Procurement in a Nutshell – Taking account of Carbon Reduction Plans in the procurement of major government contracts (PPN 06/21)
26th July, 2021
In 2019 the Government amended the Climate Change Act 2008 by introducing a target of at least 100% reduction by 2050 i.e. Net Zero target.
The purpose of this PPN is to require procurements undertaken by central government, executive agencies and non-departmental government bodies (In-Scope organisations) to consider suppliers’ Net Zero Carbon Reduction Plans in the procurement of major Government contracts.
Timing
In-Scope organisations must apply the provisions of this PPN to relevant procurements advertised on or after 30 September 2021.
Action
During the process of assessing a supplier’s technical and professional ability, In-Scope organisations should include, as a selection criterion, a requirement for bidders to provide a Carbon Reduction Plan confirming the supplier’s commitment in meeting the Net Zero target by 2050, as well as setting out the environmental management measures that they will have in effect for the duration of the contract.
The Carbon Reduction Plans must meet certain standards including but not limited to the following matters:
- 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 GHG Protocol, and a defined subset of Scope 3 emissions.
- Providing emissions reporting in CO2e (Carbon Dioxide Equivalent) for the six greenhouse gases covered by the Kyoto Protocol.
- Setting out the environmental management measures in effect, including certification schemes or specific carbon reduction measures you have adopted, and that you will be able to apply when performing the contract and that support achieving Net Zero by 2050.
- Publication of the CRP on the supplier’s website.
Environmental considerations and carbon reduction will be a factor in most, if not all, contracts. Therefore, this PPN will be relevant in the majority of instances such as, but not limited to:
- Contracts which have a direct impact on the environment in the delivery of the contract;
- Contracts which require the use of buildings by staff engaged in the delivery of the contract;
- Contracts which require the transportation of goods or people used in the delivery of the contract;
- Contracts which require the use of natural resources in the delivery of the contract.
If you have any queries on the issues raised or on any aspect of procurement, please contact us via our procurement hotline on 0330 137 3451.
Please note that this briefing is designed to be informative, not advisory and represents our understanding of English law and practice as at the date indicated. We would always recommend that you should seek specific guidance on any particular legal issue.
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