PPN 06/21: Taking Account of Carbon Reduction Plans in the Procurement of Major Government Contracts
What is PPN 06/21?
PPN 06/21 is a Procurement Policy Notice (PPN) which was published in June 2021 by the UK Government which has established criteria which organisations must comply with when bidding for contracts of a certain value.
In 2019 the UK Government became the first major economy to make a legal commitment to net zero carbon emissions. The commitment includes an ambitious target of reaching net zero by 2050. In order to support this goal, there have been a number of measures, policies, and interim established to reduce emissions.
PPN 06/21 is one example of this, and it is likely we can expect to additional similar policies. It is also likely the threshold will lower over time to make the requirements mandatory for more and more suppliers.
The purpose of the policy is to ensure organisations which are bidding for large contracts are taking ownership, responsibility, and actions relating to their environmental footprint and performance.
There are a number of benefits for businesses in adopting the requirements of this policy. Not only does it help organisations to remain competitive by being able to bid for larger contracts, it also highlights potential associated cost savings through enhanced transparency and visibility of emissions and strengthens their commitment to the environment.
Does PPN 06/21 Affect Me?
The Procurement Policy is aimed at suppliers bidding for relevant contracts of £5 million per annum or above. In essence, the policy requires suppliers to make a commitment to achieve net zero carbon emissions by 2050 in alignment with the UK Government target, and to publish a Carbon Reduction Plan.
When publishing PPN 06/21, a date of the 30th September 2021 was set, by which implementation of the policy must have been completed. The implication is that organisations not complying by that time may be withdrawn from bidding for relevant major contracts. On an ongoing basis, businesses will need to comply with the requirements if and when they meet the criteria of the policy.
You can find the Government page providing the information here.
How to Comply with PPN 06/21?
So, what does this mean in practice? Essentially the policy is looking for businesses to measure emissions, plan to reduce emissions, and report on this. The key outputs are listed as below:
1. Calculate Scope 1, 2 and 3 emission sources to form a carbon footprint on an annual basis
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Scope 1 emissions: greenhouse gas emissions that are directly owned or controlled by the business
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Scope 2 emissions: greenhouse gas emissions that result from energy generation but are not directly owned or controlled by the business
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Scope 3 emissions: greenhouse gas emissions that occur as a result of business activity but are not directly owned or controlled by the business or classified as scope 2 emissions
PPN 06/21 requires businesses to convert Scope 1, Scope 2, and partial Scope 3 emissions into carbon. Users often seek guidance from frameworks and standards such as the GHG Protocol, ISO 14064-1, and the UK Government conversion factors.
In calculating a carbon footprint, an inventory is formed as evidence, with supporting data on how the figure was obtained.
2. Form a Carbon Reduction Plan including a commitment to net zero in line with UK Government targets
On the Government page linked above there is a Carbon Reduction Plan template provided. Businesses can utilise the document or take inspiration from it to create their plan.
The template provided for the Carbon Reduction Plan is split into various sections: guidance, commitment, baseline emissions footprint, current emissions reporting, emissions reduction targets, carbon reduction projects, declaration and sign off.
How can NQA Support with PPN 06/21?
NQA have a team of experienced carbon and environmental experts available to provide Verification services against the requirements of ISO 14064-1 and PAS 2060.
An independent, robust, and credible Verification assessment against your carbon footprint and reduction plan will set you ahead of your competitors and further solidify the confidence in your reporting.
See below as to how our services may fit in to your PPN 06/21 ambitions:
- ISO 14064-1 (GHG Inventory Verification)
- PAS 2060 (Carbon Neutrality Verification)
Carbon Neutrality Toolkit
What's next
Get in touch today to begin your journey to a greener, more sustainable business and a member of our team will be in touch to discuss your requirements:
