Current Procurement Climate Blocking Net Zero Targets?

Executive Compass responds to Pagabo's latest white paper, warning that without urgent procurement reforms, businesses bidding for public sector contracts risk undermining the UK's decarbonisation goals.

A new white paper from national framework provider Pagabo has revealed significant doubts among public sector procurement professionals over whether the UK's 2035 decarbonisation targets can be achieved.

Drawing on responses from 171 professionals across 147 organisations, the report found that 65% of respondents do not believe the government's 2035 Net Zero target of reducing emissions by 81% from current levels is achievable. Confidence was particularly low in regions with more limited specialist supply chains, such as the South West.

The research also showed that 59% of public sector stakeholders faced significant barriers to meeting their own net zero targets, with a further 13% having no formal strategy or action plan in place.

While challenges vary, the cost of decarbonisation and the availability of funding were cited most often, alongside skills shortages and capacity constraints. One of the most striking statistics from the white paper is that 75% of respondents indicate cost takes priority over sustainability most or all of the time in decarbonisation procurement.

Executive Compass, one of the UK's leading and only bid consultancies with a dedicated social value division, says the findings show direct implications for businesses bidding for public sector decarbonisation contracts.

"Public procurement will be central to meeting net zero goals," says Christian Rowe, CEO of Executive Compass. "If cost continues to outweigh sustainability in decision-making, there is a real risk that environmental and social value benefits will be sidelined, making it even harder to meet national targets."

The report also points to regional disparities in awareness of funding opportunities, with 40% of respondents saying funding options were unclear, and 69% reporting challenges when applying for funding.

The report comes at a significant time for UK procurement, as the Cabinet Office opened a public procurement consultation last month to build on existing changes introduced by the Procurement Act 2023. This consultation aims to review and simplify the Act to maximise benefits for working people. Among its goals are to simplify social value frameworks and improve procurement processes, changes that Executive Compass believes could help better align cost, quality, and sustainability if applied effectively.

"A change in the Procurement Act framework to simplify and maximise benefits for working people could offer a real opportunity to lean on social value and sustainability more deeply in tenders," Rowe continues. "But without consistent funding access, early market engagement, and region-specific support, those opportunities could be missed."

Encouragingly, 78% of buyer organisations said they consider sustainability in procurement activity, and 55% track or monitor social value outcomes. However, with cost pressures so prominent, there is a risk that social value is seen as a 'nice to have' rather than a core part of procurement.

In light of Pagabo's findings, Executive Compass emphasises several critical areas for action to improve decarbonisation efforts. They highlight that early engagement between contracting authorities and suppliers is key to providing clarity around funding and technical requirements. Helping to overcome the confusion and challenges many face in accessing resources.

Addressing regional knowledge and skills gaps will also be vital to ensure all areas of the UK have equal opportunity to participate, particularly where specialist supply chains are limited.

Most importantly, giving greater weight to social value and sustainability in procurement scoring is essential to help balance immediate cost concerns with the need for long-term environmental and community investment and benefit.

Pagabo's white paper concludes that the public sector will play a pivotal role in leading the UK's decarbonisation journey, and Executive Compass agrees. The bid writing consultancy believes that with the right procurement approach, suppliers and contracting authorities can work together to make the targets more achievable.

Executive Compass

Newcastle Office:
Studio 5, The Kiln, Hoults Yard
Walker Road
Newcastle upon Tyne
Tyne and Wear
NE6 2HL
T: 0191 338 6975
E: info@executivecompass.co.uk

London Office:
Suite 2519 Kemp House
152-160 City Road
London
Greater London
EC1V 2NX
T: 0203 507 0314

Scotland Office:
Studio 12
Clyde Offices
48 West George Street
Glasgow
G2 1BP
T: 0141 413 5661

Midlands Office:
Suite 5
Grosvenor House
11 St Pauls Square
Birmingham
B5 7RR
T: 0800 612 5563

Media Contact: sophie@cargocreative.co.uk

Executive Compass bid writing services
With a strong reputation for high-quality results, Executive Compass are a trusted partner for organisations navigating tenders and looking to secure more contracts. Recognised as one of the UK's leading bid writing consultancies with over 30 employees, Executive Compass' bid writers specialise in professional bid and tender writing services, supporting clients across the public sector.

Since 2009, the Executive Compass team has worked on over 8,000 tender submissions and secured over £5 billion worth of public and private sector contracts for thousands of organisations. The Executive Compass bid writers work across a wide range of industries, including health and social care, facilities management, construction, and professional services.

Executive Compass provide a structured, client-focused approach to procurement support, offering a comprehensive suite of bid writing services. These include bid and tender writing, bid management, PQQ and SQ writing services, bid review services, pre-bid consultancy, interim bid support, and training. Delivered by expert bid writing consultants, Executive Compass tailor specific requirements for each tender opportunity.

Executive Compass is the only UK bid consultancy with a dedicated social value team, supporting clients to deliver genuine social impact through their bids. Whether working alongside an in-house team or providing a fully outsourced solution, Executive Compass's bid writing services help organisations navigate complex procurement processes and improve contract win rates.

This release was published on openPR.