Navigating PPN 06/21 procurement requirements is crucial for any business targeting UK Central Government contracts above £5 million. This article cuts through the complexity, providing you with clear, actionable insights on what it takes to comply with PPN 06/21.
Learn how to seamlessly integrate these requirements into your strategy and enhance your bidding success in the public sector.
Like some assistance with your PPN 06/21 compliance? We are here to help.
Table of contents
Table Of Content
What is Public Procurement Notice PPN 06/21?
Procurement Policy Note 06/21 (PPN 06/21) represents a key regulatory development in the UK’s public procurement landscape, closely tied to the country’s commitment to achieving Net Zero carbon emissions by 2050.
This policy mandates that suppliers bidding for government contracts worth over £5 million annually must submit a comprehensive Carbon Reduction Plan (CRP).
For businesses, PPN 06/21 procurement compliance is not merely a procedural hurdle; it is a requisite for eligibility in a significant portion of public contracts.
The inability to present a robust CRP that outlines a clear path towards carbon footprint reduction effectively disqualifies businesses from competing for these valuable contracts.
Understanding, adopting, and effectively integrating PPN 06/21’s directives into your business operations is not just about adhering to environmental standards—it’s a crucial strategy for remaining competitive and securing new work in the public sector.
Let’s dive into what PPN 06/21 means for your organisation’s Public Procurement strategy.
Does PPN 06/21 procurement requirements affect my business?
Contract Threshold: PPN 06/21 applies to businesses aiming to secure UK government contracts that are valued over £5 million annually. If your business bids for or is interested in such contracts, PPN 06/21 is directly relevant to you.
Type of Contracts: Consider the nature of the contracts you pursue. PPN 06/21 covers a range of contracts, from construction and infrastructure projects to IT services and consultancy. If these are in your business domain, you need to be aware of and comply with this policy
Failure to comply with PPN 06/21 procurement requirements can have significant repercussions for businesses and procurement teams.
Non-compliance means being ineligible to bid for government contracts valued over £5 million, leading to missed opportunities in potentially lucrative public sector markets.
How to comply with PPN 06/21 procurement requirements [in 10 Steps]
To comply with Procurement Policy Note (PPN) 06/21, there are specific steps that your organisation needs to follow.
This policy requires suppliers bidding for major government contracts in the UK to demonstrate their commitment to achieving Net Zero carbon emissions by 2050.
Here’s a breakdown of the key steps involved:
Understand the Scope and Requirements
PPN 06/21 applies to all central government departments, their executive agencies, and non-departmental public bodies. It’s relevant for procurement of goods, services, and works with an anticipated contract value above £5 million per annum (excluding VAT) subject to the Public Contracts Regulations 2015.
Prepare a Carbon Reduction Plan
A Carbon Reduction Plan is a mandatory document that outlines your organisation’s commitment to achieving Net Zero by 2050 and details environmental management measures in place. The Carbon Reduction Plan must include current emissions data for Scope 1, Scope 2, and a defined subset of Scope 3 emissions as per the Greenhouse Gas Protocol. It should be specific to the bidding entity or, under certain criteria, may cover the bidding entity and its parent organisation.
Report Emissions Accurately
Emissions must be reported in CO2e (Carbon Dioxide Equivalent) for the six greenhouse gases covered by the Kyoto Protocol.
The reporting should align with the GHG Reporting Protocol corporate standard and use government-published emission conversion factors.
Implement Environmental Management Measures
Include details of certification schemes or specific carbon reduction measures adopted, and demonstrate how these will be applied in performing the contract.
Publish the Carbon Reduction Plan
The completed Carbon Reduction Plan should be published on your website, and it should be clearly signposted.
Regular Updates and Approvals
The Carbon Reduction Plan should be updated annually to reflect changes and progress in carbon reduction efforts. It must be approved by a director or equivalent senior leadership within your organisation to demonstrate commitment at the highest level.
Integration into Strategic Plans
It’s recommended to integrate the key objectives of the Carbon Reduction Plan within your organisation’s broader strategic plans.
Compliance with PPN 06/21 Technical Standards
Ensure that the Carbon Reduction Plan meets the standards set out in the PPN 06/21 Technical Standard and associated guidance.
Verification and Review
Contracting authorities may verify your ongoing commitment to achieving Net Zero prior to entering into any contract.
Non-Discrimination and Transparency
When applying the contents of PPN 06/21, your organisations must ensure it acts transparently and in accordance with the principles of equal treatment and non-discrimination.
Following these steps will help ensure compliance with PPN 06/21 and demonstrate your organisation’s commitment to reducing carbon emissions and contributing to the Net Zero target.
Unsure where to start?
We understand that dealing with complex regulations alongside your everyday business activities can feel like an uphill battle. Sustainability compliance can feel overwhelming, time-consuming, and might sit outside your expertise. You want to focus on what you do best – running your business and winning contracts.
That’s where we step in. We are equipped with the expertise and tools to help you navigate the complexities of PPN 06/21 procurement demands, in a time-efficient manner.
Learn more about our PPN 06/21 support services and don’t hesitate to reach out if you would like some advice. You can always book a free 30-minute consultation with one of our sustainability experts.