From the 1st of April 2026 procurement reporting in Wales entered a new phase.
The Social Partnership and Public Procurement (Wales) Act 2023 (SPPPA) requires contracting authorities in Wales to carry out procurement in a way that improves economic, social, environmental, and cultural well-being.
Following the expansion of the socially responsible procurement duty, and increased transparency obligations, which came into force on the 25th of March 2026, the focus now shifts to how authorities in Wales must evidence their delivery of socially responsible outcomes.
Our recent article on the scope of socially responsible procurement in Wales explained how the duty has been expanded, and what the increased transparency obligations entail.
In this article we now discuss how socially responsible outcomes must now be evidenced.
What is changing?
The duty on contracting authorities in Wales to publish annual reports (section 39 SPPPA) came into force on the 1st of April 2026, requiring:
- a summary of prescribed contracts and the steps taken to meet socially responsible procurement duties,
- an assessment of opportunities for improvement, and
- a forward-looking, two-year procurement pipeline.
These elements demonstrate that contracting authorities are expected to adopt a continuous improvement approach, using procurement data to inform future strategy, pipeline planning, and decision making.
Further, the annual reports (which are to be published on the contracting authority’s website) must also include information about how the procurement activity has contributed to the achievement of the seven well-being goals.
As a reminder, key areas of focus in achieving the goals include long-standing aims of reducing carbon emissions, as well as protecting and promoting employment rights.
Regulations made under the SPPPA (in particular, regulation 6 of the Social Partnership and Public Procurement (Wales) Regulations 2026) set out the information required from a contracting authority to evidence their contribution towards the goals. Regulation 6, which also came into force on 1 April, requires contracting authorities to include in each annual report the estimated value of contracts awarded to contractors who meet prescribed conditions relating to the economy of the authority’s area, environmental and social considerations, and the use of the Welsh language.
The emphasis is no longer solely on compliance with process or value for money. Instead, authorities are expected to demonstrate how procurement decisions translate into tangible outcomes which support local growth, fair work, and inclusive supply chains.
The purpose behind the reporting requirement is to help stakeholders (from the general public through to funding bodies) gauge how successful the procurement objectives are at facilitating the well-being goals. The separate statutory guidance on producing reports encourages reporting as a mechanism for sharing good news stories that will inspire readers, and other report writers, and motivate positive action through awareness of good practice.
Procurement meets employment
What is particularly notable is the nature of the information authorities are expected to capture and report. Regulation 6 states that where a contracting authority must publish a report on its public procurement, that report must contain information about the value of contracts awarded to contractors who satisfy certain conditions.
These conditions now extend beyond traditional procurement metrics and (amongst other areas) into employment and workforce practices and rights.
Regulation 6 requires contracting authorities to have visibility of whether contractors:
- are accredited Living Wage Employers,
- recognise trade unions,
- make use of zero‑hours contracts (or review such arrangements on a three-monthly basis, to assess whether use of zero-hours contracts remains appropriate),
- have appropriate equality, diversity, and inclusion policies, supported by effective staff training that covers their recruitment and employment practices, and
- are signatories to the Welsh Government’s Code of Practice on Ethical Employment in Supply Chains.
On the face of it, these conditions are relatively straightforward for contractors to meet. However, if the overarching aim of socially responsible procurement is to achieve well-being goals, this must be more than a simple tick box exercise and contracting authorities and contractors alike must fully understand the conditions and what is required of contractors in order to demonstrate that they have been met.
For example, what makes an effective equality, diversity, and inclusion policy? Are contractors aware of the forthcoming changes around trade union recognition?
These changes also demonstrate how procurement is being used in Wales as a tool to reinforce and monitor workforce and organisation standards, though the reality of reporting on these conditions in practice is complex.
Understanding these conditions (and the employment rights that sit behind them) and being able to provide effective data to contracting authorities for their annual reports will require time, learning, and meaningful engagement throughout the procurement process.
Environmental considerations
The new reporting requirements also require contracting authorities to consider the environmental position of their contractors including:
- whether the contractor has a carbon reduction plan,
- what their commitment is to achieving net zero greenhouse gas emissions by 2050,
- what environmental measures the contractor can employ in order to reduce the environmental impacts and carbon footprint associated with their business operations, and
- whether the contractor has an environmental policy setting out its aims for managing the environmental impacts of its operations and a commitment to a programme of improvement.
Again, these are potentially broad conditions requiring a detailed understanding by contractors of their own position, and that of contracting authorities, on what data is required and how it will be obtained.
When will this apply?
While the requirements apply from the 1st of April 2026, the first annual procurement reports are likely to be published during 2027, following the close of the first full reporting period.
The practical challenge: data that doesn’t yet exist
One obstacle stakeholders will face is the lack of available data held by contracting authorities. Much of the information now required:
- is not consistently captured in current procurement processes,
- may sit outside procurement or contract management teams, and
- is not always provided by contractors in a structured, or verifiable, format.
Equally, contractors may not routinely retain the required data – few employers currently assess whether their use of zero-hours contracts is appropriate on a three-monthly basis, for example.
This means that authorities must be prepared to now design processes to collect and report the data required. Contractors must also be prepared to provide it in a credible and auditable way.
How should organisations prepare today?
The statutory guidance on socially responsible procurement defines four recommended stages for contracting authorities to follow to build socially responsible outcomes into procurement; Plan, Define, Procure, and Manage.
Contracting authorities who define procurement to encourage bidders to put forward proposals that focus on achieving well-being aims, may find that subsequent reporting around fair working practices is a seamless exercise.
Equally, contracting authorities who spend time managing contracts will have regular dialogue with contractors. This dialogue will give contracting authorities and contractors opportunity to build workforce and environmental considerations into those discussions, making subsequent reporting a more rewarding and manageable task.
The guidance demonstrates that collecting data at award stage will not be sufficient. Authorities will need to ensure that:
- relevant commitments are clearly reflected in contract terms,
- reporting requirements are built into contract management frameworks, and
- performance against social value metrics is actively monitored.
This is particularly important for longer term or higher value contracts, where the impact of procurement decisions is likely to be most significant.
Contracting authorities should be reviewing their existing procurement processes and governance frameworks now, to ensure their ability to report on their contributions to the well-being goals in their annual reports. The review should include
- supplier questionnaires and tender documentation,
- assessment criteria and scoring methodologies,
- contract terms and KPIs, and
- internal data collection and reporting systems.
A more accountable model of procurement?
For both contracting authorities and contractors, the message is clear: procurement is not just about what is bought, but about what it delivers for society in Wales.
Any questions?
If you require further information or would like assistance with preparing for the new reporting requirements, including support with annual reports or procurement processes, please contact a member of our Procurement team today.
Alex Christen
Partner
Business Immigration, Employment, Employment Investigations, Equality & Diversity, International
Alex is a Partner in our Employment and Immigration team. Alex leads the business immigration team, successfully supporting companies and individuals with immigration issues, including understandin... Read More
Elen is a Solicitor in our Employment & Immigration team. Elen joined Capital in September 2023 as a trainee solicitor and qualified into the Employment & Immigration team in September 2025.... Read More
