Procurement Policy Note (PPN) 006

WHAT IS A PROCUREMENT POLICY NOTE (PPN 006)?

A Procurement Policy Note (PPN) is official guidance issued by the UK Government that sets out requirements for public sector procurement.

Procurement Policy Note (PPN) 006 requires organisations bidding for public sector contracts to demonstrate their commitment to achieving Net Zero by providing a compliant carbon reduction plan.

This applies to contracts with an anticipated value of over £5 million per year and is now a standard requirement across many areas of public sector procurement.

Tunley offers a free resource to help assist your PPN 006 compliance journey. Download your copy today.

PPN 006 Fact Sheet cover

WHAT IS A CARBON REDUCTION PLAN UNDER PPN 006?

A carbon reduction plan is a formal document that outlines an organisation's current greenhouse gas emissions and the actions it will take to reduce them in line with Net Zero targets. The carbon reduction plan must be published and signed off at board level to be compliant with public sector procurement requirements.

Under PPN 006, a carbon reduction plan must include:

Scope 1, 2 & 3 Emissions

Measure and report your organisation's direct (scope 1), indirect energy (Scope 2) and relevant value chain emissions (Scope 3) to provide a complete carbon footprint.

Baseline Year

Define a clear baseline year to act as the reference point for tracking emissions and demonstrating progress over time.

Reduction targets

Set measurable carbon reduction targets aligned with Net Zero goals, showing how your emissions will decrease in the coming years.

Environmental Measures

Outline the environmental management measures already in place to reduce emissions, such as energy efficiency, renewable energy use, and operational improvements.

WHO NEEDS TO COMPLY WITH PPN 006 IN PUBLIC SECTOR PROCUREMENT?

Procurement Policy Note (PPN) 006 applies to organisations bidding for central government and wider public sector procurement contracts. It is a mandatory requirement for many high-value tenders and is increasingly being adopted across the public sector supply chain.

You are likely required to comply if:

You are bidding for contracts over £5million per year.
You supply goods or services to government departments, the NHS, education providers, or local authorities.
You are part of a supply chain supporting public sector delivery.
You are responding to tenders that include Net Zero or sustainability criteria.

Contract Threshold and Scope

PPN 006 formally applies to central government procurements with an anticipated contract value of over £5 million per year. However, many organsiations now require carbon reduction plans below this threshold, meaning compliance is becoming standard across a wider range of public sector procurement opportunities.

Do Subcontractors Need to Comply with PPN 006?

Even if your organisation is not directly bidding for government contracts, you may still need to comply with PPN 006 requirements. Many prime contractors now require their suppliers to provide carbon reduction plans as part of their own public sector procurement obligations.

OUR PPN 006 CARBON REDUCTION PLAN SERVICES

Tunley provides end-to-end support to help your orgnaisation achieve full compliance with Procurement Policy Note (PPN) 006.

Our services include:

Carbon footprint calculation (Scope 1, 2, 3)
Carbon reduction plan development
Net zero strategy alignment
Ongoing emissions monitoring and reporting

Our approach ensures your carbon reduction plan meets all public sector procurement requirements while positioning your business as a responsible, forward-thinking supplier.

4 ADDED BENEFITS OF PPN 006 IMPLEMENTATION

Environmental Impact Reductions

By calculating and addressing carbon footprint, companies and organisations can identify opportunities to reduce emissions throughout supply chains and operations. This leads to a more sustainable and environmentally responsible approach to procurement.

Competitive Advantage

Implementing PPN 006 not only demonstrates a commitment to sustainability but also enhances a company's competitive edge in public sector procurement. Businesses that actively manage and reduce their carbon footprint are increasingly sought after by government entities and environmentally conscious consumers.

Long-Term Cost Savings

Focusing on carbon reduction can lead to long-term cost savings through improved resource efficiency, reduced energy consumption, and optimised supply chain practices. By incorporating sustainable procurement practices, companies can drive innovation, increase operational efficiency and lower overall costs.

Contribution to National Climate Goals

PPN 006 ensure that public procurement practices align with the UK's National Climate goals. By collectively working towards achieving net zero emission, companies and organisations play a vital role in combating climate change and building a sustainable future.

"Working with Tunley Environmental to meet the UK Government's PPN requirements 006 was a seamless experience. As first-timers in greenhouse gas emissions screening and carbon reduction planning, ARK Group DMCC was initially uncertain about the process. Tunley not only provided swift and efficient service but also offered invaluable step-by-step guidance for our data collection. Their exceptional communication and support made the entire process comprehensible and manageable. Their team is undoubtedly professional and a pleasure to collaborate with. Given the opportunity, we wouldn't hesitate to partner with Tunley Environmental for future projects. A 10/10 experience!"

Edward BicknellARK Group

THE COMPLETE TIMELINE

With PPN 006, you can ensure compliance with government regulations while also reducing your carbon footprint. Measure Scopes 1 and 2 of your carbon emissions in full and quantified the required Scope 3 categories to stay aligned with the UK's Net Zero Emissions Goal by 2050.

Back in September 2021, the NHS England Public Board approved a roadmap to help suppliers align with the net zero goals from now until 2030. Below is a detailed supplier roadmap to net zero.

FROM APRIL 2022

NHS procurements will include a minimum 10% net zero and social value weighting. The net zero and social value guidance for NHS procurement teams will help unlock health-specific outcomes.

FROM APRIL 2023

All contracts above £5 million per annum, the NHS will require suppliers to publish a Carbon Reduction Plan for their UK Scope 1 and 2 emissions and a subset of Scope 3 emissions as a minimum. The Carbon Reduction Plan requirements for the procurement of NHS goods, services, and works guidance outlines what will be required of suppliers and how it will be implemented.

FROM APRIL 2024

The NHS will extent the requirement for a Carbon Reduction Plan to cover all procurements.

FROM APRIL 2027

Suppliers will be required to publicly report targets, emissions and publish a Carbon Reduction Plan for global emissions aligned to the NHS net zero target, for all of their Scope 1, 2, and 3 emissions.

FROM APRIL 2028

New requirements will be introduced overseeing the provision of carbon foot printing for individual products supplied to the NHS. The NHS will work with suppliers and regulators to determine the scope and methodology.

FROM APRIL 2030

Suppliers will only be able to qualify for NHS contracts if they can demonstrate their progress through published progress reports and continued carbon emissions reporting through the Evergreen sustainable supplier assessment.

Want To Know More?

FREQUENTLY ASKED QUESTIONS

What is a Procurement Policy Note (PPN) 006?

Procurement Policy Note (PPN) 006 is UK Government guidance that requires organisations bidding for certain public sector procurement contracts to demonstrate their commitment to Net Zero by providing a compliant carbon reduction plan.

Who needs to comply with PPN 006?

Any organisation bidding for qualifying public sector contracts, particularly those valued at over £5 million per year, is required to comply with Procurement Policy Note (PPN) 006. This includes suppliers to central government, the NHS, and other public sector bodies.

What is included in a PPN 006 carbon reduction plan?

A compliant carbon reduction plan includes Scope 1, 2, and relevant Scope 3 emissions, a defined baseline year, clear emissions reduction targets, and details of environmental management measures.

How often should a carbon reduction plan be updated?

A carbon reduction plan should be reviewed and updated at least annually to reflect progress against emissions targets, updated data, and any new environmental initiatives, ensuring ongoing compliance with PPN 006.

What happens if you don't have a carbon reduction plan?

If your organisation is required to comply with PPN 006 and cannot provide a carbon reduction plan, you may be excluded from the procurement process and unable to compete for certain public sector contracts.

Is PPN 006 a legal requirement?

Procurement Policy Note (PPN) 006 is not a law, but it is a mandatory requirement within many public sector procurement processes. Organisations must meet its requirements to be eligible for qualifying contracts.