Greenhouse Gas (GHG) Emissions

A complete carbon footprint should include scopes 1, 2 and 3. As an organisation you will have control over your direct emissions (Scope 1) and influence over your indirect emissions (Scope 2).

The GHG Protocol Corporate Standard classifies a company’s GHG emissions into three ‘scopes’.

• Scope 1 emissions are direct emissions from owned or controlled sources, such as fuel combustion or natural gas.
• Scope 2 emissions are indirect emissions from the generation of purchased energy.
• Scope 3 emissions are all indirect emissions (not included in Scope 2) that occur in your value chain, including both upstream and downstream emissions. It is also considered to be the scope from which some emission reporting is optional, as it can be challenging to quantify the emissions arising within this scope (e.g., supply chain). These are broken down into 15 further categories.

Carbon footprints are measured in tonnes/kg of carbon dioxide equivalent (tCO2e) or (kgCO2e). The carbon dioxide equivalent (CO2e) allows the different greenhouse gases to be compared on a like-for-like basis. CO2e is calculated by multiplying the emissions of each of the six greenhouse gases by its 100-year global warming potential (GWP).

PPN 06/21, officially known as the Procurement Policy Note, was released by the U.K. government on 21 June 2021. It outlines specific requirements for companies or organisations bidding on central government or public contracts exceeding £5 million in value per annum.

PPN 06/21 sets guidelines for suppliers bidding on major government contracts. It aims to ensure that these suppliers calculate their carbon footprint and align with the U.K.’s goal of achieving net zero emissions by 2050. It ensures that sustainability and carbon reduction are integral to government procurement.

It requires suppliers to publish a ‘Carbon Reduction Plan’ in a set format which is updated annually. The plan outlines how they intend to reduce their carbon emissions and work toward net zero.

From April 2024, a tiered approach has been applied for a Net Zero Commitment with procurement of lower values for NHS contracts, below £5m and above £10k.

Compliance with PPN 06/21 is essential for organisations bidding on major government contracts.

Carbon Neutrality can be confused with net zero, but they are not the same thing. An organisation can become carbon neutral by taking steps to remove the equivalent amount of GHGs that are being emitted by the organisation. It is a short-term state that most organisations can achieve immediately by measuring and offsetting residual emissions. It does not require initial reduction emissions, but for subsequent years, you do have to reduce. The main difference between carbon neutral and net zero is the timeframe and how the target is reached.

Net zero is a long-term goal achieved only when an organisation has taken action to cut emissions and to remove any remaining greenhouse gases permanently. Offsets are only allowed for the small remaining unavoidable emissions.  Most organisations cannot achieve this today; it is a long-term goal. A net zero target should be in line with limiting temperature rise to 1.5°C for Scope 1, 2 and 3 emissions. Net zero GHG – is a condition in which human-caused residual GHG emissions are balanced by human-led removals over a specified period and within specified boundaries.