Understanding PPN 06/21: Embedding Carbon Reporting into UK Public Procurement

The UK government has taken a bold step to embedding sustainability into public procurement processes. This blog explores what PPN 06/21 is, the requirements, and how it impacts businesses. From creating Carbon Reduction Plans (CRPs) to navigating reporting complexities, we’ll cover the essentials for compliance and sustainability success.

What Is PPN 06/21?

PPN 06/21, or Public Procurement Note, is a UK government policy requiring suppliers bidding on public sector contracts worth £5 million or more annually to submit a Carbon Reduction Plan (CRP). This policy's goal is to ensure that businesses seeking to work with the government have sustainability, specifically carbon reduction, embedded into the public procurement process. Effective since September 2021, it aligns with the UK’s goal of reaching net-zero emissions by 2050 and applies to various public authorities, including NHS England, government departments, and local authorities. For example, a supplier bidding to provide goods or services such as office supplies, IT equipment, or food products for government facilities would be subject to this policy.

One thing to note is that if you fail to comply with this policy, you will be automatically disqualified from tendering opportunities, highlighting the importance of meeting its requirements.

‍What are the key requirements of PPN 06/21?

• Scope:
  • It is not sector-specific and applies to companies bidding on full or partial amounts of  £5 million + contracts
  • Even if a company bids on part of a contract worth £5 million or more, they are required to have a Carbon Reduction Plan (CRP). For example, if the total contract value is £5 million but the company bids on one-fifth of that value, a CRP is still necessary.
  • Some government entities e.g. the NHS require a CRP regardless of the contract size.
• Develop a carbon reduction plan (CRP): Suppliers must provide a CRP that meets specific criteria which we will cover in the next section
• Alignment with net zero: The CRP must reflect the supplier’s commitment to achieving net zero emissions by 2050.
• Compliance with GHG Protocol: Reporting must include Scope 1, Scope 2, and some Scope 3 emissions.
• Annual reporting: The CRP must be updated annually to show progress.

Why does PPN 06/21 matter?

It ensures that sustainability is embedded in public procurement decisions and aims to:

• Promote transparency in carbon reporting
• Reduce the environmental impact of government projects
• Encourage suppliers to adopt greener practices
• Align with the national climate goals

What is a Carbon Reduction Plan (CRP)?

This is a key requirement for complying with PPN 06/21. It outlines the supplier’s strategy for measuring and reducing emissions and alignment with government expectations. Here are the key elements of a CRP:

1. Baseline emissions data: Suppliers must provide emissions data from a defined baseline year.
2. Current emissions: A breakdown of Scope 1, Scope 2 and relevant Scope 3 emissions, which we will cover in more detail in the next section.
3. Reduction targets: Clearly stated goals for reducing carbon emissions in line with net zero targets.
4. Carbon reduction projects: Details of actions the supplier will take to achieve reductions, such as energy efficiency upgrades or sustainable supply chain practices.
5. Declaration and sign-off: This plan will need to be signed off by a board of directors or equivalent management body.

Once this plan is created, it is required to be made public on the supplier's UK website, and it is recommended that this be published yearly.

Here is a link to download the carbon reduction plan template as well as the technical requirements in further detail.

Requirements for emission reporting:

The following is required when assembling the emissions information for the report:

• Scope 1: Direct emissions from sources owned or controlled by the organisation, such as fuel use in company vehicles or on-site heating systems
• Scope 2: Indirect emissions from purchased energy.
• Scope 3: 15 categories have been defined by the GHG Protocol and the following 5 are required to be defined in a CRP:some text
  • Upstream transportation and distribution: Emissions from the transportation of materials to your business e.g. the delivery of raw materials from a supplier
  • Waste generated in operations: Emissions from waste processing or landfill use e.g. food waste disposal
  • Business travel: Emissions from employees travelling for work with vehicles not owned by the company e.g. flights or rental cars
  • Employee commuting: Emissions from staff travelling to and from work whether by vehicle, cycling or public transport
  • Downstream transportation and distribution: Emissions from transporting the final product to the end consumer.

The emissions data should be calculated using a recognised framework like the GHG Protocol and the data should be converted into carbon dioxide equivalents (CO2e) as per the requirements here.

How can Zevero support you with PPN 06/21?

Zevero’s carbon management platform simplifies the complexities of PPN 06/21 compliance. 

Here’s how we can support you:

1. Comprehensive emissions tracking

Track Scope 1, 2 and 3 emissions in real-time through automated data collection. Zevero’s emission engine uses AI-driven technology to ensure granular and accurate emissions reporting.

2. Advisory support

Receive guidance from Zevero’s team of sustainability experts on setting realistic carbon reduction targets, identifying quick wins and long-term strategies or decarbonisation.

3. Support with reporting

Zevero can provide the emissions data that can be translated into actionable insights and can support the creation of your carbon reduction plan. Want a real-world example of how we’ve supported our customers, then check out VITHIT’s CRP here which we supported in producing.

Conclusion

PPN 06/21 represents a huge shift in how sustainability influences public procurement. For suppliers, it’s not just a compliance exercise but an opportunity to reach net zero. By aligning with the policy’s requirements and leveraging tools like Zevero’s platform, you can position your business as a trusted, forward-thinking supplier for government contracts. 

If you’d like to learn more about how we can support your decarbonisation journey, then get in touch with our team.