Carbon Reduction Plans for PPN 06/21

We provide an affordable and accessible solution to create a compliant carbon reduction plan with a minimum of fuss, from as little as £39+VAT per month, depending on the size of your business.

Send us a message, book a chat or sign-up now to discuss how we can help create your carbon reduction plan for PPN 06/21.

What does a Carbon Reduction Plan consist of?

A compliant carbon reduction plan consists of 6 elements:

1. A declaration of the organisation's commitment to achieving net zero emissions (including a target year)
2. Baseline emissions footprint (this is a calculation of the organisation's carbon footprint against which all future plans will be compared)
3. Current emissions report (the emissions from the most recent year calculated - must be less than 12 months old)
4. Emissions reduction targets (5-year reduction target and report of progress against pre-existing targets)

5. Carbon Reduction Projects that have been completed and that you plan do to in the future (including environmental management measures, certification schemes or specific carbon reduction measures that will be in effect during the performance of the contract)

6. Declaration and Sign Off (a director must sign off the plan)

The carbon reduction plan must be published on your website.

Click here to see an example plan

Who does PPN 06/21 apply to?

The procurement note applies to any organisation wishing to bid for all Central Government Departments, their Executive Agencies and Non-Departmental Public Bodies when procuring goods and/or services and/or works with an anticipated contract value above £5million per annum (excluding VAT) averaged over the life of the contract from September 2021.

It is important to realise that the requirement to supply a carbon reduction plan is at the time the bid is submitted. So, if a compliant plan is not submitted the bid will not go forward into the procurement process.

There is a "related and proportionate" clause but the guidance makes it clear that most contracts over £5m are expected to comply.

The guidelines are clear that the bidding organisation will not be scored based on the emissions reported or on the quality of the measures planned. It is simply a PASS/FAIL based on providing the information required.

Click here to view all the official requirements and guidelines

Writing your plan

The first thing you need to do in preparing to write your plan is to calculate the carbon emissions, not only of your energy use, but also of some elements of your value chain. If you have not done this before, or if you have only reported your Scope 1 and 2 emissions (the emissions from your energy use as required by SECR) don't worry, we will guide you through the process and make sure that calculation is done properly. All you need to do is provide information on:

• The fuels used in your operations
• Any direct releases or escapes of greenhouse gases in your processes
• The mileage driven by any vehicles owned or leased by your organisation
• The amount of electricity and/or heat and steam that you purchase and the tariff you are on
• Details of the transportation or storage of materials and products in or out of your organisation 
• Details of the disposal and treatment of any waste generated in your operations
• Information on any business travel by your employees, whether in their own vehicles, hired vehicles or public transport.
• Details of employees commuting into your facilities and/or working from home. Note: It is optional whether to include emissions due to the energy use of employees working from home but we would strongly recommend including this if home or flexible working is a significant part of your operations.

We will need to calculate two sets of emissions:

1. Your Baseline emissions are those from the year that you are comparing your reductions against. You can think of this as the starting point for your plans.
2. Your "Current year" emissions. These are the emissions from the last 12-month period for which you did the calculation. Note: If this is within 12 months of the commencement date of the procurement you do not need to calculate it again (ie. this is not expected to be a "rolling 12 months). We recommend aligning your annual emissions calculation with your financial year.

If this is the first time you have calculated your emissions, your Current year will be the same as your Baseline year.

Setting a target date and reduction targets

The next things to do are to set the target date to achieve net zero emissions and set reduction targets for the next 5 years.

We will help you set targets that are consistent with the UK government's targets for the country whilst being practically achievable for you.

Identifying carbon reduction projects

Finally, you need to declare any significant carbon reduction projects already completed and identify the key projects you intend to complete in the future.

We will help you identify suitable projects that will help you reach your targets and, where possible, put you in touch with organisations who can help you implement your projects.

Managing your carbon reduction going forward