Is your business ready for PPN 06/21?

What is PPN 06/21?

The Procurement Policy Note 06/21 (PPN 06/21) is a UK government measure that embeds carbon reduction requirements into public sector procurement.

Effective from September 2021, it requires all suppliers bidding for public contracts over £5 million per year to publish a Carbon Reduction Plan (CRP). This CRP must detail the supplier’s current carbon footprint and their pathway to achieving Net Zero by 2050, in line with the UK’s climate commitments.

Why does PPN 06/21 exist?

The UK government’s Net Zero strategy aims to decarbonise the economy by 2050. As part of this transition, public sector procurement is being used as a tool to drive climate action across supply chains.

PPN 06/21 ensures that suppliers are not only aware of their carbon impact but are actively working to reduce it – making sustainability a core part of commercial viability in the UK public sector.

Who needs to comply and when?

PPN 06/21 applies to all suppliers bidding for central government contracts above the £5 million threshold. Increasingly however, this policy is being adopted across wider public sector organisations such as the NHS.

Interestingly, NHS England has begun enforcing similar standards, requiring suppliers on its frameworks or with significant spend to comply with PPN 06/21-aligned reporting. As the NHS works toward its own Net Zero goals, suppliers must be prepared to meet these expectations.

This includes those already listed on the NHS supplier frameworks, as well as those who cross a defined spend threshold with the NHS. These suppliers will need to evidence their current emissions including Scope 1, 2 and relevant Scope 3. They must also disclose the steps already taken to reduce emissions and outline any future for decarbonisation across their value chains.

This proactive approach allows the NHS to manage its extensive indirect carbon footprint: one influenced by a wide range of suppliers and partners not directly under its operational control.

What does compliance involve?

To comply with PPN 06/21, a supplier must submit a Carbon Reduction Plan which will be reviewed and updated at least annually and will need to be published on the company website.

The CRP becomes part of the bid assessment process, influencing procurement decisions.

The plan must include:

• Current Scope 1, 2 and select Scope 3 emissions
• A public commitment to achieving Net Zero by 2050
• Details of environmental management measures currently in place
• Any planned actions to reduce emissions across operations and the supply chain
  

How can Amber help?

Amber’s Net Zero consultancy team has deep expertise in supporting organisations to meet evolving sustainability requirements.

We make it simple for suppliers to comply with complex public sector requirements while building a stronger, more sustainable business model.

If you are interested in a Carbon Reduction Plan or other Net Zero services we offer, please get in touch.