Net Zero to be scrapped from procurement rules in favour of jobs-focused 'social value'

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🗞️ Driving the news: The UK government is planning to remove explicit Net Zero requirements from public procurement rules, replacing them with a broader “social value” framework focused more heavily on jobs, skills and economic benefits
• The reform would change how the government evaluates suppliers for contracts worth more than £5 million, increasing the weighting given to social value from 10% to 20%

🔭 The context: The current procurement framework asks companies to demonstrate contributions across areas including emissions reduction, environmental protection, diversity and community impact
• Louise Haigh, acting as deputy to Prime Minister Andy Burnham, argued that previous rules had become too complex and difficult to measure, saying procurement had attempted to “tick too many boxes”
• Under the proposed system, companies would receive greater recognition for creating local employment, paying higher wages and developing skills in the UK
• The government argues that the £90 billion annual procurement budget should deliver wider economic benefits
• Critics, including Conservative and Reform UK figures, argue the changes weaken environmental standards and make procurement less focused on value for money

🌍 Why it matters for the planet: Public procurement is one of the largest levers governments have to influence corporate behaviour
• Removing direct Net Zero criteria could reduce incentives for suppliers to invest in emissions reductions, clean technologies and sustainable supply chains
• For companies bidding on public contracts, the change could shift priorities from demonstrating climate performance toward proving local economic impact

⏭️ What’s next: The Cabinet Office is expected to publish new procurement guidance in autumn, with the revised model scheduled to take effect in January

💬 One quote: “If you prioritise everything, then you’re prioritising nothing.” — Louise Haigh, UK Government

📈 One stat: The UK government spends around £90 billion per year on public procurement.

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