Sustainable Procurement Tools

Annex - Example Procurement clauses and KPIs

The clauses and Key Performance Indicators (KPIs) within this Annex should be read in conjunction with the Commissioning and Pre-procurement; Procurement; and Post-procurement guidance.

Pre-contract Notification clauses

Decarbonisation ambitions:

General 

'The Contracting Authority has included obligations within the specification and contract conditions relating to energy efficiency and the transition to a low carbon and circular economy, which are relevant to the products/services to be delivered.' 

or

‘The Contract/Framework Agreement supports the Scottish Government's National Performance Framework, and the National Outcomes. The Contractor will be required to minimise the environmental impacts of services delivered, including energy consumption and associated carbon emissions, where practicable.'

Tailor to focus on specific outcomes

'The Contracting Authority has included obligations within the specification and contract conditions relating to decarbonising our economy, including [minimising carbon emissions], [being resilient to a changing climate], [reducing fuel poverty] and [developing jobs and skills to support decarbonisation] which are relevant to the services to be delivered.'

Energy and innovation (e.g. construction related – may be adjusted to suit):

‘We are committed to whole life value for money and encouragement of innovative energy efficiency solutions. The Contracting Authority wishes to work with contractors who will support its aims to transition to a low carbon and circular economy and who will keep up to date with best practice energy efficiency opportunities within the construction sector, including energy use during delivery of the construction project as well as energy efficiency of the building.’ 

Minimum requirement (relevant as the standard(s) include focus on energy consumption):

'A requirement of this contract is that all products supplied meet the mandatory level of the Government Buying Standard (GBS) for [insert product standard] for energy efficiency.' 

Other standards may be applicable – see the Specification section for more details.

Example Procurement Clauses - Supplier selection

Energy and climate – service contract:

‘What experience, if any, does your company, in conjunction with partners and its supply chain, have in working with other clients to evaluate, assess and design services, in contracts similar in nature, that support decarbonisation from the use of energy, including low or zero carbon operation.’

An ideal response would provide the following:

• Evidence of having achieved reduced energy consumption for clients using effective equipment specification, procurement and management, behavioural change and appropriate replacement of systems and infrastructure.
• Evidence of providing methods of awareness raising amongst service users either through training programmes or provision of key user guidance with particular focus on efficient energy use.
• Evidence of providing clients with energy consumption data with analysis and recommendations for changes/ adaptations to improve energy efficiency in a cost effective way.

or

Tailor to focus on specific outcomes:

“What experience, if any, does your company, in conjunction with partners and its supply chain, have in working with other clients to evaluate and supply products or services in contracts similar in nature that support the transition to a low carbon and circular economy, specifically through energy efficiency measures, identifying outcomes delivered [this may be expanded to focus on specific outcomes as relevant e.g. lighting/ ICT/ data centres/ specific services/ renewable energy or others]?”

N.B. Buyers should ensure that the application of supplier selection requirements regarding environmental management measures and climate change commitments reflects ‘relevant’ and ‘priority’ contracts in accordance with prevailing SPD standardised statements. Selection criteria should be determined through strategy development and market research which indicates that applied minimum requirements are relevant and proportionate to the procurement exercise.

Example Procurement Clauses – Specification

Where a specific energy rating is required, it may be appropriate to include this within the specification:

Energy rating and verification:

‘All Equipment supplied under the contract must achieve the required criteria to meet the ‘A’ rated Energy Efficiency index of [e.g. 0.64 or less]. Evidence of the award of the EU Ecolabel will be accepted or alternatively production of independently verified equivalent tests, if their equivalence is accepted by the competent body assessing the product performance.’

Energy and construction ratings (example only):

‘This project must reduce the lifetime embodied carbon of the building, including energy efficiency, maximising retention/re-use of existing assets, creating assets that are demountable/ deconstructable/ recoverable, maximising re-use, minimising the use of non-renewable primary materials, ensuring longevity, maximising the value of materials once the original purpose is accomplished, including achieving our minimum design requirements for carbon emissions of:

• [an EPC rating of [x] for regulated emissions];
• [a predicted DEC (Display Energy Certificate) rating of [y] for regulated and unregulated emissions];

• [total kWh energy consumed in a building over a year per m]²;
• [annual carbon emissions of not more than [z] kg CO2e per [occupant/visitor/Gross Internal Floor Area]’

Where the level of energy use is both relevant and proportionate the following wording could be included in a specification:

Energy and decarbonisation – outcome specification:

‘The contractor will be expected to manage their use of energy in contract delivery, so as to support the Contract Authority’s decarbonisation ambitions, including through any environmental good practice systems, for example ISO 14001, or equivalent which form part of their business practice.' (Contracting Authorities should ensure this is appropriate according to requirements within the selection stage).

Example cleaning service contract (or similar service) – outcome specification:

‘As well as ensuring that cleaning products and services operate in accordance with a relevant standard (see above) it is expected that the Contractor will use energy efficient cleaning equipment and ensure that energy use is minimised as much as is practicable to ensure required levels of cleaning.

The Contractor will ensure that all staff and supply chain partners involved in carrying out cleaning services are appropriately trained (ensuring that relevant records are available). This shall include the energy efficient use of cleaning/ washing equipment and relevant energy management during delivery of the service, [the use of non-hazardous cleaning agents/ minimum use of chemicals, management of water used and waste generated, in accordance with the waste hierarchy]. 

The Contractor will be required to demonstrate how they will meet energy efficiency requirements and minimise energy consumption.’

Energy and construction project (example) – outcome specification:

‘The Supplier ensures that the works and associated services are performed in accordance with the Contracting Authority’s response to the climate emergency.

The Supplier shall submit to the Contracting Authority for their written acceptance a mitigation plan that minimises emissions arising from:

The use of energy during service delivery, including mains electricity, generators, air compressors, plant and others. Where relevant this will include the application of minimum energy efficiency ratings for equipment installed [such as, but not restricted to, street lighting and traffic lights], ensuring that all energy-consuming plant under its jurisdiction or control is maintained to operate at optimum efficiency and all fuels, gas and electricity are used economically, the practical application of innovative solutions, including switching to low and zero carbon technologies and fuel sources.’

Example Procurement Clauses – Evaluation and Award

Energy method statement (service contract e.g. FM):

'Please describe in a method statement your proposed approach for this contract to minimising, where practicable, the use of energy and/or enabling the transition to lower/ zero carbon energy sources, in service delivery, in conjunction with the Contracting Authority.

This should include detail regarding:

• Energy ratings of equipment and products used/ installed;
• Optimising use of energy and identifying opportunities to improve energy efficiency and carbon reduction;
• Enabling service users to operate energy efficiently;
• Monitoring and reporting of energy and carbon reduction measures, improvements and proposed improvements, which support the Contracting Authority’s decarbonisation ambitions;
• Identifying and evaluating innovative energy solutions.’

A good response would provide the following:

• Detail of how they will reduce energy consumption and carbon emissions in delivery of services by using relevant equipment/ product specification and in management of energy on site;
• Detail of how they propose to work with the Client to meet external and internal targets for reducing energy consumption;
• Detail of how they will ensure that all energy-consuming equipment under its jurisdiction or control is maintained to operate at optimum efficiency and all fuels, gas and electricity are used economically, in accordance with any operational policies issued by the Client;
• Detail of how they will support the Client’s initiatives for energy-saving strategies including separate heating, lighting and ventilation strategies and co-operate with the Client in achieving agreed objectives;
• Detail of how they will assess and evaluate the practical application of innovative solutions, including switching to low and zero carbon technologies and fuel sources;
• Detail of their approach to working with the Client to identify and implement energy reduction projects across the estate by carrying out feasibility studies and advising on new and emerging technologies;
• Detail of how they will encourage responsible energy use by all building occupants;
• Detail of how they will provide the Client with Project evaluation and feedback in the form of energy, cost and carbon savings realized through implementing carbon management projects, including through the use of intelligent systems to aid the delivery of smarter energy usage and maintenance solutions.

Energy method statement (e.g. construction project):

'Please describe in a method statement your proposed approach for this contract to decarbonisation, including details of any specific steps taken in the design and delivery of services to increase energy efficiency and/or transition to low/ zero carbon energy sources, including through innovative solutions.'

A good response would provide the following:

• Detail of how they will reduce energy consumption and carbon emissions in delivery of services by using relevant equipment/ product specification and in management of energy on site.
• Detail of reducing energy and related carbon emissions, including from use of mains, generators, compressors, other equipment and plant (this may include use of electric plant). This may include innovative approaches such as use of electric plant/ generators etc) [relevant for construction project].
• Detail of energy management and reduction measures which will be reported to the Contracting Authority.

General energy requirement:

'Please provide a draft Resource Management Plan for this service including measurable targets for the reduction of energy use over the period of the contract.'

Or

‘Our sustainability targets include a commitment to reduce whole life costs of the service [by x%] over the lifetime of the contract, while delivering effective capability. Whole life costs to include equipment, associated consumables, servicing and maintenance, upgrading, licensing and energy and carbon costs and all other relevant costs during the lifetime of the contract.

Please describe your suggested methodology, including timeline, milestones, outcomes and responsibilities for developing an appropriate service Resource Management Plan for this project which aims to:

• Help us achieve our target for reducing whole life costs and energy consumption resulting from [insert service] services; and
• Providing data/ information to support claims that whole life cost and resource savings have been made.’

Example Procurement Clauses and KPIs – Contract and Supplier Management

Specific requirements may include:

• ‘Establish a baseline of energy and carbon emissions within [insert] months/years of commencement of the contract.
• Provide total of carbon emissions that arise from energy consumption in the delivery of the service at the end of each [12-month] period from commencement of the contract, showing changes and measures undertaken and planned to reduce emissions further, where practical.’

Standards and labels

EXAMPLE KPIs
Example relating to design and operation of assets (may be tailored for alternative services):	Potential baseline:	kWh consumption per m2 (or other factor) benchmark for asset, where relevant, based on industry averages/project norm.
	Improvement:	kWh consumption per m2 (or other factor) and total, based on low/zero carbon design.
Use of energy in construction: Where energy consumption can be monitored in service delivery relevant KPIs may include:	Potential baseline:	Independent baseline /contractor baseline for type of project kWh.
	Improvement:	Improvement measures implemented and kWh energy consumption in construction project.
Qualitative reporting: Where a baseline may not be available, or the market may not yet have the capability to report improvements dialogue with the contractor on:	Improvement:	What improvements you have made/ can make to reduce energy consumption during construction. Will it be possible to quantify these improvements in time (if so, setting a deadline for establishing a baseline and monitoring improvements)? Where energy consumption can be monitored in service delivery relevant KPIs may include: Percentage of buildings meeting energy efficiency targets. Percentage of products/ equipment used/ installed meeting energy efficiency ratings or standards.
Operation of buildings - service contract KPIs. Where energy consumption can be monitored in service delivery relevant KPIs may include:	Improvement:	‘Energy consumption in kWh and carbon emissions as part of Energy Management Service. Reductions in CO2 emissions, through energy efficiency measures. Reductions in CO2 emissions, from energy efficiency measures on site (e.g. increased use of renewables). Percentage of buildings meeting energy efficiency targets. Percentage of products meeting energy efficiency ratings or standards.’
Construction energy ratings. For the operation of buildings KPIs may include:	Improvement:	[an EPC rating of [x] for regulated emissions]; [a predicted DEC (Display Energy Certificate) rating of [y] for regulated and unregulated emissions]; [total kWh energy consumed in a building over a year per m]2; [annual carbon emissions of not more than [z] kg CO2e per [occupant/visitor/Gross Internal Floor Area]’

 

 

 

 

 

 

 

 

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