Procurement Policy Note (PPN) 06/21

Why was PPN 06/21 introduced?

It was introduced to ensure that government procurement supports the UK’s Net Zero emissions target by 2050, encouraging large suppliers to monitor, report, and reduce their carbon emissions.

What must be included in a Carbon Reduction Plan (CRP)?

A CRP must include details on current emissions, reduction targets, and measures for future reductions. It must cover emissions from electricity and fuel consumption, company vehicles, logistics, employee commuting, business travel, and waste.

Who needs to comply with PPN 06/21?

All suppliers bidding for central government contracts valued over £5 million per annum must comply. This applies to both UK-based and overseas suppliers【16†source】.

How does PPN 06/21 affect suppliers?

Suppliers must publicly publish their CRPs, regularly update them, and demonstrate their commitment to reducing emissions. This increases transparency and ensures accountability in their environmental impact.

What are the benefits of complying with PPN 06/21?

Benefits include long-term energy and cost savings, reduced waste, increased operational efficiencies, better employee engagement, and enhanced corporate reputation for sustainability【18†source】.

How does PPN 06/21 interact with the Social Value Model?

PPN 06/21 is applied at the selection stage of procurement, focusing on carbon reduction plans. The Social Value Model, which includes fighting climate change, is applied at the award stage, focusing on additional environmental benefits through contract performance.

Can a subsidiary use its parent company's CRP?

Yes, a subsidiary can use its parent company’s CRP if the parent fully owns the subsidiary, the CRP covers all necessary criteria, and it is publicly available on the subsidiary’s website. This should be a temporary measure until the subsidiary develops its own CRP.

What challenges exist with PPN 06/21 compliance?

Challenges include accurately measuring and reporting emissions, especially for complex supply chains, and the cost of implementing carbon reduction measures. Additionally, companies must align their reporting with the specific requirements of PPN 06/21.

How can companies prepare for PPN 06/21 compliance?

Companies should start by assessing their current emissions, developing a comprehensive CRP, and setting realistic reduction targets. Regular updates and transparency in reporting are crucial for ongoing compliance.