste?’ ‘Do they use sustainable materials?’ ‘Are there ethical sourcing policies in place?’Ìý

Being more mindful about your supply chain isn’t about replacing every supplier overnight, it’s more about showing awareness and asking better questions moving forward.

Is it time to train up your team?Ìý

Green complianceÌýoften comes down toÌýconfidence.ÌýMany businesses know sustainabilityÌýmatters,ÌýbutÌýtheir teams areÌýunsure where to begin.Ìý

Firstly, it’s important toÌýidentify who is responsible for sustainability in your team;Ìýthat could beÌýthe facilities team whoÌýoverseeÌýenergy and waste,ÌýtheÌýfinanceÌýteam who are responsible for procurement and supply chain contracts orÌýtheÌýproject managersÌýwho lead on sustainability ventures.Ìý

If there are gaps in their knowledge there will be missed opportunities to innovate.ÌýÌý

ÈÕº«¸£ÀûºÏ¼¯offers aÌývariety ofÌýaccreditedÌýcourses that can be undertaken by any employee, regardless of their role and sector. These courses help teams understand,ÌýimplementÌýand champion sustainable practices in the workplace.ÌýÌý

ÈÕº«¸£ÀûºÏ¼¯also offers the Energy and Carbon Management qualification, a more advanced course suitable for those in charge of environmental managementÌý(such as your facilities or finance teams).ÌýThis is for thoseÌýlooking to better implement efficiency strategies within their organisation.ÌýÌý

You can find all of ACT’s course here.