Sustainability requirements are quickly becoming a standard within procurement. Countries like the UK are upping the ante, as Public Procurement Notice 06/21 requires companies who bid for a tender to have to a carbon reduction plan in place.
Read our guide on PPN 06/21 and learn what you need to adhere to these regulations.
What is PPN 06/21?
Public Procurement Notice 06/21 applies to UK and overseas companies looking to submit a bid for a government tender which is valued at over £5 million per annum.
The goal of the notice is to ensure that the UK government works with businesses that are embracing eco-friendly practices by looking to reduce their climate impact.
Compliance with PPN 06/21 is mandatory. In other words, failing to prove a reduction in your carbon impact will automatically exclude you from winning a government tender of £5 million per annum.
The high stakes mean that companies entering the competitive landscape to submit for government tenders must ensure they can back up their environmental claims with concrete data.
How can your company comply?
PPN 06/21 means a plan to reduce your carbon is crucial.
To comply with PPN 06/21, you first need to determine the carbon emissions for your base year by measuring the applicable direct and indirect emissions (Scope 1,2 and 3) for all your UK operations. You can then establish a net zero target for your future operations to ensure you are on track to meet your climate goals.
This means that initiatives such as a carbon and energy audit, which pinpoint and define your business’ emissions, are an important first step.
Measuring emissions is undeniably crucial, but to make a substantial contribution to net-zero ambitions, companies need to have a plan in place to reduce emissions.
Your emissions must be measured and reported in accordance with the GHG Reporting Protocol – a corporate standard with set rules for how to convert greenhouse gases into the amount of CO2.
The finalised carbon data must be presented in the form of a Carbon Reduction Plan using the official template.
Why did the UK issue this directive?
The entities bidding for tenders valued at over £5 million per annum will inevitably include large companies. These companies historically produce excess emissions.
By requiring them to track and monitor their environmental impact, the UK government hopes that it will move closer to achieving is net zero emissions by 2050 target.
Still confused?
We can help.
At ClearVUE.Business, we provide expert guidance on complying with PPN 06/21. We also provide carbon audits and assessments, as well as a measurable plan to move closer to net zero emissions.
Our bespoke energy and carbon management solution, ClearVUE.Zero, is tailored to UK reporting standards, allowing businesses to measure their impact across all scopes and seamlessly produce carbon reduction plans.
