Businesses in the UK must commit to Net Zero to win major government contracts

The measures announced on World Environment Day will require businesses to commit to net zero by 2050 and publish clear and credible carbon reduction plans before they can bid for major government contracts.

Under the new measures, by September, prospective suppliers bidding for contracts above £5million a year will need to have committed to the government’s target of net zero by 2050 and have published a carbon reduction plan. Firms which fail to do so will be excluded from bidding for the contract. 

Minister for Efficiency and Transformation, Lord Agnew, explained: “The government spends more than £290bn on procurement every year, so it’s important we use this purchasing power to help transform our economy to net-zero.

“Requiring companies to report and commit to reducing their carbon emissions before bidding for public work is a key part of our world leading approach.

“These measures will help green our economy, while not overly burdening businesses, particularly SMEs.”