If you work with or supply to the UK public sector, there's a regulation you can't afford to ignore... Procurement Policy Notice 06/21 (a.k.a PPN 06/21).
Introduced by the Cabinet Office, Procurement Policy Note (PPN) 06/21 came into effect on 30 September 2021. It requires all suppliers bidding for UK central government contracts over £5 million per year to commit to achieving Net Zero greenhouse gas emissions by 2050 and submit a Carbon Reduction Plan (CRP) as part of their bid. This is becoming increasingly relevant though, with the new NHS Net Zero Supplier Roadmap. This now requires any new procurements to submit a CRP, with all suppliers (current or new) needing to do this from April 2027.
What is a Carbon Reduction Plan (CRP)?
A Carbon Reduction Plan outlines the business' carbon footprint and plans to become Net Zero. The CRP required for PPN 06/21 must include:
Emissions Reporting, baseline year and current:
- All Scope 1 (Direct emissions from owned or controlled sources)
- All Scope 2 (Indirect emissions form the generation of purchased energy)
- A subset of Scope 3 (Business travel, employee commuting, downstream transportation and distribution, upstream transportation and distribution and waste generated in operations)
Net Zero Commitment
- You must declare a commitment to achieving Net Zero emissions by 2050. For supplying NHS, it must be in line with their Net Zero goal of 2045.
Emissions Reduction Targets and Initiatives
- Specific, measurable targets for emissions reduction
- Initiatives and projects aimed at achieving these targets
Approval and Publication
- The CRP must be approved by the board of directors or an equivalent management body
- Signed by director or designated member
- Published on to the UK website
- Updated annually and within 6 months of your designated financial year-end
The Cabinet Office has also specified that the carbon footprint should be completed in accordance with the best industry practices, adhering to the Greenhouse Gas Protocol's standard. Some businesses may also wish to have their footprint verified, perhaps under the ISO14064, though this is not a requirement for PPN 06/21 as it stands.
Why is it important?
Beyond legal compliance, companies that move early on PPN 06/21 position themselves as credible, climate-smart partners. With climate reporting and sustainability scrutiny only increasing, it's a smart move to embed carbon management into your business DNA now, rather than scramble when tenders or customers start demanding it. PPN 06/21 marks a turning point: climate action is no longer optional in public sector procurement. Whether you're a large contractor or an SME in the supply chain, the time to get serious about carbon reduction is now. Not only is it necessary for the public sector, but tracking your carbon footprint can have a variety of business benefits in of itself, such as improved financial growth, resource efficiency and increased sales.
How do I start?
The most important part of a CRP, and the best place to start, is calculating your carbon emissions. There are a number of ways to do this and you will need to carry out some data collection. Depending on your business type, you will likely need:
Scope 1
- Gas bills (heating, boilers)
- Company-owned vehicle mileage and fuel type (petrol, diesel, hybrid, EV)
- Refrigerant use (from A/C units or refrigeration equipment)
Scope 2
- Electricity bills (ideally including kWh used, not just cost)
- Other purchased energy (if applicable)
Scope 3
- Business travel type and mileage (e.g., flights, trains, car hire)
- Employee commuting type and distance (you may need to survey staff)
- Waste generated from operations (tonnes of general waste, recycling, etc.)
- Upstream/downstream transportation and distribution (if applicable)
👉 Start with what you have. Even if you don't have perfect data yet, use reasonable estimates and clearly explain your assumptions. It is important to just get started, what matters is showing a clear commitment and plan.
We know it can feel overwhelming, and TrackZero provides a simple, easy platform for inputting all this data, as well as advice on where to find it!
Once you have collected your data, you will need to calculate the emissions using the up-to-date emissions factors.
Finally, when you have your data, you can produce your carbon reduction plan.
On the TrackZero platform, you can generate a PPN06/21 compliant CRP simply and easily. We provide an entire journey for your business, from measuring, planning, reducing, reporting and sharing your journey.
