ESG glossary
PPN 006
PPN 006 is a Cabinet Office Procurement Policy Note that requires suppliers bidding for in-scope central government contracts worth over £5 million a year to provide a Carbon Reduction Plan as a pass or fail condition.
PPN 006 was published by the Cabinet Office on 17 February 2025 and updated on 10 July 2025. It replaced PPN 06/21 for procurements run under the Procurement Act 2023, which means procurements started on or after 24 February 2025. PPN 06/21 still applies to procurements that began before that date. The full note is on GOV.UK.
What it means for a small business
PPN 006 applies to in-scope central government contracts with an anticipated value above £5 million a year including VAT, unless the buyer decides it is not relevant or proportionate. If you bid for one, your Carbon Reduction Plan is a condition of participation. Fail it, and the rest of your bid is not considered.
The plan must use the Annex A template and include a commitment to net zero by 2050, your Scope 1 and 2 emissions, a defined subset of Scope 3 (upstream and downstream transportation and distribution, waste, business travel and employee commuting), and your environmental management measures. It must be signed off by a director, published on your UK website, updated at least annually, and cover a reporting period ending no more than 18 months before the tender notice.
Even if you never bid directly, you may meet PPN 006 as a subcontractor. A prime contractor may ask its supply chain for the same emissions data.
An example
An IT services firm with 60 staff wants to bid for a £7 million a year government framework. It measures its last financial year’s footprint, adds commuting from a quick staff survey, completes the Annex A template, gets a director’s sign-off and publishes it on its website before submitting.
How ESG Now handles it
ESG Now does not generate a PPN 006 Carbon Reduction Plan document. It gives you the carbon footprint, baseline, and figures you need to complete the official CRP template. Read our PPN 006 guide for SMEs or see how ESG Now helps with public sector tenders.
Guides that cover this
- Public sector tendersCarbon Reduction Plans for SMEs: PPN 006 explainedPPN 006 asks bidders for major government contracts to publish a Carbon Reduction Plan. Here is what it must contain, what changed from PPN 06/21, and how a small supplier gets one ready.Read the guide →
- Public sector tendersCarbon reduction plan template and worked exampleThe official PPN 006 template, explained heading by heading, with a worked example showing realistic figures for a fictional small company.Read the guide →
- Public sector tendersWriting the sustainability section of a public sector tenderTender sustainability questions reward specific, measurable answers tied to the contract. Here is how to structure yours, with example wording a small supplier can adapt.Read the guide →