PPN 006 Carbon Reduction Plan: What It Is and How to Comply

A complete, plain English guide for UK businesses bidding for public sector work

PPNs (Procurement Policy Notes) are used by the UK Government to communicate new policies to be applied in public sector procurement activities.

PPN 006 is the one we are asked about most often by small- and medium-sized businesses looking to win public sector work, and it is usually wrapped in a bit of worry, sometimes panic! The reassuring news is that complying with PPN 006 by producing a Carbon Reduction Plan is far more manageable than it first appears. Done properly, it does more than unlock the bid. It gives you a clear, honest picture of your emissions and a credible plan to reduce them, which is exactly the kind of thing larger buyers in the public and private sectors increasingly want to see.

This guide explains what PPN 006 is, who it applies to, precisely what your plan must contain, how it is assessed, and how to build one with confidence. We have kept it practical and jargon-light, with the official requirements set out clearly so you can act on them.
Tim Maiden Geen Business Founder & Director
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Author | Tim Maiden

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PPN 006 Carbon Reduction Plan: What It Is and How to Comply

What is PPN 006?

In short. PPN 006 is the UK government procurement rule that requires suppliers bidding for major public sector contracts to publish a Carbon Reduction Plan committing to net zero by 2050. It applies based on the value of the contract, not the size of your business.

PPN stands for Procurement Policy Note. PPN 006 sets out how a supplier's carbon reduction commitments must be taken into account when bidding for relevant contracts. The original threshold for applying the requirement was contracts above £5 million. However, many public sector bodies have chosen to apply the requirement widely.

PPN 006 exists to bring public spending into line with the UK's legally binding target of net zero greenhouse gas emissions by 2050. Central government buys billions of pounds of goods and services every year, so the emissions of its suppliers add up to a great deal. PPN 006 uses that purchasing power to encourage credible climate action right across the supply chain, while keeping the requirement proportionate enough for smaller suppliers to meet.

PPN 006 and PPN 06/21: what changed in February 2025

In short. PPN 006 is the renamed version of PPN 06/21. The reference changed in February 2025 to align with the Procurement Act 2023. What you actually need to do has not changed.

If you prepared a plan under PPN 06/21, you have not been left behind. The content and format requirements for a Carbon Reduction Plan are the same. The rename was an administrative tidy-up that brought the policy in step with the new procurement regime, rather than a change in substance.

In practice this means two things. Refresh your plan so the references and language are current, and make sure the version published on your website is your most recent one. If a buyer searches for your plan and finds an older document referencing PPN 06/21, a quick update keeps everything clean and consistent. And remember, Carbon Reduction Plans have to be updated every 12 months anyway.

Does PPN 006 apply to my business?

In short. PPN 006 applies if you are bidding for most public sector contracts, and all contracts beng let by the NHS. Although the guidance indicates that it should only be applied to contracts worth more than £5 million, in practice the requirement is being applied more widely.
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Company size is not an exemption

If you bid for an in-scope contract, you need a plan regardless of how small you are.
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The NHS goes further

A compliant Carbon Reduction Plan is expected for relevant NHS procurements regardless of contract value, so the five million pound threshold does not protect you there.
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Frameworks and subcontracting

Many framework agreements and larger corporate buyers now ask suppliers to hold a compliant plan up front, either to qualify for higher value work or as part of their own supply chain emissions reporting.
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What it does not automatically cover

Smaller public sector contracts are not automatically in scope, although many large organisations (like the NHS) now expect the same standard as a matter of good practice.

Does PPN 006 apply to SMEs?

In short. Yes. SMEs are not exempt. If you bid for an in scope contract, you need a compliant Carbon Reduction Plan whatever your size. The government publishes a standard template designed to keep this proportionate for smaller organisations.

You need to report the required elements that are relevant to your operations, follow the official format, and keep it honest. That is enough to be compliant.

What must a compliant Carbon Reduction Plan include?

In short. A compliant plan must state a net zero by 2050 commitment, report your Scope 1, Scope 2 and five required Scope 3 emissions categories against a baseline year, set out your reduction targets and measures, be signed off at director level, and be published on your website. It must follow the government's Carbon Reduction Plan template.

Here is the full checklist, in the order it tends to make sense to work through it:

  • A net zero commitment. A clear, public statement that your organisation will reach net zero greenhouse gas emissions by 2050 for your UK operations.

  • A baseline year and current year. A defined baseline year with emissions data, plus your most recent annual footprint so progress can be tracked. The baseline and current year can be the same if it is your first Carbon Reduction Plan.

  • Scope 1 emissions. Direct emissions from sources you own or control, such as company vehicles and gas heating.

  • Scope 2 emissions. Indirect emissions from the electricity you purchase and use.

  • Five required Scope 3 categories. Indirect emissions from business travel, employee commuting, waste generated in operations, upstream transportation and distribution, and downstream transportation and distribution.

  • Reduction targets. You have the option (note that it’s optional) to set interim targets that show a clear path towards net zero. There are no extra points for including interim targets so only include them if you have the data to base them on.

  • Carbon reduction measures. The steps you have already taken and the ones you plan to take, for example switching to a renewable electricity tariff or moving to electric vehicles.

  • Director sign off and board approval. Approved by your board or equivalent body and signed by a director, including their name, job title and the date.

  • Publication and annual updates. Published prominently on your UK website and refreshed at least once a year, within 6 months of your latest reporting period ending.

  • The official template and methodology. Use the government's Carbon Reduction Plan template to make demonstration of compliance clearer, with your footprint calculated in line with the Greenhouse Gas Protocol Corporate Standard.

How is a Carbon Reduction Plan assessed? Pass or fail, not scored

In short. Under PPN 006 a Carbon Reduction Plan is assessed on a pass or fail basis at the selection stage. The buyer checks that your plan meets the required format and content. They do not score or rank your actual emissions figures against other bidders.

This is one of the most misunderstood parts of the policy, and getting it right takes the pressure off. Your emissions numbers are provided for information. A buyer will not reject you for having a larger footprint than a competitor, and you will not win on the strength of a smaller one. What matters is that your plan is complete, correctly formatted, signed off and published.

It is easy to confuse PPN 006 with PPN 06/20, which covers social value and is a different thing entirely. PPN 06/20 is scored at the award stage and includes a Fighting Climate Change theme, usually about the impact of the specific contract. PPN 006 is the pass or fail gate at selection. Treat them as two separate exercises, because that is how the buyer treats them.

How to create your Carbon Reduction Plan, step by step

If you are building a plan from scratch, this is a sensible order to work in.

  1. Gather twelve months of data. Pull together energy bills, fuel and fleet records, business travel, waste data and staff commuting information for a full twelve month period. Aligning with your financial reporting year is good practice and can be helpful in terms of data collection.
  2. Calculate your footprint. Convert that raw data into a carbon footprint using the Greenhouse Gas Protocol methodology and the latest UK government conversion factors. 
  3. Set your targets. You must include a commitment to Net Zero by 2050. If you have the data and insights to be able to set interim targets, you have the option to state these too.
  4. Decide your reduction measures. List what you have already done and what you will do in future to reduce your carbon emissions. 
  5. Complete the official template. Transfer your footprint, targets and measures into the government's Carbon Reduction Plan template so the format matches what buyers expect.
  6. Sign off and publish. Have a director approve and sign the plan, then publish it prominently on your website and keep the link stable, because you will be asked to share it.

Do you have a tight tender deadline?

We've supported clients to get everything completed in as little as 36 hours when deadlines were tight.
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PPN 006 and the NHS

In short. The NHS applies Carbon Reduction Plan requirements more broadly than is required under PPN 006. A compliant plan is expected for all NHS procurements regardless of contract value, and NHS suppliers also need to complete the NHS Evergreen Sustainable Supplier Assessment.

The NHS has its own net zero supplier roadmap and has chosen to go further than the central government threshold. If you supply, or want to supply, the NHS, the practical effect is that the five million pound threshold figure is not your guide. You should expect a compliant Carbon Reduction Plan to be asked for on relevant new procurements whatever their size.

On top of the plan itself, NHS suppliers must also complete the NHS Evergreen Sustainable Supplier Assessment, which is a separate self assessment of your sustainability maturity. Having a Carbon Reduction Plan is a core requirement within Evergreen.

From April 2027, the NHS supplier roadmap specifies that Carbon Reduction Plans must go beyond the five categories of Scope 3 emissions required under PPN 006 to include all relevant Scope 3 categories. Requirement for full Scope 3 reporting was originally going to be applied to all NHS contracts but in June 2026 the requirement was scaled back so that this would only be required in all new contracts (including frameworks and dynamic markets) with a value above or equal to £5m per annum (including VAT).

Keeping your PPN 006 Carbon Reduction Plan compliant: updates and validity

In short. Review and update your Carbon Reduction Plan at least once a year, within six months of your financial year end, and make sure the published version is recent enough to be valid when you bid.

Refresh annually

Update the plan each year with your most recent emissions data across Scope 1, Scope 2 and the five required Scope 3 categories, and have a director re-sign it.

Mind the validity window

Your plan needs to be current when you bid. This means that the most recent carbon footprint data in your plan must be from your most recent completed financial year, unless that financial year ended less than 6 months ago.

Keep the link live

Buyers ask for the exact URL of your published plan. If you redesign your site or move domain, make sure that link still works, because a broken link is a needless way to fail a tender process.

Common mistakes to avoid

Most plans that fall down do so for the same handful of reasons. Steer clear of these and you are most of the way to a clean pass.

  • Submitting a CSR, ESG statement or environmental policy instead of a Carbon Reduction Plan. A general sustainability or corporate responsibility statement does not meet the requirement. You need a Carbon Reduction Plan that meets the specific requirements of PPN 006 – using the official templare is the safest way to demonstrate you’re meeting the requirements.

  • Leaving out a Scope 3 category. All five required Scope 3 categories must be reported if they are relevant to your business. If they are not relevant, you must explain why. Missing one is a common reason for rejection.

  • No director sign off. The plan must be approved at board level and signed by a director with their name, title and date.

  • Out of date emissions data. An old footprint can make an otherwise valid plan non-compliant when you come to bid.

  • A broken or moved link. If the published plan cannot be found at the URL you supply, it is treated as if it is not there.

  • Borrowing another organisation's plan. A subsidiary can sometimes rely on a wholly owning parent's plan under specific conditions, but in most cases each bidding entity needs its own. Check the conditions carefully rather than assuming.

Facing a tender deadline soon?

In short. If a deadline is close, you can still produce a compliant plan quickly by working through the essentials in order: gather your data, calculate your footprint, complete the official template, get director sign off, publish it, and have the link ready for your submission.

It is a calmer process than the deadline makes it feel. Focus on the must-haves rather than perfection. A clear footprint, a genuine net zero commitment, sensible targets and measures, a director's signature and a published plan will get you over the line.

Two practical points often catch suppliers out near the deadline. Make sure your organisation is registered on the UK's Central Digital Platform so you can share your supplier information for the tender, and if you are bidding for NHS work, you will also need to complete the Evergreen Sustainable Supplier Assessment. Sorting those early saves a scramble at the end.

Frequently asked questions

What is PPN 006?

PPN 006 is the UK government procurement rule that requires suppliers bidding for major public sector contracts to publish a Carbon Reduction Plan committing to net zero by 2050. It applies based on the value of the contract, not the size of your business.
What is the difference between PPN 006 and PPN 06/21?

PPN 006 is the renamed version of PPN 06/21. The reference changed in February 2025 to align with the Procurement Act 2023. The requirements for your Carbon Reduction Plan did not change.
Does PPN 006 apply to SMEs?

Yes. There is no exemption for small or medium businesses. If you bid for an in scope contract you need a compliant plan, and the official template is designed to keep this proportionate for smaller organisations.
What is the contract threshold for PPN 006?

Generally five million pounds or more per year for central government contracts. The NHS and some other public sector bodies apply the requirement to all contracts, regardless of value.
Which Scope 3 categories are required?

Five: business travel, employee commuting, waste generated in operations, upstream transportation and distribution, and downstream transportation and distribution, alongside your Scope 1 and Scope 2 emissions.
Is a Carbon Reduction Plan scored or pass or fail?

Pass or fail at the selection stage. Buyers check your plan meets the required format and content. They do not score or compare your actual emissions figures.
Do I need a Carbon Reduction Plan for NHS contracts?

Yes, for relevant NHS procurements regardless of contract value. NHS suppliers also need to complete the NHS Evergreen Sustainable Supplier Assessment.
How often do I need to update my plan?

At least once a year, within six months of your financial year end, and it should be recent enough to be valid when you bid.
What is the easiest way to get a compliant Carbon Reduction Plan?

Either use the UK Government conversion factors and online guides to complete your own footprint, or work with a sustainability partner who can build the plan with you. If you prefer to do it yourself, use the official Carbon Reduction Plan template and ensure you follow the Greenhouse Gas Protocol methodology.
What is the definition of Net Zero in PPN 006?

Net Zero is not defined in PPN 006, the accompanying guidance or in NHS supply chain requirements. In general terms, Net Zero is defined as achieving a balance between the carbon emissions from a business and the carbon removals being paid for by the business. It is generally accepted that radical emissions reductions (e.g. 90%+ absolute reductions) are needed before relying on carbon removals, but the required level of reduction is not specified in PPN 006. For now, businesses must make the commitment without a full understanding of what will be required. Inevitably, this will be clarified in time.
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Help for every step of the way

Whether you're just starting your sustainability journey or strengthening existing work, we guide you through clear steps that build confidence and capability, helping you to grow greener and grow stronger.

1. Measure

We calculate your carbon footprint across Scope 1, 2, and required Scope 3 categories to create a credible baseline.

2. Plan

We build your PPN 006–compliant Carbon Reduction Plan aligned to government guidance and your operations.

3. ACT

We support implementation and tracking, making annual updates straightforward and stress-free.
Tim Maiden Geen Business Founder & Director
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