In light of the UK government's net zero target, passed into law in 2019, the government has issued a Procurement Policy Note (PPN) on government procurement processes to promote the achievement of the net zero target. The provisions of the PPN apply to all central government departments, their executive agencies and non-departmental public bodies ('in-scope organisations). The PNN state that in-scope organisations should "take action to apply this PPN when procuring good and/or services and/or works with an anticipated contract value above £5million per annum (excluding VAT) which are subject to the Public Contracts Regulation 2015 save where it would not be related and proportionate to the contract". The PPN further states that in-scope organisations should include a requirement for bidding suppliers to provide a Carbon Reduction Plan, confirming the suppliers commitment to achieving net zero by 2050 in the UK, amongst other provisions, as part of the assessment process in the procurement of goods and services.
Organisations that fall within the scope of the PPN guidelines must apply the PPN's provisions to procurement processes from September 30th, 2021 onwards.
