New law requires Public Body procurement contracts to require improved use of sustainable materials, climate change resilience, greenhouse gas emission reduction, and biodiversity enhancement
The new Social Partnership and Public Procurement (Wales) Act 2023 (‘the SPPP Act’) [1] became law on 24 May 2023. The Act promotes spending money responsibly to deliver public services and aims to put “the voice of workers at the heart of decision-making in Wales.” [2] The SPPP Act also requires environmental improvements to be included in all contracts and holds organisations to account for ensuring that contract conditions are maintained throughout supply chains, particularly in large construction projects.
“It’s great to see the regulatory demands for sustainability increasing. WkW would be delighted to support public bodies respond effectively to this new requirement for procurement projects that relate to the natural or built environments.” Gary Newman, CEO of Woodknowledge Wales
Promoting the wellbeing of Wales through social partnerships
Chaired by Wales’ first minister, the new Social Partnership Council (SPC) includes representatives of employers and workers from the public, private and third sectors. The SPC met for the first time in early 2024 under the powers of the landmark legislation which came into effect in 2023.
According to Law Wales, the SPPP Act “provides a framework to promote the well-being of the people of Wales by enhancing sustainable development (including by improving public services) through social partnership working, promoting fair work and socially responsible procurement.” [3]
The Welsh Way of Social Partnership aims to find consensus and the creation of open partnerships and mutually acceptable ways of working that are in a spirit of co-operation and collaboration.
Responsible procurement of goods and services in Wales
Careful and responsible procurement is an important facet of the new law. It now requires public service providers to think about how they buy and organise services, and how that affects local communities, the environment, and the economy. Around £7 billion pounds is spent in Wales on services and goods through public procurement.
The Act complements the Well-being of Future Generations (Wales) Act 2015 (WFG Act) [4], Decarbonisation, [5] Net Zero [6], and Circular Economy policies [7]. The WFG Act’s sustainable development principle requires Public Bodies to take action in a way which seeks to ensure current needs are met without compromising future generations. The new Act aims to improve sustainable development through similar social, economic, environmental and cultural goals.
Linking Decarbonisation/Net Zero and Circular Economy policy
In response to environmental needs, the SPPP Act now requires that all procurement relating to social public works include contracts that will bring about the improvements to economic, social, environmental and cultural well-being listed under each category laid out in Table 1, 27 (2) of Chapter 2, Socially Responsible Procurement Duty. [8]
Under the category of ‘environment’ these include: “sustainable management of natural resources, use of sustainable materials, resilience to the impact of climate change, reduction of greenhouse gas emissions, and enhancement of the natural environment and biodiversity.”
Public Bodies captured by the duties outlined in the new Act include: Local Authorities, the National Park Authority, and Natural Resources Wales (NRW).
Supporting documentation
1: Social Partnership and Public Procurement (Wales) Act 2023
2: Working together better in Wales
3: Law Wales, Helping you understand Welsh Law, Social Partnership and Public Procurement (Wales) Act 2023, Welsh Government
4: Well-being of Future Generations (Wales) Act 2015 (WFG Act)
5: Decarbonisation Support Programme for Welsh Local Authorities
6: Net Zero Wales
7: Circular Economy Strategy for Wales
8: legislation.go.uk, Social Partnership and Public Procurement (Wales) Act 2023, Table 1, 27(2)
