As the Procurement Journey emphasises, the most positive outcomes, including those relating to adaptation to climate change, will arise from early consideration, involving key stakeholders, of intended outcomes and optimum solution(s).
Activities under services and works may involve use of buildings, major refurbishments, infrastructure or provision of facilities management.
As a result, physical risks to users of services may relate to site access requirements (and sometimes be outside of scope of the contract) but could prompt inclusion of a requirement to demonstrate how the contractor is able to provide relevant services remotely and/or ensure access to relevant equipment, products and materials to allow services or works to continue.
This signals your intent to the market (and internal stakeholders) and provides a basis for measuring and managing overall performance, including using Prior Information Notices (PIN)/ Request for Information (RFI)/ Market engagement events.
Capability - how capable is the market in delivering these ambitions?
The maturity of markets regarding climate resilient services or works may vary. For example, major construction suppliers may incorporate climate risk assessment and adaptation design and planning into projects. Other organisations and sectors which may be less mature can be assisted by public procurement processes to obtain relevant knowledge and awareness in order to drive up national performance.
N.B. It is recommended that suppliers and potential suppliers are signposted to the Adaptation Scotland Resilience Checklist. This identifies simple actions that businesses can take to protect their People, Products and Services, Premises, Processes and Place. It includes prompts to encourage businesses to identify opportunities for innovations or new offerings in response to their climate risks and new customer needs, together with relevant case studies.
Heightened focus on supply chain risk management includes climate change risks to global supply, including food availability, health and safety impacts, working conditions and wellbeing of workers in supply chains, ports and transport infrastructure, factory production, connectivity and telecommunications, market prices and costs.
Reputational risks may apply to public bodies, according to how they and their supply chains deal with such issues. How climate change risks affect supplies and services should be considered by commissioners and procurers.
This also links to issues relating to the security of supply of various critical materials (more detail is included in the Materials Security and Waste and Resource Efficient guidance).
A transition to a Circular Economy and reducing reliance on largely imported raw materials, can potentially generate opportunities for ‘Onshoring’ and local supply, and, in turn, reduce climate change supply risks and enhance resilience. Public bodies should work with suppliers to manage relevant risks and capture opportunities for local jobs, skills and training.
Capability - how capable is the market in delivering these ambitions?
Research indicates capability varies across sectors, categories and businesses, and market engagement is important to understand this.
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