This guidance relates to the procurement of products, materials or assets that are known to be energy/carbon intensive in their production, having high levels of ‘embodied carbon’.
Embodied carbon refers to carbon dioxide emitted during the life-cycle: manufacture, transport and construction of building materials, together with end-of-life emissions. So, for example, if you are specifying concrete on a project then carbon will have been emitted making that concrete: their emissions occur during extraction of the raw materials (the cradle), processing in a factory (factory gate), transporting the concrete to a construction site (site). This we refer to as the ‘embodied’ carbon. The fundamental issue is whether the embodied carbon can be reduced by making changes through the life cycle, or whether there is a product or material that can provide the same function that has a lower value of embodied carbon.
Most contracts involve the supply or use of products or materials to some extent. It is however important to assess whether these are core to the contract. What is the extent of their use within the contract and does the contract represent a significant part of the business of a potential supplier? For example:
This is particularly relevant in construction materials - embodied carbon is responsible for 11% of global greenhouse gas emissions (and 28% of global building emissions). Over a 30-year lifetime of a building roughly half of the carbon emissions generated will come from embodied carbon – from extraction, transportation and manufacturing of materials and use in construction.
As well as construction, other categories of procurement known to have high levels of embodied carbon include textiles, food, electrical and electronic equipment, furniture, construction, plastics, chemicals, steel, aluminium, cement, ceramics, transport and paper – see below for more details.
It may therefore be appropriate to require suppliers to demonstrate how they seek to minimise embodied carbon (and related issues such as waste) in the manufacturing, use and end of life management of products, materials or assets. Requirements must be relevant and proportionate, according to the subject matter of the contract.
It is important to note that while an increasing number of suppliers have published data for the embodied carbon within many products or materials it is not widespread across all categories/commodities and sectors. It can be a costly and complex process to determine such data; for example, the cost of conducting an independently verified carbon footprint for a product is around £10-15k. Preliminary market consultation is therefore crucial to be able to determine whether the market is capable of identifying embodied carbon and delivering a reduction in embodied carbon or whether requiring such would place too large a burden on suppliers.
This guidance may be considered, where relevant, alongside other Climate Change guides – Carbon and Energy - Vehicle emissions – Climate Change Adaptation. Opportunities for jobs and skills to support climate change mitigation may also be relevant so you may also consider the Employment, Skills and Training guide. Given the link to materials use and reducing embodied carbon through a focus on waste minimisation and the necessary transition to a circular economy you may also wish to view Materials and Waste and Resource Consumption guidance.
This guidance may be considered, where relevant, alongside Construction Policy Note (CPN) 1/2023 which draws attention to the publication of chapter (chapter 18) within the Client Guide to Construction Projects. The guidance provides an overview of the client’s role in planning for sustainability in construction projects, particularly during the project initiation phase.
The guidance reinforces the criticality of pre-procurement consideration of intended outcomes and optimum methods of delivery of these, involving mature dialogue internally and with the market. It also provides relevant procurement guidance, aligned with the Procurement Journey, with example clauses within the Annex.
Users of this guidance should have completed the Climate Literacy e-learning module, available from the Sustainable Procurement Tools portal.
The guidance is part of a series of guides which support the Sustainable Procurement Tools to help public sector organisations embed sustainability into their procurement processes.
For example, the Sustainability Test includes the following question:
Examples include:
Life Cycle Impact Mapping (LCIM), which may be used to identify and assess the social and environmental impacts within the life cycle of a product or service, can be an easy way into the Sustainability Test for internal customers to understand relevant risks and opportunities, such as embodied carbon – for example, where are key embodied carbon issues in the life-cycle; do they relate to design and manufacturing of a product, the use of the product or materials including within a service or at the end of life of a product, material or asset? Below are two example Life Cycle Impact Maps that provide detail on potential risks (and opportunities in italics) for contracts with a high amount of embodied carbon. These examples focus on ICT equipment and Furniture:
| Impacts of obtaining raw materials/ resources needed for relevant service | Impacts of manufacturing and logistics/ set up of service |
|---|---|
|
Mining and extraction of raw materials for plastics, metals etc required for ICT – ore, minerals, oils: pollution to air, land and water (including impact on biodiversity), climate change emissions from energy intensive process and leakage from oil/ gas wells, community health impacts, destruction of Biodiversity. Mining impacts for rare earth minerals for electronics – high embodied carbon and pollution to air, land and water. Conflict Minerals – mineral extraction includes mineral waste piles and pollution from acidic water containing heavy metals which could affect marine life; also human rights and working conditions for those mining in conflict areas – require assurance that no conflict minerals included in ICT. Labour standards, working conditions and human rights within extraction industries. Depletion of finite natural resources. Material security risks from those materials where supply is concentrated in areas with political or conflict risks. |
Climate change emissions from use of energy and generation of waste in manufacturing process e.g. motherboards, SSDs, plastic casings, metals. – reduce embodied carbon/ enhance resource efficiency in manufacturing. Climate change and air pollution emissions from shipping/ transport of ICT, from global supply chain and local logistics – local sourcing strategy including full loads, impacts of packaging on load efficiency, low carbon vehicles, driver training etc. Impacts of packaging used in shipping e.g. resource use/ embodied carbon/ use of non-recyclable materials such as polystyrene – avoid single use plastics, recycled content, sustainable and innovative materials, fully recyclable, take back packaging. Labour standards, working conditions and human rights within manufacturers and their supply chain which may be low-cost locations – require policy, comprehensive system to adherence to ILO conventions etc, including whistleblowing. Chip supply problems and supply resilience. Risks to resilience of supply from known or anticipated changes in climate e.g. impacts on availability of materials and components. Use of materials that are hazardous to people or the environment, such as chemicals, radioactive materials and others – prevent use of proscribed materials, reduce use of others. Production stresses (production peaks and troughs, late orders, last minute changes to orders, etc.) absorbed by factories further down the supply chain. Design of products potentially resulting in waste or high embodied carbon– design for durability, upgradeability, repairability, reduce materials used, avoid single use plastics, recycled content, recyclable, low carbon manufacturing process, potential for purchase of remanufactured products which satisfy warranty, quality and performance requirements etc. Energy efficiency of products – minimum efficiency ratings/ improvements in efficiency beyond this. |
| Impacts during use of product/ service delivery | Impacts at end of life/disposal/ end of service |
|
Waste from short replacement cycles and/or designed lifecycles of products – ensure capable of upgrade to prevent technological advances rendering products obsolete. Waste from redundant devices - products suitable for maintenance and repair, availability of spare parts and consumables. Climate change emissions from use of energy by products. Climate change and air pollution emissions from transport of ICT and people in related services (such as installation, repair, redeployment etc), from local logistics – local sourcing strategy including full loads, impacts of packaging on load efficiency, low carbon vehicles, driver training etc. Training of users to ensure products used to reduce energy and waste. Community benefits – potentially including those relating to skills needed to decarbonise ICT and communities (‘Green’ skills), support aims to enhance digital inclusion within communities. |
Waste (general and hazardous) arising from disposal of products – ensure compliance with all waste regulations and apply waste hierarchy through repair, refurbishment, reuse of otherwise redundant devices / components (including donation to third sector organisations), take back by suppliers, potential resale – with WEEE compliant recycling only after these options have been considered. Data security destruction – ISO27001 compliance. Waste arising from disposal of packaging – minimise required packaging, take back of packaging, recyclable packaging. Climate change emissions involved in transport of redundant/ redeployed products to waste facilities or others. Environmental (such as leaching and contamination) and public health risks from disposal of WEEE to locations where safe management may not be practiced e.g. dismantling of products – require full audited supply chain ensuring legal compliance. Support for local communities/ addressing digital inclusion through schemes with third sector organisations who recycle/ refurbish ICT for use by local organisations/ families or in the developing world. Community benefits – potentially including those relating to skills needed to decarbonise furniture supply chain (‘Green’ skills). |
This ICT example concentrates on risks and opportunities regarding climate change as well as some others that are related or relevant. There may be other socio-economic risks and opportunities that are relevant, according to the scope of the contract. This highlights those risks and opportunities throughout the lifecycle of ICT products – sourcing of products, their use and end of life management.
| Impacts of obtaining raw material | Impacts of manufacturing and logistics |
|---|---|
|
Sourcing of materials for furniture – timber, metals, plastics, rubber, fabric etc. pollution to air, land and water (including impact on biodiversity including land degradation/ ecosystem stress), climate change emissions from energy intensive process – ensure sustainable sources, such as compliance with legally and responsibly sourced timber (UK timber policy). Labour standards, working conditions and human rights within extraction industries. Depletion of finite natural resources. |
Climate change emissions from use of energy and generation of waste in manufacturing process - reduce embodied carbon/ enhance resource efficiency in manufacturing. Climate change and air pollution emissions from transport of furniture, from global supply chain and local logistics – local sourcing strategy including full loads, impacts of packaging on load efficiency, low carbon vehicles, driver training etc. Impacts of packaging used in shipping e.g. resource use/ embodied carbon/ use of non-recyclable materials – avoid single use plastics, recycled content, sustainable and innovative materials, fully recyclable, take back packaging. Labour standards, working conditions and human rights within manufacturers and their supply chain which may be low-cost locations – require policy, comprehensive system to adherence to ILO conventions etc, including whistleblowing. Use of materials that are hazardous to people or the environment, such as chemicals and adhesives – prevent use of proscribed materials, reduce use of others. Design of products potentially resulting in waste or high embodied carbon– design for durability, upgradeability, adaptability, repairability, reduce materials used, avoid single use plastics, recycled content, recyclable, low carbon manufacturing process, potential for purchase of refurbished/ remanufactured furniture products which satisfy warranty, quality and performance requirements etc. Health and safety e.g. inhalation of dust. |
| Impacts during use of product/service | Impacts at end of life/disposal |
|
Climate change and air pollution emissions from transport of furniture and related services and people in related services (such as installation, repair, redeployment etc), from local logistics – local sourcing strategy including full loads, impacts of packaging on load efficiency, low carbon vehicles, driver training etc. Waste from redundant furniture - products suitable for maintenance and repair, availability of spare parts and consumables. Community benefits – potentially including those relating to skills needed to decarbonise furniture supply chain (‘Green’ skills). |
Redesign/Refurbish Waste (general and hazardous) arising from disposal of furniture – ensure compliance with all waste regulations and apply waste hierarchy through repair, refurbishment, reuse of otherwise redundant furniture (including donation to third sector organisations), take back by suppliers – with recycling only after these options have been considered. Waste arising from disposal of packaging – minimise required packaging, take back of packaging, recyclable packaging. Climate change emissions involved in transport of redundant/ redeployed furniture to waste facilities or others. Remodelling of furniture to extend useful life e.g. adapt to suit alternative use, such as shift from office to home working. |
It is also of course important to focus on those risks that you have influence over, which you would consider when completing the Sustainability Test. While you may have none or very little over the mining or manufacturing process for ICT, for example, you may have influence over how contractors may minimise climate change impacts in the supply or end of life management of ICT. Opportunities to mitigate relevant climate change risks are explored in more detail later.
Disclaimer - This guidance is provided to support the embedding of relevant and proportionate contract/framework requirements and the information and examples are provided in good faith. To the extent that this guidance contains any information concerning procurement law such information does not constitute advice to you. The content of this guidance is not to be construed as legal advice or a substitute for such advice, which you should obtain from your own legal advisers if required. Scottish Government is not and shall not be held responsible for anything done or not done by you as a result of this guidance.
Continue to Legal and Policy Context – Climate Change Obligations
