Winning Contracts Just Changed. Are You Ready?
Businesses can no longer ignore the environmental impact of their operations; it's now a clear commercial risk. What once seemed like a 'bonus'—strong low-carbon credentials—is rapidly becoming a requirement, especially when bidding for contracts. New policies are shifting procurement criteria, making verified third-party accreditation, like Carbon Literate Organisation (CLO) status, a deciding factor. This change emphasizes the urgent need for environmental action, pushing companies to integrate sustainable practices deep into their operations to secure future success and contribute to global climate goals.
The way businesses win work is undergoing a significant transformation. Simply talking about environmental principles isn't enough anymore. Instead, companies are increasingly expected to back up their claims with verified accreditations, moving beyond just competitive pricing to prove their commitment to sustainability. This shift is driven by new Net Zero targets and evolving procurement rules, which are demanding a deeper understanding and accountability for carbon emissions across supply chains.
The evidence is clear: businesses with validated third-party accreditation are now scoring higher in competitive bids. Public bodies across the UK, including National Highways for the Lower Thames Crossing project, are making Carbon Literate Organisation (CLO) accreditation a mandatory condition for tenders. This means that a workforce’s understanding of industrial carbon emissions, and its ability to reduce them, is directly influencing who wins major contracts.
Crucially, recent policy changes are embedding environmental performance directly into procurement decisions. The Procurement Act 2023, for example, now uses 'Most Advantageous Tender' (MAT) instead of 'Most Economically Advantageous Tender' (MEAT). This change means environmental and social benefits are treated as legitimate evaluation criteria, not just secondary considerations. Similarly, the Social Value Act mandates public sector buyers to consider wider societal impacts, including environmental ones, beyond just cost.
This isn't just about compliance; it's about competitive advantage and collective climate action. Companies like Ecosurety and BOBST are demonstrating this by training their suppliers in carbon literacy, improving not only their own environmental footprint but also their commercial appeal. Furthermore, authorities like Manchester City Council are leading the way, achieving Gold CLO status and setting ambitious Net Zero targets that ripple down through their supply chains. Their commitment highlights how local leadership can drive significant progress toward a greener future, making environmental knowledge a prerequisite for doing business in the city.
As these policies and practices become more widespread, suppliers who view environmental responsibility as an afterthought will find themselves at a severe disadvantage. The future of winning contracts depends on showing a clear, verified commitment to reducing carbon emissions and embracing sustainable solutions, underscoring the urgency of climate action in every business decision.