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The HMRC (His Majesty's Revenue and Customs) Sustainable Procurement Strategy outlines key sustainability considerations that must be taken into account when submitting a contract for tender. The Strategy, alongside the adoption of the Social Value Model, aims to position HMRC as a public sector leader with regards to sustainable procurement.
👉 In this article we’ll explore why HMRC wants to position itself as a sustainable procurement leader and how its Sustainable Procurement Strategy aims to achieve this.
HMRC are tasked with safeguarding the flow of money to the Chancellor of the Exchequer (the UK Government’s chief financial minister), ensuring that money is available to fund the UK’s public services, facilitating international trade, administering statutory payments and benefits, and administering the UK tax system.
Sustainable procurement is important to HMRC for a number of reasons, not least because it has the potential to push the UK economy onto a more sustainable trajectory, while also offering better value for money for UK taxpayers.
It’s HMRC’s aim to become a public sector leader when it comes to sustainable procurement. It believes that by setting the bar for the rest of the public sector, industry and consumers, that it will be able to help drive markets for more innovation and sustainable solutions.
HMRC ensures that sustainable procurement is considered throughout the various stages of its procurement process. It achieves this in a number of ways, including the implementation of the requirements outlined in the Social Value Model introduced by Procurement Policy Note (PPN) 06/20.
The Social Value Model is a framework of over 50 different metrics that all organisations hoping to enter a bid for a public contract should track to map their activities - both during the procurement process and for ongoing project monitoring. The prioritisation of the different metrics varies according to the sector, industry and contract.
HMRC has adopted the following requirements, as per the demands of the Social Value Model:
In addition to the adoption of the Social Value Model, HMRC has also incorporated other sustainable procurement processes, this includes the adoption of the following considerations in the HMRC procurement question set:
HMRC, in its Sustainable Procurement Strategy, outlines how it intends to become a public sector leader on sustainable procurement. It identifies nine components to its Sustainable Procurement Strategy. Let’s take a look at these in closer detail:
HMRC has a target of becoming a leader on sustainable procurement, and aims to inspire other public sector bodies to follow suit. It will achieve this through the following actions:
HMRC states that it is committed to preserving natural resources and preventing environmental pollution. It is part of HMRC policy to take environmental needs into consideration, to make efforts to reduce its energy and water consumption, to reduce the use of ozone-depleting substances, and to use recycled paper whenever possible.
HMRC’s purchasing policy takes into consideration environmental issues while still securing best value for money.
👉 Specific environmental details that suppliers need to be aware of are included in any HMRC tendering documentation.
HMRC aims to become a public sector leader when it comes to sustainable procurement. It aims to achieve this by:
HMRC will develop their sustainable procurement capabilities by:
HMRC is focusing on the long term benefits of sustainable procurement by:
HMRC recognises the potential that sustainable procurement policy has for stimulating innovation. It aims to support this by:
Under the Equality Act 2010, HMRC has a legal obligation to promote race equality by:
HMRC highlights the importance of working alongside UK Government departments and using a common approach when it comes to sustainable procurement policy. This will be achieved by:
HMRC’s sustainable procurement strategy is forward thinking and HMRC will update and manage the strategy by:
HMRC’s Sustainable Procurement Strategy and other sustainable procurement practices aim to make better use of public money, while creating a more successful country through increasing sustainable economic growth. It’s only by taking into account the whole cost of goods and services purchased (for example energy and water use) and the wider social costs incurred (such as the impacts of pollution and waste disposal) that true value for money can be achieved from HMRC contracts.
HMRC sustainable procurement asks that HMRC consider how a tender can improve the social, environmental and economic wellbeing of the area in which it operates. It also makes clear that sustainable procurement isn’t simply about buying ‘greener’ products, it also encompasses forward planning and ongoing contract management.
The effects of HMRC’s sustainable procurement practices can be far reaching, and it is hoped that by acting as a leader in this area, that it will be able to influence market innovation and a wider shift towards sustainability.
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