Companies bidding for major government contracts have to comply with new green rules that came into effect today.
The new measures require bidders for contracts worth more than £5 million a year to commit to achieving net zero emissions by 2050.
The government said that this requirement will not only apply to those awarded the contracts but to any company that applies to secure them.
Chancellor of the Duchy of Lancaster Steve Barclay said: “Government spends £290 billion a year on procurement and it’s right that we use this spending power to green the economy.
“Working arm-in-arm with business, we are taking giant strides to ensure this country is building back greener and tackling climate change.“
Andrew Griffith, UK Net Zero Business COP Champion, said: “The message to businesses is clear – engaging on net zero is no longer an option but a necessity from today, with businesses large and small now needing firm climate plans and commitments in place to supply major government contracts.”