Companies bidding for large Government contracts now have to prove how they are reducing their carbon footprint as part of the national drive towards Net Zero in 2050.
From 30th September last year, contractors hoping to secure Government contracts worth more than £5million have had to provide a Carbon Reduction Plan (CRP) explaining how they will reach the Net Zero target.
A Procurement Policy Note (PPN06/21) released by Crown Commercial Service in June 2021 sets out how Government departments need to take account of suppliers’ Net Zero CRPs in the procurement of major government contracts.
Three years ago, the UK Government announced its commitment to reach Net Zero by 2050 which means a requirement to reduce at least 100% of net UK greenhouse gas emissions, compared to 1990 levels.
The CRP scheme is the next step in the wider strategy to tackle emissions in the private and public sectors.
PPN06/21 is designed to be a stimulus for suppliers to change their behaviours and offers the first exclusion criteria for work in the public sector.
The Streamlined Energy Reporting scheme, launched in 2019, already requires qualifying UK companies to prepare and file energy and carbon information, and the Public Sector Decarbonisation Scheme provides funding for public sector bodies in England for energy efficiency and heat decarbonisation projects.
The PPN affects a broad range of suppliers bidding for government work, including those that offer accountancy, pharmaceuticals, computing hardware or technology.
The PPN applies to contracts controlled by:
- Central Government Departments
- Their Executive Agencies and Non-Departmental Public Bodies, such as HMRC, CPS, and DVLA
To conform to the new PPN, relevant companies must prepare a detailed CRP confirming their commitment to achieving Net Zero by 2050. The plan must meet the technical standard published alongside the PPN.
The CRP should include details of their baseline emissions that carbon reductions methods will be measured against, an overview of current emissions, their emissions reduction targets in CO2e (Carbon Dioxide Equivalent) and progress to date and evidence of carbon reduction measures and those that will be used to achieve Net Zero by 2050.
The CRP must have been approved by the company’s senior leadership within 12 months of the contract bidding process, be publicly available and updated at least annually.
Syntegra is able to help organisations prepare their CRP so please get in touch today for an initial discussion.
Gathering the data required to complete baseline and current emissions can take up to 8 weeks so companies who expect to be bidding for contracts that fall under the PPN are advised to plan well in advance of their deadlines.
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