This is a guide for suppliers on how to leverage IAND's ESG IMPACT suite of features.
You are now being asked to provide 4 Social Value metrics to support your Clients in meeting new UK procurement regulations: PPN 06/20, PPN 05/21 and PPN 06/21. These metrics are consistent with your current ESG reporting requirements and are as follows:
Carbon: Scope 1 and 2 emissions
Innovation: Grant funding and R&D investment
Diversity: Women in senior roles
Organisation: Headcount and Type (Startup, VCSE)
This article provides details on why these metrics matter and a step-by-step guide on adding your ESG IMPACT information.
The UK Government has committed to Net Zero carbon emissions by 2050. New regulations (PPN 06/21) require government departments, bodies and agencies to request their suppliers' Carbon Reduction Plans and to ensure suppliers are committed and planning to achieve Net Zero. IAND captures your annual carbon impact and determines your rating according to the reduction in your carbon emissions over time.
How to add carbon emissions
Please provide your total Scope 1 and 2 carbon emissions in tCO₂e, for the last two years. The rating takes into account both your current carbon ratings, and your progress to Net Zero goals, so enter each year into the platform separately.
Note: Use the Carbon Trust calculator to support your calculation: https://www.carbontrust.com/resources/sme-carbon-footprint-calculator
Update carbon emissions
Please ensure this is updated annually as this affects your overall rating on carbon.
Innovation is a core part of new UK procurement regulations as determined in PPN 06/20 and in the new Green Paper for Procurement. IAND determines your innovation score by the amount of grant funding received and your company investments in research and development projects.
How to add innovation information:
R&D investment: This is innovation taking place in your organisation, sharing the investment made in R&D in the past year.
Note: we recommend using the figure from your latest R&D tax relief claim.
Grant funding: Share the grant funding you have received to develop new products and services from bodies such as Innovate UK.
Note: please provide one figure that provides the total funding received from all funding agencies during the period.
Update innovation information
Please ensure this is updated annually as this affects your overall rating on innovation.
Diversity and inclusion are at the centre of innovation. IAND derives the diversity rating from the percentage of women in the upper quartile pay grade at your company.
How to add % of women in senior roles
Please provide the percentage of women in your top pay quartile. This is calculated by hourly pay or FTEs. For large organisations, please provide the data from your latest gender pay gap reporting.
Note: there are instructions on how to calculate the percentage of men and women in each hourly pay quarter on gov.uk.
Update % of women in senior roles
Please ensure this is updated annually as this affects your overall rating on diversity.
UK procurement regulations (PPN 06/20) aim to make the UK the best place to start and grow a business by requiring diverse and local supply chains. IAND enables you to showcase your organisation size and type as well as the locations in which you operate. Your location is defined as your registered office address.
How to add organisation information:
Headcount: Your headcount is required to create your carbon and innovation ratings and highlight the size category of your company (micro / small / medium / large) - helping your client report to new Social Value regulations.
Start-up: A start-up is defined as a company that is designed to grow fast, either developing technology or using technology to operate its business.
VCSE: Your company qualifies as a Voluntary, Community and Social Enterprise (VCSE) if it works toward a social purpose. These sorts of companies are also sometimes referred to as ‘third sector’ or ‘civil society’ organisations.
Update your organisation information
Please ensure this is updated annually as this is required to create your overall rating on carbon and innovation and helps highlight the size category of your company.
To add your metrics for the first time or to update your current metrics, hover over 'Company profile' in the top navigation bar and click 'Manage ESG IMPACT'. Alternatively, go to your Company profile page, expand the ESG IMPACT module and click the 'Manage ESG IMPACT' button.
From here, click the '+Add' buttons to add your metrics for the last two years. This will take you to a short form.
Read each description and complete the form with your information and the period in which it applies:
Select a time period: when you select a period from date, the platform will add one year onto that date to calculate the end of the period. You cannot select a date that is less than one year ago as the end of the period would run into the future.
For example, select 01/01/2020 to add information for the calendar year of 2020. Select 06/04/2020 to add information for the financial year 2020/2021.
Provide two previous years of data for Headcount and Carbon emissions to enable your performance to Net Zero to be captured.
If a metric is not applicable to your organisation you can mark it as N/A, but you must still provide the period in which this applies.
Once you have added your information, click Submit.
Continue to add more metrics from the Manage ESG IMPACT page. If you make a mistake, you can also delete a metric from this page.
Once a metric expires you will receive an email notification requesting that you update your information.
Note: ESG IMPACT ratings are calculated from the information you provide and are measured on a 1-5 star rating system.