Are you up to speed with key sustainability regulations impacting the public sector?

EDF Business Solutions are committed to helping MEUC members navigate the latest industry developments. This article, by EDF (UK) ’s Let's TalkPower team, is designed to educate public sector organisations on the upcoming sustainability rules and regulations that will shape the future.

Public sector organisations play a significant role in the fight against climate change and in reaching the Government’s Net Zero target by 2050. While EDF’s purpose is helping Britain achieve Net Zero, we know we can’t do this alone. We need to work collaboratively with customers, suppliers, and everyone across our ecosystem to really do our bit to help Britain achieve Net Zero.

Sustainability in the public sector is about aligning core public sector activities with common goals. These include reporting on budgeting, procurement and devising social, fiscal, and economic policies; all are vital for understanding the overall carbon footprint of the public sector. It also involves leading the way to drive change within the community and local businesses.

Key upcoming regulations you need to know!

Sustainability is becoming a central focus for businesses and governments worldwide, with several key sustainability rules and regulations coming into effect in 2024 and 2025. Below, we break them down and cover the main facts.

1. New Greening Government Commitments (2021-2025) In 2021, DEFRA and the Cabinet Office issued the third guidance on greening UK central government in their operations and procurements. This includes an emissions reduction target of -50 per cent by 2032, and -75 per cent by 2037. The Sustainability Reporting Guidance 2024-25 – GOV.UK (www.gov.uk) sets out the minimum requirements for central government, some best practice guidance, and the underlying principles to take into account when preparing reporting information.

2. Net Zero Strategy: Build Back Greener The UK became the first major economy to pass laws to end its contribution to global warming by 2050. This strategy sets out policies and proposals for decarbonising all sectors of the UK economy.

3. The Environment Act 2021 The Environment Act 2021 is a significant piece of legislation in the UK, acting as the country’s new framework for environmental guidance. New duties on public sector organisations include air quality, waste management, water resources and biodiversity.

4. Procurement Policy The Procurement Policy requires suppliers bidding for major government contracts (valued at ￡5 million or more per year) to provide a Carbon Reduction Plan. The Public Procurement Policy provides directives, regulations, policies, and guidance about the procurement of supplies, services, and works for the public sector.

5. Environmental, Social and Governance (ESG) regulations (to be published) ESG regulations are government standards for ESG-related actions, reporting, or disclosures. In the 2024 Budget, Chancellor of the Exchequer Jeremy Hunt announced that the Government will regulate the provision of ESG ratings; this will improve clarity and trust in ESG ratings. After a consultation in 2023, the response of HM Treasury and legislation will be published later this year.

How can public sector organisations prepare?

Public sector organisations can prepare for upcoming sustainability rules and regulations by taking the following steps:

? Quantify your impact: What is not measured cannot be controlled. Make sure you've calculated your impact in terms of GHG emissions, your dependency on fossil fuels, and your exposure to climate risks.

? Understand the regulations: Familiarise the sustainability rules and regulations – understanding these will help you know what is expected.

? Establish a sustainability team: Form a dedicated team responsible for implementing and reporting sustainability practices in your organisation.

? Engage stakeholders: Engage with all stakeholders, including employees, customers, and the community. This’ll help you understand their expectations and concerns related to sustainability. Also, engage with your suppliers to reduce your Scope 3.

? Develop a sustainability strategy: Create a comprehensive sustainability strategy that aligns with your organisation’s mission and values. This is the first step of reaching Net Zero and will lead to you creating a detailed action plan with a dedicated investment plan.

? Continuous improvement: Regularly review and update sustainability practices to ensure they remain effective and compliant with evolving regulations. This also saves time when preparing any reporting requirement.

By proactively preparing for these changes, public sector organisations not only comply with upcoming regulations but also drive meaningful change towards a more sustainable future.

EDF Business Solutions, in collaboration with Urbanomy, Dalkia and EDF’s Sustainability Team, recently held an insightful ‘Let’s Talk Sustainability’ webinar, focused on the public sector. You can watch the webinar by heading to the EDF TalkPower webpage edfenergy. com/large-business/talk-power and selecting ‘watch on demand’.

For more information, reach out to the team at EDF Business Solutions, [email protected]

This article appears in Buying and Using Utilities Autumn 2024 issue

Read more ??Buying and Using Utilities Autumn 2024