Planning on working with the Welsh Government or public sector? What your business needs to do to be green compliant

Across the Welsh public sector, sustainability is becoming a huge factor in procurement decisions. That means that businesses that can demonstrate credible environmental action are looked on favourably as potential partners, while those who do not risk being left behind. 

The Welsh public sector has an ambition to achieve net zero by 2030, with Wales as a whole targeting net zero by 2050. This means that public sector organisations are under increasing pressure to reduce carbon emissions throughout their supply chains. That means the government is looking closely at the environmental performance of the businesses it works with. 

For many SMEs, this can seem overwhelming. Terms like ‘net zero’, ‘carbon reporting’ and ‘sustainability strategy’, may be things you have yet to encounter but the good news is that you don’t need to become an environmental expert to navigate this new procurement landscape.  

There are practical steps you can take to ensure your business is competitive and desirable for public sector contracts.

What’s your impact? 

If your business wants to work with organisations such as the Welsh Government, local authorities, the NHS, Welsh universities and colleges or public-funded projects, you will increasingly be asked about your environmental impact, particularly for larger or higher-value contracts where sustainability scoring is formalised. It’s something that is increasingly on these organisations’ radar and something that should be on yours too. These expectations align with legislation such as the Well-being of Future Generations (Wales) Act, which requires public bodies to consider long-term environmental impact. 

Your impact includes: 

• Your energy use  
• Carbon emissions  
• Waste management  
• Sustainable travel policies  
• Supply chain practices  
• Environmental targets and reporting  

In some tenders, environmental scoring already contributes directly to whether you win or lose the contract. 

It’s important that you start keeping detailed records of these practices and ensuring that out-of-date policies are reviewed and renewed.

How big is your footprint? 

One of the first things public sector buyers may ask is whether you understand your business’ carbon footprint. Understanding is the first step to improving, so ensuring you get to grips with your carbon footprint and what can be done to improve will put you ahead. 

If you don’t know where to start, break it down into these elements: 

• Electricity usage  
• Gas or heating fuel usage  
• Business travel  
• Fleet fuel consumption  
• Waste generation  
• Water use  

These areas broadly fall into direct emissions (such as fuel use), indirect emissions from energy and supply chain impacts. 

Even if you can draft a simple baseline this will give you something to improve against. 

Many businesses delay this step because they think carbon accounting is only for large corporations. This isn’t true. SMEs can get ahead of their competitors if they can show that they are consciously monitoring their environmental outputs and putting plans in place to improve their footprint.

Is there a policy in place?

A surprising number of businesses bidding for public contracts don’t have a formal environmental policy, even though an environmental policy is often a minimum requirement and a strong indicator of an environmentally conscious organisation.

A policy doesn’t need to be lengthy or filled with technical jargon. Buyers mainly want evidence that environmental responsibility is built into how your business operates. 

Your policy should clearly explain: 

• Your commitment to reducing environmental impact  
• How you manage waste and recycling  
• How you reduce energy use  
• The sustainability targets you are working towards  
• Who (in your team) is responsible for these different elements.  

Goals should remain realistic 

While it might be tempting to put down lofty goals that look impressive on paper, public sector organisations want to see action not just promises. 

It’s also important to avoid making vague claims such as ‘we care about sustainability’, instead use specifics. 

Examples of this could be: 

• Reducing energy consumption by a certain percentage  
• Switching to renewable electricity suppliers  
• Introducing hybrid or electric vehicles  
• Reducing landfill waste  
• Encouraging remote or lower-carbon working practices  

You don’t have to make a complete overhaul of your operations, two to three measurable environmental goals for the next year will be a great start. 

Small improvements can make a big difference

You’d be forgiven for thinking that sustainability requires expensive investment, but some of the easiest, most impactful wins can also be the most cost effective. 

Simple changes such as switching to LED lighting, improving insulation or installing timers/sensors can often reduce operating costs as well as emissions.

Is your supply sustainable? 

Don’t be surprised if public sector buyers ask not just about your sustainability but also your suppliers’.  

When looking at new suppliers, or renewing existing contracts, ensure you’re considering sustainability. Think ‘is this company following environmental standards?’ ‘Are they reducing packaging waste?’ ‘Do they use sustainable materials?’ ‘Are there ethical sourcing policies in place?’ 

Being more mindful about your supply chain isn’t about replacing every supplier overnight, it’s more about showing awareness and asking better questions moving forward.

Is it time to train up your team? 

Green compliance often comes down to confidence. Many businesses know sustainability matters, but their teams are unsure where to begin. 

Firstly, it’s important to identify who is responsible for sustainability in your team; that could be the facilities team who oversee energy and waste, the finance team who are responsible for procurement and supply chain contracts or the project managers who lead on sustainability ventures. 

If there are gaps in their knowledge there will be missed opportunities to innovate.  

ACT offers a variety of accredited courses that can be undertaken by any employee, regardless of their role and sector. These courses help teams understand, implement and champion sustainable practices in the workplace.  

ACT also offers the Energy and Carbon Management qualification, a more advanced course suitable for those in charge of environmental management (such as your facilities or finance teams). This is for those looking to better implement efficiency strategies within their organisation.  

You can find all of ACT’s course here.