Rising to the Net-Zero Challenge:

Key Considerations for SMEs Competing in Tenders

Small and medium-sized enterprises (SMEs) account for 5.5 million businesses that drive innovation and job creation in the UK economy. But they also have a significant impact on supply chain carbon emissions, making them a target for accountability under Scope 3 regulation.

To address their own indirect carbon emissions, Tier 1 organisations are turning to their suppliers – the majority are SMEs – to account and report their carbon emissions. Consquently winning business in a net-zero emissions world presents challenges for smaller businesses, but it’s not impossible to overcome, in fact it can present opportunities. In fact SMEs are getting higher up the prefered supplier list because they can demonstrate sustainability credentials unlike their larger competitors.

In this blog, we’ll share 4 key considerations for SMEs and procurement professionals eager to bid for business and win by showcasing their sustainability efforts.

1 Understand Tender Requirements

The first step for SMEs competing for tenders in a net-zero world is to understand the tender requirements. Governments and large private sector organisations are increasingly prioritising sustainability and emissions reduction in their procurement processes. This means that companies completing an RFP should evidence a clear understanding of the tender requirements and how they align with sustainability goals.

2 Build a Sustainability Strategy

To compete effectively in a net-zero world, companies of all sizes should integrate sustainability into their corporate strategy and demonstrate how it aligns with their brand and cultural values. Begin by developing a clear plan with sustainability targets and a plan to achieve them. For those struggling with resource can work with industry associations and sustainability consultants who can help tailor the sustainability plan for the business and differentiate it from competitors. Another factor in the strategy should be to complete sustainability certifications or access partnerships with sustainability-focused organisations to demonstrate their commitment to sustainability.

3 Focus on Innovation

Innovation drives sustainability, and SMEs can leverage their agility and flexibility to develop and implement innovative sustainable solutions – faster than monolithic organisations. Developing products, services, and business models that prioritise sustainability can be a strong differentiator. SMEs can collaborate with your industry peers and suppliers to drive change or government bodies and universities to access resources for research and development.

4 Leverage Technology

Technology is critical for enabling sustainability. SMEs can leverage it to reduce their carbon footprint and compete for tenders with an element of carbon emission accounting. Adopting energy-efficient technologies, implementing smart building systems, or using data analytics to optimize energy consumption are examples. Highlight your switch to virtual meetings and remote work that reduces travel emissions while also consider renewable energy sources can power operations.

By understanding requirements, building a sustainability strategy, focusing on innovation, and leveraging technology, SMEs can compete effectively for net-zero tenders. SMEs can help contribute to the transition to a net-zero economy while driving innovation and job creation

In conclusion, SMEs face unique challenges in competing for tenders in a business world focussing on driving down Scope 3 emissions. By gaining a closer understanding of the tender requirements, integrating sustainability into your corporate strategy, focusing on innovation, and leveraging technology, you can position your organisation as leaders in sustainability and compete effectively for tenders.

With the right approach, SMEs can contribute to the global transition to a net-zero economy while also benefiting from faster growth by attracting new customers who admire businesses with strong sustainable credentials.

Takeaway Tip: Learn more about Scope 1, 2 and 3 in the Scope of Sustainability

How Pulse Market can help:

We’ll help you track and manage Scope 3 data, decarbonise your value chain, and develop a transition plan that balances reaching your net zero goals while remaining a profitable, successful business.

Book a demo to discover more about our Procurement or Sustainability Solutions.