PPN 006 carbon reduction plan service helping small businesses meet UK government procurement requirements

PPN 006 Carbon Reduction Plan

Get procurement-ready with a compliant Carbon Reduction Plan.

If you’re bidding for public sector contracts, a Carbon Reduction Plan is now mandatory under PPN 006 (formerly PPN 06/21). With 94% of UK government tenders including environmental criteria, a compliant plan keeps you eligible, credible, and competitive.

Ben Cianchi Green Business Carbon & Sustainability Consultant

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PPN Carbon Reduction Plan

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Sustainability solutions tailored for small businesses across industries

How do we make PPN 006 requirements achievable?

Our approach combines human expertise with simple tools to keep PPN 006 compliance simple and proportionate for SMEs, giving you the confidence to create a compliant, publication-ready Carbon Reduction Plan.

  • Measure your Scope 1, 2, and required Scope 3 emissions

  • Build a PPN 006-compliant Carbon Reduction Plan 

  • Giving you the confidence to maintain progress year-on-year

What does a Carbon Reduction Plan include?

Carbon Reduction Plans required for public sector procurement under PPN 006 must meet specific requirements, including a net zero commitment by 2050, alongside credible plans for future emissions reduction. The following carbon emissions must be reported:

Scope 1 & 2 emissions

This includes direct emissions from assets you own, and indirect emissions from purchased energy and heat.

Scope  3 emissions

Currently, this only includes business travel, employee commuting, homeworking, waste and transportation.

For NHS Suppliers

From April 2027, Scope 3 reporting will expand to all 15 categories, and other public bodies are expected to follow.

What should you consider before building your Carbon Reduction Plan?

A robust Carbon Reduction Plan starts with understanding your emissions. Knowing where your carbon comes from - energy use, travel, commuting, homeworking, waste, and transportation - allows you to set realistic targets and focus on what actually matters.

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Baseline first

Accurate baseline data helps you prioritise the emissions that will make the biggest difference.

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Scope clarity

Understanding which Scope 1, 2, and 3 categories are required under PPN 006 keeps your plan compliant and proportionate.

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Carbon measurement

A credible carbon footprint across Scope 1, 2, and required Scope 3 underpins every reduction target you set.

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Realistic timelines

Collecting and validating data typically takes between 1 and 6 weeks, depending on availability and business size.

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Hear from our Clients

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“Green Business has provided us with the structure and expertise we needed to begin our Carbon Reduction Plan with confidence. Their tailored advice has not only helped us set clear priorities but also given us practical steps to start making progress straight away. We now feel equipped with a strong foundation to build on and a clear framework to guide our future actions.”

Adam Marshall, F3 Architects
Adam Marshall
Associate
F3 Architects LLP
1/6

Where can I download the PPN 006 carbon reduction template?

The government's PPN 006 Carbon Reduction template can be downloaded here. We've added lots of comments and provided some complimentary advice too. Give it a go and if you get stuck, our experts are on hand to help you complete it with confidence.

Download the template

Simply complete the form below to request your copy of the PPN 006 template and guide.

Do you need your PPN 006 Carbon Reduction Plan urgently?

We've supported clients to get everything completed in as little as 36 hours when deadlines were tight.

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What makes Carbon Reduction Plans challenging for SMEs?

Many SMEs face the same roadblocks when creating Carbon Reduction Plans, but you don’t need to be a climate expert to overcome them. You just need someone in your corner who is.

Jargon overload

Terms like “Scope 3 emissions,” “GHG Protocol,” and “Net zero” can feel intimidating when you’re busy trying to run a business.

Scope confusion

Understanding the difference between direct emissions (Scope 1), electricity consumption (Scope 2), and everything else (Scope 3) requires guidance.

Template
overwhelm

The government’s template itself is fairly straightforward, but when combined with the official guidance and all the other requirements, it can quickly feel overwhelming.

Data confusion

Knowing what to measure, where to find the information, and how to turn data into meaningful carbon figures isn’t straightforward.

Data headaches

Gathering all the data from all the sources, making sense of it, and knowing whether you've got the things right can be genuinely tricky.

Fear of getting
it wrong

The stakes feel high when contracts are on the line, leading to paralysis rather than action.

Green Business - Human First support

We're human first

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Expert support

Access to real people, not just
a software tool

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Built for SMEs

Tailored for the needs of
smaller teams

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Real world experience

Over 300 SMEs supported
and counting

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Simple, effective tools

No technical knowledge
needed

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Deep expertise

Decades of environmental know-
how guiding you

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Plain English

Jargon-free guidance that
actually makes sense

Help for every step of the way

We guide you through three clear steps to help you reduce your carbon footprint and meet PPN-006 requirements.

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.

What happens if you don’t have a Carbon Reduction Plan?

A Carbon Reduction Plan is a mandatory pass/fail requirement for many public contracts. Without one, you’re disqualified before evaluation begins. Beyond compliance, public sector suppliers with strong carbon credentials are better positioned for future tenders and supply-chain requirements.

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The business case
for action

Environmental responsibility supports long-term business performance. Beyond PPN 006 compliance, there are clear commercial reasons to act now.

Market
Access

PPN 006 (formerly 06/21) ensures sustainability is embedded into public sector procurement. Without a Carbon Reduction Plan, you’re excluded from many government and NHS contract opportunities.

Efficiency and
savings

SMEs implementing carbon strategies achieve 25-30% efficiency gains through reduced energy use, waste, and travel (Profit Impact/SME Census)

Supply chain credibility

51% of large UK organisations now require carbon data from their suppliers to protect their own compliance (Net Zero Business Census, 2025), making a Carbon Reduction Plan essential beyond public contracts.

Future-
proofing

Sustainability requirements are only going to increase. In 2025, sustainability shifted from voluntary to regulatory and supply-chain expectation. A credible Carbon Reduction Plan positions you for B Corp, CDP, EcoVadis, and other frameworks that increasingly expect carbon measurement and reduction strategies.

YOUR QUESTIONS ANSWERED

Do I need a plan if my contracts are under £5 million?

It depends on your sector and clients. NHS procurement now requires plans regardless of contract value, and many framework agreements ask for them upfront to future-proof suppliers. Even if not legally required, having a plan can be a competitive advantage.

What should be in a Carbon Reduction Plan?

A compliant Carbon Reduction Plan needs five key elements: your commitment to net zero by 2050, baseline and current emissions data following GHG Protocol standards (covering Scope 1, 2, and selected Scope 3 categories), an action plan showing how you'll achieve these reductions, and senior leadership sign-off. The plan must be published on your website and updated annually to show progress.

What is PPN 006 compliance?

PPN 006 (formerly 06/21) requires suppliers bidding on UK government contracts worth £5 million+ annually to have a Carbon Reduction Plan. All NHS suppliers need one regardless of contract value. You must publish a compliant plan on your website with net zero commitment, emissions data, targets, and senior sign-off. No plan means automatic disqualification from bidding.

Which categories of Scope 3 need to be included in a Carbon Reduction Plan?

There are 15 categories of Scope 3 emissions. Currently, 5 of these must be reported in a Carbon Reduction Plan. These are:

  • Category 4 - Upstream transportation & distribution. Emissions from the transportation of goods & materials used in your business. In many businesses, such as professional services businesses, there are zero emissions in this category because goods and materials are not being handled in bulk quantities. 

  • Category 5 - Waste. Emissions from the disposal and treatment of waste from your business.

  • Category 6 - Business travel. Emissions from travel conducted for business purposes in third-party vehicles - trains, planes, personal cars etc.

  • Category 7 - Employee commuting. Emissions from staff commuting to business sites. This category also includes emissions from homeworking. 

  • Category 9 - Downstream transportation & distribution. Emissions from the transportation of goods & materials used in your business. The difference between emissions in this category and emissions in Category 4 (upstream transportation) is that ‘downstream’ refers to transportation which is paid for and controlled by others, e.g. the customer. For example, it could include customers travelling to collect goods or materials from your business. In many businesses, such as professional services businesses, there are zero emissions in this category because goods and materials are not being handled in bulk quantities. 

From April 2027, NHS suppliers will have to report emissions from all 15 categories of Scope 3. Other public bodies are likely to follow suit. Although we can limit Scope 3 to just those categories required by PPN 006, we encourage our clients to go for full Scope 3 so that their approach is comprehensive and future-proofed.

What's the difference between a Carbon Footprint and a Carbon Reduction Plan?

A Carbon Footprint measures your current greenhouse gas emissions across Scope 1, 2, and 3. A Carbon Reduction Plan is your strategy for reducing those emissions – it uses your footprint as the starting point to set targets and outline actions for reaching net zero. You need both: the footprint shows where you are, the plan includes your footprint but also shows your plans for reducing it.

What's the difference between a Carbon Reduction Plan and a Net Zero Commitment?

A Carbon Reduction Plan is a document required in public sector procurement. A compliant Carbon Reduction Plan will include a commitment to achieve Net Zero by 2050 at the latest but will also include details of your carbon footprint and an outline of your carbon reduction activities. There are specific requirements that it must meet, which are set out in Government guidance.

Can I create a Carbon Reduction Plan myself or do I need professional help?

Technically, you can create a plan yourself using the government's template, but it can be complex and the stakes are high. The requirement for a Carbon Reduction Plan is a pass/fail requirement and professional support helps ensure that your Carbon Reduction Plan remains compliant. Professional support typically pays for itself through the contract opportunities it unlocks and the operational efficiencies identified during carbon the action planning process.

How often do I need to update my Carbon Reduction Plan?

Your Carbon Reduction Plan must be updated annually to show progress against your targets and reflect any changes to your business operations. Updates should be published within six months of your reporting period ending. For example, if your reporting year ends in March, you'll need to update your plan by September. This isn't just about compliance - regular updates help you track progress and identify new opportunities for improvement.

What if I don't have historical data?

Don't panic - you can use your current year as your baseline, and this is perfectly acceptable for compliance purposes. If carbon planning is completely new to you, your current emissions reporting will be the same as your baseline emissions, which actually simplifies things. The government recognises that not every business has been tracking emissions for years. What matters is having 12 months of complete data for your chosen baseline year.

How much does your Carbon Reduction Plan support cost?

Our pricing is designed to be accessible for SMEs and is based on business size, business type, and the level of support required. See our pricing guide or contact us for a tailored quote.

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