In 2019, the UK Government introduced a new target of reducing greenhouse gas emissions by at least 100% (compared to 1990 levels) by 2050. This is known as the “Net Zero” target.
To ensure we deliver on this target, the government is putting in place new public procurement requirements that mandate contractors to have a clear carbon reduction plan to be eligible for tenders over £5m per year in value. This follows the trend of tightening regulations to reduce the impact of construction on the planet.
The objective of Public Procurement Note 06/21 (PPN 06/21) is to understand your environmental impact and carbon footprint related to delivering construction projects.
Construction firms must be able to meet the following requirements to be in the running to win projects:
- Commit to reducing emissions over time to achieve Net Zero by 2050.
- To declare your organisational Greenhouse Gas emissions in accordance with the required reporting standard.
- Make sure you have a Carbon Reduction Plan that has been signed off by the appropriate internal stakeholders.
- Provide specific details about how the carbon reduction plan will be implemented as part of the performance of the contract.
- Provide a Carbon Reduction Plan that meets the technical standard for completing such a plan.
Two key priorities for construction firms are to take action on:
- Get senior leadership to agree on a baseline for carbon reduction and commit to a plan for reducing emissions.
- Ensure you measure and report your progress in as much detail as possible.
The Technical Standards require all Scope 1&2 emissions and some Scope 3 to include:
A. Upstream transport and distribution
B. Waste generated in operations
C. Business travel and employee commenting
D. Downstream transport
Construction teams face challenges associated with managing and reporting on A & B above. Time and labour-intensive processes can lead to inaccurate data being captured and reported. The Qflow Web and Mobile application is a powerful alternative to relying on paper and MS-Excel-based methods of capturing site reality with near real-time reporting.
UPDATE: Construction News recently shared their thoughts on this and how some of the industry pioneers are approaching this new opportunity.
If you’re unsure how to ensure compliance with PPN 06/21 in your organisation, we can help. We’ve learned a lot by working with other clients on this journey and are happy to share our knowledge with you.