PPN 06/21: Taking account of Carbon Reduction Plans in the procurement of major government contracts

This Procurement Policy Note (PPN) sets out how to take account of suppliers’ Net Zero Carbon Reduction Plans in the procurement of major Government contracts. Whilst this PPN specifically applies to all Central Government Departments, their Executive Agencies and Non Departmental Public Bodies, it is a useful reference point to NHS organisations in their commitment to meet the health service’s national plan to achieve net zero carbon emissions by 2040.

The PPN is accompanied by selection criteria guidance on adopting and applying the PPN, including a series of standard selection questions,  technical standards guidance which guidance sets out the standards that carbon footprint data should adhere to for, inclusion in your Carbon Reduction Plan, and FAQs.

As part of assessing a supplier’s technical and professional ability, the PPN states Organisations should include, as a selection criterion, a requirement for bidding suppliers to provide a Carbon Reduction Plan (using the template at Annex A) confirming the supplier’s commitment to achieving Net Zero by 2050 in the UK, and setting out the environmental management measures that they have in place and which will be in effect and utilised during the performance of the contract.

Carbon Reduction Plans must meet the required standard as set out by the supporting guidance to this PPN. This includes, but is not limited to:

● Confirming the bidding supplier’s commitment to achieving Net Zero by 2050 for their
UK operations.
● Providing the supplier’s current emissions for the sources included in Scope 1 and 2
of the GHG Protocol, and a defined subset of Scope 3 emissions.
● Providing emissions reporting in CO2e (Carbon Dioxide Equivalent) for the six
greenhouse gases covered by the Kyoto Protocol4.
● Setting out the environmental management measures in effect, including certification
schemes or specific carbon reduction measures you have adopted, and that you will
be able to apply when performing the contract and that support achieving Net Zero by
2050.
● Publication of the CRP on the supplier’s website.

Environmental considerations and carbon reduction will be a factor in most, if not all, contracts and therefore it is expected that in the majority of cases, the application of this PPNwill be relevant. This may include, but is not limited to:

● Contracts which have a direct impact on the environment in the delivery of the contract;
● Contracts which require the use of buildings by staff engaged in the delivery of the
contract;
● Contracts which require the transportation of goods or people used in the delivery of
the contract;
● Contracts which require the use of natural resources in the delivery of the contract.

Click here to read PPN 06/21 in full.

Click here to read the guidance on adopting and applying the PPN 06/21 – Selection Criteria.

Click here to read the guidance on Technical Standards.

Click here to read the PPN 06/21 FAQs