Procurement Policy Note PPN 06/21

he UK Government amended the Climate Change Act 20081 in 2019 by introducing a target of at least a 100% reduction in the net UK carbon account (i.e. reduction of greenhouse gas emissions, compared to 1990 levels) by 2050. This is otherwise known as the ‘Net Zero’ target.

This Procurement Policy Note (PPN) sets out how commissioners need to take account of suppliers’ Net Zero Carbon Reduction Plans in the procurement of major Government contracts.

Commissioners of In-Scope Organisations must apply the provisions of this PPN to relevant procurements advertised on or after 30 September 2021.

Those commissioners 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) which are subject to the Public Contracts Regulations 2015 save where it would not be related and proportionate to the contract.

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 at Annex A) confirming the supplier’s commitment to achieving Net Zero by 2050 in the UK, and setting out the environmental management measures that they have in place and which will be in effect and utilised during the performance of the contract.

Whilst this type of value of contract may not apply to many VCSE organisations it might be of interest to local VCSE organisations to understand the importance of environmental policies in the context of applying for tenders.

The PPN note can be accessed here.

The charity commission wrote a report a number of years ago called Going Green, Charities and Environmental Responsibility, which may contain ideas to help charities consider their environmental responsibility. Read here