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This article was co-authored by Rose Gallagher, MBE, Professional Lead Sustainability at the Royal College of Nursing and Trustee UK Health Alliance on Climate Change.
Recognising and embracing the positive impact of environmentally and socially responsible delivery of healthcare benefits everyone - patients, staff and the wider community.
The key is to take a purpose driven approach.
This series of articles has sought to give examples of how integrating principles into day to day provision of healthcare should aid the move to net zero, responsible sourcing, waste reduction, circularity and community engagement.
These practical examples have been aimed at assisting those who seek to implement such initiatives to create a more resilient, equitable and sustainable health and care system.
Strong and accountable governance drives meaningful action and long-term transition. Within Healthcare, initiatives that we have covered throughout this series, mirror both the recently launched NHS 10 Year Health Plan and the forthcoming updated Social Value Model.
NHS 10 Year Health Plan
The NHS ‘Fit for the Future: 10 Year Health Plan for England’ (the Health Plan), published on 3 July 2025, focuses on three key shifts: Moving care from hospitals to communities, embracing digital technology and prioritising prevention over treatment.
The Health Plan intends to create a more sustainable and resilient healthcare system, namely, a health and care system that is better equipped to meet the needs of the population it serves in the long term.
The success of this Health Plan will depend on effective implementation, strong collaboration between stakeholders and the commitment to tackle health inequalities.
Critically, the long-term vision is possible if supported by robust governance structures that enable clear oversight, pro-active steps taken to anticipated risks, and accountability for outcomes.
The Social Value Model
The updated Social Value Model 2024 (Procurement Policy Note 002 (PPN 002) becomes mandatory from 1 October 2025 for all in-scope public sector bodies. These include organisations in the NHS.
PPN 002 replaces the first Social Value Model (PPN06/20) and its old ‘Themes’ with five new cross-government ‘Missions’ and a set of Standard Reporting Metrics. The intention being to improve focus and accountability. PPN 002 should offer a better outcomes-based and proportionate approach.
Both Social Value Models build on the principles set out in the original Public Services (Social Value) Act 2012, namely the requirement to consider social value in procurement.
The Social Value Models go further by placing this requirement, at the operational level, into structured outcomes, metrics, and tender/bid scoring requirements for public sector bodies. ESG benefits being important when procuring services.
Each Mission is based on the Government’s manifesto, one of which specifically focuses on “building an NHS fit for the future”. Under this mission, healthcare providers are to embed social value into every stage of procurement and contract management.
Procurement must align with broader goals such as net zero, health equity and workforce and community development - NHS tenders having at least 10% social value weighting. As such, procurement contracts will now require clear social value KPIs, with governance teams responsible for tracking delivery and impact. Commercial, clinical and operational leads must co-design social value outcomes to reflect patient and community needs.
To assist, the NHS England Social Value Playbook (the Playbook) was published on 22 July 2025. It is a practical guide which supports NHS organisations to align PPN 002 and the National Procurement Policy Statement (NPPS). This being done via the social value requirements in NHS procurement and commissioning.
The Playbook makes it clear that social value should no longer be seen as a procurement checkbox – it is a key lever for delivering Integrated Care System (ICS) priorities such as addressing health inequalities (Core20PLUS5), net zero targets and local economic development.
These rules and guidelines ensure consistency in sustainability policy and healthcare provision across England and Wales.
For those in Leadership
Boards and Governance Committees at healthcare providers should be proactive in preparing for these obligations. Many have already developed capabilities to track, measure and report on social value performance. They have embedded accountability across teams and with suppliers.
An example can be seen at Newcastle upon Tyne Hospitals NHS Foundation Trust (the Trust). The Trust, which was embedding sustainable practices prior to the Health and Care Act 2022 coming into force, continues to place responsible healthcare delivery at the heart of its strategy.
Governance structures within the Trust ensure that its ambitious net zero goals, clean air targets, and zero waste initiatives remain a priority with effective mechanisms to track progress and evolve strategies to aid improvement.
The Trust has embedded social value and sustainability in procurement, recognising the crucial role that responsible sourcing plays in reducing the environmental impact of healthcare and increasing benefits to the community.
The above efforts are supported by a governance framework that integrates sustainability into procurement policies and decision-making processes, ensuring that financial and environmental considerations are balanced effectively.
The Opportunity
Boards have a terrific opportunity, at this stage, to ensure that their strategic direction includes sustainability, with the associated requirements being part of the organisation’s day to day delivery of healthcare services.
The forthcoming implementation of PPN 002 presents an opportunity, and an obligation, for Boards to review and strengthen their oversight frameworks, confirming that procurement, performance management and reporting mechanisms are aligned, and effective, when it comes to environmental and social objectives.
Healthcare providers and their Board Members will play a key role in adhering to PPN 002 by:
- Verifying that procurement submissions include specific, measurable and time-bound social value commitments.
- Using the standard reporting metrics outlined in PPN 002.
- Engaging early in pre-market consultations to shape achievable outcomes.
- Monitoring and reporting on Social Value KPIs throughout the delivery of contracts.
Sustainability has moved beyond a standing item on agendas at Board level. A strategic approach is required. There is now an expectation that those who lead, understand the risks to reputation of not getting sustainability right and the operational benefits if measures are successfully implemented.
As we have seen from the examples over this series of articles, there is a need to:
- Establish clear accountability for environmental and social goals among the senior leadership. Ensuring ownership at both executive and non-executive levels.
- Integrate environmental and social performance metrics into Board reporting. Regular updates and clear benchmarking being part of this process.
- Establish that procurement reflects core values by embedding social value and sustainability into supplier selection and contract management.
- Assess and adapt governance frameworks over time. this will ensure that they are fit to oversee environmental and social risks, as well as opportunities.
- Embed training programmes for staff, in particular, the procurement teams.
- Foster a culture where the Board leads by example, by supporting staff to innovate and take part in initiatives that drive transformation in sustainability.
Comment
By aligning healthcare delivery with net zero ambitions, responsible sourcing, waste reduction, care for patients and staff, and meaningful community engagement, there is the opportunity to shape a future where healthcare is not only clinically excellent but also socially and environmentally responsible.
Leadership at Board level is fundamental to building resilient, equitable and sustainable healthcare.
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