PPN 006 Carbon Reduction Plans:
A Practical Guide

This page explains what a PPN 006 (PPN 06/21) Carbon Reduction Plan is, who is required to provide one, and what must be included to meet UK public sector procurement requirements.

Carbon Reduction Plans are a mandatory part of many UK central government procurement processes. This guide is written for UK SMEs, accountants, and procurement professionals who need clear, practical guidance.

What is PPN 006 (PPN 06/21)?

PPN 06/21 is a Procurement Policy Note issued by the UK Cabinet Office. It requires suppliers bidding for certain UK public sector contracts to publish a Carbon Reduction Plan (CRP).

The purpose of the policy is to ensure that suppliers:

• Measure their greenhouse gas emissions consistently
• Disclose emissions across defined scopes
• Commit to reducing emissions over time

A Carbon Reduction Plan must follow a specific structure and include mandatory disclosures. It is not a marketing document — it is a compliance document.

Who needs a Carbon Reduction Plan?

You are required to provide a Carbon Reduction Plan if:

• You are bidding for UK central government contracts, and
• The procurement falls within the scope of PPN 06/21

This commonly applies to:

• SMEs supplying goods or services to central government
• Professional services firms, including IT, consulting, and facilities management
• Organisations responding to tenders via frameworks or direct competitions

Local authorities and other public bodies may also request Carbon Reduction Plans, even where PPN 06/21 does not strictly apply.

What must a PPN 006 Carbon Reduction Plan include?

A compliant Carbon Reduction Plan must include the following sections:

1. Organisational details

• Supplier name
• Reporting year
• Baseline year

2. Emissions reporting

You must report emissions for:

• Scope 1 – Direct emissions (e.g. fuel use in company vehicles)
• Scope 2 – Indirect emissions from purchased energy (electricity and gas)
• Scope 3 (selected categories) – The required Scope 3 categories typically include:

• Upstream transportation and distribution
• Waste generated in operations
• Business travel
• Employee commuting
• Downstream transportation and distribution

Emissions must be reported in tCO₂e using recognised UK government conversion factors.

3. Baseline emissions

• A baseline year must be declared
• Baseline emissions must be calculated on a consistent basis
• Any assumptions or exclusions should be clearly stated

4. Emissions reduction targets and measures

• A statement of commitment to achieving Net Zero by 2050
• Practical measures the organisation will take to reduce emissions

5. Declaration and sign-off

• A formal declaration
• Signed by a senior individual within the organisation

6. Publication and sign-off

According to UK guidance, suppliers should:

• Publish the Carbon Reduction Plan on your own UK website
• Update it annually
• Include formal sign-off by a senior executive

Common mistakes in Carbon Reduction Plans

Based on common issues seen in tenders, frequent problems include:

• Misclassifying electricity and gas transactions
• Omitting Scope 2 emissions entirely
• Inconsistent or unclear baseline years
• Overstating Scope 3 coverage beyond what is required
• Providing narrative without verifiable calculations

These issues can result in clarification requests or rejection during procurement evaluation.

How SustainLedger helps

SustainLedger generates PPN 006 compliant Carbon Reduction Plans directly from transaction-level financial data.

The platform:

• Maps transactions to Scope 1, 2, and 3 categories
• Applies UK government emissions factors
• Flags transactions that require clarification
• Produces a tender-ready Carbon Reduction Plan PDF

The focus is on accuracy, transparency, and compliance — not marketing claims.

You can generate a PPN 006 compliant Carbon Reduction Plan using SustainLedger.

Official guidance and references

For authoritative guidance, refer to:

• UK Cabinet Office: Procurement Policy Note PPN 06/21
• Government Greenhouse Gas Conversion Factors
• Net Zero Strategy and public procurement guidance

SustainLedger follows these sources when generating Carbon Reduction Plans.