PPN 05/21

Cabinet Office procurement policy note issued in May 2021 addressing carbon reduction plans and net zero commitments in public procurement to support the UK's 2050 net zero target.

What it covers

Procurement Policy Note 05/21, issued by the Cabinet Office in May 2021, mandates that suppliers bidding for major government contracts must provide a Carbon Reduction Plan. This policy applies to procurements where the contract value exceeds £5 million per annum and supports the UK government's commitment to achieve net zero carbon emissions by 2050.

The note requires suppliers to demonstrate their environmental credentials through detailed carbon reduction plans covering their current carbon footprint, emission reduction targets, and concrete steps to achieve net zero. Suppliers must publish these plans and update them annually.

Requirements for suppliers

Suppliers must provide evidence of: - Current greenhouse gas emissions across Scopes 1, 2, and 3 where applicable - Baseline emissions data and methodology - Carbon reduction targets aligned with net zero by 2050 - Specific measures and timescales for achieving reductions - Board-level commitment to environmental targets

The Carbon Reduction Plan must be published on the supplier's website and remain publicly accessible throughout the contract period.

Impact on procurement

PPN 05/21 represents a significant shift towards embedding environmental considerations into standard procurement processes. Contracting authorities must verify that suppliers meet these requirements before contract award. Non-compliance results in automatic exclusion from the procurement process, making environmental responsibility a mandatory rather than desirable criterion.

This policy note applies across central government departments and their arm's-length bodies, extending the government's net zero ambitions throughout its supply chain.