Are you a UK public sector supplier (or aiming to become one)? You’ve likely come across terms like “carbon footprint”, “Carbon Reduction Plan”, “PPN 06/21”, or “sustainability strategy”, but it’s not always clear which applies to your organisation, or why they matter.
In this brief guide, we’ll demystify the jargon, walk you through compliance steps, and help shape your sustainability strategy and overall carbon management. Whether you hold contracts over £5 million, supply the NHS beneath that threshold, or simply want to prepare for upcoming sustainability obligations, this post is for you.
Read on to understand the history, definitions, and practical steps required to develop a Net Zero carbon or Carbon Reduction Plan.
Let’s start with a look at how these commitments developed:
Meeting these requirements isn’t just about compliance; it’s about demonstrating robust carbon management, risk awareness, and positioning your organisation as a trusted partner, with a sustainable supply chain.
PPN 06/21 applies only to public sector suppliers with contracts over £5 million per annum. However, if you supply or want to supply the NHS with services under this value, you will also need to publish a Carbon Reduction Plan. This requirement came into effect in April 2024.
A Carbon Reduction Plan is a public document that outlines your approach to carbon management and reduction. In order for your Carbon Reduction Plan to comply with PPN 06/21, businesses need to:
A well-crafted CRP (which you could call a Climate Action Plan) provides accountability, enhances your reputation, and assures buyers you’re actively managing and reducing your carbon footprint.
You need to include your Scope 1 and 2 emissions, as well as the following Scope 3 emission categories: business travel, employee commuting, waste generated in operations, and upstream transportation and distribution, and downstream transportation and distribution.
Your Net Zero target must cover all the emissions you report in your Carbon Reduction Plan. It’s all about communicating your carbon management — what you’re doing and how you know it’s working.
Greenhouse gas emissions is the term used to describe the seven main greenhouse gases (GCHGs) responsible for global warming, and is usually expressed as CO02e, i.e. carbon dioxide equivalents, based on the global warming potential (GWP) of each GHG over a 100-year period in relation to carbon dioxide. ‘Carbon emissions’ is the other term you might have heard — which might make you think is only about carbon, but in reality, it can include any of the seven main GHGCs. Usually, they all get converted into carbon dioxide equivalents, to make it a bit easier to track and account for.
An organisation’s Scope 1 emissions are direct emissions. You can think of them as the impact you create “on the spot”. For example, when you use a gas boiler, the emissions are produced right where the boiler is located. The same applies when you drive cars or use air conditioning. Scope 1 covers any emissions associated with gas heating at your offices or sites, air conditioning, or any transport fleet. Using standardised guidance, these emissions are all converted into CO02e. You need to calculate and publish these as part of your Carbon Reduction Plan.
Scope 2 emissions are ‘indirect’ emissions. You can think of these as emissions that are created during production, but not directly on your premises. Scope 2 usually includes the electricity your business has purchased and uses — the electricity isn’t (usually) generated onsite, but somewhere else.
Scope 3 includes ‘everything else’ that happens because your business is in operation. There are 15 categories of Scope 3 emissions, but not all of them apply to every business. They cover things you buy to keep your business running (such as laptops, other IT equipment, or raw materials), any business travel, commuting, really everything it takes to make your business happen.
Lots of people ask us if ‘Net Zero’ is the same as being ‘carbon neutral’. Carbon neutral means you’re balancing out the carbon you create, usually by buying carbon offsets. But it only covers your actual carbon emissions.
Net Zero is a bit different — to achieve it, you must first reduce your greenhouse gas emissions (the seven gases we mentioned earlier) as much as possible to limit global temperature rise to 1.5°C, and then offset only what’s left.
In short, yes. At the very least, you’ll need a target that covers the emissions reported in your Carbon Reduction Plan. However, the NHS encourages suppliers to think beyond that.
In June 2023, they published their “Evergreen Sustainable Supplier Assessment”, which has four levels. Publishing a Carbon Reduction Plan gets you to Level 1.
To move to Level 2, you’ll need a Net Zero target covering all your emissions (Scope 1, 2, and all of 3).
To progress to Level 3, your Net Zero target needs to aim for 2045, and your data has to be verified externally.
Finally, to reach Level 4, you need to be publicly disclosing through CDP or EcoVadis or achieve B Corp certification status.
On the whole, the NHS is encouraging suppliers to start thinking about how they create their own sustainable supply chain.
Many businesses are concerned about this, and that’s where our experts can really help you understand what’s achievable on the path to Net Zero. One of the first things we do is model your emissions out to 2050, so we can help you prioritise your actions. We can support you to:
Online carbon footprint calculators can be a helpful place to to form a basic sense of your emissions and begin thinking about your carbon impact.
However, if you want to create a robust Carbon Reduction Plan or set a credible Net Zero target, you’ll need more than just a simple calculation. That’s where expert support can be incredibly good value for money, helping you identify where to focus your efforts, and ensure you meet the expectations of your clients, investors, or regulators.
Our digital tools go beyond basic emissions reporting to help you prioritise practical steps towards Net Zero, backed by expert guidance from our team of sustainability consultants.
If you’re a larger organisation that has already reported under SECR (Streamlined Energy and Carbon Reporting), completed ESOS (the Energy Savings Opportunity Scheme), or calculated your carbon footprint before, we can work with the data you already have — helping you find the most cost-effective and impactful way forward.
We’re the go-to Sustainability Partner for many other suppliers in your position, helping them manage sustainability risks for the long term.
That often involves support with meeting the requirements outlined here, or thinking more broadly about how your business can adapt to a changing world.
We’re a friendly sustainability consultancy – a team of experts who love talking about sustainability and business. Get in touch with any of us to explore what support is available, or book a call directly here.
Written By Liz Taylor 
In this brief guide, we’ll demystify sustainability jargon and help shape your strategy and overall carbon management. Whether you hold contracts over £5 million, supply the NHS beneath that threshold, or simply want to prepare for upcoming sustainability obligations, this post is for you.
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