Procurement and contracts action plan – 2026 to 2031

The procurement and contracts action plan below provides the details of what our function will seek to achieve over the next 5 years. An action tracker will be used to monitor our progress through the year.

Theme 1: sustainability and biodiversity resilience

Action: ensure compliance with sustainability legislation across all relevant procurement and contracts activities

Short term goal (0–12 months): Review procurement and contracts practices against current sustainability legislations

Medium term goal (1–3 years): Update procedures to reflect best practice

Long term goal (3–5 years): Maintain alignment with evolving sustainability legislation across procurement and grants

Action objective/corporate metrics: NRW consistently meets and applies sustainability legislation across procurement, contracts and grants, ensuring all activity demonstrably supports statutory environmental outcomes

Procurement and contracts metrics/measure of success: Percentage of procurement and contract agreements activity meeting defined sustainability compliance

Action: establish a baseline and then increase the percentage of suppliers that meet environmental standards on relevant NRW contracts and frameworks

Short term goal (0–12 months): Put the building blocks in place to report on sustainability progress against the environmental management system (EMS) objective 2

Medium term goal (1–3 years): Report on  sustainable benefits, improvements by procurement and Contract Management Support Service (CMSS)

Long term goal (3–5 years): Formal review of implemented approaches for continuous improvement

Action objective/corporate metrics: Sustainable practice becomes fully embedded in all relevant procurement and contract processes, with all procedures routinely driving measurable environmental improvements and compliance with our EMS and Wales Procurement Policy Statement (WPPS)

Procurement and contracts metrics/measure of success: 

• Percentage of agreements that demonstrate sustainability benefits or improvements against the EMS targets
• Positive progress made against agreed interim milestones
• Number of sustainability audits passed
• Evidence of procurement and contract management requirements that adhere to the WPPS

Action: Increase biodiversity and conservation outcomes across our spending activity (well-being objective 1)

Short term goal (0–12 months): Establish partnerships with internal and external specialists

Medium term goal (1–3 years): Include biodiversity criteria and targets through procurement and funding mechanisms

Long term goal (3–5 years): Review processes and develop existing approaches, where beneficial

Action objective/corporate metrics: Biodiversity protection or improvements are integrated into procurement, funding and contract management processes, resulting in agreements that measurably support biodiversity enhancement.

• Metric 3 - Nature positive procurement and contracts: Proportion of relevant NRW contracts and framework that include explicit biodiversity enhancement or nature recovery requirements, with evidence of implementation

Procurement and contracts metrics/measure of success: 

• Percentage of relevant procurements that include defined biodiversity criteria or enhancement aspects
• Percentage of relevant biodiversity‑related contracts that report measurable improvements against sustainability targets
• Percentage of relevant biodiversity‑related benefits achieved via grants and/or agreements, delivering quantifiable benefits (e.g., habitats improved, hectares restored, species indicators enhanced, tress planted)

Action: Reduce scope 3 emissions (well-being objective 2)

Short term goal (0–12 months): Collaborate with Climate and Decarbonisation team

Medium term goal (1–3 years): Implement emission reduction strategies in supply chain and funding activities

Long term goal (3–5 years): Achieve measurable reductions in scope 3 emissions across all procurement and contracts functions

Action objective/corporate metrics: Supply chain and funding activities deliver clear, evidenced reductions in Scope 3 emissions, contributing to NRW’s Net Zero ambitions

• Metric 4 – Decarbonisation through procurement and supply chains: Proportion of relevant NRW contracts and frameworks with carbon reduction requirements, carbon reporting and active supplier engagement, with year-on-year improvement in reported supply-chain emissions

Procurement and contracts metrics/measure of success:

• Percentage of relevant procurements where carbon reduction plans have been requested
• Successful implementation of NRW’s NetZero action plan deliverables

Action: Pollution prevention and minimise waste (well-being objective 3)

Short term goal (0–12 months): Include waste minimisation clauses in contracts and grant agreements

Medium term goal (1–3 years): Monitor and report on waste reduction outcomes

Long term goal (3–5 years): Establish NRW as a leader in sustainable procurement and funding practices

Action objective/corporate metrics: Contracts and grants actively reduce waste generation across our delivery, positioning NRW as a key advocate of sustainable resource use

• Metric 3 - sustainable procurement: Proportion of relevant NRW contracts that include requirements to prevent pollution and reduce waste

Procurement and contracts metrics/measure of success: 

• Percentage of relevant procurements where pollution prevention waste minimisation has been considered and included
• Percentage of relevant agreements where pollution prevention or waste minimisation requirements have been met through contract management and performance KPIs
• Percentage of relevant grants and agreements where pollution or prevention waste minimisation ambitions have been achieved

Theme 2: fair work, equality, diversity and inclusion (EDI)

Action: Embed fair work practices through our supply chains, grant programmes and land management agreements

Short term goal (0–12 months): Review existing ways of working in preparation for the socially responsible procurement (SRP) duty

Medium term goal (1–3 years): Formally report on agreements where fair work has been included

Long term goal (3–5 years): Assess impact against procurement and contract strategy ambitions

Action objective/corporate metrics: All procurement, contracts and grants reflect fair work principles, strengthening fair working conditions across our supply chains and funded partners

Procurement and contracts metrics/measure of success: 

• Percentage of agreements with fair work requirements included
• Number of contracts where project bank accounts are utilised
• Percentage of prompt payments made to suppliers grantees and agreement holders
• Payments compliance and relevant transparency requirements adhered to
• Compliance with the Welsh Government code of practice

Action: Promote equality, diversity and inclusion through our public spending

Short term goal (0–12 months): Conduct a gap analysis across procurement, contracts, and grants

Medium term goal (1–3 years): Update and implement revised inclusive policies and procedures

Long term goal (3–5 years): Work with internal equality, diversity and inclusion subject matter experts (SMEs) to maintain or enhance inclusive policies across procurement and contracts

Action objective/corporate metrics: Inclusive and equitable practices are embedded across all procurement and contracts activity, ensuring fair access, representation and outcomes

Procurement and contracts metrics/measure of success: 

• Procurement and contracts documentation updated to include EDI aspects, where appropriate
• Percentage of staff trained on inclusive policies in NRW spending mechanisms

Action: Increase supplier, grant recipient and partner diversity

Short term goal (0–12 months): Promote early publishing of opportunities and engage SMEs/diverse suppliers and grant recipients

Medium term goal (1–3 years): Monitor and report on diversity metrics across suppliers and grant recipients

Long term goal (3–5 years): Achieve measurable improvements in diversity and inclusion across all procurement and contracts activities

Action objective/corporate metrics: NRW’s procurement and funding landscape becomes more diverse and accessible, with demonstrable increases in participation from SMEs and underrepresented groups

Procurement and contracts metrics/measure of success: 

• Frequency of early opportunity publications and pipeline publishing
• Percentage of contracts awarded to SMEs/diverse suppliers.
• Percentage of open competitive grants and agreements awarded to diverse grant recipients
• Percentage of grants and agreements awarded to partners

Theme 3: modern slavery

Action: Review and update NRW Modern Slavery Statement

Short term goal (0–12 months): Complete annual review and publish updated statement

Medium term goal (1–3 years): Expand scope of review to include grants and agreements

Long term goal (3–5 years): Integrate modern slavery risk management across all relevant procurement and contracts functions and wider

Action objective/corporate metrics: NRW maintains a robust, transparently updated Modern Slavery Statement, forming a strong foundation for risk mitigation across all procurement and contracts activity

Procurement and contracts metrics/measure of success:

• Date of last statement updated
• Percentage of modern slavery targets achieved across procurement, CMSS, grants and other departments affected by modern slavery risk

Action: Enhance communication and training

Short term goal (0–12 months): Relaunch intranet page and promote training

Medium term goal (1–3 years): Develop ongoing training and awareness programmes

Long term goal (3–5 years): Maintain high levels of awareness and engagement across all procurement and contracts staff and stakeholders

Action objective/corporate metrics: All procurement and contracts staff and relevant stakeholders maintain high awareness and capability to identify and address modern slavery risks

Procurement and contracts metrics/measure of success:

• Percentage of staff trained on modern slavery
• Progress made by other departments on managing modern slavery risk

Action: Implement reporting and monitoring

Short term goal (0–12 months): Design a reporting system for procurement, contracts, and grants

Medium term goal (1–3 years): Roll out reporting approach across the procurement and contracts function

Long term goal (3–5 years): Widen the usage of reporting to other business areas, for example, commercial

Action objective/corporate metrics: Modern slavery risks are proactively identified and addressed through reliable, organisation‑wide reporting and monitoring

Procurement and contracts metrics/measure of success:

• Progress reports presented showing positive improvements for NRW
• Number of issues identified and resolved through reporting and management

Theme 4: value for money

Action: Optimise procurement, contract, grant and agreement processes for cost-effectiveness

Short term goal (0–12 months): Review current procurement and contracts processes for efficiency and develop performance reporting metrics

Medium term goal (1–3 years): Implement improvements to enhance value across all procurement and contracts activities

Long term goal (3–5 years): Continuously review approaches for optimal value across procurement, contracts, and grants

Action objective/corporate metrics: Procurement and contracts processes deliver measurable value for money through streamlined, evidence‑based decision‑making

Procurement and contracts metrics/measure of success:

• The procurement function demonstrates year‑on‑year improvements in cost‑effectiveness, processing time, and commercial outcomes
• Contract management processes deliver improved efficiency, reduced risk, and enhanced value over the contract lifecycle
• Grant administration becomes more efficient and cost‑effective, reducing processing times while maintaining quality and compliance

Action: Foster innovation and efficiency

Short term goal (0–12 months): Identify opportunities for innovation across procurement and contracts functions

Medium term goal (1–3 years): Launch pilot projects to test innovative approaches

Long term goal (3–5 years): Scale successful innovations across the procurement and contracts function

Action objective/corporate metrics: Innovative approaches are piloted, scaled and embedded across procurement and contracts, improving efficiency and delivering higher organisational value

Procurement and contracts metrics/measure of success:

• Innovative procurement methods and pilot initiatives result in measurable efficiency gains and enhanced organisational value
• Innovation and problem‑solving approaches adopted within contracts lead to measurable service improvements and cost efficiencies
• Grant‑funded innovations and pilots demonstrate positive return on investment and contribute to improved service or environmental outcomes

Action: Implement supplier and recipient performance management

Short term goal (0–12 months): Develop performance metrics and monitoring tools for suppliers and grant recipients

Medium term goal (1–3 years): Integrate performance management into contract and grant lifecycles

Long term goal (3–5 years): Use performance data to inform strategic relationships and funding decisions

Action objective/corporate metrics: Supplier and grant recipient performance data consistently informs procurement and contracts decisions, improving outcomes and strengthening relationships

Procurement and contracts metrics/measure of success:

• Supplier performance data is consistently used to improve contract outcomes and strengthen commercial relationships
• Improved contract management information (MI) for better decision making
• Performance data from grant recipients and partners informs future funding decisions and drives improvements in delivery outcomes

Theme 5: governance, compliance and innovation

Action: Ensure compliance with commercial requirements across procurement, contracts, and grants activity

Short term goal (0–12 months): Align all procurement and contracts activities with current legislation, policies and introduce assurance measures

Medium term goal (1–3 years): Embed compliance checks into procurement, contract management, and grant and agreement processes

Long term goal (3–5 years): Maintain full compliance with evolving legislation across all  procurement and contracts departments

Action objective/corporate metrics: Procurement and contracts consistently meets commercial and legislative requirements, underpinning transparent, assured, compliant organisational practice

Procurement and contracts metrics/measure of success:

• Percentage of procurements meeting all legislative, policy and assurance compliance requirements
• Percentage of contracts that meet all commercial, legislative and assurance compliance requirements through embedded checks across the full contract lifecycle
• Percentage of grant and agreement awards and monitoring activities that fully meet legislative, policy and assurance compliance requirements at each stage of the grant lifecycle

Action: Utilise and embrace new digital tools and systems 

Short term goal (0–12 months): Undertake a review of current systems across procurement and contracts departments

Medium term goal (1–3 years): Implement new systems to improve compliance and ways of working within procurement and contracts

Long term goal (3–5 years): Work towards harmonising systems and processes throughout procurement and contracts

Action objective/corporate metrics: Modernised, integrated digital systems that enhance compliance, efficiency and user experience across procurement and contracts and for our stakeholders

Procurement and contracts metrics/measure of success:

• Procurement adopts modern, integrated digital systems that improve compliance, streamline processes, and increase user uptake across the organisation.
• Contract management benefits from modern, harmonised digital systems that strengthen compliance, improve efficiency and enhance reporting capability.
• Grant management processes are supported by modernised digital tools that enhance monitoring accuracy, reduce manual effort and improve stakeholder experience