6 Step Guide to producing a PPN
06/21 Carbon Reduction Plan (CRP)

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What is PPN 06/21?

Public Procurement Note (PPN) 06/21 is a UK Government policy aimed at achieving Net Zero greenhouse gas emissions by 2050. It mandates that suppliers bidding for government contracts above £5 million per annum must have a Carbon Reduction Plan (CRP) in place.

This guide is designed to help your organisation understand and comply with PPN 06/21. It offers a clear, step-by-step action plan for creating and submitting a Carbon Reduction Plan (CRP), ensuring that your business is well-prepared to meet the requirements of this essential policy. Whether you are new to carbon management or looking to refine your current practices, this guide provides the essential information and practical steps needed to achieve compliance and support the broader goal of sustainability.

What is required for PPN?

Commitment to achieving Net Zero by 2050

Submission of a Carbon Reduction Plan (CRP)

Current emissions data (Scope 1, 2, and selected Scope 3)

Publish CRP on the supplier’s website

Who needs a PPN?

Government contracts above £5 million per annum (excluding VAT)

Applies to goods, services, and works

Includes framework agreements and dynamic purchasing systems

NHS suppliers for contracts worth above £5 million

Crown Commercial Suppliers

What should a CRP include?

Commitment: Clear commitment to achieving Net Zero by 2050.

Baseline Emissions: Record of past emissions and a set baseline. If this is the first report, this is the baseline emissions report.

Current Emissions: Latest emissions data and comparisons to any previous baseline years.

Reduction Targets: Goals for reducing emissions

Reduction Projects: Completed and planned initiatives aimed at reducing your company’s carbon emissions

Declaration: Signed by senior leadership

What steps do I need to take to produce a CRP?

Assess Emissions: Calculate Scope 1, 2, and relevant Scope 3 emissions. Use recognised standards and methodologies (e.g., GHG Protocol).

Set Targets: Define measurable reduction targets. Align with science-based targets and Net Zero goals.

Implement Measures: Identify and execute carbon reduction initiatives. Consider energy efficiency and renewable energy.

Monitor Progress: Regularly review and update emissions data. Use monitoring tools and perform periodic audits

Publish CRP: Ensure CRP is publicly available on the website. Include all required elements and update annually.

What is PPN 06/21?

What is required for PPN?

Commitment to achieving Net Zero by 2050

Submission of a Carbon Reduction Plan (CRP)

Current emissions data (Scope 1, 2, and selected Scope 3)

Publish CRP on the supplier’s website

Who needs a PPN?

Government contracts above £5 million per annum (excluding VAT)

Applies to goods, services, and works

Includes framework agreements and dynamic purchasing systems

NHS suppliers for contracts worth above £5 million

Crown Commercial Suppliers

What should a CRP include?

Commitment: Clear commitment to achieving Net Zero by 2050.

Baseline Emissions: Record of past emissions and a set baseline. If this is the first report, this is the baseline emissions report.

Current Emissions: Latest emissions data and comparisons to any previous baseline years.

Reduction Targets: Goals for reducing emissions

Reduction Projects: Completed and planned initiatives aimed at reducing your company’s carbon emissions

Declaration: Signed by senior leadership

What steps do I need to take to produce a CRP?

Assess Emissions: Calculate Scope 1, 2, and relevant Scope 3 emissions. Use recognised standards and methodologies (e.g., GHG Protocol).

Set Targets: Define measurable reduction targets. Align with science-based targets and Net Zero goals.

Implement Measures: Identify and execute carbon reduction initiatives. Consider energy efficiency and renewable energy.

Monitor Progress: Regularly review and update emissions data. Use monitoring tools and perform periodic audits

Publish CRP: Ensure CRP is publicly available on the website. Include all required elements and update annually.

Get our FREE toolkit now to build your carbon reduction plan!

Our toolkit includes a carbon reduction template, which you can use to produce your own report. It also includes a detailed guide explaining what should be included in each section, how and where to collect the required information and other expert insights.

Frequently Asked Questions

Can a supplier use a parent company’s CRP?

Yes, under certain conditions for example if the company is wholly owned and relevant measures apply.

What are Scope 1, 2, and 3 emissions?

Scope 1 emissions are direct emissions from owned or controlled sources. Scope 2 emissions are indirect emissions from the generation of purchased energy. Scope 3 emissions are all indirect emissions (not included in scope 2) that occur in the value chain of the reporting company, including both upstream and downstream emissions.

What should I use as my net zero target date?

If you already have a net zero target date earlier than 2050, use that date. Otherwise, there is no advantage to selecting an earlier date than 2050. For those addressing these issues for the first time, 2050 is a suitable target. You can always adjust to an earlier date once you have a better understanding of your carbon footprint and reduction strategies.

Does my net zero target need to comply with external standards?

No, your net zero target does not need to be compliant with external standards or verification schemes such as the Science-Based Targets Initiative (SBTi). However, aligning with recognised standards can provide credibility and assurance to stakeholders.

What happens if I do not meet my stated targets under PPN 06/21?

There is no consequence under the PPN for not meeting your stated targets. Nevertheless, it may pose a reputational risk, so it is advisable to set targets when you have a clear idea of the emissions reductions that are possible for you. More details are provided below.

Is carbon offsetting required right now?

No, carbon offsetting is not required at this stage. The concept of net zero involves using carbon offsets only after you have reduced your emissions as much as possible. The SBTi stipulate this must be a 90% reduction compared to your baseline.

How frequently should I update my current emissions data?

Your current emissions data must be updated every 12 months.

When is the deadline for updating my CRP?

You need to update your CRP within 6 months after the end of your reporting period. For instance, if your reporting period concludes at the end of March, you must update your CRP by the end of September each year.

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Testimonials

The United Nations Climate Neutral Now Initiative is proud to support Net Zero Group and iOffset in their ambition to reduce and offset greenhouse gas emissions and we are pleased to see the concept of Offset as a Service being introduced by iOffset.

Miguel NaranjoProgramme Officer, UN Climate Neutral Now

Measuring, managing and reducing environmental impact, is an essential part of being a Responsible Bank. SCF is committed to contributing to the protection of the environment and reducing its footprint, in the countries it operates in. I am delighted that we can now provide our customers with an option to offset their carbon emissions.

Vik HillCEO, Santander Consumer Finance

To achieve Net Zero Carbon by 2040, the club has teamed with NZG to devise a blueprint and strategy and over the next few years, NZG will monitor and scrutinise the club’s emissions using the custom carbon accounting software NetScope. The team at NZG has demonstrated impressive proficiency in sustainability and their ability to work efficiently, professionally and communicate clearly. These qualities were crucial in ensuring the project’s successful outcome, and I highly recommend NZG to any organisation embarking on its sustainable journey.

Stuart DunlopSustainability Manager, Marylebone Cricket Club (Lords)

We engaged NetZero Group to support the delivery of our Sustainability Strategy and in addition to offsetting our operational Scope 1 u0026amp; 2 emissions we have deployed the Employee Carbon Portal (ECP) to report on the Scope 3, category 7 commuting emissions. We’ve had a really positive engagement with staff with over 70% of team members interacting with the tool. Mark and the team have been incredibly supportive and we are very excited about the future working with NetZero Group.

Stepanie GraceChief People Officer, Aston Barclay

We have collaborated with Net Zero Group to build an industry-specific footprinting tool that analyses the carbon emissions of our UK-wide construction projects. As a leading infrastructure contractor specialising in the provision of services to the utilities industry, it is essential that we understand the associated footprint of the materials, waste and transport resulting from our projects. Using this data-led carbon intelligence, we will be able to meet our Net Zero goals. I appreciate all the hard work the Net Zero Group team have put into this project.

Dave LennonSafety, Health, Environment u0026amp; Quality Manager, Excalon

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6 Step Guide to producing a PPN06/21 Carbon Reduction Plan (CRP)

Get our FREE toolkit now to build your carbon reduction plan!

What is PPN 06/21?

What is required for PPN?

Who needs a PPN?

What should a CRP include?

What steps do I need to take to produce a CRP?

What is PPN 06/21?

What is required for PPN?

Who needs a PPN?

What should a CRP include?

What steps do I need to take to produce a CRP?

Get our FREE toolkit now to build your carbon reduction plan!

Frequently Asked Questions

50% Off Any PPN Plan Until COP29!*

Testimonials

Download our free toolkit now!

6 Step Guide to producing a PPN
06/21 Carbon Reduction Plan (CRP)