PPN 06/21 Carbon Reduction Plan what it is, who needs one, and how to produce one

This page explains what a PPN 06/21 (PPN 006) 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 06/21 (PPN 006)?

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 06/21 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 06/21 compliant Carbon Reduction Plans directly from transaction-level financial data — for a fixed price of £199.

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.

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.