Sustainable Procurement Tools

Annex - Example Procurement Clauses and KPIs

The clauses within the Annex should be read in conjunction with the Commissioning and Pre-procurement guidance and Procurement guidance.

Pre-contract Notification Clauses

General adaptation/resilience 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 products/services to be delivered.’

or

‘A requirement of this contract is that the supply of products and services 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.’

or

‘The Contract/Framework Agreement supports the Scottish Government's National Performance Framework, and the National Outcomes which articulate the Purpose to focus on creating a more successful country with opportunities for all of Scotland to flourish through increased wellbeing, and sustainable and inclusive economic growth. This Contract/Framework supports the following National Outcomes, and contractors are expected to support the authority’s aim to achieve these.' [Insert relevant National Outcomes - see above]

Construction/ Infrastructure

'The Contractor will be required to ensure that the building [infrastructure] design and operation reflects known or anticipated climate change impacts so that its vulnerability to such impacts is minimised as far as is practicable.'

Example Procurement Clauses - Supplier Selection

Service contract:

‘Detail your experience and achievements, in conjunction with partners and your supply chain, of working with other clients to assess risks relating to the supply of [products] [services] 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:

  • Evidence of having assessed climate change risks within the [products] [services] supply chain and/or life cycle of the service/ project.
  • Evidence of measures undertaken to minimise such risks – including in [design] [sourcing of supplies].
  • Evidence of providing clients with details of the impact the measures would have on resilience of supply/ services.

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. 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

General climate change risks

‘The Contractor will be expected to provide a method statement setting out how it has assessed risks associated with climate change, what those potential risks are and how they will be managed so as to maximise as much as is possible resilience of supply/ services in the delivery of the contract/project.’

Buildings

‘The Supplier should support the Council’s objective that [design] and operation of the building should minimise risks from known and anticipated changes in climate, so that the building, services and community are, as much as is possible, resilient to such risks.’

Example Procurement Clauses – Evaluation and Award

General

'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 how risks relating to sourcing of supplies include climate change and which climate change risks are relevant to 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:

  • Understanding which items being sourced are likely to be delayed or impacted, and planning for worst-case scenarios.
  • Accelerating the introduction of alternative suppliers.
  • Increasing safety stock levels.
  • Mapping suppliers and identifying those known to be located in high-risk geographies, in order to understand the extent of the potential problem.

Keeping the lines of communication open with suppliers is important, so that the organisation is informed of developments and challenges being faced by suppliers.

Example Procurement Clauses and KPIs – Contract and Supplier Management

General specific requirements may include:

'Provide a report at the end of each 12-month period from commencement of the contract, that identifies on-going risks due to climate change, and changes and adjustments to how these are managed, as appropriate.'

This may include:

Supply chain partners, sourcing and changes in last 12 months – names, locations and climate change risk assessments.

Measures undertaken in the last 12-months to manage relevant risks – including [location of suppliers and supplies], [stock levels], [design and operation of buildings or facilities].

Return to Monitoring and Reporting Outcomes