Create a Carbon Reduction Plan for PPN 06/21 [In 6 Steps]

Public Procurement, Carbon Reduction Plan

For most businesses looking to secure UK government contracts over £5 million implementing PPN 06/21 is a strategic necessity. This article is your comprehensive guide to creating a robust Carbon Reduction Plan PPN 06/21 compliant bids.

Discover how to develop a Carbon Reduction Plan that will help you meet PPN 06/21 and bid on Public Procurement contracts.

Like some assistance with your PPN 06/21 compliance? We are here to help.

Table of contents

Table Of Content

Watch our introduction to Carbon Reduction Plans for PPN 06/21 below

What is a Carbon Reduction Plan [& How to get PPN 0621 Compliant]

What is required by PPN 06/21

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PPN 06/21 is a key UK government mandate requiring Carbon Reduction Plans (CRPs) for those bidding on government contracts above £5 million. The key aspects include:

Scope 1, 2, 3 emissions: Applicable to central government contracts, it demands reporting on direct (Scope 1) and indirect (Scope 2) emissions, along with selected Scope 3 emissions.

Net Zero Commitment: Bidders must present a clear strategy to achieve Net Zero emissions by 2050.

Annual Review: Carbon Reduction Plans need yearly updates to track progress and adapt to operational changes.

Transparency: Plans should be publicly accessible online, ensuring transparency and accountability.

For businesses aiming at government contracts, PPN 06/21 compliance is not just a regulatory requirement but also a step towards aligning with the UK’s environmental goals and demonstrating commitment to sustainable practices.

PPN 0621 Carbon Reduction Plan

What is a Carbon Reduction Plan?

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A Carbon Reduction Plan is a detailed strategy developed by organisations to systematically reduce their carbon emissions.

It involves a comprehensive assessment of the organization’s current carbon footprint, identifying major sources of emissions across various operations.

This plan sets specific, measurable targets for reducing these emissions and outlines practical steps to achieve these goals. These steps could include transitioning to renewable energy sources, improving energy efficiency, and adopting sustainable practices in manufacturing and logistics. The plan also encompasses regular monitoring and reporting mechanisms to track progress against set targets.

Essentially, it serves as a roadmap for organizations to minimize their environmental impact and move towards a more sustainable and environmentally responsible future.

How to create a Carbon Reduction Plan for PPN 06/21 [in 6 steps]

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Creating a Carbon Management Plan for PPN 06/21 involves a strategic approach to align with the UK’s environmental objectives. Here’s how to structure it:

1. Baseline Carbon Footprint Assessment

Begin with a detailed evaluation of your current carbon footprint, focusing on Scope 1 (direct emissions), Scope 2 (indirect emissions from purchased electricity), and relevant Scope 3 emissions (other indirect emissions like business travel and waste). This sets the groundwork for compliance.

2. Target Setting for Net Zero

Align your plan with the UK’s Net Zero by 2050 goal. Define clear, measurable reduction targets for your emissions, ensuring they are ambitious yet achievable, reflecting PPN 06/21’s emphasis on significant environmental progress.

3. Action Plan Development

Devise specific strategies tailored to your operations to meet these targets. This might include investing in renewable energy sources, optimizing energy efficiency, or improving waste management systems. Your actions should directly contribute to reducing the identified emission scopes.

4. Regular Monitoring and Adjustment

Establish a system for ongoing monitoring of emissions. This ensures that your plan remains responsive to changes within your business and keeps you on track to meet your targets.

5. Documentation and Transparency

Maintain comprehensive documentation of your strategies, targets, and progress. PPN 06/21 requires this information to be accessible, preferably through publication on your company’s UK website, underscoring your commitment to transparency and accountability.

6. Annual Review and Reporting

Update your Carbon Management Plan annually. This not only ensures compliance with PPN 06/21 but also demonstrates your ongoing commitment to environmental responsibility and adaptation to evolving best practices.

By following these steps, your Carbon Management Plan will not only comply with PPN 06/21 but also position your business as a proactive player in the global movement towards sustainability and environmental responsibility. For the latest technical advice, visit the Government’s guidance on PPN 06/21 Carbon Reduction Plans.

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Common challenges when creating a Carbon Reduction Plan for PPN 06/21

Creating a Carbon Reduction Plan for PPN 06/21 is a challenging task for many businesses. Here are some of the most common challenges businesses face when going through this process:

Lack of Expertise and Resources: Many businesses, especially SMEs, may not have the in-house expertise or resources to accurately assess their carbon footprint and develop an effective reduction strategy. This can lead to underestimation of emissions or unrealistic target setting.

Complexity in Emissions Measurement: Accurately measuring emissions, particularly Scope 3 emissions which involve indirect emissions such as those from supply chains, can be complex and resource-intensive. Businesses often struggle to collect and analyze the necessary data.

Opportunity Cost: For many businesses, especially smaller ones, dedicating time and resources to developing a Carbon Reduction Plan can lead to a significant opportunity cost. The time and effort spent on this initiative could potentially be invested in other areas that might offer more immediate financial returns or business growth opportunities.

Time Pressure for Bid Compliance: When a business is preparing a bid for a government contract or any project that requires compliance with specific environmental standards like PPN 06/21, there’s often significant time pressure to develop and present a compliant Carbon Reduction Plan.

Our experienced team is very well-suited to guide you through the process of creating and implementing a Carbon Reduction Plan, offering a streamlined and efficient approach. Visit our PPN 06/21 service page to learn more. Feel free to book a free 30-minute consultation with one of our team to discuss your situation.

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Meet the author

Will Goldsmith
March 13, 2024
Will heads up our growth, sustainable innovation and project management at Litmus. Having spent the last half-decade launching low carbon energy products across the UK, Will is well placed to help your organisation capitalise on sustainability-related business opportunities.