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

   Products and materials embodied carbon assessment:

   ‘A requirement of this contract is that all products offered [products/ materials used in service delivery] have been assessed in terms of embodied carbon and offer the lowest values whilst meeting functional performance  standards.’  (This may only be suitable where it is known that such products are energy/carbon intensive in their production and the market is known to (or should) assess embodied carbon).                                            

Minimum requirements:

For a service or supplies contract (according to subject matter of the contract)

‘The Contracting Authority has included obligations within the specification and contract conditions relating to embodied carbon, which are relevant to the products/services to be delivered.’

‘A requirement of this contract is that all products supplied [packaging used to protect products] should include a minimum recycled content of x%.’

'A requirement of this contract is that all products supplied meet the mandatory level of the Government Buying Standard (GBS) for [insert product standard].' (other standards may be applicable – see the Specification section for details regarding relevance to embodied carbon).

Example Procurement Clauses - Supplier Selection

Service contract:

‘Detail your understanding, experience and achievements in cost-effectively providing [insert service] services that minimise the use of significantly high embodied carbon and reduce the whole life costs of the contract delivery.’ 

or

‘Detail your understanding, experience and achievements in minimising the overall embodied carbon for a similar project.’ 

An ideal response would provide the following: 

1. Evidence of having achieved reduced embodied carbon for clients using alternative materials or production methods. 
2. Evidence of providing clients with embodied carbon data with analysis and recommendations for changes/adaptations to reduce embodied carbon levels in a cost-effective way (where relevant and practical).

or

‘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 products [or services], in contracts similar in nature, that support decarbonisation from embodied carbon reduction.’

An ideal response would provide the following:

• Evidence of having assessed priority life cycle embodied carbon reduction within products [or services] (including design, manufacturing, utilisation and end of life management).
• Evidence of evaluation and development of cost-effective relevant measures to reduce embodied carbon emissions.
• Evidence of providing clients with details of the impact the measures would have on embodied carbon emissions.

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

Minimum requirements:

For a service or supplies contract (according to subject matter of the contract)

‘A requirement of this contract is that all products supplied [packaging used to protect products] should include a minimum recycled content of x%.’

or

‘… at least 10% [or other, such as ‘as high a level as is feasible’] of the total value of materials used should derive from recycled and reused content in the products and materials selected.’

or

'A requirement of this contract is that all products supplied meet the mandatory level of the Government Buying Standard (GBS) for [insert product standard].' (other standards may be applicable – see the Specification section for details regarding relevance to embodied carbon).

The example below can be used in a specification to highlight the technical requirement to meet sustainability criteria for embodied carbon. Buyers should also consider opportunities to reduce embodied carbon through end-of-life issues and packaging.  

Products with plastic content e.g. ICT

‘All plastic parts ≥ 50g shall be marked for recycling according to ISO 11469 or equivalent and must not contain additions of other materials that may hinder their recycling.’ 

‘The external plastic case of the system unit, [monitor and keyboard] should have a post-consumer recycled content of not less than [10%] by mass.’ – some IT hardware products include up to 85% post-consumer recycled plastics.

Packaging

‘The Contractor will be required to support a reduction in packaging materials under this contract. This must not hinder the safe delivery of products. This reduction must be supported through:

• Sustainably sourced materials;
• A minimum of [50]% recycled content in plastic and cardboard packaging materials, with a preference for the maximum degree that is feasible [or, as an alternative be sustainably sourced packaging] [Where cardboard boxes are used, they should be made of, at least, 80% recycled Packaging material].
• The Contractor must ensure that return transit packaging is used throughout the supply chain wherever feasible, including re-usable packaging systems, such as unboxed palletised packaging or others;
• Recyclable materials, including the avoidance as much as possible of single-use plastics;
• Creative packaging design and innovative materials;
• Compliance with all relevant packaging and waste regulations.’ 

Functional/Outcome requirements:

Products and materials embodied carbon assessment:

‘A requirement of this contract is that all products offered [products/ materials used in service delivery] have been assessed in terms of embodied carbon and offer the lowest values whilst meeting functional performance standards.’ 

or

‘Identify the [5-10] most significant and cost-effective opportunities to reduce the embodied carbon emissions associated with the project (for example, through leaner design, designing out waste, reusing materials, and selecting materials with lower embodied carbon over the project life-cycle), quantify the savings made through individual design changes, and report actions and outcomes.’

(This may only be suitable where it is known that such products are energy/carbon intensive in their production and the market is known to (or should) assess embodied carbon). 

Materials with low embodied carbon

‘All materials offered must demonstrate that embodied carbon has been considered and reduced wherever possible.’

General services

'Please describe your approach to environmental sustainability, including details of any specific steps taken in the design and manufacture of services to reduce embodied carbon and any other relevant detrimental environmental impacts, and detail how this will be applied to this tender.’

General goods and services

‘Where relevant and proportionate to the goods or services being procured as part of this tender, please describe how you will measure & monitor the carbon footprint of those goods or services using accredited methodology such as ISO 14076 and/or PAS 2050.'

Reducing embodied carbon in products/ materials (e.g. within FM or related service)

‘The supplier shall support the client’s decarbonisation objectives through the relevant application of:

• ‘The use of ‘low impact’ materials which have little or no impact on the environment (low embodied carbon),
• the use of durable materials and systems and those which ‘close material loops’, including but not necessarily restricted to aggregates, insulation, structural metals, fit-out metals, concrete/cement, composites/SIPs, plasterboard, timber, plastics and glass,
• the design of products installed, in conjunction with the relevant supply chain, for example to prevent early obsolescence.’

Construction materials

‘All materials offered must demonstrate that embodied carbon has been considered and reduced wherever possible.’

Construction services – circular economy and embodied carbon reduction

‘The Contractor will inform the Client of all relevant circular economy opportunities arising from the [services], including innovative solutions and work with the Client to assess and implement those that align with value for money and cost certainty. These include [others may apply - delete the following as relevant] the following, which are capable of being monitored and reported through contract management.

• the use of reused, refurbished, remanufactured products/equipment/materials/ tools in service delivery which meet all relevant technical and performance requirements,
• the use of durable materials and systems, including but not necessarily restricted to [insert as necessary] (all of which meet relevant performance and quality requirements),

• the design of products installed, in conjunction with the relevant supply chain, for example to prevent early obsolescence,
• the durability, repairability and availability of spare parts for products or equipment installed or used in the contract, so that their useful life may be optimized.
• Require otherwise redundant products/ equipment/ materials transferred to other contracts, retained for reuse, repair or sold.’

Construction services – remanufactured products reducing embodied carbon

‘The contractor will demonstrate how they are able to include building products, fittings and materials sourced from remanufacturers, supplied with a suitable warranty, or where manufacturers operate cradle to cradle or closed loop remanufacturing schemes, where products at the end of their life can be returned and remanufactured into new product.’

Example Procurement Clauses - Evaluation and Award

Product/service embodied carbon reduction

'Please describe your approach to environmental sustainability, including details of any specific steps taken in the design and manufacture of products [services] to reduce embodied carbon and any other relevant detrimental environmental impacts, and detail how this will be applied to this tender.' 

A good response will demonstrate (according to subject matter of the contract):

• How the bidder will identify priority life-cycle opportunities to reduce embodied carbon within contract delivery (according to their role in the relevant supply chain and where opportunities exist in the life-cycle).
• How they will liaise with the client to demonstrate practical embodied carbon reduction.
• How they will quantity embodied carbon reduction.
• How they will minimise use/use of alternative materials - reduce the overall amount of materials used, reduce the amount of primary or new material resources used by replacing these with reused or recycled materials.
• Effective production techniques - any virgin materials used must be sustainably sourced and through the management of renewable material resources and minimising the impacts of extracting non-renewable resources.
• Effective recovery through closed loop systems - use materials as efficiently and sustainably as possible, preserving their value as long as possible, and recovering them wherever possible.

Embodied carbon with a managed service

‘Please detail how you will provide a managed service, as an alternative to supply of products or materials, that deliver circular economy outcomes and reduced embodied carbon through minimising use of virgin materials, use of sustainable/recycled/re-usable materials within all products and equipment used in the delivery of the service.’

An ideal response would provide evidence of adopting alternative production methods and/or alternative materials, putting processes in place to recover materials for reuse or recycling, and making recommendations for changes/adaptations to reduce adverse sustainability impacts in a cost-effective way, including (not all may apply):

1. Evidence of how they will seek to achieve a reduction in waste and relevant application of the waste hierarchy through a range of measures including re-use, recycling while meeting regulations for clients.
2. Evidence of how they will reduce waste using alternative products/materials and providing recommendations for changes/adaptations to reduce waste in a cost-effective way, including using effective material specification, procurement and management, behavioural change and appropriate replacement of systems and infrastructure.
3. Evidence of waste awareness raising amongst service users either through training programmes or provision of key user guidance.
4. Evidence of how waste management data with analysis and recommendations for changes/adaptations to reduce waste production in a cost-effective way will be provided.
5. Evidence of effectively using (relevant) pre-owned, refurbished or remanufactured equipment.
6. How they will re-use, regularly maintain and repair / refurbish equipment used in the service.
7. Evidence of how management of relevant repair, re-use, refurbishment and remanufacturing within its supply chain including sub-contractors and links to SMEs, third sector or supported businesses will be undertaken.
8. How they will focus on embodied carbon reduction through durability, longevity in service, and end-of-life options to optimise re-use, repair and remanufacture.
9. The application of relevant standards (e.g. Government Buying Standards) or others.

Embodied carbon measurement

‘Where relevant and proportionate to the products, materials or services being procured as part of this tender, please describe how you will measure & monitor the carbon footprint of those goods or services using accredited methodology such as ISO 14076 and/or PAS 2050.’

ICT products (according to subject matter of the contract)

‘The external plastic case of the system unit, [monitor and keyboard] should have a post-consumer recycled content of not less than [10%] by mass.’ – some IT hardware products include up to 85% post-consumer recycled plastics.

Evaluation:

The higher the percentage by weight of post-consumer recycled materials in the external plastic housing of the system unit, screen and keyboard, the higher this component of the tender will be rated. The product must contain an average of at least 10% of post-consumer recycled plastics, measured in relation to the total proportion of weight of plastic in the product, with the exception of circuit boards and the optical plastic components of screens.

To verify this the tenderer may be asked for a declaration that concerns the percentage of post-consumer recycled material.

Construction materials (according to subject matter of the contract)

‘In order to reduce embodied carbon, the preferred prioritised material selection approach should be:

• The use of reclaimed or redeployed materials, products or fittings;
• The use of materials with higher levels of recycled content (with products meeting relevant standards, such as ISO 14021); and finally
• The use of primary materials.’

Evaluation:

A good response will demonstrate how:

The contractor will set out in a method statement how relevant material use will be assessed for the service, how recycled content may be verified, what %recycled content is proposed and how material use will be reported. Following contract award, it is appropriate to discuss your climate change ambitions, the supplier’s response, practical implementation and the inclusion of relevant KPIs in the contract that demonstrate delivery of intended outcomes (we consider this in more detail in the next section).

Example Procurement Clauses and KPIs - Contract and Supplier Management

Specific requirements may include:

• ‘Establish a baseline of embodied carbon emissions within [insert] months/years of commencement of the contract.'
• 'Provide evidence of measures undertaken in the delivery of the service/supply of product at the end of each 12-month period from commencement of the contract, showing changes undertaken and planned to reduce embodied carbon, where practical.'

It may be appropriate to independently verify calculations against an agreed standard for example, ISO1407, PAS 2050, or GHG Protocol product standard, etc. This would ensure that a consistent and accurate calculation method has been used, and act as an ‘audit’ for the results.

Packaging

A contract condition such as the following would need to be monitored by the provision of appropriate evidence (e.g. data sheets/ labelling):

‘Packaging must consist of:

• readily recyclable material,
• and/or materials taken from renewable resources,
• or be a multi-use system, i.e. reusable.

comprise materials that are easily separable by hand into recyclable parts consisting of one material (e.g. cardboard, paper, plastic, textile).’

Hard FM services (according to subject matter of the contract)

Contract management requirements for a Hard FM service may include reporting on: ‘Use of recycled content within fabric materials’.

EXAMPLE KPIs

Where the reduction of embodied carbon is a key issue within the contract, performance indicators need to be developed to ensure delivery. These may include the provision of evidence of the origin of materials or independent verification of process methods.

Example relating to material content within products	Potential baseline:	Industry standard minimum recycled content (by contract value and %)
	Improvement:	The actual % of recycled content in products/ materials/ packaging delivered against that specified.
Other examples – according to the subject matter of the contract	% of materials & products diverted from landfill for re-use (tonnes)
	% diversion from landfill for recycling (tonnes).
	Waste reduction savings (£k).
	% of materials/ products supplied or used in service delivery that meet sustainably sourced and/or recycled requirements.
	The provision of yearly verification that materials used within products or services supplied meet the specification requirements of [X% recycled content] [sustainably sourced].
	Training records of those requiring waste management training in accordance with the waste hierarchy.
	% end of life products re-used, reconditioned and remanufactured.
	% of products supplied/ used meeting relevant performance and quality requirements that are refurbished or remanufactured.
	The % and quantity of packaging used that is reusable/ recyclable and does not include single use plastics.
	Expected useful life of products/equipment/fittings installed, extended by upgrade and maintenance where appropriate, before replacement is required.
	% of materials & products diverted from landfill for re-use (tonnes).
	% diversion from landfill for recycling (tonnes).
Qualitative reporting: Where a baseline may not yet 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 embodied carbon. Will it be possible to quantify these improvements in time (if so, setting a deadline for establishing a baseline and monitoring improvements)?

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