UK Public Procurement Note 02/23 (PPN02/23) FAQ

Tackling Modern Slavery in Government Supply Chains

The UK Government has recently published the procurement policy notice 02/23 for all public bodies in scope. With the requirement to ask suppliers to provide supply chain information at a key stage in the procurement process, TISCreport has created an FAQ to help procurement officers become aware of what needs to be done. The Government guide itself provides more detail and links to toolkits.

Social impact cannot be achieved by working within data silos. But by working with open data and transparency data (data intentionally shared by corporate entities) we can help suppliers and the contracting authorities and save time and effort, so they can focus on achieving social impact to address workforce inequalities. 

What is PPN 02/23?

UK Government has issued a procurement policy note 02/23 to help tackle modern slavery in public sector supply chains in line with Section 54 of the UK Modern Slavery Act. 

Who is in scope for PPN 02/23?

PPN 02/23 applies to all Central Government Departments, their Executive Agencies and Non-Departmental Public Bodies, and NHS bodies, and are referred to in as ‘In-Scope Organisations’ within the PPN.

Which industries are the highest risk?

- Agriculture- Mining- Logging- Fishing and fisheries- Construction- Manufacturing and electronics- Garment/ textile production, including footwear- Food processing- Services, including the hospitality, security services, cleaning and catering- Logistics, including warehousing, transport- Healthcare, social care

What are the highest risk products imported into the UK?

According to the guide produced by the UK Government, the top 5 imported products at risk of forced or compulsory labour are:- Garments- Electronics- Fish- Cocoa- RiceThe Global Slavery Index 2018 also identified the top 15 products at risk of modern slavery imported into the G20 by source countries. These are:- Cotton: Kazakhstan, Tajikistan, Turkmenistan, Uzbekistan- Bricks: Afghanistan, India, Myanmar, Nepal, Pakistan- Garments, apparel and clothing accessories: Argentina, Brazil, China, India, Malaysia, Thailand, Vietnam- Cattle: Bolivia, Brazil, Niger, Paraguay- Sugarcane: Brazil, Dominican Republic- Gold: Democratic Republic of the Congo, North Korea, Peru- Carpets: India, Pakistan- Coal: North Korea, Pakistan- Fish: Ghana, Indonesia,Thailand, Taiwan, South Korea, China, Japan, Russia- Rice: India, Myanmar- Timber: Brazil, North Korea, Peru- Brazil Nuts, Chestnuts: Bolivia- Cocoa: Cote d'Ivorie, Ghana- Diamonds: Angola- Electronics, laptops,computers and mobile phones: China, Malaysia

 

How can I use TISCreport for PPN 02/23 compliance?

Whilst the Government has provided a new standard questionnaire in order for procuring bodies to gather the information required, self-declaration within a closed system has limited effectiveness when it comes to achieving social impact. Operating within a procurement "silo" can help mitigate risk but it cannot influence future corporate behaviour. Using available transparency data (open data or data intentionally shared publicly by organisations) the real risk can be assessed and impact can be tracked.

By subscribing to the TISCreport PPN 02/23 compliance dashboard, you can upload or invite all prospective suppliers for you tender(s) and view them by sector, size and import/export status.

You can also view and subscribe to data sets for compliance with key regulations including Section 54 of the Modern Slavery Act, Gender Pay Gap, Payment Practices Reporting and many others.  

 

What action is required in order to comply with PPN 02/23?

The guidance requires that modern slavery risks are assessed in all new procurements using the risk characteristic tool provided in the guidance. There are six characteristics highlighted:

  • industry type: e.g. construction, agriculture 
  • nature of workforce: e.g. skilled, unskilled, on/offshore 
  • supplier location: see high risk countries listed
  • context in which the supplier operates: e.g. sectors served
  • commodity type: see high risk commodities  specified
  • business/supply chain model e.g. reliance on subcontracted workers

For high and medium risk procurements, it is expected that the social value model is applied. Actions to address workforce inequality is a key policy outcome for high-risk suppliers. These should include the following:

  • Demonstrate action to identify and tackle inequality in employment, skills and pay in the contract workforce [MAC6.1]
  • Support in-work progression to help people, including those from disadvantaged or minority groups, to move into higher paid work by developing new skills relevant to the contract [MAC6.2]
  • Demonstrate action to identify and manage the risks of modern slavery in the delivery of the contract, including in the supply chain [MAC6.3]

TISCreport is able to aggregate data on each of the categories, which will enable procuring bodies to ask deeper questions to determine the risk of the supplier in relation to the procurement. 

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