Carbon Emissions in Building Operations Tendering
Whether you are Constructing a new building or operating an existing one, businesses are seeing an increase in the number of tenders insisting on Carbon Reduction Plans and requiring bidding businesses to demonstrate and prove they have a Carbon Reduction Plan in place.
As a business trading as Auditel we help you to make high-impact supply chain changes to help you win competitive tenders.
Operational Carbon Reductions
Clients and specifiers are increasingly looking more favourably on businesses that have responsibilities for manging and maintaining buildings that demonstrate sustainable options. Clients often have their own sustainability targets to meet, and the supplier that can help them reach that goal will often win the tender.
Operational carbon reduction plans which are detailed and well thought out in tenders - which could mean upgrading, refurbishing or replacing old high-consuming HVACR systems are often well received.
Contractors and suppliers in construction and building operation that have processes in place are winning more work when it comes to bidding and tendering.
Business Innovation
Businesses that are innovative and put forward ideas surrounding how these aforementioned HVACR equipment replacements will be paid for also demonstrate that someone has thought through how they can assist the clients net zero ambitions. Many HVACR manufacturers also offer innovation such as this
Setting sustainability targets used to be simply wording on a company website, but now it’s a mandatory requirement to get through the final stages of winning big contracts.
Dealing with Operational Carbon
Because existing buildings consume around 35% of all carbon emissions, its important to deal with operational carbon. Previously carbon reduction plans were needed for all public sector contracts worth over £5m. However, we are now seeing this requirement on many (non government) tender documents and smaller value contracts too. The NHS, is now asking all bidders, regardless of contract size, to have a Carbon Reduction Plan. Whilst this article predominately deals with operational carbon, its important to not forget about embodied carbon. This website explains the differences between the two and shows the progress that is projected
This is now forcing these businesses to implement either a full Net Zero plan or start out at least with a Carbon footprint report. Previously many businesses were guilty of "greenwashing" by simply publishing some form of sustainability statement.
What is a Carbon Reduction Plan and what do I need?
A Carbon Reduction Plan is a declaration of a businesses commitment to achieving Net Zero by 2050 (or earlier if possible), which details existing carbon emissions and information about the initiatives businesses have in place, or have already undertaken in order to reduce emissions and progress to Net Zero. It needs to be published on a companies website.
Why is there such a focus on having a Carbon Reduction Plan?
With the ever-increasing focus on our global climate, immediate action is needed. The requirement to include a link to your Carbon Reduction Plan within the selection questionnaire of your tender response, demonstrates how seriously your business are taking this climate emergency and signals your commitment to combat climate change and minimise the UK’s carbon footprint.
Including your Carbon Reduction Plan in your tenders assures regulatory compliance while demonstrating your proactive approach to sustainability. If you don't have a full carbon plan you will most likely be excluded from some tenders
What do I need to include within my Carbon Reduction Plan?
A businesses Carbon Reduction Plan must include the following elements as detailed in the government’s template - which includes:
A commitment to achieve ‘Net Zero’ by 2050 at the latest.
Calculated Scope 1, Scope 2 and Scope 3 emissions from when you first calculated your emissions.
Scope 1 (direct emissions), Scope 2 (indirect energy emissions) and Scope 3 (other indirect emissions) are outlined below
Your emission reduction targets – what are you going to reduce your emissions to over the next five years? i.e. you are aiming to reduce your scope 1 emissions by 50% in the next 5 years and your scope 2 emissions by 60%.
The 100+ team of Auditel experts can help you in creating your Carbon Reduction Plans and identifying Your Scope 1, 2 & 3 Emissions
Progress against any targets.
Details of any Carbon Reduction Projects – what initiatives have you already started, how will you improve these, what else do you have planned?
A signed declaration from your board of directors or senior manager affirming your businesses commitment.
As environmental concerns continue to gain momentum, your commitment to reducing carbon emissions will become a crucial aspect of your business’s success. Including a robust Carbon Reduction Plan within tender submissions demonstrates a genuine effort by your business to address climate change, comply with regulations, and set yourself apart from your competitors.
Embracing sustainability within tender processes is not merely a response to market trends; it is an urgent call to action that paves the way for a greener and more sustainable future.
Emissions and where they come from
The GHG Protocol, which provides a global standard framework to measure and manage greenhouse gases (GHGs), categorises emissions into three groups known as ‘scopes’
Scope 1. These are the direct emissions which come from sources that an organisation has ownership or control of. They typically include emissions from fuel combustion on company premises such as gas boilers and back-up generators, emissions from company vehicles, and fugitive emissions – the gases accidentally emitted from air-conditioning due to leaks.
Scope 2. These are indirect emissions, when an organisation buys electricity (or district heating or cooling) for its offices. It is the emissions that physically occur at the power station where electricity is generated.
Scope 3. All other indirect emissions from sources not owned or controlled by an organisation but which are the consequence of its activities. i.e. this can include employee commuting, business travel, and waste generated in its operations (i.e. the disposal and treatment of waste in facilities not owned or controlled by the organisation), and can represent 70% or more of an organisation’s total emissions, especially where products are manufactured.
Scope 3 emissions are categorised as activities used to produce a product or service such as business travel, and other emissions-producing activities such as transporting and distributing your products to customers.
Carbon footprints
For any business that wants to understand the impact they have on the environment, they need to calculate their carbon footprint. This will measure the total greenhouse gas emissions (expressed as carbon dioxide equivalent or CO2e) caused directly and indirectly and enable a clear understanding of their key emission sources and potential opportunities to reduce them.
As well as providing a starting point to develop a carbon reduction plan, it will also provide a benchmark against which to measure progress.
Most organisations will have the data needed to calculate their scope 1 and 2 emissions, through direct purchases of gas and fuel, and will also be able to implement measures for reducing these emissions. This might include sourcing new suppliers for gas, electricity or water from alternative suppliers or from renewable sources or introducing the electric vehicles into their company car fleet. Under the GHG Protocol requirements, all organisational footprints must include Scope 1 and 2 emissions.
The big challenge is identifying and measuring scope 3 emissions, mainly as these can be extensive, and also because an organisation might have limited data on these emissions and less influence on how these can be reduced as part of their carbon reduction plan. Mapping scope 3 emissions and understanding how much control you have over them is a good starting point, and there are many online resources and organisations who provide support with benchmarking, such as the Carbon Trust.
Supply Chain Emissions
To ensure that your operational carbon reductions are effective, its important to ensure that any suppliers that you currently employ are also doing their part as part.
We make sure you equip your suppliers to measure, reduce and report their emissions to you. If you want to keep any existing suppliers, then start with an overview of your supplier’s carbon footprint. Alternatively we can often provide extensive financial savings from the Auditel supplier network. While we work as an outsourced extension to our clients management teams, charged with finding the right products and/or services for their needs at the best value, we know that
suppliers also need to run sustainable businesses in order to
provide this value.
We recognise that if you want to start your carbon reduction plan journey and (win more tenders) can initially seem quite daunting and many organisations believe the changes that they will have to make to achieve net zero will be time-consuming, costly and with all the conflicting information, a little daunting. This is far from the truth, as there are many incentives to help businesses become greener and leaner without costing the earth.
Using Auditel’s simple 4 step process , we can help your organisation demystify and provide clarity to this complex subject of achieving net zero. We deliver expert guidance and resources so you can achieve a BSI recognised specification for carbon neutrality as soon as possible, while you progress on the longer-term net zero journey.
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