The following measures apply to suppliers bidding for major government contracts, this includes all Central Government Departments, their Executive Agencies and Non-Departmental Public Bodies. Suppliers will be required to publish a ‘Carbon Reduction Plan’ and commit to achieving Net Zero by 2050. Organisations will need to, as stated by the government, apply Public Procurement Notice 06/21 when ‘procuring goods and/or services and/or work with an anticipated contract value above £5 million per annum’.
From April 2024 the NHS requires current suppliers to have a full Carbon Reduction Plan (CRP) to bid for procurements of high value (defined as ‘£5m per annum exc. VAT and above) and new suppliers to have a CRP irrespective of the value of the contract.
The NHS also require suppliers to have a Net Zero Commitment for procurements of lower value (defined as ‘below £5m per annum exc. VAT and above £10k exc. VAT).
What are the requirements of PPN 06/21?
Companies must develop a Carbon Reduction Plan (CRP) to ensure they comply with the UK government’s PPN 06/21. A CRP is used to identify a supplier’s current carbon footprint and highlights their plans to achieve net zero emissions, it must:
- Commit to achieving net zero emissions by 2050 or earlier for their UK operations (this is a minimum geographical boundary).
- Provide your baseline and current emissions for scope 1 and 2 emissions.
- Provide a subset of scope 3 emissions. Companies must report on the five most relevant GHG protocol scope 3 categories, these are: Upstream transportation and distribution, waste generated in operations, business travel, employee commuting and downstream transportation and distribution. Data for these categories must be provided, if this data is unavailable then you will need to explain why and provide information on how you intend to measure any missing categories the year after. If you have measured additional scope 3 categories, then these can also be included in your CRP.
- Emissions must be reported as CO2e (carbon dioxide equivalent). This covers the seven GHG emissions covered by the Kyoto Protocol.
- Provide information on your current environmental management measures. This can include certification schemes or specific carbon reduction measures that you have implemented. You will need to ensure you can apply your identified measures whilst performing the contract and they should contribute towards achieving net zero by 2050 or earlier.
- Your CPN will need to be approved by the board or the company director if no board is in place.
- You will need to publish your CPN on your website ensuring that is it clearly signposted and regularly updated e.g. annually.
How Can Achieve Goal 12 Help?
At Achieve Goal 12 we understand that it can be difficult and time consuming to come up with measurable solutions for reducing your carbon emissions. We can help you to implement carbon reduction measures that suit your business needs whilst also contributing to your goal of net zero by 2050 or earlier. We offer a hands-on service helping you to calculate your carbon footprint and implement your carbon reduction strategies effectively.