Net Zero Bidding: Understanding PPN 01/24 and PPN 06/21

Decarbonization is no longer a peripheral marketing commitment in UK public sector procurement—it is a core qualification and scoring metric. Suppliers bidding for central government tenders must navigate two primary Procurement Policy Notes (PPNs): PPN 06/21 and PPN 01/24.

While both policy notes support the UK's legally binding commitment to achieve Net Zero greenhouse gas emissions by 2050, they serve entirely different functions in the procurement lifecycle:

• PPN 06/21 is a mandatory selection-stage pass/fail criterion requiring bidders for major government contracts (£5m+ per annum) to publish a compliant Carbon Reduction Plan (CRP).
• PPN 01/24 introduces model contractual performance clauses that allow public sector buyers to enforce ongoing carbon reporting and emissions reductions post-award.

This guide provides a detailed comparative analysis of PPN 06/21 and PPN 01/24, outlining how capture leads can build winning Carbon Reduction Plans and integrate sustainability commitments into their proposal narratives.

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1.Comparative Breakdown: PPN 06/21 vs PPN 01/24

Understanding the distinction between selection criteria (PPN 06/21) and contract performance schedules (PPN 01/24) is crucial for bid teams:

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2.PPN 06/21 Compliance: The 5 Mandatory Scope 3 Categories

To satisfy PPN 06/21, a bidder’s Carbon Reduction Plan must detail baseline and current emissions for:

1. Scope 1: Direct greenhouse gas emissions from owned or controlled sources (e.g. company vehicles, on-site fuel combustion).
2. Scope 2: Indirect emissions from the generation of purchased electricity, heating, and cooling.
3. Scope 3 (Mandatory 5 Categories):
   • Category 4: Upstream transportation and distribution
   • Category 5: Waste generated in operations
   • Category 6: Business travel
   • Category 7: Employee commuting
   • Category 9: Downstream transportation and distribution

┌────────────────────────────────────────────────────────────────────────┐
│               PPN 06/21 CARBON REDUCTION PLAN (CRP)                    │
├───────────────────────────────────────┬────────────────────────────────┤
│       Mandatory Baseline Data         │    Net Zero Commitment Target  │
├───────────────────────────────────────┼────────────────────────────────┤
│ • Scope 1 & Scope 2 Emissions         │ • Board-Approved Net Zero Date │
│ • 5 Specific Scope 3 Categories       │ • Annual Reduction Milestones  │
│ • Signed by Director / Board Level    │ • Published on Website Homepage│
└───────────────────────────────────────┴────────────────────────────────┘

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3.PPN 01/24 Contract Performance Schedules

While PPN 06/21 tests organizational capability, PPN 01/24 introduces optional contract schedules designed to drive contract-specific decarbonization.

Key Elements of PPN 01/24 Schedules

1. Contract Emissions Baseline (CEB): Establishing contract-specific carbon baselines within 90 days of contract start.
2. Annual Carbon Reduction Targets (ACRT): Binding annual reduction targets tied to performance incentives or penalties.
3. Open-Book Carbon Accounting: Requiring suppliers to provide audited annual carbon reports.

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4.Strategic Advice for Net Zero Proposals

1. Host CRP on a Public URL: PPN 06/21 rules require the Carbon Reduction Plan to be published directly on the bidder's company website. Ensure the link provided in your bid is active and publicly accessible.
2. Obtain Executive Sign-Off: The CRP must be signed by a Director or Board member within 12 months of the tender submission date.
3. Quantify Social Value Alignment: Link your PPN 06/21 commitments directly to Cabinet Office PPN 06/20 Model Award Criteria (MAC 3.1 Net Zero) to score points in the qualitative evaluation.

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5.Summary & Key Takeaways

• PPN 06/21 Is Pass/Fail: Missing or uncompliant Carbon Reduction Plans cause instant disqualification on £5m+ central government tenders.
• PPN 01/24 Enforces Post-Award Rules: Contracting authorities use PPN 01/24 schedules to track and penalize carbon performance during contract execution.
• Evidenced Data Wins: Bidders with verified Scope 1, 2, and 3 emissions tracking gain a significant edge in qualitative MAT scoring.

Explore Stratify's strategic tools to support your Net Zero bid strategy:

• Social Value Calculator – Model PPN 06/20 Social Value criteria (MAC 3.1 Net Zero).
• Procurement Act 2023 Roadmap – Audit statutory compliance and selection criteria.
• PWIN Calculator – Evaluate qualitative score weightings and competitive position.