Just what is The Public Procurement Policy 06/21 anyway?
9th Jun 2023
In September 2021, the UK government implemented Procurement Policy Note 06/21 (PPN 06/21), which mandates suppliers bidding for government contracts over £5 million to reduce carbon emissions in line with the UK's 2050 Net Zero targets. This policy signifies a significant step toward decarbonizing the public sector by 2050.
PPN 06/21 applies to suppliers engaging with central government departments, executive agencies, and non-departmental public bodies. It covers procurements launched from 30th September 2021 onward, ensuring carbon reduction measures are integrated into the procurement process for goods, services, and works. The policy also encompasses framework agreements and dynamic purchasing systems meeting specific criteria.
PPN 06/21 recognizes the importance of social value in public procurement. Aligned with the Public Services (Social Value) Act 2012, it requires English public authorities to assess how procurement can enhance economic, social, and environmental well-being. This assessment occurs during the pre-procurement stage, allowing authorities to pursue improvements and consult stakeholders.
The government developed the Social Value Model to facilitate the integration of social value. This model outlines five themes and associated policy outcomes that procurement staff can review and select in collaboration with internal clients and stakeholders. The themes include COVID-19 recovery, tackling economic inequality, fighting climate change, promoting equal opportunity, and improving well-being.
To maximize the impact of social value priorities, a clear "golden thread" connecting government objectives, strategies, business cases, and procurement specifications is crucial. This approach encourages collaboration between the government and market stakeholders, refining proposals and evaluation criteria that assess quality, policy delivery, and whole-life value.
PPN 06/21 is a significant milestone in the UK government's commitment to carbon reduction and social value integration in public procurement. By requiring suppliers to reduce carbon emissions and considering social value, the policy paves the way for a more sustainable and socially responsible public sector. By aligning procurement with Net Zero targets and emphasizing social value, the government aims to drive positive change, foster innovation, and create a better future for all.