Seedlings, carbon accounting specialists, have provided the following guest blog to answer frequently asked questions around the requirements of Carbon Reduction Plans and tenders.
Collating your plan is something we recommend as a project for any business that tenders to win public sector contracts. Where possible, we also recommend undertaking this as a standalone business project and not as part of a live tender, to avoid additional pressure during the tendering period.
If you are keen to get ahead with carbon reporting and take steps to create your Carbon Reduction Plan, Seedlings can help. They have a model designed specifically to help SMEs.
Carbon Reduction Plan Compliance – A Quick Guide
Procurement Policy Note 06/21 (PPN 06/21) means public sector suppliers need to have a ‘Carbon Reduction Plan’ in place to be eligible to bid for certain government contracts. Here’s some quick-fire questions to get you up to speed with the basics:
At a high level, what do businesses need to do?
Complete and publish on your website a Carbon Reduction Plan in line with the format set out in the template published by the government here.
This plan needs to include a carbon footprint (measured in line with the GHG Protocol’s Corporate Standard), a stated commitment to achieving Net Zero, a target to reduce emissions, and initiatives that will help you achieve these targets. Finally, you’ll need to show sign off from your senior leadership team.
When is PPN 06/21 relevant?
For NHS contracts, a Carbon Reduction Plan is needed regardless of the contract value. This has been the case since April 2024.
Outside of the NHS, you’ll need a Carbon Reduction Plan to bid for government contracts with an advertised average annual value of over £5m per year (ex VAT).
What about subcontractors?
Technically, a Carbon Reduction Plan is only required if you’re a business entering directly into a (relevant) government contract, including where there’s a consortium. So, subcontractors do not need to produce a Plan if not bidding themselves.
My parent company has a Carbon Reduction Plan – do I need one too?
Per current guidance, you as the subsidiary do not need to publish a separate Carbon Reduction Plan if:
- You’re wholly-owned by the parent company.
- You’re included in, support, and can act on your parent company’s Plan.
- You publish that Carbon Reduction Plan on your website.
However – the guidance suggests the rules here might change soon.
How is the Carbon Reduction Plan assessed?
The Carbon Reduction Plan is assessed as a binary ‘pass/fail’.
Is a Carbon Reduction Plan a one-time thing?
No – you’ll need to complete and publish a Carbon Reduction Plan annually for it to remain valid. It also needs to be updated within 6 months of your financial year end.
Is PPN 06/21 different from PPN 06/20: Social Value Model?
Yes – PPN 06/21 and 06/20 are very much separate things. PPN 06/20 is applied later on at the award stage and answers are scored, rather than ‘pass/fail’. ‘Fighting Climate Change’ is one of five themes assessed in PPN 06/20, but normally includes expected impact of the project rather than at the business-level.
How can I get help with my Carbon Reduction Plan?
The team at Seedling provide PPN 06/21 Carbon Reduction Plan guidance & support for public sector suppliers. Their carbon footprinting software for SMEs, plus one-to one support from an expert, helps smaller teams to get PPN 06/21 compliant, without the process being too time intensive or expensive.
Are there other resources to help me upskill on PPN 06/21?
To learn more, you can read at these more detailed guides from the Seedling team:
What is the NHS Carbon Reduction Plan? A Quick Guide for Potential Suppliers
PPN 06/21 – A practical guide to Carbon Reduction Plans for SMEs
Complying with WPPN 06/21: A Guide for Welsh Public Sector Suppliers
The Seedling team can be contacted via their website or by email for further advice and assistance.