Sustainability has become one of the main focal points for businesses to address in the last few years, and for good reason! We’re already seeing the devastating effects of simply doing nothing in the form of more extreme weather, occurring much more frequently in areas not equip to handle it.  To encourage action from businesses, we’re seeing more public and private sector contracts include a tendering requirement to show your commitment to sustainability. One such example is the need for a PPN 06/21 Carbon Reduction Plan. In this weeks’ episode David Algar, Principle Carbonologist at Carbonology, joins Mel to explain exactly what PPN 06/21 Carbon Reduction Plans are, what the requirements mean in practice and the consequences if a business does not meet the requirements. You’ll learn ·       What are PPN 06/21 Carbon Reduction Plans? ·       What the requirements mean in practice ·       Benefits to a business ·       What if a business does not meet the requirements? Resources ●      Carbonology ●      Book a call with David Algar ●      A quick Guide to creating your PPN 06/21 Carbon Reduction Plan   In this episode, we talk about: [00:42] Episode Summary - We’re talking about PPN 06/21 Carbon Reduction Plans because there is a government requirement to submit one. This episode will cover the what and why, in part 2 we’ll go into more detail about how to create a Carbon Reduction Plan.    [02:10]  What is a PPN 06/21 Carbon Reduction Plan? Procurement Policy Note 06/21 was introduced back in June 2021, hence the 06/21 part, and is a tendering requirement for companies looking to win contracts in the public sector that links to the Government’s Net Zero target. [02:28] What is the UK government’s Net Zero target? The ‘net zero target’ refers to a government commitment to ensure the UK reduces its emissions by 100% from 1990 levels by 2050.   [02:55] Who does PPN apply to?: Public sector, so any businesses that works with education, local authorities, housing, infrastructure, defence, transit, and of course, the NHS who have set a goal of Net Zero by 2040. Officially this is for contracts that are valued at £5M or more, but in April 2024 the NHS will be requesting a Carbon Reduction Plan for all procurement. Unofficially, this framework could be adopted by any business, so even if you don’t deal directly with the public sector, or are a subcontractor, your supply chain may soon be requesting a Carbon Reduction Plan! [04:05] Why do you need a Carbon Reduction Plan? Although the Government’s targets and policies around Net Zero keep changing, the overall goal of PPN 06/21 is to encourage businesses to reach Net Zero before 2050, come up with a plan to do so, and implement emission reduction initiatives in the delivery of Government contracts. [04:35] From a businesses perspective, what are the main benefits? There are 2 main benefits: ●      It’s essential for some tendering, with as much as a 10% weighting based on your carbon management and social values. Put simply, if you don’t produce one when needed, you may fail the tender requirements and probably won’t make the sale. ●      The second main benefit is that this isn’t just a piece of paper with a graph on it, it’s a great opportunity to investigate your business’ GHG emissions, and put a plan in place to reduce them. This also helps you show to stakeholders that you are actually committed to environmental protection and could identify some cost savings in your business after going through all the data. ●      It’s also a great addition to any existing ISO 14001 or ISO 50001 Management Systems! [06:10] What are the key requirements of PPN 06/21? –    Firstly you’ll need to make a commitment to achieving net zero by 2050 at the latest. This includes annually calculating your emissions and updating the Carbon Reduction Plan. Next you’ll need to report on a minimum set of GHG categories: 100% of your Scope 1 emissions, so direct emission from company