Business

Sustainable Supply Chains: A Growing Priority For The North East's Public Sector

Issue 121

By Jo Holmes, MD, Genee

For many public sector and large organisations, the greatest contributor to their carbon footprint isn’t their buildings, fleet, or energy use, it’s their supply chain.

From medical equipment to outsourced services and everyday consumables, supply chains often represent the largest share of an organisation’s environmental impact. Yet they are also one of the most difficult areas to monitor, measure and manage effectively.

Across the North East, public sector organisations are engaging more proactively with their suppliers to better understand and reduce the environmental impact of the goods and services they procure.

For example, organisations such as Newcastle Hospitals NHS Foundation Trust are now asking suppliers to provide information on their environmental credentials and carbon impact as part of procurement processes.

Increasingly, suppliers are expected not only to deliver value for money and quality of service, but also to demonstrate how they are supporting wider environmental and social goals.

This growing emphasis on sustainable procurement is reflected in regional initiatives such as the North East Public Sector Sustainable & Social Value Supplier Event, which aims to bring together procurement leads and suppliers on the 24th March in Newcastle Civic Centre, to explore practical ways of working collaboratively towards low-carbon supply chains.

Organisations that are unable to evidence their environmental impact or demonstrate progress towards sustainability targets may find themselves at a disadvantage when bidding for public sector contracts. In some cases, this could even affect their ability to remain on key supplier frameworks, including those used by the NHS and local authorities.

However, suppliers who are able to respond positively to these evolving expectations stand to benefit from:

Increased competitiveness in tenders

Stronger relationships with public sector clients

Improved resilience and operational efficiency

Enhanced reputation with customers and investors

One of the key challenges facing procurement teams is ensuring that new sustainability requirements do not unintentionally exclude smaller organisations from tender opportunities.

SMEs make up a significant proportion of the North East’s supply base, and many are at an earlier stage in their sustainability journey, without the dedicated sustainability managers and resources. Without a consistent approach to information gathering and clear guidance on expectations, there is a risk that smaller suppliers could be disproportionately affected by additional reporting requirements.

Encouragingly, public sector organisations across the region are increasingly working together to standardise their approach to collecting environmental data from suppliers. By aligning expectations and reducing duplication, they aim to create a more accessible procurement environment that enables SMEs to participate fully.

Frameworks such as Investors in the Environment (iiE) are helping organisations of all sizes to gather environmental data and measure their impact in a practical and accessible way. Through tailored support, training, and engagement, Genee works with organisations to take meaningful steps on their sustainability journey, using the iiE framework as a structured guide.

This approach helps businesses define a clear environmental policy, develop practical action plans across key areas such as energy, transport, waste, and procurement, establish baselines to monitor their carbon footprint, and demonstrate their commitment through externally recognised certification.

By removing the guesswork and lowering the barriers to entry, initiatives like iiE provide a practical and affordable route into environmental management, whether an organisation is just starting out or looking to build on existing progress.

As sustainability becomes increasingly embedded within procurement practices, collaboration between public sector organisations and their suppliers will be crucial. By working together to improve transparency and support organisations at every stage of the journey, the North East has an opportunity to build more resilient, low-carbon supply chains, delivering environmental benefits while continuing to support local businesses and communities.

To hear more about this, join us at the North East Public Sector Supplier Event on the 24th March. It’s free to attend and you can book via www.genee.org.uk

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