PPN 06/21 - Carbon Reduction PlanPPN 06/21 - Are you interested in bidding on UK central government contracts worth over £5 million?

Have you measured your carbon footprint and set a Net Zero target for 2050?

Under a PPN 06/21 – The UK government recently published an important Public Procurement Notice (PPN), stating that every entity bidding on UK public contracts worth £5 million or more will be required to measure their carbon footprint and have a Net Zero target for 2050 in place.

This question is meant to ensure that the bidder has taken steps to understand their environmental impact and carbon footprint relevant to the delivery of the contract. Failing to comply with the legislation will result in you being excluded from the bidding process.

What does the UK government want from you?

The purpose of PPN 06/21 is to help the UK reach its 2050 Net Zero goals, which call for reducing carbon in the public sector.

The UK government is seeking to ensure that all businesses delivering high value public sector contracts have incorporated sustainability into their business operations.

It asks you to measure your Scope 1, 2 and 3 (partial) carbon emissions annually and show that you have a carbon reduction plan in place that meets the governments 2050 Net Zero goals.

To comply with PPN 06/21, you first need to determine the carbon emissions for your base year by measuring the applicable direct and indirect emissions for all your UK operations. You can then establish a net zero target for your future operations to ensure you are on track to meet your climate goals.

You need to measure eight distinct types of emission.

> Scope 1 emissions – Direct emissions from sources we own or control are Scope 1 emissions. This includes fuel combustion, fleet emissions from company-owned vehicles, and fugitive emissions (accidental emissions or leaks not vented intentionally from a vent or stack.

> Scope 2 emissions – Scope 2 includes indirect emissions from the generation of electricity, steam, heat, or cool air that we use.

> Scope 3 emissions – Scope 3 emissions are all the other emissions that are not direct emissions. There are 14 different types of Scope 3 emissions, each of which is measured differently.

In order to meet PPN 06/21, you only need to measure and report five of the following categories.

Five of these categories should be measured and reported.

> Scope 3 Category 4 emissions: Upstream transportation and distribution

> Scope 3 Category 5 emissions: Waste generated in operations

> Scope 3 Category 6 emissions: Business travel

> Scope 3 Category 7 emissions: Employee commuting

> Scope 3 Category 9 emissions: Downstream transportation and distribution

Measurement and reporting standards

Your emissions must be measured and reported in accordance with the following standards.  The government has published a reporting standard for Carbon Reduction Plans. The GHG Reporting Protocol is a corporate standard by which the government has set rules for how to convert the amount of other greenhouse gases into the amount of CO2. The subset of Scope 3 emissions outlined in PN 06/21 documentation.

The next step of PPN 06/21 Compliance should be completed to reduce emmissions.

This would involve establishing a target date of 2050 for reaching net-zero emissions, in order to gauge your progress towards the target each year. Targets can be set either as an absolute number or as a comparative measure, for example, based on a metric like FTEs or revenue.

The final step of PPN 06/21 Compliance is reporting

The final step is to explain your past, current, or intended carbon reduction projects and how these projects achieve carbon reductions compared to your base year.

> Are you submitting bids for contracts worth over £5 million for Central Government or arms-length public bodies?

> Do you need to create a carbon reduction plan for PPN 06/21, but don’t know where to start?

> Do you require expert help in calculating your carbon footprint?

We assist businesses, charities, local authorities and government departments in meeting the PPN 06/21 requirements. Our team has a lot of experience helping organizations in a lot of different fields, such as recruitment, procurement, consulting, charity, healthcare, construction, and technology.

We achieve compliance by minimising your workload and ensuring that you have the resources you need. Further, we strive to go beyond compliance to help you implement a sustainability strategy that will enhance your bid submissions and elevate your reputation.

How Catalyst can help you comply with PPN 06/21.

> We use the Government approved GHG Protocol to measure your Scope 1, 2 & 3 carbon emissions.

> Our team will help you create a carbon reduction plan that reaches net-zero carbon by 2050.

> We will provide you with ongoing support and will track your performance annually.

> We will also update your action plan annually.

> We work quickly to make sure that you submit your bid on time.

> When you need your bid to stand out, we can help by adding services like carbon neutral accreditation, which make your sustainability credentials more impressive.

The carbon reduction plan should be developed using the approved government template. Within the 12 months preceding the commencement of the procurement, your organisation’s senior leadership should sign off on the plan via your company’s website. The updated plan should be published at least annually.

Suppliers may be excluded from applying for government contracts if they are not compliant with the selection criteria, such as failing to make an organisational commitment to reaching Net Zero, disclosing emissions, or showing an evidenced strategy to reduce emissions.

You will need to meet the PNN criteria when you bid for contracts that are advertised on public sector sites. 

Depending on the complexity of supply chains, it can take from a few weeks to a few months to gather the data required to complete the baseline and current emissions portions of the PPN 06/21. Companies who anticipate bidding for PPN 06/21 contracts should start preparing now.

Catalyst can help you comply with PPN 06/21 by measuring your emissions, helping you formulate a carbon reduction strategy, or adapting your existing strategy to meet the government’s criteria.

Our support extends from understanding and calculating your current carbon footprint and emissions baseline, to setting targets and developing carbon strategies which we help implement across your business and supply chain.

Catalyst Digital Energy is an award-winning energy consultancy with a focus on digital energy services, total energy contract lifecycle management and energy management services. It is revolutionising how businesses manage energy with its unique Energy Spend Management Platform, which is powered by Robotic Process Automation (RPA) EaaSi®.

Catalyst is digitising all aspects of energy, including billing, data, consumption, spend, payments, procurement and emissions reporting. When combined with its fully funded renewable energy solutions, Catalyst offers a unique and powerful approach to managing energy.