Public sector procurement is lucrative. In 2024/25, the UK government spent £434bn on buying goods and services from private sector companies. As you may expect, given the size of our healthcare system, healthcare spending is by far the largest category.
However, to win a contract valued at over £5m with the central government or the NHS, and get a share of this multi-billion spend, companies must submit a carbon reduction plan – for NHS contracts under £5 million, only a commitment to net zero by 2050 is required. The need for a plan is mandated by policy note PPN 006 (formerly PPN 06/21), designed to drive decarbonisation across the UK’s supply chain and align public spending with net zero targets.
This well-meaning requirement can seem like a daunting task to many companies, when in reality it’s easier than they think. Done right, it’s also a competitive advantage that will prepare businesses for changes to NHS policy in 2027, and the eventual requirement for comprehensive emissions reporting and reduction plans.
The data reality gap
Over the last few years, businesses have come to us with mild panic and a lot of urgency. They feel they need to collect reams of data and do it all yesterday. Often, there’s an assumption that to do PPN 006-compliant carbon reduction planning requires perfect data, particularly when it comes to Scope 3 emissions.
This is sometimes caused by the size of PPN 006 carbon reduction plans compared to something like the Streamlined Energy and Carbon Reporting (SECR) that many companies are already familiar with. SECR demands Scopes 1 and 2; adding Scope 3 is a whole new set of considerations, which are thought by many to be the most elusive to accurately measure and report on.
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