Procurement Policy Note (PPN 06/21)

With the implementation of PPN 06/21, it's more important than ever to ensure your company is calculating its carbon footprint to stay competitive in public sector procurement. Don't let carbon footprint calculations hold you back from securing government contracts. With PPN 06/21, it's now mandatory for companies to calculate their carbon footprint when bidding on central government or public contracts over £5 million per annum. From April 2024, it has been mandatory for all companies who are suppliers for the NHS. Our solution simplifies the process, ensuring compliance with the UK's Net Zero Emissions Goal by 2050.

THE GUIDE TO ACHIEVE PPN 06/21 IMPLEMENTATION

BUSINESS CARBON ASSESSMENT & NET ZERO PLAN

Data and results are inputted into a government issued PPN 06/21 template upon completion of a BCA, a Net Zero Plan , and Scope 1, 2, 3 emissions

SCOPE 3 EMISSION CALCULATIONS

Requirements of business travel, employee commuting, waste generated in operations, upstream and downstream transportation and distribution to be considered for Scope 3 emissions. Other categories are also strongly advised but these are mandatory.

CARBON REDUCTION PLAN

The personalised Net Zero plan developed by the Scientist will be inputted into the PPN 06/21 template with accompanying graph of past, current and projected emissions if the reduction initiatives are undertaken.

4 ADDED BENEFITS OF PPN 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 06/21 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, educed 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 06/21 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 06/21 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 06/21, 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

DEFINE PPN 06/21

Public Procurement Note 06/21 (PPN) plays a crucial role in public sector procurement, requiring entities bidding on UK public contracts worth £5 million or more will be required to measure their carbon footprint and have a Net Zero Carbon target for 2050 in place. It is often referred to as a “Carbon Reduction Plan” on the tendering and bidding documentation. Moreover, from April 2024 onwards, the National Health Service (NHS) will broaden the mandate for PPN 06/21 to encompass all procurement activities, regardless of their value. Seek more information in our insight 'What is PPN and Why is it Important?'

WILL HAVING A PPN 06/21 GUARANTEE I WIN A PUBLIC CONTRACT?

No. Whilst a Procurement Policy Note 06/21 means you are not excluded from the bidding process; it doesn’t guarantee you will win the contract. It is worth noting organisations that demonstrate consideration for the environmental, social and other impacts your organisation has on delivering the contract does make you look more favourably when tendering for bids (among other factors such as cost, expertise and lead times).

WHY DO I NEED PPN 06/21?

A PPN 06/21 is used so the UK government can assess if the bidder has taken steps to understand their environmental impact and carbon footprint relevant to the delivery of the contract. Failing to comply with this legislation means exclusion from the bidding process.

DO I NEED TO SUBMIT MY PPN 06/21 ALONGSIDE MY ORGANISATION'S FULL CARBON REPORT?

This is optional. Although it is great to be transparent, you do have to put yourself in the shoes of the decision-maker. Will they want to read a full report on your organisation’s emissions, or do they want to read only what is required under Procurement Policy Note 06/21? We advise it’s worth asking the question however we provide a separate report to your Business Carbon Assessment (BCA) that specifically covers the mandatory subsets of GHG emissions.