PPN 006 Carbon Reduction Plan: What is it?

Procurement Policy Note 006 (PPN 006), formerly known as PPN 06/21, is UK government policy which requires suppliers bidding for major central government contracts to publish a Carbon Reduction Plan (CRP) and demonstrate a credible commitment to reaching net zero by 2050.

Issued in June 2021 and effective from September 2021, PPN 006 was introduced to bring public procurement in line with the UK's legally binding net zero target.

PPN 006 makes carbon accountability a legal prerequisite for winning major UK government contracts.

Who does PPN 006 apply to?

PPN 006 applies to all suppliers bidding for contracts with UK government departments, executive agencies, and non-departmental public bodies where the contract value exceeds £5 million (including VAT) per annum. Even if a company bids on only part of a contract worth £5 million or more, they are still required to have a CRP in place.

At present, PPN 006 does not formally apply to local government or the wider public sector. However, many organisations outside its scope, including NHS Trusts and local authorities, are already voluntarily adopting similar carbon reduction requirements in their procurement processes, and a broader extension of these standards is widely expected.

If your contract value exceeds £5m per year with central government, a published CRP is a mandatory condition of participation.

PPN 006 Carbon Reduction Plan: What does it require?

To comply, suppliers must produce and publish a Carbon Reduction Plan (CRP) using the government's Annex A template. The CRP must include:

  • A carbon footprint measured in accordance with the GHG Protocol Corporate Accounting and Reporting Standard, covering a period no more than 18 months prior to the tender notice date. The footprint must contain the following:
    • All scope 1 emissions
    • All scope 2 emissions
    • A subset of scope 3 emissions across five categories:
      • Category 4: Upstream transportation and distribution
      • Category 5: Waste generated in operations
      • Category 6: Business travel
      • Category 7: Employee commuting
      • Category 9: Downstream transportation and distribution
  • A commitment to achieving net zero by 2050
  • Reduction targets and initiatives describing the measures the organisation is taking to reduce emissions
  • Board-level sign-off. The CRP must be approved by the board of directors (or equivalent) and signed off by a director or designated member

Emissions must be reported in tonnes of carbon dioxide equivalent (tCO2e) using UK Government conversion factors, covering seven greenhouse gases: CO2, CH4, N2O, HFCs, PFCs, SF6, and NF3.

A compliant CRP requires verified emissions data, a structured reduction roadmap, and formal board approval.

How is PPN 006 assessed?

Contracting authorities use the CRP as a binary pass/fail exercise at the selection stage. Suppliers who cannot produce a compliant plan are disqualified, regardless of how strong their bid is on other criteria.

The assessment does not compare suppliers' emissions levels, net zero targets, or specific carbon reduction measures against each other.

Why does PPN 006 matter?

PPN 006 is one of the clearest examples of how robust carbon data directly affects a company's ability to win contracts.

Beyond government procurement, the policy signals a broader shift as scope 3 reporting expectations tighten across industries; large private-sector buyers are beginning to apply similar carbon management requirements to their own supply chains.

Suppliers who can demonstrate verified emissions data and a clear decarbonisation roadmap are increasingly preferred, and in some cases required, by both public and private sector buyers.

How can ClimatePartner help companies develop a Carbon Reduction Plan for PPN 006

ClimatePartner helps businesses build a compliant, credible Carbon Reduction Plan by addressing the three core elements:

  1. Carbon footprint calculation

    We calculate your scope 1, 2, and required scope 3 emissions in line with the GHG Protocol, using our platform and a database of over 50,000 primary data-based emission factors.

  2. Reduction targets and initiatives

    We help you set science-aligned targets and outline the concrete measures, both implemented and planned, that your CRP needs to demonstrate.

  3. Annual updates

    PPN 006 requires your CRP to be refreshed each year. ClimatePartner supports ongoing recalculation, so your plan stays current and shows progress.

Are you ready to build your carbon reduction plan? Let’s talk.