The U.K. Future Generations Bill, introduced in draft form in November 2020, aims to weave long-term sustainability into the fabric of public policy. Although the bill was still making its way through Parliament during 2021, its draft guidance was already shaping how public procurement frameworks were evolving and how businesses, especially SMEs, were positioning themselves for compliance. The underlying concept is simple: government spending should avoid compromising the well-being of future generations. But as always, translating that principle into the mechanics of procurement requirements is anything but simple.
For SMEs bidding on public contracts, the bill’s direction means demonstrating far more than generic environmental awareness. The guidance points clearly toward a need for proof of carbon-neutral or low-carbon supply chains, supported by credible data. Assertions and aspirations, while welcome, are no longer enough. Bidders are being encouraged, if not required, to root their claims in publicly accessible evidence—such as the open emissions data maintained by U.K. authorities. This shift presents both a challenge and, arguably, an opportunity for those willing to engage seriously with the data.
One critical resource SMEs should look to is the Department for Business, Energy & Industrial Strategy’s fuel-storage registry. This might not seem an obvious priority for procurement bids at first glance. Yet fuel storage data offers a practical route to quantifying upstream supply chain emissions, particularly where transport, distribution, or on-site energy use are significant contributors. The registry provides location, capacity, and operational status data for fuel facilities. By cross-referencing supplier information with this public record, SMEs can construct an emissions picture that is both transparent and defensible. And while the task may feel onerous at first, it provides a level of detail increasingly expected in the evaluation of public tenders.
Bringing this data into bid submissions does not require sophisticated IT systems. It does, however, demand careful record-keeping and a methodical approach to linking supplier activities with fuel use. The process typically begins by mapping the primary suppliers in the chain—those whose operations significantly influence the carbon footprint of the goods or services being tendered. Identifying fuel depots and storage facilities serving these suppliers then allows for the use of registry data to estimate related emissions. These estimates can, in turn, be incorporated into the overall emissions profile cited in the bid. It’s worth noting that evaluators are generally understanding of the limits of precision, provided the methodology is sound and the limitations are candidly explained.
Once SMEs have this emissions mapping in hand, attention turns to the task of presenting it in a government-friendly format. The environmental annex of a bid can no longer be a formality. Under the Future Generations Bill’s guidance, it is becoming a key section where bidders demonstrate not only compliance but competence. The annex should open with a clear statement of the supply chain’s carbon footprint, supported by figures where available. It should identify any gaps or areas where estimates have been applied. Transparency here tends to build trust rather than diminish a bid’s appeal.
Following this overview, the annex should describe the steps taken to integrate BEIS fuel-storage data into supply chain emissions calculations. How were fuel sites identified? What assumptions underpinned the emissions estimates? Where did data challenges arise, and how were they handled? These details matter. They show evaluators that the bidder is serious about environmental responsibility, not just offering empty reassurances.
Firms are also encouraged to describe concrete steps they have taken to reduce supply chain emissions. This might include switching to lower-carbon logistics providers, redesigning processes to cut energy use, or partnering with suppliers on shared sustainability goals. The tone should be factual and modest, avoiding overstatement. Government evaluators have become adept at spotting greenwashing, and authenticity carries weight.
There is no single template for these annexes, but most will include a mix of data tables, narrative explanation, and where possible, references to public datasets used in compiling the information. The annex might close, though not conclusively, with commentary on future plans for further reducing emissions or improving data quality. Again, the goal is to convey a sense of commitment grounded in evidence, rather than aspiration alone.
It is important to recognize that different sectors will naturally approach these annexes differently. A manufacturing SME’s supply chain profile, for example, will emphasize materials sourcing and transport emissions. A service provider might focus more on office energy use or digital infrastructure. The Future Generations Bill guidance leaves room for such variation, but the expectation of evidence-based reporting remains consistent across sectors.
What stands out in this evolving landscape is how environmental performance is becoming integral to competitive positioning in public procurement. SMEs that embrace the discipline of mapping and reporting supply chain emissions, using open data and verifiable methods, are setting themselves up not just to comply with future rules but to stand out in a crowded bidding field. The bill’s full legislative journey may yet be incomplete, but its influence is already clear in the daily work of firms preparing to compete for public contracts.