Sustainability SFG

Background

On Thursday 30th September 2021 the NHS Public Board called on the support of its supply chain to help deliver a Net Zero health service and align with NHS net zero targets between now and 2030.

Following the above announcement, a successful sustainability event was hosted by AXREM in Novembers 2021, with engagement and collaboration with NHS Supply Chain and NHS England & Improvement, members discussed and the AXREM Executive Committee agreed that a special focus group could be formed to assist members in the process.

Scope

This is a forum open to all AXREM members giving them a forum to engage with NHS England & Improvement and NHS Supply Chain discussing the latest news in relation to the NHS net zero target. Over 60% of the total NHS Carbon Footprint sits within the NHS supply chain, so reducing supply chain emissions will be crucial to reaching net zero by 2045. This target includes emissions from freight, the manufacturing of goods, catering, business services and construction.

Members can discuss:

  • Write an AXREM Sustainability Policy (lead by example)
  • Timelines
  • Share best practice
  • Implementation within their business
  • Positive outcomes
  • Problems occurring/ backlogs to meet timelines

While the NHS itself can influence the emissions of suppliers through procurement choices industry will play a significant role and the NHS will need suppliers to go on this journey with them to achieve their goals.

Trade bodies, regulators and suppliers have helped to shape the NHS approach. Feedback from suppliers is that this roadmap is ‘ambitious but achievable’ so we want to ensure the SFG keeps good dialogue with NHS E&I throughout this process.

NHS Supplier Roadmap

From April 2023, the NHS will adopt the Government’s ‘Taking Account of Carbon Reduction Plans’ (PPN 06/21), requiring all suppliers with new contracts for goods, services, and/or works with an anticipated contract value above £5 million per annum, to publish a carbon reduction plan for their direct emissions. From April 2024, the NHS will expand this requirement for all new contracts, irrespective of value.

  • From April 2027, all suppliers with contracts for goods, services, and/or works for any value, will be expected to publish a carbon reduction plan that takes into account the suppliers’ direct and indirect emissions.
  • From April 2028, new requirements will be introduced overseeing the provision of carbon foot printing for individual products supplied to the NHS. The NHS will work with suppliers and regulators to determine the scope and methodology.
  • From 2030, suppliers will only be able to qualify for NHS contracts if they can demonstrate their progress through published progress reports and continued carbon emissions reporting through the supplier framework.

Small and medium enterprises (SMEs) and voluntary, community and social enterprises (VCSEs) will have a two-year grace period on the key milestones and requirements leading up to 2030.

A supplier framework for benchmarking and reporting progress against these requirements will be available in 2022. The NHS will continue to work closely with suppliers to refine the scope and methodology of its asks, to ensure these align with international best practice, and to regularly assure the quality and accuracy of supplier responses.

If your an existing AXREM member and wish to join this group or a potential member and would like to discuss this group further please contact sally.edgington@axrem.org.uk