Overview
This PPN applies to all central government departments, their executive agencies and non-departmental public bodies (collectively referred to as ‘in-scope organisations’).
In-scope organisations should take action to apply this PPN when procuring goods and / or services and / or works with an anticipated contract value above £5 million per annum (excluding VAT based on the advertised contract value, averaged over the life of the contract); which are subject to the Public Contracts Regulations 2015 (PCR 2015), save where it would not be related and proportionate to the contract.
The PPN also applies to framework agreements and Dynamic Purchasing Systems (DPS) only where it is anticipated that the individual value of any contract to be awarded under the framework agreement or DPS is greater than £5 million per annum (excluding VAT).
As part of assessing a supplier’s technical and professional ability, in-scope organisations should include, as a selection criterion, a requirement for bidding suppliers to provide a Carbon Reduction Plan (using the template included in 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.
Carbon Reduction Plans 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.
Objective at this commercial stage
Where the PPN (i.e. PPN 06/21) applies, the required Standard Selection Questionnaire (SQ) questions must be added to the SQ, 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 bidding supplier’s commitment to achieving Net Zero by 2050 for their UK operations
- providing 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 deselected if they fail to provide a compliant CRP. Further detail, 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 on adopting and applying PPN 06/21 - Selection criteria".
Legal framework
The PPN should be read alongside the relevant parts of the legal framework, including but not limited to, the following provisions of the Public Contracts Regulations 2015 (which may be particularly relevant to the consideration of this PPN):
- Regulation 58: Selection criteria
- Regulation 62: Quality assurance standards and environmental management standards
- Regulation 63: Reliance on the capacities of other entities
Additional support and guidance
Make sure you:
- read the PPN and any supporting implementation guidance
- seek legal and commercial advice in the context of specific procurements
