Carbon Reduction Plan

The Public Procurement Notice (PPN) 06/21, titled “Taking Account of Carbon Reduction Plans in the Procurement of Major Government Contracts,” serves as a directive to ensure that public bodies integrate carbon reduction considerations into the procurement process for major government contracts. This initiative is aligned with broader environmental goals and the commitment to address climate change. The notice is effective from 30th September 2021 and applies to contracts with an annual value exceeding £5 million.

Key requirements outlined in the notice for suppliers include:

1. **Greenhouse Gas Emissions Reporting:**

– Suppliers are obligated to report scope 1, 2, and some of scope 3 greenhouse gas emissions. This comprehensive reporting encompasses direct emissions from owned or controlled sources (scope 1), indirect emissions from purchased energy (scope 2), and some categories of indirect emissions along the value chain (scope 3).

2. **Net Zero Commitment:**

– Suppliers are expected to commit to achieving net-zero greenhouse gas emissions by the year 2045. This commitment underscores the importance of actively reducing and offsetting emissions to contribute to the overall national and organizational targets.

3. **Carbon Reduction Plan (CRP):**

– Suppliers are required to develop a Carbon Reduction Plan (CRP) that outlines specific strategies and actions aimed at reducing their carbon footprint. This plan serves as a roadmap for achieving the net-zero target and contributes to the broader environmental sustainability objectives.

4. **Transparency Through Publication:**

– Suppliers are mandated to publish their emissions data and the Carbon Reduction Plan on their company website. This transparency is crucial for stakeholders, the public, and the government to assess and monitor the environmental efforts of suppliers.

5. **Environmental Management Measures:**

– The CRP must detail the environmental management measures that will be implemented during the performance of the contract. This ensures that sustainability considerations are integrated into the execution of the contract, promoting environmentally responsible practices.

The broader context for these requirements is the UK’s commitment to achieving net-zero carbon emissions by 2050, with a specific target for the NHS to reach net zero by 2045. This aligns with global efforts to mitigate climate change and reflects the urgency of addressing environmental challenges.

In offering a “simple, cost-effective, and compliant solution,” the entity emphasizes its ability to assist suppliers in meeting these requirements, positioning them to successfully compete for business opportunities within the public sector. This solution likely includes tools, services, or guidance to streamline the process of emissions reporting, goal setting, and the development of Carbon Reduction Plans.