Why Sustainability is Now Central to Government Tenders
By 2025, sustainability has shifted from a “nice-to-have” to a core requirement in public procurement. The UK government has embedded environmental and social responsibility into procurement law, making it a key driver of change. Public sector organisations are now leading the way in driving sustainability and setting best practices for others to follow. Every contract is now an opportunity to support Net Zero goals and deliver wider community benefits.
This change is powered by the Procurement Act 2023, which took effect in February 2025. The Act requires buyers to consider not just cost, but how procurements advance social, environmental, and economic objectives. In practice, this means suppliers can no longer ignore sustainability if they want to stay competitive.
It’s not just central government either — local authorities, the NHS, and housing associations are placing greater emphasis on sustainability too. Buyers are under pressure to show taxpayers that procurement decisions generate long-term environmental and social benefits. Sustainability requirements are also designed to protect the interests of future generations, ensuring that today’s actions do not compromise tomorrow’s needs. That’s why sustainability requirements now feature prominently across nearly all categories, from construction and facilities management to IT and professional services.
For suppliers, this shift opens up opportunities as well as challenges. Those that can prove they’re reducing emissions, supporting their communities, and strengthening ethical supply chains are not only meeting compliance standards but also standing out in competitive markets. Adopting sustainability requirements can provide a significant competitive advantage, helping SMEs and other organisations differentiate themselves and win more business. SMEs in particular can leverage agility and innovation to demonstrate real impact in ways larger organisations sometimes can’t.
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What Are Sustainability Requirements in Government Procurement?
Sustainability requirements are the environmental, social, and governance (ESG) standards that suppliers must meet when bidding for government contracts. In the UK, these requirements are shaped by Net Zero legislation, updated Procurement Policy Notes (PPNs), and the government’s Social Value Model. They set the baseline for how buyers assess suppliers on their ability to support national climate targets, embed ethical practices, and deliver community benefits. Suppliers must also comply with specific reporting requirements, including mandatory disclosures on waste, water, emissions, and resource use, to ensure transparency and accountability.
In practice, this might mean an NHS framework asking for proof of carbon reduction in supply chains, a construction tender requiring evidence of waste management and use of sustainable materials, or an IT procurement exercise mandating data centres powered by renewable energy. The procurement process now integrates environmental and social considerations at every stage, ensuring that sustainability is embedded throughout. Each sector applies sustainability criteria differently, but the underlying goal is the same: ensuring public spending drives positive, measurable change. Procurement processes are being updated to address key sustainability factors, aligning with evolving standards and expectations.
In simple terms, sustainable procurement means choosing suppliers that not only deliver quality and value but also reduce environmental impact and create positive social outcomes — with clear, sector-relevant evidence to back it up. The triple bottom line—social, environmental, and economic factors—guides procurement decisions to ensure a holistic approach to sustainability. Buyers assess sustainability performance as part of their evaluation, looking at long-term environmental and social impact. It is also essential to consider environmental and social considerations when selecting suppliers to ensure alignment with sustainability goals.
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Key Sustainability Requirements in 2025 Government Tenders
By 2025, most tenders include sustainability questions worth 10–30% of the evaluation score. Here are the most common requirements SMEs will face, along with sector-specific examples to illustrate how they apply in practice:
Carbon Reduction Plans (CRPs)
For contracts over £5m, suppliers must publish a compliant CRP outlining their current carbon footprint, as well as their carbon emissions and greenhouse gas emissions, which are key metrics in CRPs, and commitment to Net Zero by 2050.
Carbon reporting is now mandatory for many suppliers, including limited liability partnerships, under frameworks such as Streamlined Energy and Carbon Reporting (SECR).
For example, NHS tenders now routinely ask for CRPs, even at lower values, to demonstrate progress on healthcare’s Net Zero strategy. As part of compliance, suppliers are required to report on energy use and energy consumption, including electricity sourced from the national grid.
CRPs should also address supply chain emissions and align with the government’s net zero targets. Streamlined energy reporting is increasingly important for public sector contracts.
Waste and Resource Management
- Demonstrating how your business minimises waste, conserves natural resources, and promotes waste reduction, uses recycled materials, or adopts circular economy practices. Adopting practices that result in less waste and greater resource efficiency supports environmental protection and positive environmental outcomes. In construction projects, this might include evidence of reusing demolition materials or diverting waste from landfill. It is also important to consider the full life cycle of materials, including the use of sustainable products and raw materials, to reduce environmental impact. Protecting the environment through responsible resource management is essential for long-term sustainability.
Ethical Supply Chains
- Buyers expect visibility over your suppliers, including fair labour standards, respecting human rights, and ensuring a living wage throughout the supply base, as well as anti-slavery compliance and prompt payment. IT and digital contracts often request proof that overseas suppliers meet ethical sourcing standards, particularly in hardware procurement.
Supplier diversity and considering both social and environmental factors are increasingly important in supply chain management. It is also essential to comply with applicable laws and integrate environmental and social considerations into procurement decisions.
Social Value Commitments
From local job creation to apprenticeships, suppliers must show measurable contributions to communities, delivering a positive impact through public sector procurement. Local authority tenders, for example, may award additional points if you commit to hiring apprentices or supporting local voluntary initiatives.
Implementing sustainable procurement and supporting sustainable procurement practices are essential to achieve whole life value and maximize social and environmental benefits. By considering environmental factors and adopting sustainable practices, organizations can procure sustainably, minimize negative impacts, and avoid reputational damage. Services that facilitate procurement can further support social and environmental outcomes by providing tools and guidance to embed sustainability into decision-making.
Failing to meet these criteria can mean disqualification, even if your price and technical offer are strong. Successful bidders provide tailored, evidence-based responses that clearly link sustainability outcomes to the delivery of the specific contract.
Understanding Sustainable Procurement Policy and Strategy
Every public sector buyer now operates under the National Procurement Policy Statement (NPPS), which prioritises sustainability. This requires suppliers to:
- Align with national climate and Net Zero targets.
- Support social and community outcomes.
- Demonstrate fair, transparent, and ethical practices.
Procurement processes are being updated to integrate environmental considerations, ensuring that sustainability is embedded at every stage and that legal duties related to sustainable procurement are met.
In practice, this means government departments, NHS trusts, local councils, and even housing associations are embedding sustainability directly into their procurement frameworks. For example, an NHS buyer may insist on evidence of supplier carbon reduction measures, while a local authority could weight contracts heavily in favour of businesses with strong social value initiatives.
For SMEs, this means building a sustainable procurement strategy — not just reacting to tender questions. A strong strategy includes:
- Setting clear sustainability goals aligned with Net Zero and social value priorities.
- Embedding policies (environmental, social value, equality, diversity and inclusion).
- Gathering evidence and case studies for bids, ideally with quantifiable metrics (e.g., CO₂ savings, number of apprenticeships created, or tonnes of waste recycled).
Tracking and reporting sustainability performance is essential, as it demonstrates transparency, accountability, and progress towards sustainability goals.
Environmental and Social Criteria in Public Procurement
Public sector tenders now apply both environmental and social filters, and the scope of these has expanded significantly by 2025. Here’s what you should expect:
- Environmental criteria include carbon footprint reporting, low-emission vehicles, energy efficiency, and green certifications such as ISO 14001 or PAS 2060. These criteria increasingly require consideration of environmental factors such as energy use, water consumption, and emissions. Climate change considerations are also shaping procurement requirements, with buyers seeking alignment with emissions reduction targets and climate adaptation strategies. In construction, for example, buyers increasingly ask for evidence of circular economy practices such as material reuse and sustainable building techniques, and it is important to consider the full life cycle of materials and assets to assess their overall environmental impact. In IT contracts, suppliers may be asked to demonstrate the use of energy-efficient servers and data centres powered by renewable energy.
- Social criteria cover outcomes like fair pay, apprenticeships, inclusion of disadvantaged groups, or volunteering hours for local charities. NHS frameworks may focus on workforce wellbeing and local job creation, while education tenders could prioritise apprenticeships and training opportunities for young people.
For example, a local council may award extra points if your business commits to hiring people from disadvantaged backgrounds or supporting community projects, and construction frameworks often link contract success to measurable contributions such as apprenticeships created or tonnes of waste diverted from landfill.
Green Procurement and Net Zero Goals in the UK
Green procurement means embedding sustainability into purchasing decisions. In the UK, this is inseparable from the Net Zero by 2050 target. Every public contract is expected to contribute toward emissions reduction. To achieve these goals, there is a growing emphasis on the need to reduce greenhouse gas emissions and improve resource efficiency to protect the environment.
For suppliers, this means preparing for buyers to scrutinise your environmental track record. The NHS, for instance, now requires carbon reduction plans for all new contracts, even at relatively low thresholds.
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Sustainable Procurement Practices for UK Suppliers
Practical steps SMEs can take to align with sustainability requirements include:
- Measure your carbon footprint and develop a Carbon Reduction Plan.
- Publish a sustainability or ESG policy that covers environmental, social, and governance commitments.
- Adopt certifications (ISO 14001, PAS 2060, Disability Confident) or sign up to initiatives like SME Climate Hub.
- Align with the eight Social Value outcomes (e.g. apprenticeships, community wellbeing, SME supply chain support).
- Track progress with tools such as carbon calculators or the Social Value Portal’s TOMs framework.
- Review your supply base to ensure suppliers are aligned with sustainable practices and meet environmental and social responsibility standards.
Tracking sustainability performance can help demonstrate progress to buyers, improve transparency, and show commitment to long-term environmental and social goals.
These steps not only improve tender scores but can also reduce costs and boost reputation.
How to Find Government Tenders with Sustainability Requirements
Finding the right tenders is half the battle. Platforms like Supply2Gov help SMEs filter opportunities by location, value, and sustainability requirements. This is particularly important in 2025, when sustainability is integrated into contracts across sectors from healthcare to construction.
- Use filters for green procurement projects, such as renewable energy installations or low-carbon construction frameworks.
- Track social value-focused contracts, for example, those that prioritise apprenticeships or community impact.
- Register for alerts to avoid missing opportunities, since many sustainability-linked contracts are highly time-sensitive.
- Build a library of templates and case studies so you can respond quickly and effectively, showing evidence of how your business has delivered on sustainability outcomes in the past.
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Get Tender-Ready for 2025
Sustainability requirements are no longer optional in public procurement — they are decisive. To win government contracts in 2025 and beyond, SMEs must:
- Understand and comply with carbon and social value obligations.
- Build sustainability into everyday business practices.
- Provide evidence and measurable commitments in tender responses.
The good news? With the right preparation, SMEs can compete — and even thrive — in this new procurement landscape.
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