PPN 006 (PA 2023)

PPN 006 Taking account of Carbon Reduction Plans in the procurement of major government contracts

In: Procure > Selection stage

Overview

This PPN applies to all central government departments, their executive agencies and non-departmental public bodies (collectively referred to as ‘in-scope organisations’) when awarding public contracts for goods, and or services, and or works, other than special regime contracts. Other public sector contracting authorities may wish to apply the approach set out in this PPN.

In-scope organisations should take action to apply this PPN when procuring goods and / or services and / or works with an estimated contract value above £5 million per annum (including VAT based on the advertised contract value, averaged over the life of the contract) under the Procurement Act 2023 (PA 2023), save where it would not be related and proportionate to the contract.

The PPN also applies to frameworks and dynamic markets but only where it is estimated that the individual value of any contract to be awarded in accordance with the framework or by reference to a dynamic market is greater than £5 million per annum (including VAT).

As part of assessing a supplier’s technical ability, in-scope organisations should include, as a condition of participation, a requirement for bidding suppliers to provide a Carbon Reduction Plan (using the template at Annex A of this PPN). The Carbon Reduction Plan (CRP) must confirm the supplier’s commitment to achieving Net Zero by 2050 in the UK, detail their emissions as required by the PPN, and set out the environmental management measures that they have in place and which will be in effect and utilised during the performance of the contract.

CRPs must meet the required standard as set out in the supporting guidance to the PPN.

Environmental considerations and carbon reduction will be a factor in most, if not all, contracts and it is therefore expected that in most cases the application of this PPN will be relevant. However, in-scope organisations should make their own assessment of the measure’s applicability on a case by case basis.

Note: For procurements commenced and contracts awarded before this date, please refer to PPN 06/21.

Objective at this commercial stage

Where the PPN applies, the required questions must be included within the conditions of participation, and supplier responses assessed in accordance with the PPN and associated guidance.

Key considerations at this commercial stage

In-scope organisations should, where the PPN applies:

  • assess the selection criterion in accordance with the PPN and guidance
  • ensure the signed CRP meets the required standard as set out by the supporting guidance to the PPN. This includes, but is not limited to:
    • confirming the supplier’s commitment to achieving Net Zero by 2050 for their UK operations
    • containing the supplier’s current emissions for the sources included in Scope 1 and 2 of the Greenhouse Gas (GHG) Protocol, and a defined subset of Scope 3 emissions
    • setting out the environmental management measures in effect, including certification schemes or specific carbon reduction measures the supplier has adopted, and that will be able to be applied when performing the contract and that support achieving Net Zero by 2050
  • ensure a supplier is only prevented from being awarded a public contract if they fail to provide a compliant CRP. Further detail on how CRPs should be assessed, including how to deal with circumstances where it may not be possible for a supplier to meet the full CRP requirements, can be found in Table 1 of the guidance accompanying this PPN

This content is under development.

Read the PPN

This applies to