On 5th June 2021 the Cabinet Office issued Procurement Policy Notice PPN 06/21 ‘Taking account of carbon reduction plans in the procurement of major government contracts’.

The UK Government amended the Climate Change Act 20081 in 2019 by introducing a target of at least a 100% reduction in the net UK carbon account (i.e. reduction of greenhouse gas emissions2, compared to 1990 levels) by 2050. This is otherwise known as the ‘Net Zero’ target. This Procurement Policy Note (PPN) sets out how to take account of suppliers’ Net Zero Carbon Reduction Plans in the procurement of major Government contracts. The PNN impacts Central Government Departments, their Executive Agencies and Non Departmental Public Bodies.

The new guidance will apply to new Central Government procurements dated after 30th September 2021 over £5m and will require the following from the bidding supplier:-

  • Confirming the bidding supplier’s commitment to achieving Net Zero by 2050 for their UK operations.
  • Providing the supplier’s current emissions for the sources included in Scope 1 and 2 of the GHG Protocol, and a defined subset of Scope 3 emissions.
  • Providing emissions reporting in CO2e (Carbon Dioxide Equivalent) for the six greenhouse gases covered by the Kyoto Protocol4.
  • Setting out the environmental management measures in effect, including certification schemes or specific carbon reduction measures the buyer has adopted, and that they will be able to apply when performing the contract and that support achieving Net Zero by 2050.
  • Publication of the CRP on the supplier’s website.

Contracts where this provision will be most relevant may include:

  • Contracts which have a direct impact on the environment in the delivery of the contract;
  • Contracts which require the use of buildings by staff engaged in the delivery of the contract;
  • Contracts which require the transportation of goods or people used in the delivery of the contract;
  • Contracts which require the use of natural resources in the delivery of the contract.

The PPN contains advice and guidance and a template for a CRP. All Government suppliers should familiarise themselves with the requirements urgently.

Post expires at 5:35pm on Wednesday September 8th, 2021