Are you a NHS or Government supplier? Here’s what you need to know about delivering a mandatory carbon reduction plan.

Blog

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As part of the UK Government’s commitment to net-zero carbon emissions by 2050, the NHS is aiming to achieve net-zero even earlier, by 2040, and therefore has brought in a mandatory requirement for its suppliers to have a credible Carbon Reduction Plan which includes emissions measurements.

<h2>What is the Procurement Policy Note 06/21 (PPN 06/21) </h2>
The Procurement Policy Note 06/21 (PPN 06/21) applies uniformly across all central government departments (including the NHS), their executive agencies, and non-departmental public bodies. This also includes departments outside the NHS. You can read more <a href="https://www.england.nhs.uk/long-read/carbon-reduction-plan-requirements-for-the-procurement-of-nhs-goods-services-and-works/" target="_blank" rel="noopener">here</a>.
The policy’s scope covers all major government contracts, ensuring a consistent approach across central government entities. However, it does not extend to devolved administrations unless they choose to adopt it, as seen with the Welsh Government.
From April 2024 the continued implementation of the policy PPN 06/21 will mean that all NHS suppliers who apply or reapply for framework agreements regardless of value are required to produce Carbon Reduction Plans (CRPs) to mitigate their environmental impact.

<h2>The challenge</h2>
NHS suppliers are being asked to get to grips with measuring their carbon footprints, creating reduction plans and making net-zero commitments. NHS contracts will only be awarded to suppliers who have reported on their scope 1, 2 and a subset of scope 3 emissions, along with a credible Carbon Reduction Plan. In addition, NHS suppliers are also required to make a public commitment for net-zero and publish this on their website.
Mastering carbon accounting is a significant challenge for many firms and also presents a risk of non-compliance if submitted incorrectly. Additionally data collection and understanding the technical requirements poses a major obstacle, and knowing where to begin can be difficult. This often leads to errors and consumes substantial time and resources, ultimately impacting the bottom line and can also put tender submissions at.

<h2>The solution</h2>
We developed Ecologi Zero, a cost-effective software solution that simplifies compliance with NHS regulation PPN 06/21 and empowers NHS suppliers to calculate their carbon footprint, identify emission hotspots, and formulate a Carbon Reduction Plan.
Our hybrid approach entails using our carbon calculation platform, Ecologi Zero backed up with our in-house consultants who will support you every step of the way. This means we can support businesses to capture the correct and necessary data, work on the emissions calculations and produce a Carbon Reduction Plan in the required format. You can see an example report below.

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<h2>Calculate your carbon footprint</h2>
Our calculation tool helps firms to calculate their scopes 1, 2 &amp; 3.
Our integration with Xero helps users seamlessly import transaction data which we can turn into calculated emissions with our spend base emissions factors. 
With our Advanced Support feature, we can also process activity data for vehicles and travel, energy usage and home working, and more additional data as needed.

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<h2>Reduce your carbon emissions</h2>
Set emissions Reduction goals based on your emissions hotspots.
Setting reduction goals creates a clear and credible plan for your business to achieve the necessary emissions cuts on the journey to net-zero.
Our in-house team will help you to create a bespoke set of actionable goals to help you on your path to net-zero. These can range from tactics to improve data collection for subsequent reports to implementing strategies to reduce your emissions.

<h2>Report on your carbon reduction plans</h2>
Creating a GHG Protocol aligned Report &#8211; that can be used for tenders compliant with PPN 06/21.
The report contains: 

<ul>
<li>Scope 1, 2,  3 (as required) emissions, providing coverage of the required operational and supply chain emissions.
<ul>
<li style="font-weight: 400;" aria-level="1">A net-zero commitment and corresponding graph.</li>
<li style="font-weight: 400;" aria-level="1">An overview of your business operations and the methodology used by Ecologi.</li>
</ul>
</li>
<li> A breakdown of these emissions from all seven GHGs represented as CO2e.</li>
<li>A declaration of emissions not captured in the report. </li>
</ul>
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<h2>Learn through the Ecologi Academy</h2>
Our new Ecologi Academy Feature allows users to upskill themselves on the intricacies and complexities around ‘Net-Zero’ and other climate terms. 
 
There are infographics and breakdowns so we can help users to understand core climate ideas and how to communicate them to their wider team.

<h2>Supported all the way</h2>
Ecologi&#8217;s consultants play a crucial role in helping customers meet the mandatory requirements set by NHS with the PPN PPN 06/21 requirement, by providing comprehensive support throughout the carbon accounting process. Our team will help assist businesses in capturing the correct and necessary data, ensuring accurate emissions calculations using the Ecologi Zero carbon calculator. Our team will also guide you in producing detailed and compliant Carbon Reduction Plans (CRPs) by helping to process activity data for various sources of emissions to ensure all relevant emissions sources are accounted for and to improve the accuracy of your footprint, setting targeted emissions reduction goals, and creating GHG Protocol-aligned reports. This personalised support will ensure that NHS suppliers can efficiently calculate their carbon footprints, identify emission hotspots, and formulate effective strategies to mitigate their environmental impact while adhering to government regulations.

<h2>Conclusion</h2>
As the UK Government drives towards its 2050 net-zero carbon emissions target, the NHS&#8217;s mandatory Carbon Reduction Plan requirement under PPN 06/21 marks a significant step in ensuring its suppliers actively engage in emission reduction efforts. This policy, extending to all major government contracts, underscores the importance of comprehensive carbon accounting and effective carbon reduction strategies. Ecologi Zero emerges as a pivotal solution, saving time and positively impacting business bottom line by simplifying the compliance process for NHS suppliers and providing robust tools for calculating carbon footprints, setting reduction goals, and generating GHG Protocol-aligned reports. This streamlined approach not only helps businesses meet regulatory demands but also supports their broader sustainability objectives, contributing to the collective effort against climate change.


Click on the button below to speak to our team about how Ecologi Zero can help your business.


Your net-zero journey starts here

Case studies

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Case Study: BioPak UK

<h2>About BioPak UK</h2>
A world without waste. That’s the mission of BioPak, and they’re working hard to achieve it. By disrupting the current take, make, waste model, BioPak’s sustainable food packaging solutions are leading the way to a truly circular economy.
Founded in 2006, BioPak has become a globally recognised brand, loved by businesses and consumers across Australia, New Zealand, the UK, the US, Hong Kong and Singapore.
BioPak’s packaging solutions are designed to be better for our planet. They use renewable plant-based materials that are sourced responsibly. To promote responsible disposal of their packaging, BioPak encourages composting through their Compost Connect scheme—a not-for-profit initiative that connects customers to compost pick-up services.

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BioPak is better for people too. The company is B Corp certified and donates 5% of all profits to positive change via their Give Back Fund. BioPak is a business that’s truly committed to the principles of the Triple Bottom Line: People, Planet, and Profit.

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<h2>Issue</h2>
BioPak’s commitment to combating climate change is unwavering. Having been carbon neutral certified for over a decade, in 2022 the team took the strategic decision to shift away from carbon-neutrality, and instead focus on emissions reduction.
This decision wasn’t taken lightly, but they recognised the need to move beyond mere carbon offsetting. They view it as a leap forward rather than a step back, and a move to create a more substantial positive influence on the planet. 
The team believes that understanding their total carbon footprint is vital. They are dedicated to clarifying the sources of their emissions, which span the entire product lifecycle, encompassing offices, product transportation, packaging production, raw material extraction, and end-of-life emissions.
BioPak uses an independent third party to measure their carbon footprint, cost to the environment (including impact on biodiversity, human health, climate change and material scarcity) and lifecycle phases of their products. This is done to enhance transparency, accountability and demonstrate their commitment to combating greenwashing.
BioPak is serious about combating climate change, with reducing carbon emissions being crucial in achieving this goal. A key part of this goal is supporting industrial composting through the Compost Connect scheme. The team is committed to diverting food waste and compostable packaging from landfill and incineration by making compost facilities more accessible across Australia, New Zealand and the UK.
Working together with customers, BioPak truly believes it can pave the way for a more sustainable world for future generations.

<h2>Challenges</h2>
As a B Corp and leader in sustainable food packaging, the team at BioPak feels a keen obligation for environmental stewardship. They describe BioPak as a “profit for purpose business”, and as such are driven to preserve and protect the environment while giving back to the communities in which they operate. 
To honour this obligation, BioPak set up its Give Back Fund in 2012, and since then have dedicated their time and energy to partnering with leading environmental and social charities to bring about positive change. So far they have donated a total of £2,495,352.
In the last decade, BioPak’s commitment to Australian environmental conservation has flourished through a partnership with Rainforest Rescue, which has planted and safeguarded 95,720 trees and reclaimed eight hectares of endangered Daintree Rainforest.

<h2>Solution </h2>
BioPak donates 1% of all profits to community and environmental projects, and here in the UK we’re proud that Ecologi has been chosen to support that commitment through tree planting. The team firmly believes that tree planting is a powerful solution that produces oxygen, stores carbon, and helps tackle climate change.
BioPak’s reforestation work with Ecologi underpins a global commitment to ecological restoration. This ambitious initiative is a cornerstone of BioPak’s corporate responsibility ethos, aiming to not only mitigate the impacts of climate change but also foster local biodiversity, enhance soil health, and support local communities in achieving sustainable development goals.
Working with Ecologi proves BioPak’s cast iron commitment to the environment, and in turn boosts its credibility, enhances its brand reputation and helps its customers make a positive impact. The team regularly communicates their sustainability milestones with customers and colleagues alike, through impact certificate, emails and internal communications.

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<h2>Outcome</h2>
Since 2021 BioPak has planted 102,479 trees with Ecologi, and the team plans to continue to regularly donate to increase this figure as much as they can. 
As a profit-for-purpose business, BioPak’s commitment to protecting the environment is vital in retaining current customers and attracting new customers, who are looking to make a positive impact through their supply chain. The Give Back Fund, and the work with partners like Ecologi, remains a fundamental part of BioPak’s brand messaging and ethos.
Sam Walker, Technical Director at BioPak UK, said:
<blockquote>It&#8217;s great to partner with Ecologi and support both the large scale reforestation projects they do and the more grass roots initiatives which really make a difference locally&#8230; Reforestation and habitat restoration are the foundations of reversing biodiversity loss and critical in the fight against climate change. We&#8217;re proud to work with Ecologi and share the impact data with our customers.</blockquote>

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<h2>Is your business ready to take climate action?</h2>
If this article has inspired your business to start its climate journey, talk to our team today.

Speak to our team. We're here to help you find your perfect climate solution.

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At Ecologi we believe in transparency, which is why, when we make changes, we want to let you know.
As of Tuesday 1st October 2024, we will be making a few changes to the Ecologi Impact Shop, including discontinuing some projects, as well as adding new ones and changing our prices slightly. 
Keep reading to find out more, or jump to the section on <a href="#customers">What these changes mean for our customers</a>, or our <a href="#faqs">FAQs</a>.

<h2>Update to our ‘Carbon avoidance’ project</h2>
We will be removing our generic ‘<a href="https://ecologi.com/impact-shop/support-carbon-avoidance" target="_blank" rel="noopener">Carbon avoidance</a>’ product from the Impact Shop, and replacing it with a new type of carbon avoidance project, which specifically supports landfill methane capture. This project is among the first in the world to receive the CCP-Approved quality label from the Integrity Council for the Voluntary Carbon Market (ICVCM).
<h3>Why are we making this change?</h3>
In June of this year, the ICVCM, an independent governance body dedicated to establishing a global benchmark for high-quality carbon credits, <a href="https://icvcm.org/integrity-council-announces-first-high-integrity-ccp-labelled-carbon-credits-as-assessments-continue/" target="_blank" rel="noopener">announced the first carbon-crediting methodologies</a> that meet its high-integrity Core Carbon Principles (CCPs).
As part of this, the ICVCM have applied its ‘CCP-Approved’ label to a variety of projects that tackle potent greenhouse gases by capturing methane from landfill sites (like our supported <a href="https://ecologi.com/projects/avoiding-methane-emissions-from-landfill-in-brazil" target="_blank" rel="noopener">Macaubas LFG project</a>), and by destroying ozone-depleting foams and refrigerant gases from discarded equipment such as refrigerators and air conditioners.
We have been supporting landfill gas projects through our platform since our early days, including some of these first projects which have received this ICVCM stamp of approval. Effective on 1st October 2024, we are replacing the general ‘support carbon avoidance projects’ product on our Impact Shop, to specifically support these newly CCP-Approved landfill methane capture projects.

<h2>Discontinuation of our ‘Renewable energy carbon avoidance’ project</h2>
In addition, we will be removing the ‘<a href="https://ecologi.com/impact-shop/support-renewable-energy" target="_blank" rel="noopener">Renewable energy carbon avoidance</a>’ product from our Impact Shop. The ICVCM recently decided it would not award the existing renewable energy credit methodologies its CCP-Approved label, so we’ve opted to preemptively stop offering these on our platform. For additional insight into this decision, we encourage you to read our <a href="#faqs">FAQs</a> further down on this page.
<h3>Why are we making this change?</h3>
One of the next decisions made by the ICVCM as part of its assessment of carbon credit methodologies was to acknowledge that existing renewable energy generation credit methodologies do not meet the standard to achieve CCP-Approval. 
One key reason these methodologies don’t meet the CCP-Approved criteria is that the methodologies themselves fail to meet the stringent requirements for additionality, a key factor in ensuring that carbon credits represent genuine emissions reductions that wouldn&#8217;t have occurred without the carbon finance. See this quote from Sylvera on what additionality refers to: 
<blockquote>Additionality refers to the causal relationship between the project&#8217;s activities and the climate benefits it claims including the risk of the project over-crediting. A project is considered additional if the project activities would not have occurred without the revenue from a voluntary carbon credit. The additionality score is a function of how likely it is that the project is additional, and how likely it is that the project is over-crediting on the carbon avoidance or removal it is delivering.</blockquote>
Ecologi has always had a regionalised approach to our impact, consistently applying additional scrutiny to the projects we elect to support through our platform. Only six renewable energy projects are currently eligible for receipt of funding from our platform – out of an estimated &gt;2,200 renewable energy projects on the voluntary carbon market. Our careful selection process has ensured that we consider not only the type of project but also its specific implementation location.
For example, we have deliberately chosen not to fund large hydroelectric dams due to their associated social and environmental risks and we have generally steered clear of offshore wind projects, favouring onshore wind solutions that are more appropriate for the regions we support. We have always prioritised those situated in areas where the energy grid is still heavily reliant on fossil fuels, such as Morocco and Mexico, to maximise impact as much as possible.
This all said, following the ICVCM’s ruling on renewables, we have made the decision to stop offering renewable energy carbon credits via our Impact Shop.
We believe it is a good thing that the ICVCM is rejecting certain methodologies from receiving its high-quality label. This rigorous approach is necessary to maintain and improve the integrity of the carbon market – to raise the quality of projects across the board – and to ensure that all participants can trust that their investments are driving real, additional climate benefits.

<h2>Updates to pricing on the Impact Shop</h2>
Finally, on October 1st we will be updating pricing across our Impact Shop to reflect recent changes in market prices, and as a result some of our products will be cheaper to support.
<h3>Why are we making this change?</h3>
As part of our commitment to staying aligned with the evolving voluntary carbon market and providing the best prices we can to customers, we are also adjusting our pricing structure. To better reflect current market prices, we have reviewed and updated all the prices for carbon projects, some of which have reduced in price slightly. We are pleased to report that none of our existing projects have increased in price.
Pricing in the carbon market is dynamic, influenced by a variety of factors including regulatory updates, market demand, geographies, ratings, and broader project qualities. We aim to stay responsive to these changes and ensure that our offerings continue to provide value to all stakeholders involved, from project developers to buyers and the communities benefiting from these projects.
As an impact-driven organisation who put planet first, we want to ensure that we are responsive to the market and our customers are getting the best deal for the impact they want to support.

<h2>What do these changes mean for our customers?</h2>
There are no direct actions that our customers will need to take in light of these changes.
As of October 1st you will notice that our generic ‘<a href="https://ecologi.com/impact-shop/support-carbon-avoidance" target="_blank" rel="noopener">Carbon avoidance</a>’ project and our ‘<a href="https://ecologi.com/impact-shop/support-renewable-energy" target="_blank" rel="noopener">Renewable energy carbon avoidance</a>’ project will no longer be available on the Impact Shop. You will also notice that our new CCP-Approved landfill gas capture project will be available to support, and that the price of some of our existing projects have decreased slightly.

FAQs

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You might have heard the terms climate mitigation and climate adaptation before and wondered what they mean, and what role they play in achieving net-zero?
We speak to businesses every day that ask us these kinds of questions, so we’re here to break it down in this article. As part of this guide we’ll cover:
<ul>
<li style="font-weight: 400;" aria-level="1">What are the definitions of climate mitigation and climate adaptation?</li>
<li style="font-weight: 400;" aria-level="1">What are the climate strategies associated with them?</li>
<li style="font-weight: 400;" aria-level="1">What&#8217;s the purpose of each approach?</li>
<li style="font-weight: 400;" aria-level="1">What kind of costs are associated with each approach?</li>
<li style="font-weight: 400;" aria-level="1">What’s their role in achieving net-zero?</li>
<li style="font-weight: 400;" aria-level="1">What types of projects do they involve?</li>
<li style="font-weight: 400;" aria-level="1">How are the projects certified?</li>
</ul>

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<h2>Definition of climate mitigation and climate adaptation</h2>
Climate mitigation
Involves actions taken to reduce or prevent the emission of greenhouse gases into the atmosphere, with the goal being to limit the extent of climate change.
Climate adaptation
Refers to measures taken to adapt to the impacts of climate change that are already occurring or are projected to occur. Adaptation focuses on minimising the negative effects of climate change, and building resilience to climate-related risks.

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<h2>Types of climate mitigation and climate adaptation strategies</h2>
Climate mitigation
Strategies include transitioning to renewable energy sources, improving energy efficiency, implementing carbon capture and storage (CCS) technologies to capture CO2 emissions, and promoting afforestation and reforestation efforts to increase carbon sequestration.
Climate adaptation
Strategies include developing climate-resilient infrastructure, implementing water conservation practices, establishing early warning systems for extreme weather events, shifting to more resilient agricultural practices, and protecting and restoring natural ecosystems.

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<h2>What is the key purpose for climate mitigation and climate adaptation</h2>
Climate mitigation
The primary objective is to reduce the amount of greenhouse gases in the atmosphere, thereby slowing the rate of climate change and its associated impacts, such as rising sea levels, extreme weather events, and disruptions to ecosystems.
Climate adaptation
The main objective is to reduce the vulnerability of human and natural systems to the impacts of climate change, enhance their capacity to cope with climate-related risks, and promote long-term resilience in the face of changing climatic conditions.

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<h2>Climate mitigation and climate adaptation costs</h2>
Climate mitigation
Measures often involve up-front costs, but this can lead to long-term cost savings. Over time, the adoption of new technologies costs less and results in greater benefits, such as we have seen with renewable energy technologies.
Climate adaptation
Measures also incur costs, but these are typically focused on adapting infrastructure to withstand changing environmental conditions. Adaptation costs may vary depending on the scale of the project and the vulnerability of the affected regions.

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<h2>Role in achieving net-zero</h2>
Climate mitigation
Interventions are crucial to achieving net-zero by reducing the amount of greenhouse gases in the atmosphere. Mitigation efforts aim to balance sources of emissions with sinks, ultimately leading to net-zero emissions. 
Climate adaption
Is essential for building resilience to climate impacts, but does not directly contribute to achieving net-zero emissions. Instead, adaptation measures focus on minimising the negative effects of climate change on communities and ecosystems, enhancing their ability to cope with climate-related risks.

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<h2>Types of climate mitigation and climate adaptation projects</h2>
Climate mitigation
Projects reduce greenhouse gas emissions or enhance sequestration. These can include renewable energy projects, energy efficiency improvements, afforestation and reforestation initiatives, adoption of low-carbon transportation systems, and carbon capture and storage (CCS) projects. 
Climate adaptation
Projects focus on building resilience to the impacts of climate change. This may involve constructing climate-resilient infrastructure, implementing water conservation strategies, developing early warning systems for extreme weather events, restoring ecosystems, and transforming agricultural practices.

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<h2>Certification</h2>
Climate mitigation
Projects often undergo certification processes to verify their carbon reduction or removal activities and ensure their compliance with established standards such as the Verified Carbon Standard (VCS), the Gold Standard, or the Clean Development Mechanism (CDM) under the Kyoto Protocol.
Climate adaptation 
Projects have no specific certification schemes, but some organisations may seek recognition for their climate resilience efforts through programs focused on sustainability or climate adaptation planning. However, certification for adaptation projects is less standardised compared to mitigation projects.

<h2>In conclusion</h2>
Climate mitigation is primarily concerned with reducing the amount of greenhouse gases in the atmosphere, and limiting further climate change. Whereas climate adaptation is mostly concerned with building resilience and adapting to the impacts of climate change. Both approaches are critical for addressing the challenges of climate change and transitioning towards a sustainable and resilient future.

<h2>Is your business ready to take climate action?</h2>
If this article has inspired your business to start its climate journey, then you can complete the form below to schedule a call with our team.

Are you a NHS or Government supplier? Here’s what you need to know about delivering a Carbon Reduction Plan.

Your net-zero journey starts here

Click on the button below to speak to our team about how Ecologi Zero can help your business.

More posts

Case study: How BioPak UK is engaging customers and leading the way to a world without waste

Upcoming changes to the Ecologi Impact Shop

Climate mitigation vs climate adaptation: what is the difference?

Stay in touch with Ecologi