In 2019, the UK made history as the first major economy to legally commit to achieving ‘Net Zero’ carbon emissions by 2050. To bolster this commitment, the UK Government introduced Procurement Policy Note (PPN) 06/21. In todays blog we are breaking down what this means to your business.
What is PPN 06/21?
In June 2021, the UK Government introduced Procurement Policy Note (PPN) 06/21, a directive that requires companies bidding for government contracts to demonstrate their alignment with the UK’s 2050 Net Zero targets.
This applies to contracts subject to the Public Contracts Regulations 2015, with a value of £5 million per annum or above. Think, a marketing agency running a campaign for the NHS or a requirement agency hiring civil servants.
In essence, carbon reduction involves an organisation directly cutting its greenhouse gas emissions through efficiency measures, following the PPN 06/21 framework.
A Carbon Reduction Plan (CRP) is now a required document, for many businesses, that showcases a commitment to reducing carbon emissions, supporting the government’s goal of reaching Net Zero by 2050.
What’s in a Carbon Reduction Plan (CRP)?
To comply with PPN 06/21, businesses must submit a Carbon Reduction Plan (CRP) that:
- Is published on the supplier’s website.
- Is signed off at an appropriate level within 12 months of the procurement date.
- Includes a signed declaration confirming the commitment to achieving Net Zero by 2050.
- Details the supplier’s Greenhouse Gas (GHG) emissions.
- Outlines the environmental management measures relevant to contract delivery.
How is a Carbon Reduction Plan Different from a CSR Policy?
A Carbon Reduction Plan is not the same as a Corporate Social Responsibility (CSR) policy. While CSR statements are important, they do not fulfill the requirements of a Carbon Reduction Plan. A Carbon Reduction Plan is a specific document designed to collect and present detailed carbon reduction information.
How Often Should You Update Your Carbon Reduction Plan?
A Carbon Reduction Plan should be published annually, valid for 12 months, and can be used for all relevant procurements and bids. Displaying your Carbon Reduction Plan on your website shows your commitment to reducing carbon emissions and in many cases can help you win business.
What to Report in a Carbon Reduction Plan
Your Carbon Reduction Plan must detail your businesses annual carbon emissions. The Green House Gas Protocol categorises these emissions into three ‘Scopes’:
- Scope 1: Direct emissions from owned or controlled sources (e.g., fuel combustion).
- Scope 2: Indirect emissions from purchased electricity, steam, heat, or cooling.
- Scope 3: All other indirect emissions, including business travel, employee commuting, waste, and upstream/downstream transportation.
When we prepare your Carbon Reduction Plan, we include UK emissions for Scope 1, Scope 2, and Scope 3, covering activities like business travel, employee commuting, and transportation. Find out more here.
Ready to Create Your PPN 06/21 Aligned CRP?
Contact the Kroov team for a free consultation. We’ll help you measure and reduce your business’s carbon emissions and ensure you comply with PPN 06/21.