In short: Procurement Policy Note 006, which replaced PPN 06/21 under the Procurement Act 2023, requires suppliers bidding for in-scope central government contracts with an estimated value above £5 million a year (including VAT) to provide a Carbon Reduction Plan. The plan must commit to net zero by 2050 at the latest, report Scope 1 and 2 emissions and a defined subset of Scope 3, set out reduction measures, be signed off at board level and be published on your website. A missing or non-compliant plan can exclude the bid. NHS England applies the same standard to its contracts above £5 million a year. TaxDigit's sustainability team measures the footprint and writes the plan to the government template.
What a compliant Carbon Reduction Plan contains
The government publishes a template and a technical standard. A compliant plan confirms your commitment to net zero by 2050, states your baseline year and current emissions for Scope 1, Scope 2 and the five required Scope 3 categories (upstream transportation and distribution, waste generated in operations, business travel, employee commuting and downstream transportation and distribution), describes the environmental management measures you will take, and includes board-level sign-off. It should be reviewed and updated every year.
Plans fail most often on the numbers: missing scopes without explanation, unexplained estimates, or targets that do not connect to any measures. Because we measure emissions the way accountants prepare accounts, with a clear boundary, documented methods and a reusable calculation file, your plan can be defended if a contracting authority asks questions and refreshed quickly each year.
- Central government suppliersBidding for contracts or framework call-offs above £5m a year.
- NHS suppliersMeeting NHS England's Carbon Reduction Plan and net zero requirements.
- SubcontractorsSupporting a prime contractor that must show supply chain commitment.
- Growing businessesPreparing before the first large public tender arrives.
Led by Dr Attieh Moezoddin, Head of Sustainability & ESG Advisory (PhD, Built Environment)Reviewed by Amir Rafiei, ACCA Certificate in Sustainability for FinanceLast reviewed
What we do
Baseline and current emissions
Scope 1, Scope 2 and the five required Scope 3 categories, calculated to the PPN 006 technical standard. See carbon accounting.
Template-compliant drafting
We write the plan in the government format: commitment, baseline, current emissions, measures and declaration.
Credible reduction path
Interim targets and a net zero date that connect to the measures you will actually take.
Board sign-off
We brief the directors so the sign-off reflects a real commitment, and prepare the publication on your website.
Answers for evaluators
We help your bid team answer questions about the plan and related social value or environmental questions.
Keep it current
Each year we update the figures and progress so the plan stays valid for new bids.
PPN 006 at a glance
| Requirement | Detail |
|---|---|
| Contracts in scope | Central government goods, services and works above £5m a year including VAT, averaged over the contract life, under the Procurement Act 2023 |
| Procurements covered | Procurements commenced on or after 24 February 2025 (earlier ones follow PPN 06/21) |
| Commitment | Net zero by 2050 at the latest |
| Emissions | Scope 1, Scope 2 and five Scope 3 categories, with a baseline year |
| Sign-off | Board level or equivalent |
| Publication | On your UK website, reviewed and updated annually |
| NHS | NHS England requires Carbon Reduction Plans for new contracts above £5m a year |
How we prepare your plan
Collect energy, fuel, travel, commuting, waste and logistics data.
Calculate baseline and current emissions to the technical standard.
Draft the plan, measures and targets in the template.
Board sign-off, website publication and a refresh date.
A dedicated sustainability and ESG team
TaxDigit has a dedicated sustainability and ESG team, led by Dr Attieh Moezoddin, Head of Sustainability & ESG Advisory. Attieh holds a PhD in the Built Environment from the University of Salford and is a sustainable development researcher whose doctoral work built a framework for sustainable urban development using expert panels and multi-criteria analysis (fuzzy Delphi, fuzzy AHP and fuzzy TOPSIS) across social, environmental, economic and cultural pillars.
Finance, reporting and tax quality is reviewed by Amir Rafiei, Senior Manager for Global Tax Strategy, Transfer Pricing and Sustainability, who holds the 
ACCA Certificate in Sustainability for Finance. The team works side by side with our accounts, tax, payroll and international specialists, so your sustainability disclosures, financial statements and tax returns rest on one set of facts. Statutory audit is carried out separately by our alliance firm Jelveh Audit & Assurance.
- PhD, Built Environment
- Sustainable development research
- Materiality and expert panels
- SDGs and impact
- Climate risk and reporting
- ESG metrics and analytics
- IFRS S1, S2 and UK SRS
- CSRD and ESRS
- CBAM and green taxes
All sustainability and ESG services
See the full overview on our sustainability and ESG services page, or go straight to a related service. Large groups may also need our large and multinational group tax support.
Official sources
Rules, thresholds and dates on this page were checked against these sources on 14 November 2026. We re-check them whenever they change.
Frequently asked questions
What is PPN 006?
The Procurement Policy Note that sets out how central government takes account of suppliers' Carbon Reduction Plans in contracts above £5 million a year. It replaced PPN 06/21 for procurements under the Procurement Act 2023.
Which contracts need a Carbon Reduction Plan?
In-scope central government contracts with an estimated value above £5 million a year including VAT, averaged over the life of the contract, where the requirement is relevant and proportionate.
Which Scope 3 emissions must be included?
Upstream transportation and distribution, waste generated in operations, business travel, employee commuting and downstream transportation and distribution.
Does the NHS require a Carbon Reduction Plan?
Yes. NHS England requires suppliers to publish a Carbon Reduction Plan for new contracts above £5 million a year, aligned with PPN 006.
Who must sign the plan?
A director or equivalent at board level, confirming the plan has been reviewed and approved.
How often must it be updated?
At least annually, so the figures and progress stay current.
Does the plan apply to local councils?
PPN 006 applies to central government and its bodies. Some councils and other public bodies ask for similar plans in their own tenders.
Can you prepare a plan quickly for a tender deadline?
Yes, if the data is available. Scope 1 and 2 are usually quick; the Scope 3 categories take longer if records are incomplete, and we document reasonable estimates where needed.