Future-Proof Your Bids and Achieve Net Zero: A Guide to PPN 06/21

Secure your NHS and government bids and unlock long-term sales opportunities.

From 1st April 2024, the government’s Public Procurement Notice 06/21 (PPN 06/21) requires all businesses bidding for major government contracts to make a net zero commitment and carbon reduction plan (CRP) publicly available. This goes beyond SECR and other carbon reporting due to the requirement to validate planned actions and demonstrate progress year on year. Businesses who fail to make this commitment or publish their carbon reduction plan, risk being excluded from the procurement process.

While non-compliance does not incur a fine, businesses that drop the ball stand to lose out on their share of the £5 billion in NHS contracts alone, awarded annually, which could prove incredibly damaging to those that rely on public sector relationships.

PPN06/21 legislation originally came into effect in June 2021, requiring any company bidding for over £5 million of work from a central government department or the NHS to comply with rigorous sustainability disclosure rules. From April 2024 the rules apply to any company supplying government departments, impacting over 80,000 suppliers to the NHS alone, and countless other public sector suppliers across a range of industries.

The latest PPN 06/21 update requires the following from all companies supplying government departments:

A publicly available Carbon Reduction Plan outlining their commitment to achieving net zero emissions.
Demonstration of how their Carbon Reduction Plan aligns with the government’s net zero target.
Evidence of their progress in implementing their Carbon Reduction Plan.
For NHS suppliers a net zero year of 2045 or earlier to align with their public commitments.

PPN06/21 is not intended to exclude businesses who rely on public sector contracts but rather aims to encourage and incentivise them to reduce their carbon footprint in order to tackle the government’s scope 3 emissions. Flotilla is determined to turn panic and confusion about the legislation change into a positive opportunity to educate public sector suppliers and accelerate their net zero contributions.

Flotilla’s partnership and process are designed to future-proof clients against climate legislation changes before they occur. With solutions such as carbon accounting, net zero planning and employee engagement, all the tools and services offered by Flotilla are designed to equip clients with everything they need to identify and implement simple steps to a more sustainable future.

Charlotte Hallowell, Flotilla Carbon Accountant said: “We have advised and supported numerous clients in developing Carbon Reduction Plans and achieving compliance with PPN 06/21. Many businesses are unaware of the necessity for PPN 06/21 compliance until they are in the process of tendering or re-tendering. Consequently, they often seek our assistance to ensure they can continue to bid and win work, sometimes on very tight timescales. Our expertise allows us to swiftly and efficiently facilitate this process, including the foundational work required for a comprehensive Carbon Reduction Plan”

Hatmill, a supply chain and logistics consultancy, initially partnered with Flotilla to support and advance their net zero objectives. Recently, they engaged Flotilla to assist them in achieving compliance with PPN 06/21.

“Our PPN 06/21 Compliance Report, in collaboration with sustainability experts Flotilla, has been a crucial step in the way we understand our carbon impact. By establishing a baseline of operational emissions and setting achievable reduction targets, Hatmill is taking proactive steps towards sustainability. With a focus on reducing business travel emissions, our comprehensive report provides actionable insights to drive meaningful change and align with environmental goals.” Aaron Thomas, Hatmill

Future-Proof Your Bids and Achieve Net Zero: A Guide to PPN 06/21

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