The example text and guidance within this Annex should be read in conjunction with the Pre-procurement and Procurement guidance.
Where relevant the examples make the distinction between:
Climate Change Adaptation: Services and Works Contracts, and
Climate Change and Supply Chain Resilience.
As indicated in the overview to this guidance both aspects may or may not be relevant for planned procurements, so use of this Annex assumes earlier assessment and identification of relevant risks.
It may be appropriate to signpost bidders to the Adaptation Scotland Resilience Checklist, as highlighted in Commissioning and Pre-Procurement Guidance.
General adaptation requirement:
‘The Contracting Authority has included obligations within the specification and contract conditions relating to adaptation to known or anticipated climate change, which are relevant to the [services] [works] to be delivered.’
Construction/Infrastructure planning and adaptation requirement:
'The Contractor will be required to ensure that the [building] [infrastructure] design, construction, operation, maintenance and dismantling reflects known or anticipated climate change impacts so that its vulnerability to such impacts is minimised as far as is practicable.'
General supply resilience requirement:
‘A requirement of this contract is that the supply of essential [materials] [products] is as climate resilient as is practicable, reflecting known or anticipated climate change impacts that may affect their supply during the lifetime of this contract.’
Service contract:
‘Detail your experience and achievements, in conjunction with any partners and your supply chain, of working with other clients to assess risks relating to the effective delivery of the required service from the effects of known or anticipated climate change.
Detail measures undertaken to assess, minimise and manage such risks, in contracts similar in nature.’
An ideal response would provide the following:
‘Detail your experience and achievements, in conjunction with any partners and your supply chain, of working with other clients to assess risks relating to the effective delivery of the required works contract from the effects of known or anticipated climate change.
Detail measures undertaken to assess, minimise and manage such risks, in contracts similar in nature.’
An ideal response would provide the following:
‘Detail your experience and achievements, in conjunction with any partners and your supply chain, of working with other clients to assess risks relating to the supply of essential [materials] [products] from known or anticipated climate change and measures undertaken to manage and mitigate such risks, in contracts similar in nature.’
An ideal response would provide the following:
N.B. Buyers should ensure that the application of supplier selection requirements regarding environmental management measures and climate change commitments reflect ‘relevant’ and ‘priority’ contracts in accordance with prevailing SPD standardised statements. See ‘What do I do on Climate’ in Procurement Journey.
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.
Service contract:
‘The Contractor should provide a method statement setting out how it has assessed risks associated with the impacts of climate change, such as extreme weather events/ flooding/ heatwaves, which may affect the ability of the Contractor to effectively deliver relevant services, including potential disruption to services to those due to receive them in the relevant community, difficulties accessing relevant buildings or infrastructure, or others.
The method statement should also include how relevant risks will be managed to ensure, as much as is possible, resilience of relevant services in the delivery of the contract.
[The Contractor should ensure that the life-cycle costs of the delivery of the relevant service, in accordance with a methodology prescribed by the Contracting Authority, include consideration of the expected effects of climate change on service delivery].’
N.B. Risks may vary according to the nature of the service contract, so responses should reflect this. This may include, where feasible and appropriate, the provision of community-based services remotely in the event of disruption, or links to qualified local supply partners who could step in where relevant.
Works contract:
‘The Contractor will be expected to provide a method statement setting out how it has assessed risks associated with the impacts of climate change for the [works] project, such as extreme weather events/ flooding/ heatwaves.
The method statement should also include how relevant risks will be managed in the design of the life cycle of the [building] [infrastructure], to ensure, as much as is possible, resilience of the [building] [infrastructure], community and users to the impacts of climate change.’
OR
‘The Supplier should support the Contracting Authority’s objective that [design] and operation of the building should minimise risks from known and anticipated changes in climate, so that the [building] [infrastructure], relevant services, users and community are, as much as is possible, resilient to such risks.’
Works contract – materials:
‘Relevant materials for the [building] [infrastructure] must account for projected extreme weather events (while meeting relevant quality and performance standards).’
N.B. As indicated in the Legal and Policy Context infrastructure and buildings may be subject to Building Standards or other requirements.
‘The supplier will be expected to have a Supply Chain Resilience Plan (which may form part of a Business Continuity Plan or similar) which is strategic and proactive, to respond effectively and in a timely manner to unexpected events, but also anticipate, prepare for, and manage risks to disruptions in its supply chain.
This Plan should include the assessment and management of risks to resilience of the supply, throughout the supply chain for essential [materials] [products] required for the contract, because of the impacts of climate change.
This should be capable of being objectively monitored and reported during contract delivery.’
OR
‘The supplier must ensure that climate change is a critical supply risk within Risk Registers and business continuity planning.’
N.B. A Supply Chain Resilience Plan or Business Continuity Plan should potentially address in a comprehensive manner a range of risks that relate to supply disruption, including climate change where relevant.
Supply chain mapping for essential supplies:
‘Essential supplies required under this contract should, as much as is possible, be sourced from areas known to be resilient to known and anticipated climate change impacts during the contract term.
To assess and manage climate change risks to disruption to supply of the required [materials] [products], the Supplier should provide an inventory of its full supply chain relevant to the supply of the required [materials] [products].
This should identify names, locations and a description of specific materials, products or services provided by each supply chain partner and the significance of each to the Supplier’s [product].
This should ensure full visibility of the supply chain. Changes to the supply chain should be notified to the Contracting Authority immediately, together with the assessment of relevant resilience risks.’
‘Supplies required under this contract should, as much as is possible, be sourced from areas known to be resilient to climate change impacts.
The supplier is expected to provide evidence of the systematic assessment and management of risks from climate change to resilience of supply of essential [materials] [products] under this contract.
This may include, where relevant:
N.B. Businesses may be expected to demonstrate how they apply some or all of the following (not necessarily exhaustive and dependent on the scope of the planned procurement), which may require assistance from buyers (this reflects the UK Climate Change Committee Resilient Supply Chains report):
N.B. Requirements and standards, such as ISO14001 and others, that include a focus on climate change adaptation/ supply resilience (see Legal & Policy Context: Climate Change Obligations) must be relevant and proportionate to the subject matter of the contract.
If the tender question, for example, asks for evidence of:
‘How the contractor will support the contracting authority’s objectives in [service or works] contract delivery to plan and adapt for risks related to climate change, or minimise risks to resilience of [supplies, services or works], while ensuring this is capable of being objectively monitored through contract management’, then evaluation of response should consider whether it details:
What relevant measures they will undertake during contract delivery to minimise such risks.
OR
What relevant measures they will undertake during contract delivery to minimise such risks.
Is evidence provided of how this may be objectively monitored e.g. ongoing evidence of adaptation planning and measures, supply chains/ sources of supplies and climate change risk assessment and mitigation measures.
‘The service provider will be expected to provide a method statement setting out how it will assess and manage risks associated with the impacts of climate change, such as extreme weather events/ flooding/ heatwaves, which may affect the ability of the service provider to effectively deliver relevant services.’
A good response will demonstrate in a method statement or similar the existence of a Business Continuity Plan or similar that includes:
‘The Supplier should support the Contracting Authority’s objective that [design], construction, operation and dismantling of the infrastructure/ building should minimise risks from known and anticipated changes in climate, so that the [building] [infrastructure], users and community are, as much as is possible, resilient to such risks.’
A good response will demonstrate:
'Please provide a copy of your sourcing and resilient supply policy and demonstrate how it relates to the reduction of supply chain risks as a result of known or anticipated climate change associated with the [products] which are the subject of this tender and what measures are implemented within sourcing to manage such risks.’
A good response will provide not just the policy (a policy on its own does not provide evidence of being able to manage relevant risks) but also evidence, such as in a method statement or similar, setting out known or anticipated risks from climate change which are relevant to sourcing the required supplies, in the contract period.
It should set out how such risks are managed e.g. resilience planning that reflects climate change risks, the availability of alternative sources and others. This may include:
Keeping lines of communication open with suppliers is important, so that the public body is informed of developments and challenges being faced by suppliers, particularly given the accelerating pace of climate change.
Service contract:
General requirements may include:
Works contract:
General requirements may include:
Supply chain resilience requirements for essential supplies:
General requirements may include:
