Are you tendering for a project with a Central Government Department only to find out that you need to comply with Procurement Policy Note 06/21 by providing details of your Greenhouse Gas emissions and your plans to reduce them in line with the UK 2050 Net Zero target?
In this article Simply Carbon Reduction set out the reasons behind this requirement and why it would benefit your business to complete the necessary steps to comply.
PPN 06/21 was published on 5th June 2021, and came into effect for new procurements launched from 30th September 2021 and applies to all Central Government Departments, their Executive Agencies and Non Departmental Public Bodies in conducting procurement procedures regulated by the Public Contracts Regulations 2015.
To comply with PPN 06/21 businesses wishing to tender for a project must complete the Carbon Management Plan template provided. This outlines their Greenhouse Gas emissions and their plans to reduce them. They cannot submit their own internal documentation, for example an existing Corporate Social Responsibility.
Step 1 Measure Baseline Greenhouse Gas Emissions
The first step is to quantify the Greenhouse Gas emissions for which the business is responsible, These emissions must include Scope 1 and Scope 2, along with a subset of five Scope 3 emissions categories including:
Business travel
Employee commuting
Waste generated in operations
Upstream transportation and distribution
Downstream transportation and distribution.
Step 2 Set Emissions Reduction Targets
The next step is to establish realistic Science Based Targets to reduce emissions to Net Zero by 2050 and prepare in a graphical format.
Step 3 Provide Carbon Reduction Plans
You will then need to provide details of the steps that your business plans to take to achieve these targets.
Step 4 Directors Authorisation
Finally, the plan will need to be signed off by the Board of Directors.
Once completed the Plan remains valid for 12 months but it will need to updated with progress on an annual basis.
Over the last couple of years, our clients have discovered that many of their customers are starting to request details of their businesses Greenhouse Gas emissions and how they plan to reduce them. Once you have prepared the PPN 06/21 Carbon Reduction Plan it will be available to share with any of your interested clients and it can be used as a marketing tool to show your commitment to reducing your environmental impact without the risk of greenwashing.
Although there is not yet a legal obligation for SME's to declare their Carbon Footprint in the way that listed companies must, we anticipate that the requirement may be introduced in the next 2-5 years as the UK gets closer to its 2050 Net Zero target. It is worth noting that the targets of certain regions and industries are closer- for example Greater Manchester aims to reach Net Zero by 2038 and Cumbria by 2037.
If you do not have the expertise in house, Simply Carbon Reduction would love to help you to prepare your bespoke Carbon Reduction Plan for PPN 06/21. One of our clients, Alpha Omega Securities, did just that and was thrilled to win the Purchasing Framework contract for which they tendered.
Call us today for a no-obligation chat about how we can help your business to meet the requirements of PPN 06/21 and help to grow your business in a sustainable way.
#PPN06/21