NHS: Inside UK's Largest Employer's Scope 3 Emissions

The NHS is committed to achieving net zero emissions by 2040 for direct emissions (Scope 1) and by 2045 for emissions it influences through its supply chain (Scope 3).

As part of this ambition, the NHS has introduced a roadmap to help its suppliers align with these goals by 2030.

The plan combines robust procurement measures, carbon reduction targets and support for suppliers to tackle environmental challenges.

In April 2022, the NHS incorporated a 10% minimum weighting for net zero and social value in all procurements.

By April 2023, suppliers with annual contracts in excess of £5m (US$6.2m) were required to publish a Carbon Reduction Plan (CRP) detailing their emissions for Scope 1 (direct emissions), Scope 2 (indirect emissions from energy use) and certain Scope 3 (supply chain) emissions.

This requirement expanded to all new procurement contracts in April 2024.

High-value contracts must include a full CRP, while lower-value agreements will require a Net Zero Commitment outlining how suppliers plan to achieve net zero by 2050.

By April 2027, all suppliers must report global emissions data, ensuring transparency and accountability across the board.

The CRP framework aligns with the Public Procurement Note (PPN) 06/21, mandating suppliers to report emissions for seven greenhouse gases in CO2 equivalent (CO2e) units.

Suppliers are encouraged to set a net zero target for 2045 and adopt environmental management systems. For SMEs (Small and Medium Enterprises) and VCSEs (Voluntary, Community and Social Enterprises), the NHS provides tailored support through webinars, guidance and CRP review services.

Tackling Scope 3 emissions with technology

A case study from Worcestershire Acute NHS Trust highlights the challenge of addressing Scope 3 emissions. 

As up to two-thirds of a trust’s carbon impact can stem from Scope 3, accurately measuring and reducing these emissions is crucial for meeting net zero targets.

To create a reliable baseline for its Green Plan, Worcestershire Acute NHS Trust partnered with NHS Shared Business Services (NHS SBS), which developed a bespoke carbon mapping tool.

The tool automates data extraction and analysis, generating a detailed carbon footprint based on procurement and supplier data.

The mapping process revealed key insights:

• Baseline established: The trust’s total supply chain greenhouse gas emissions (tCO2e) were calculated, providing a benchmark for tracking progress.
• Top contributors identified: Analysis of 1,877 suppliers found that the top 10 emitters were responsible for 63% of Scope 3 emissions, guiding efforts for targeted engagement.
• Clear recommendations: NHS SBS provided actionable steps for reducing carbon emissions, such as prioritising supplier engagement and implementing sustainability measures in procurement.

"As data availability grows and is combined with financial information, the value and significance of the information will drive results that benefit the trust financially whilst making a significant difference to our carbon footprint and ultimately, help reduce the damaging choices we make," comments Stephen Carter, Head of Procurement at Worcestershire Acute NHS Trust. 

Meeting net zero challenges

For NHS trusts, achieving net zero begins with understanding current emissions. Green Plans, which outline each organisation’s path to carbon neutrality, rely on establishing an emissions baseline.

However, many trusts struggle with the complexity and cost of Scope 3 analysis, compounded by the vast scale of NHS procurement.

To address this, tools like NHS SBS’s Carbon Specialist Mapping Service offer a scalable solution.

By automating laborious processes, these tools deliver actionable insights quickly, making it easier for NHS organisations to comply with their Green Plans and contribute to the broader net zero agenda.

As the NHS continues its journey to becoming the world’s first carbon-neutral health system, its commitment to working collaboratively with suppliers remains central to its strategy.

This partnership approach ensures that sustainability efforts are practical, measurable and inclusive of organisations of all sizes.

"Ultimately, it is this level of innovation and cooperation that will drive meaningful change across the healthcare sector," adds Stephen, encapsulating the NHS’s mission to combine environmental and operational excellence.

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