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The role of procurement in decarbonisation
A smart approach to procurement could be crucial in helping the sector move towards ambitious net zero targets, writes John Fisher, chief executive of CHIC
John Fisher is chief executive of CHIC
A smart approach to procurement could be crucial in helping the sector move towards ambitious net zero targets, writes John Fisher, chief executive of CHIC #UKHousingThe housing sector was responsible for 14% of the UK’s total carbon emissions in 2024. That was a 3% decrease from the previous year, which is positive. However, as the built environment still contributes 25% of all greenhouse gas emissions, all facets of the housing and construction sectors will need to play their part in working towards net zero.
The importance of procurement in decarbonisation cannot be overstated. The decisions made during the procurement process influence not only the immediate outcomes of housing projects but also the long-term environmental impact. From the initial identification of needs to the sourcing of materials and services, every step in the procurement life cycle has the potential to contribute to sustainability.
But the impact extends beyond the construction phase. Procurement activities influence transportation logistics, energy use, raw material consumption and waste generation. With strategic procurement, it is possible to mitigate these impacts, paving the way for greener housing solutions that align with national decarbonisation targets.
Case study: Citizen Housing
We’re currently working with Citizen Housing, after we were selected as the framework provider for this significant decarbonisation project in Coventry. This £18m initiative, funded by the Social Housing Decarbonisation Fund Wave 2.1, aims to improve the energy efficiency of 653 homes and reduce carbon emissions across a range of property archetypes.
The project, which began in September 2023, includes installing external wall insulation, upgrading windows and doors and adding loft insulation. These measures will ensure that each property achieves an EPC rating of at least Band C by the end of the project in 2025.
SBS, the contractor on the project, has demonstrated a strong commitment to sustainability and efficiency. By adhering to the PAS 2030 and 2035 standards and using a fabric-first approach, the project has made significant strides towards achieving its goals, including energy savings of 4,375,800 kWh/year and carbon savings of 1,193,400 kg/year. The scheme has also created jobs within the local supply chain, benefiting the wider community.
The new Procurement Act
The Procurement Act 2023 necessitates a stronger commitment to sustainability across all procurement activities. With carbon reduction and energy efficiency now key priorities, registered providers (RPs) must carefully assess every contract to ensure suppliers meet environmental standards and deliver energy-efficient solutions.
This approach ensures that procurement partners not only understand the importance of decarbonisation but are also equipped to implement sustainable practices effectively.
When developing procurement frameworks, embedding sustainability considerations from the outset is crucial. Frameworks serve as the foundation for selecting suppliers and contractors, shaping the future outcomes for contract procurement. By integrating decarbonisation and energy efficiency criteria, RPs can address critical environmental factors, including embodied carbon, waste and energy consumption, alongside cost and quality.
A champion of decarbonisation
CHIC is committed to driving sustainable procurement and supporting members in their decarbonisation efforts. By embedding sustainability in its frameworks, CHIC ensures that RPs have access to high quality, energy-efficient solutions and partners dedicated to reducing environmental impact.
To prioritise sustainability, all CHIC frameworks include a minimum 10% social value weighting in quality scoring, which includes the requirement of suppliers to demonstrate their commitment to sustainable practices. CHIC also adopts innovation through the Healthy Homes framework (launched in 2024) and the Fire and Building Safety framework (recently launched in 2025).
These frameworks enable RPs to collaborate with suppliers who value carbon reduction and makes a positive social impact.
John Fisher, chief executive, CHIC
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