30 Jun Carbon Emission Reporting & the new government PPN
Earlier this month, the UK government introduced a new Procurement Policy Note (PPN) to take account of Carbon Reduction Plans in the procurement of all major government contracts.
The new policy, which comes into force from 30th September 2021, applies to all central government departments, executive agencies and non-departmental public bodies where a procurement contract is anticipated to have a value of above £5 million per annum.
“The government spends more than £290 billion on procurement every year, so it’s important we use this purchasing power to help transform our economy to net zero,” said Cabinet Office Minister Lord Agnew.
This makes sense for the environment, but what does it mean to you if bidding for a state contract?
Here at Bid & Tender Support, we see a two-stage approach as vital:
- First, tender documentation must be completed ensuring all new requirements are fulfilled. Our associates are specialists at provided advice and support to make sure you complete this stage correctly and to your best ability.
- Secondly, there comes the delivery of the plan once the contract has been won! Again, we will be working together with specialist consultants to help ensure you bring to fruition exactly what you have pledged to do.
So, what does the new PPN require a supplier to do when bidding for a UK government contract that’s worth over £5 million per annum?
You must submit a Carbon Reduction Plan which:
- commits your organisation to achieving Net Zero by 2050 and is signed off at an appropriate level, ideally by a director
- provides detailed reporting of your Greenhouse Gas emissions
- sets out any environmental measures you have in place, including certification schemes or specific carbon reduction procedures to support you achieving your Net Zero goal by 2050
- is published on the supplier’s website
- is updated at least every 12 months
Are all state contracts worth over £5 million subject to the PPN?
It is expected that the majority of contracts in most sectors will be subject to the new procurement policy as environmental factors and carbon reduction will be a factor in the delivery of most, if not all, contracts.
Factors to consider include, does the delivery of the contract:
- have a direct impact on the environment?
- require the use of buildings?
- require the transportation of goods or people?
- require the use of natural resources?
Who is exempt?
- Remember, the contract has to be worth more than 5 million per annum (excluding VAT), so this protects most small to medium size businesses
- New entrants are also excluded, that means any business that’s been trading for less than 12 months should commit to achieving Net Zero by 2050 but is not required to publish a full Carbon Reduction Plan
If you’d like to know more about the government changes and what it means to your company when bidding for state tenders, please contact us at Bid & Tender Support.
