We hear many prospective customers comment that they simply use their existing corporate social responsibility (CSR) statements to prepare their bids, but that alone is not enough. PPN 06/21 requires the use of a specific carbon reduction planning template and calculations must be performed in a consistent and reliable manner. Without this, the bid will not be considered.
PPN 06/21 is a Procurement Notice developed by the UK Government to decarbonise the public sector. This applies to anticipated contract values of £5 million or more per year and is used as part of the supplier evaluation.
So are you at risk of being left behind? With ESG taking a 30% stake in tenders to supply the City of London and up to 25% elsewhere, huge revenues and opportunities are at stake.
Perhaps it seems like an unwarranted waste that a company wearing CSR should be obliged to initiate yet another sustainability effort, but ESG is the evolution of CSR and carbon is just one component.
As companies begin to work on PPN 06/21, they are already well on their way to becoming carbon neutral, making progress that should be further highlighted through the full ESG report.
For many, carbon reporting and ESG reporting is a chicken-and-egg dilemma. Note, however, that ESG reporting can be much faster than carbon reporting. ESG reports allow her to see the first report completed within 6 months, whereas carbon reports typically require him 12 months of data collection before the actual work can begin.
If your business plans to submit a bid in 2023, you should consider starting with an ESG report so you can secure your ESG rating points.
However, with the right consultants, carbon reporting can be completed very quickly in certain circumstances…
Case Study:
Small businesses were suddenly given an opportunity to surpass their weight in government tenders earlier this year. They had all the paperwork in order and it was a week after the deadline that he found out about his PPN 06/21 needed. They were on a scale that had never before been considered sustainable. He was a relatively small company with just 25 full-time employees and over 100 subcontractors.
I had a quick phone call later and ESG PRO agreed to meet the deadline. We want to help all businesses reach new heights with a very capable small business team in addition to our government team.
Using an approved methodology for calculating averages based on country data, we were able to generate PPNs. Fortunately, their operational style meant that many of the more challenging scope 3 emissions categories were not applied, or they would have missed the deadline.
After submitting a bid, our client saw value in producing an ESG report as well as completing a full annual carbon report. why? We recognize the added value of producing an ESG report and the difference meeting these requirements can make to your business relationship.
PPN 06/21 need not be an intimidating hurdle, but ensuring its accuracy and credibility is essential to the proposed proposal. The reputational damage of completing it without a strong and consistent methodology is why ESG PRO exists to provide you with a stress-free, dependable, trustworthy and fully managed reporting service.
Small businesses may think sustainability reporting is not essential to them, but that mentality only lasts until the opportunity presents itself and they experience panic about not being prepared.
ESG and carbon reporting add value to business, and small businesses can benefit above all. In Gartner’s words, ESG and sustainability will dominate boards in his decade just as digital transformation has dominated in the last decade.
Consulting is free, but can be invaluable to the growth and success of your business. PPN 06/21 is just the beginning, but it could well be completed.
