Definition
Net Zero
Balancing emissions produced with emissions removed.
Net Zero refers to a target of reducing greenhouse gas emissions as far as possible and balancing any that remain through removals, so that overall emissions to the atmosphere are effectively zero. In public procurement, Net Zero commitments feature in Carbon Reduction Plans, social value scoring and increasingly in contract-specific environmental criteria.
Why it matters in tenders
The UK government has a legally binding target of Net Zero greenhouse gas emissions by 2050, and this cascades into procurement policy. Suppliers bidding for many public contracts are asked to state their own Net Zero target date, show a credible pathway to it, and demonstrate action already taken, most formally through a Carbon Reduction Plan on larger central government contracts.
Buyers increasingly build carbon and environmental criteria into technical and quality scoring beyond the mandatory CRP requirement, particularly for construction, transport, facilities management and energy-intensive services.
What credible evidence looks like
- A stated Net Zero target date no later than 2050, ideally sooner
- Baseline emissions data covering Scope 1, 2 and relevant Scope 3 categories
- Specific, costed reduction initiatives rather than vague aspiration
- Governance showing senior ownership of the commitment, such as board sign-off
Frequently asked questions
- Is a Net Zero commitment the same as a Carbon Reduction Plan?
- No. Net Zero is the target itself; the Carbon Reduction Plan is a specific, mandated document format used to evidence a supplier's progress towards that target on qualifying central government contracts. A supplier can have a Net Zero commitment without yet having produced a formal CRP.
- What Net Zero target date do public buyers expect?
- Government policy expects suppliers to commit to Net Zero by 2050 at the latest, in line with the UK's own legal target, though many buyers score more favourably for earlier, credible dates. Vague commitments with no supporting plan tend to score poorly.
- Can a small supplier realistically compete on Net Zero criteria?
- Yes, evaluators generally look for proportionate, credible action rather than large-scale infrastructure investment. Simple measures such as switching to renewable energy tariffs, reducing business travel or measuring emissions for the first time can all count as genuine progress if evidenced honestly.
Related terms