PPN Net Zero (PPN 06)
The Cabinet Office PPN requiring central government suppliers above £5M contract value to publish a Carbon Reduction Plan.
Definition
PPN Net Zero (formally PPN 06, formerly PPN 06/21) is the Cabinet Office Procurement Policy Note requiring central government suppliers above £5 million annual contract value to publish a Carbon Reduction Plan committing to net zero by 2050. The PPN took effect in 2021 and is one of the most consequential procurement policy notes for environmental performance. PPN 06 applies to all central government departments, executive agencies, and non-departmental public bodies in scope of central government procurement.
How it works in practice
PPN 06 operates as a pass-fail check at the Selection Questionnaire stage: bidders for in-scope contracts must publish a compliant Carbon Reduction Plan and confirm publication in the SQ response. Failure to publish disqualifies the bid. The PPN specifies the CRP content: net zero commitment with interim targets, baseline emissions by scope, carbon reduction projects, director-level approval, public publication on the supplier website. Detailed guidance accompanies the PPN explaining the calculation methodology and acceptable approaches for Scope 3 emissions. PPN 06 has been broadly successful in driving CRP adoption across central government supply chains: thousands of suppliers have published CRPs in response. The £5M threshold means many smaller suppliers are not formally in scope but increasingly prepare CRPs because the requirement can apply unexpectedly when contracts aggregate to the threshold or when buyers voluntarily extend the requirement. Beyond compliance the CRP supports broader social value evaluation under PPN 002: environmental commitments under the TOMs framework can directly leverage CRP content. Some local government buyers have adopted PPN 06 voluntarily for their own procurement. The Procurement Act 2023 transparency regime increases CRP visibility through the supplier conduct record.
Common questions
Does PPN 06 apply to local government?
Strictly the PPN applies to central government. Some local government buyers have adopted PPN 06 voluntarily, requiring CRPs for their own above-threshold procurement. Specific tender documents state the requirement. Local government, NHS, and devolved administrations are increasingly aligning with central government PPN practice for environmental commitments.
What is the £5 million threshold?
Annual contract value, not total contract value over the term. A £5M-per-year contract over 3 years (£15M total) is clearly in scope. A £3M-per-year contract over 5 years (£15M total) is not in scope. The annual value test recognises that ongoing operating emissions scale with annual delivery rather than total contract value.
Does PPN 06 continue under the Procurement Act 2023?
Yes. PPN 06 continues alongside PA 2023 as Cabinet Office guidance to central government procurement. The transparency regime under PA 2023 increases CRP visibility through the supplier conduct record. The substantive PPN 06 requirement (publish a CRP for above-threshold contracts) continues unchanged.