This practical checklist helps you navigate the PPN 06/21 and makes you bid for UK government contracts with confidence. Because we know this can be somewhat overwhelming, especially for SME´s.
If you're bidding for UK government contracts over £5 million, you'll need a carbon reduction plan (CRP) that complies with public procurement note (PPN) 06/21. This requirement is crucial for the UK's 100% carbon reduction or “net zero emissions” by 2050 strategy, ensuring public spending supports national climate goals.
For many UK suppliers, especially those new to carbon accounting don't know where to start and what information is needed?
This article provides six clear actionable steps to comply with the PPN 06/21 requirements.
Make a carbon reduction plan, bid for major contracts with confidence, and demonstrate your commitment to a sustainable future.
Step 1: Confirm your commitment to achieving net zero by 2050
The first step is a formal, high-level commitment. Your organisation must publicly declare its commitment to achieving net zero greenhouse gas (GHG) emissions by 2050 for your UK operations. This declaration should be published on your company’s uk website. It serves as the foundation of your carbon reduction plan, signalling to the procurement authority that your environmental goals are aligned with national policy.
Step 2: Report your baseline emissions footprint
To reduce emissions, you first need to know where you're starting from. This is your baseline emissions footprint. Your baseline year is the first year for which you have comprehensive emissions data. it will be the benchmark against which all your future emission reduction targets are measured.
Your report must cover emissions as defined by the GHG protocol corporate standard and be in line with the UK government’s official environmental reporting guidance. This includes:
- Scope 1 emissions: Direct emissions from owned or controlled sources (e.g., fuel used in company vehicles, natural gas for heating).
- Scope 2 emissions: indirect emissions from the generation of purchased electricity, steam, heating, or cooling.
- A specific subset of scope 3 emissions: All other indirect emissions in your value chain. For PPN 06/21, you must include at least five of the following: business travel, employee commuting, waste generated in operations, upstream transportation and distribution, and downstream transportation and distribution.
For a deeper dive into this topic, see our guide on how to get insights in your scope 1, 2, and 3 emissions.
Step 3: Report your current emissions for the most recent reporting year
After establishing your baseline, you must report your emissions for the most recent 12-month period. The data needs to be structured in the same way as your baseline footprint, covering the same scope 1, 2, and specified scope 3 emissions. This provides a clear picture of your progress (or lack thereof) since the baseline year. It's a critical data point that demonstrates transparency and accountability.
You should then also include an ‘emissions intensity ratio,’ which compares your emissions to a business metric (e.g., tonnes of CO2e per £m turnover).
Step 4: Detail your emission reduction targets
A commitment to net zero needs to be backed by concrete targets. Your carbon reduction plan must detail the emission reduction targets your organisation has in place. These targets should be specific, measurable, and aimed at reducing your emissions over time.
For example, you might set a target to reduce your total carbon footprint by 15% over the next five years. To ensure your goals are credible and aligned with climate science, consider looking into our guide on how to set science-based targets.
Step 5: Outline specific environmental management measures
This section is where you detail the 'how'. You need to describe the specific projects and initiatives you have implemented or plan to implement to achieve your reduction targets. This could be a short narrative or a list of bullet points. Examples of effective measures include:
- Implementing an ISO 14001 certified environmental management system.
- Switching to a renewable energy tariff.
- Investing in energy-efficient lighting and equipment.
- Electrifying your vehicle fleet.
- Reducing waste through improved recycling programmes.
- Promoting sustainable travel policies for employees.
The goal is to show you have a clear action plan. Vague statements are not enough; you need to provide tangible examples of your carbon reduction efforts.
Step 6: Publish the completed carbon reduction plan (CRP) on your company's website
Finally, your completed carbon reduction plan must be made public. The document should be:
- Published on your UK company website on a dedicated, easily accessible page.
- Approved by your board of directors or equivalent management level.
- Signed by a senior leader (e.g., CEO, CFO) within the organisation.
- Clearly dated.
This step ensures your CRP is a formal, transparent, and accountable document that can be easily verified by procurement teams. You can find the official carbon reduction plan template on the gov.uk website.
Making compliance clear and actionable
Meeting the PPN 06/21 requirements is non-negotiable for winning major government contracts, but it doesn't have to be a barrier. By following this checklist, you can systematically build a compliant carbon reduction plan that not only unlocks procurement opportunities but also strengthens your business's sustainability credentials.
Need support calculating your emissions or developing a reduction strategy? The Hedgehog Carbon platform makes it simple to measure and manage your footprint, while our expert consultants can guide you through every step of the process. contact us today to learn how we can help you turn compliance into a competitive advantage.
