Since its unveiling in 2021, the UK government’s Procurement Policy Note (PPN) 06/21 has required businesses bidding for public sector contracts to demonstrate their commitment to carbon reduction in their operations to align with national climate goals. As of February 2025, PPN 06/21 has now been updated to PPN 006. This terminology change is to better reflect the core objectives of the compliance requirement, in line with the 2023 Procurement Act. However, the requirements of the policy have not changed. Businesses subject to it are still required to provide a detailed net zero roadmap and carbon reduction plan. Using the carbon reduction plan guidance released alongside the original policy note, this article provides a step-by-step guide on how to create a Carbon Reduction Plan (CRP) in order to comply with PPN 006.
| 1. Understanding PPN 006 | 2. Step-by-Step: How to Create a Carbon Reduction Plan |
| 3. Meeting PPN 006 Requirements for NHS Contracts |
PPN 006 (Formerly PPN 06/21) is a requirement for companies bidding on central government or public contracts over £5 million per annum to demonstrate their commitment to achieving net zero by 2050, alongside having a publicly accessible carbon reduction plan. This entails implementing:
As outlined in Tunley Environmental’s Step-by-Step Guide to PPN 006, this policy prioritises embedding climate accountability into procurement decision-making and ensuring suppliers contribute to the UK’s 2050 Net Zero target. In understanding how to create a carbon reduction plan for PPN 006, one must take into account how the policy specifically applies to their organisation and the data that will be collected.
The government provides a pre-formatted carbon reduction plan template, which you must use. This template covers:
The expert sustainability scientists at Tunley offer support for adapting and customising this template to your sector and client. You can book a free consultation to discuss your specific needs here.
Step 1: Understand the Scope of PPN 006
This includes:
Many suppliers overlook the importance of early planning, leading to rushed or non-compliant submissions.
Step 2: Calculate Your Emissions (Scope 1, 2, and 3)
Your plan must include:
Scope 1: Direct emissions (e.g. fuel combustion)
Scope 2: Indirect emissions from purchased electricity
Scope 3: For this, only select categories are required, such as:
Use recognised tools and frameworks:
Your current emissions will match the baseline emissions if you have never calculated your emissions before. Just include a remark stating that your baseline emissions are the ones you are now emitting. This is however required to be updated every 12 months.
Learn More: What are Scope 1, 2, and 3 Emissions?
Step 3: Declare a Net Zero Commitment
Your carbon reduction plan for PPN 006 must:
Example Statement:
"[Company Name] commits to achieving Net Zero greenhouse gas emissions by 2050. This Carbon Reduction Plan has been approved by our Executive Board and will be updated annually."
Step 4: Report Baseline and Latest Emissions
Use consistent and verifiable data:
Make sure to also include commentary on improvements or changes in reporting boundaries. This is, however, required to be updated every 12 months.
Learn More: Benefits of a Carbon Assessment For Business | Tunley Environmental
Step 5: Set Out Emissions Reduction Targets and Carbon Reduction Measures
This section outlines the actions your organisation has taken and will take to reduce emissions across the board. You should also include a projection of how much emissions you can expect to be reduced over the next five years.
The carbon reduction measures should include existing projects and an outline of future plans. Each measure should be tied to a goal, KPI, and implementation timeline.
The carbon reduction plan for PPN 006 must:
One of the most impacted sectors is healthcare, particularly suppliers bidding into the NHS. From April 2023, the NHS Supply Chain started enforcing PPN 006 for all procurements above £5 million, and this expanded to include all procurements (regardless of value) by April 2024.
NHS-specific requirements include:
If you're supplying to the NHS and are unsure how to create a carbon reduction plan that meets their expectations, it's critical to act now, especially in high-emission sectors like medical devices and logistics.
Learn More: PPN 006 Requirements for NHS | Tunley Environmental
To really understand how to create a carbon reduction plan, you must have a complete comprehension of emissions from your company and mitigation efforts that have been implemented. This entails working closely with various departments (including the board) in your organisation to ensure all parties meet the long -term net-zero goals.