PPN 06/21 is an abbreviation for the UK government Procurement Policy Note that was published in June 2021 and came into force on 30 September 2021. PPN 06/21 compliance helps to ensure alignment with the UK government’s 2050 net zero target by taking account of suppliers’ Carbon Reduction Plans (CRPs) in the procurement of major government contracts.
If you are pitching for government projects, complying with PPN 06/21 demonstrates that you are a responsible supplier, aware of your environmental impact and taking steps to reduce your carbon emissions. It also means you are doing your part to support the UK’s legally binding net zero commitment under the 2015 Paris Agreement.
PPN 06/21 compliance ensures that your company is in a position to tender for public contracts and can also be a competitive advantage, fostering client trust in you and your partners and suppliers. Even if you are an SME that does not directly participate in tenders that meet the threshold for compliance, the policy requirement may trickle down from customers or other parties in your value chain. Getting ahead by preparing your PPN06/21 GHG emissions statement and carbon reduction plan will prepare you well for future contracting and any coming legislation related to net zero.
What are the requirements of PPN 06/21?
‘In-Scope Organisations’ include those subject to the Public Contracts Regulations 2015, who are bidding for public contracts with a value of £5 million or above per annum with UK Central Government, including their Executive Agencies and Non Departmental Public Bodies.
PPN 06/21 states that a carbon reduction plan must be provided by suppliers when responding to in-scope procurements. The process involves measuring and reporting on emissions from at least a base year and committing to reduce them with interim targets leading to net zero. Once you have created your carbon reduction plan, it needs to be signed and approved by a director, published on your UK website, and updated annually to ensure transparency and monitor progress.
The extent of your emissions reporting includes Scope 1, 2, and 3. The latest UK government Call for Evidence on Scope 3 reporting acknowledges that Scope 3 GHG emissions can account for anywhere between 80-95% of the total value chain of an organisation’s footprint. The GHG Protocol defines 15 categories of Scope 3 in total. Your carbon footprint calculations and carbon reduction plan for PPN 06/21 must include the following five Scope 3 categories:
4. Upstream transportation and distribution
5. Waste generated in operations
6. Business travel
7. Employee commuting
9. Downstream transportation and distribution
Sustainability reporting services at Grain
Grain has helped many clients in complying with PPN 06/21. We provide support in measuring a full annual or multi-year carbon footprint (calculations and report including scopes 1, 2, and 3) and help with the creation of a credible carbon reduction plan. We can also help your business with other sustainability frameworks such as setting a net zero target in alignment with SBTi. Do get in touch!
