What is PPN006 and does your business need a Carbon Reduction Plan?

If your company sells goods or services to the NHS or other public sector bodies, you have probably started hearing about PPN006 and Carbon Reduction Plans. This page explains what they are, what you actually need to do, and when you need to do it.

We have kept the language as plain as possible. You do not need a background in sustainability or carbon accounting to follow this.

The short version

PPN006 is a UK government policy that requires suppliers to public sector contracts to show what they are doing to reduce their carbon emissions. The way they do this is by writing and publishing a Carbon Reduction Plan, sometimes called a CRP.

If you supply the NHS and you do not have a compliant Carbon Reduction Plan in place, you risk being unable to bid for contracts. The rules are tightening in stages, and the next major deadline is April 2026.

Not sure if this applies to you?

If your business sells anything to an NHS organisation, an NHS Supply Chain framework, or any other UK public sector body, the answer is almost certainly yes. Get in touch and we will tell you exactly where you stand, free of charge.

What is a Carbon Reduction Plan?

A Carbon Reduction Plan is a written document that sets out:

•       your current carbon emissions, measured across your business operations

•       a commitment to reach net zero by 2050 at the latest

•       the steps you are taking to reduce those emissions over time

 

Think of it as a formal record of where you are now and where you are heading. It does not need to be perfect from day one, but it does need to be honest, up to date, and publicly available on your website.

The document needs to be signed off by a director or equivalent senior person in your organisation. It must be updated at least once a year.

What are Scope 1, 2 and 3 emissions?

This is the part that confuses most people. Carbon emissions from a business are divided into three groups, called scopes.

Scope 1 — emissions you create directly.

This covers things like gas boilers, company vehicles, and any fuel your business burns on site. If it happens on your premises or in your vehicles, it is Scope 1.

Scope 2 — emissions from the energy you buy.

This is primarily your electricity. Even though you are not burning fuel yourself, generating that electricity creates emissions somewhere. Scope 2 captures that.

Scope 3 — everything else in your supply chain and beyond.

This is the big one. Scope 3 covers the emissions connected to your business that you do not directly control. That includes the goods you buy from suppliers, the travel your employees do to get to work, the emissions from using the products you sell, and what happens when those products are eventually disposed of.

For most businesses, Scope 3 is by far the largest part of their carbon footprint. It can be complex to measure, which is why the NHS roadmap phases it in gradually.

A useful way to think about it

Scope 1 and 2 are the emissions inside your four walls (or four wheels!)

Scope 3 is everything outside them, from your suppliers' factories to your customers' bins.

The NHS supplier roadmap: what you need to do and when

The NHS is not asking everything of suppliers at once. The requirements are being introduced in stages, giving businesses time to build their reporting capability. Here is how the timeline looks.

Date What changes
April 2023 Suppliers bidding for NHS contracts worth over £5 million per year must publish a Carbon Reduction Plan covering their Scope 1 and Scope 2 emissions, plus a defined set of Scope 3 emissions.
April 2024 The requirement extends to all new NHS procurement contracts, regardless of value. Suppliers must also make a public net zero commitment for contracts above the relevant procurement threshold.
April 2026
Act now
Evergreen Level 1 becomes mandatory for all NHS Supply Chain tenders. Suppliers must achieve this assessment level before a tender closes in order to be eligible to bid. This requires a PPN 006-compliant Carbon Reduction Plan, a net zero by 2050 commitment, and reporting of UK Scope 1, 2 and relevant Scope 3 emissions.
April 2027
Prepare now
All suppliers must publicly report emissions reduction targets and publish a globally scoped Carbon Reduction Plan covering all Scope 1, 2 and 3 emissions, aligned to the NHS net zero target.
April 2028
Upcoming
New requirements are expected for carbon footprinting of individual products supplied to the NHS. The NHS will work with suppliers and regulators to agree the scope and methodology.
From 2030
Upcoming
Suppliers will only qualify for NHS contracts if they can demonstrate progress through published progress reports and continued carbon emissions reporting via the Evergreen assessment.

The recent April 2026 deadline is the most pressing for many businesses right now. Evergreen Level 1 is the NHS's baseline sustainability standard. Since 6 April 2026, suppliers must hold this status before a tender closes, or they will be excluded from bidding. It is a pass or fail requirement, not a scored one.

Already past the April 2023 or 2024 deadlines?

If you have been bidding for NHS contracts without a Carbon Reduction Plan in place, you may already be at risk. We can help you get compliant quickly. Most of our SME clients have a complete, published Carbon Reduction Plan within two to three weeks.

What does PPN006 actually stand for?

PPN stands for Procurement Policy Note. These are official guidance documents issued by the UK Cabinet Office to public sector buyers, telling them how to run procurement processes. PPN006 is the sixth note in the current numbering system.

It was originally published in June 2021 as PPN 06/21. In February 2025, when new procurement legislation came into force under the Procurement Act 2023, it was renamed PPN 006. The substance of the requirements did not change, only the name.

You may still see it referred to as PPN 06/21 in older documents. They are the same thing.

What counts as net zero?

Net zero means that the total amount of greenhouse gases your business puts into the atmosphere is balanced by the amount being removed. In practice, this means two things:

  • reducing your emissions as far as practically possible

  • offsetting whatever genuinely cannot be eliminated, through schemes that remove or avoid an equivalent amount of carbon elsewhere

The NHS requires suppliers to commit to reaching net zero by 2050 at the latest, in line with UK government targets. Some suppliers are choosing to set more ambitious interim targets, for example net zero by 2040, which can strengthen their position when competing for contracts.

Does PPN006 apply to small businesses?

Yes. The original threshold was contracts over £5 million per year, which caught larger suppliers. Since April 2024, the NHS has extended the requirements to cover all new procurement contracts, regardless of value.

There is some proportionality built in. Smaller businesses are not expected to have the same depth of data or sophistication of reporting as large corporations. But every supplier that wants to bid for NHS work does need a compliant Carbon Reduction Plan in place.

The good news is that for a small or medium-sized business, a credible Carbon Reduction Plan does not need to be hundreds of pages long. It needs to be accurate, signed off at director level, published on your website, and updated annually.

How Lemonade works with SMEs

We specialise in helping small and medium-sized businesses get compliant without the overhead of a large consultancy. Fixed fees, plain language, and delivery in weeks rather than months. We have supported over multiple suppliers in producing compliant CRPs, including medical equipment suppliers, building firms and technology providers..

What is Evergreen?

Evergreen is the NHS's online platform for suppliers to report their sustainability maturity. It replaced an earlier tool called the Carbon Waste and Water Reduction Assessment.

Evergreen uses a tiered system. Level 1 is the baseline, and from April 2026 it is mandatory for NHS Supply Chain tenders. Higher levels are not yet required but demonstrate greater sustainability ambition and may carry weight in future procurement scoring.

To reach Evergreen Level 1, a supplier needs to:

  • publish a PPN 006-compliant Carbon Reduction Plan

  • commit publicly to net zero by 2050

  • report UK Scope 1, Scope 2, and relevant Scope 3 emissions

Achieving Evergreen Level 1 does not replace your other obligations under PPN006 or the NHS's Five Supplier Asks. It is one part of a broader set of requirements.

The NHS is not asking everything of suppliers at once. The requirements are being introduced in stages, giving businesses time to build their reporting capability. Here is how the timeline looks.

Frequently asked questions

How long does it take to write a Carbon Reduction Plan?

For most SMEs, the process takes between two and six weeks, depending on how much emissions data is already available. The main task is gathering information about your energy use, travel, and supply chain spending. Once that is in place, writing the plan itself is relatively straightforward.

How much does it cost?

Fees vary depending on the size of your business, the complexity of your operations, and how much of the work you want to do yourself. Lemonade offers fixed-fee Carbon Reduction Plans for SMEs. Contact us for a no-obligation quote.

Do I need to hire a consultant?

No, but most businesses find it significantly faster and less stressful to use a specialist. The methodology for measuring carbon emissions has specific rules, and getting it wrong can mean your plan fails the NHS's assessment. We take care of the technical parts so your team does not have to.

What happens if I miss a deadline?

Missing a compliance deadline means you will not be eligible to bid for affected NHS contracts until you have a compliant plan in place. For businesses where NHS contracts make up a significant share of revenue, that is a serious commercial risk.

My Carbon Reduction Plan was written two years ago. Is it still valid?

It depends on whether it has been updated annually and whether it covers the required emissions categories for the current deadline. We can review your existing plan and tell you what, if anything, needs to change.

 

Get your Carbon Reduction Plan sorted

Lemonade is a London-based sustainability consultancy that specialises in helping SMEs and NHS suppliers get compliant with PPN006. We offer fixed-fee Carbon Reduction Plans with plain language, fast turnaround, and no unnecessary complexity.

 

Get in touch: hello@lemonade.eco

Website: www.lemonade.eco

 

Sources:

PPN006 official guidance (Cabinet Office, GOV.UK) https://www.gov.uk/government/publications/ppn-006-taking-account-of-carbon-reduction-plans-in-the-procurement-of-major-government-contracts

NHS England — Carbon Reduction Plan requirements for NHS procurement (the detailed implementation guidance, updated December 2025) https://www.england.nhs.uk/long-read/carbon-reduction-plan-requirements-for-the-procurement-of-nhs-goods-services-and-works/

Greener NHS — Suppliers page (the NHS net zero supplier roadmap overview) https://www.england.nhs.uk/greenernhs/get-involved/suppliers/

NHS England — Evergreen Sustainable Supplier Assessment https://www.england.nhs.uk/nhs-commercial/sustainability/evergreen/