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

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<p><span style="font-weight: 400;">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. </span></p>


<h2><strong>What is the Procurement Policy Note 06/21 (PPN 06/21) </strong></h2>
<p><span style="font-weight: 400;">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 </span><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"><span style="font-weight: 400;">here</span></a><span style="font-weight: 400;">.</span></p>
<p><span style="font-weight: 400;">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.</span></p>
<p><span style="font-weight: 400;">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.</span></p>


<h2><b>The challenge</b></h2>
<p><span style="font-weight: 400;">NHS suppliers are being asked to get to grips with measuring their carbon footprints, creating reduction plans and making net-zero commitments. </span><b>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.</b></p>
<p><span style="font-weight: 400;">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.</span></p>


<h2><b>The solution</b></h2>
<p><span style="font-weight: 400;">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.</span></p>
<p><span style="font-weight: 400;">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.</span></p>


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<h2><b>Calculate your carbon footprint</b></h2>
<p><span style="font-weight: 400;">Our calculation tool helps firms to calculate their </span><b>scopes 1, 2 &amp; 3.</b></p>
<p><span style="font-weight: 400;">Our integration with </span><b>Xero</b><span style="font-weight: 400;"> helps users seamlessly import transaction data which we can turn into calculated emissions with our spend base emissions factors. </span></p>
<p><span style="font-weight: 400;">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.</span></p>


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<h2><b>Reduce your carbon emissions</b></h2>
<p><span style="font-weight: 400;">Set emissions </span><b>Reduction</b><span style="font-weight: 400;"> goals based on your emissions hotspots.</span></p>
<p><span style="font-weight: 400;">Setting reduction goals creates a clear and credible plan for your business to achieve the necessary emissions cuts on the journey to net-zero.</span></p>
<p><span style="font-weight: 400;">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.</span></p>


<h2><b>Report on your carbon reduction plans</b></h2>
<p><span style="font-weight: 400;">Creating a GHG Protocol aligned </span><b>Report</b><span style="font-weight: 400;"> &#8211; that can be used for tenders compliant with PPN 06/21.</span></p>
<p><span style="font-weight: 400;">The report contains:</span><span style="font-weight: 400;"><br />
</span></p>
<ul>
<li><b>Scope 1, 2,  3 (as required)</b><span style="font-weight: 400;"> emissions, providing coverage of the required operational and supply chain emissions.</span>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">A net-zero commitment and corresponding graph.</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">An overview of your business operations and the methodology used by Ecologi.</span></li>
</ul>
</li>
<li><span style="font-weight: 400;"> A breakdown of these </span><b>emissions </b><span style="font-weight: 400;">from all seven</span> <span style="font-weight: 400;">GHGs represented as CO2e.</span></li>
<li><span style="font-weight: 400;">A declaration of emissions not captured in the report. </span></li>
</ul>
<p>&nbsp;</p>


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<h2><b>Learn through the Ecologi Academy</b></h2>
<p><span style="font-weight: 400;">Our new </span><b>Ecologi Academy </b><span style="font-weight: 400;">Feature allows users to upskill themselves on the intricacies and complexities around ‘Net-Zero’ and other climate terms.</span><span style="font-weight: 400;"><br />
</span><span style="font-weight: 400;"><br />
</span><span style="font-weight: 400;">There are infographics and breakdowns so we can help users to understand core climate ideas and how to communicate them to their wider team.</span></p>


<h2><b>Supported all the way</b></h2>
<p><span style="font-weight: 400;">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.</span></p>


<h2><b>Conclusion</b></h2>
<p><span style="font-weight: 400;">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.</span></p>


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


Your net-zero journey starts here

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Hopescrolling: The good news timeline

<p><span style="font-weight: 400;">It’s not all bad. While there’s a lot of negative news about the climate, let’s not forget the good stuff. Find climate wins, reasons to be hopeful and plenty of positivity in our good news timeline.</span></p>


The good news timeline

Ready to make a difference for our planet? Get in touch, and let’s chat about how we can help you on your climate journey. 

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Ecologi Impact Funds: A new way to support climate action

<p><span style="font-weight: 400;">We’ve just launched our much anticipated product, </span><a href="https://x.ecologi.com/solutions/impact-funds" target="_blank" rel="noopener"><b>Ecologi Impact Funds</b></a><span style="font-weight: 400;">, a new way to maximise your business climate impact by funding multiple high-quality projects in one go whilst also spreading residual risk.</span></p>
<p><span style="font-weight: 400;">In this deep-dive, we’ll explore:</span></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">What is an Impact Fund; </span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Why they are best for our planet and how they fit into your net-zero journey;</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">The difference between carbon compensation and contribution approaches;</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Why your business should start contributing to Impact Funds today.</span></li>
</ul>


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<h2><strong>What is an Impact Fund?</strong></h2>
<p><span style="font-weight: 400;">Our new Ecologi Impact Funds maximise your business climate impact by funding multiple high-quality projects in one go while also spreading residual risk.</span><span style="font-weight: 400;"><br />
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</span><span style="font-weight: 400;">The Ecologi Impact funds are carefully curated project cohorts centred around a particular theme or climate intervention. Each of our Impact Funds is carefully designed to drive progress against our three key pillars of impact:</span><span style="font-weight: 400;"><br />
</span></p>
<ol>
<li style="font-weight: 400;" aria-level="1"><b>Climate: </b><span style="font-weight: 400;">Reducing the concentration of greenhouse gases in the atmosphere</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Nature:</b><span style="font-weight: 400;"> Conserving and restoring nature and natural systems</span></li>
<li style="font-weight: 400;" aria-level="1"><b>People: </b><span style="font-weight: 400;">Transforming society and improving lives</span></li>
</ol>
<p><span style="font-weight: 400;">When you contribute towards an Impact Fund, you’re not just funding a single project in a single location. You’ll be funding a cohort of multiple different projects which might be based all over the world – but all centred around driving transformative action for our climate, nature, and people.</span></p>
<p><span style="font-weight: 400;">The cohort of projects we support within each Ecologi Impact Fund is dynamic, meaning that some projects will receive support from the Fund over an extended period, and others will receive individual grants. All projects contribute to the Fund’s core aims, and all projects are carefully vetted and selected by our expert team.</span></p>


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<h2><strong>Why are Impact Funds best for our planet?</strong></h2>
<p><span style="font-weight: 400;">When we think about the existing models of financing climate and nature projects, the focus is usually on one of two things: either </span><i><span style="font-weight: 400;">inputs</span></i><span style="font-weight: 400;"> (like paying to plant trees), or </span><i><span style="font-weight: 400;">certification</span></i><span style="font-weight: 400;"> (like carbon credits). Both of these are critical vehicles for channelling funding to incredible projects, but they don’t tell the whole story.</span></p>
<p><span style="font-weight: 400;">Take tree-planting, for example. To establish and maintain an impactful forest restoration or agroforestry project takes so much more than just planting the trees. Any one of Ecologi’s partner reforestation projects is actually doing far more than simply planting trees – and all of this costs money, which has to fit into the project’s budget. For example, project designs and associated budgets might include all of this (and more):</span></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Securing land tenure;</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Communications and campaigns;</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Logistics, vehicles and transport; </span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Seed collection or acquisition;</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Tree nurseries and infrastructure;</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Staff salaries and technical training;</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Community services and outreach;</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Energy provision;</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Tools and safety equipment;</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Leadership training and capacity building;</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Reinvestment into the local community;</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Fencing and other critical infrastructure;</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Water and irrigation;</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Project monitoring and evaluation;</span></li>
<li style="font-weight: 400;" aria-level="1"><span style="font-weight: 400;">Outplanting of trees;</span></li>
</ul>
<p><span style="font-weight: 400;">If, when we support these projects, we as funders are only thinking about this last bullet point – thinking about our role as simply “paying to plant trees” – then we are neglecting to recognise the incredible effort that goes into the truly holistic programme required to restore nature sustainably and at scale. At best, this is simple tunnel vision. But at worst, this means funders risk thinking that the </span><i><span style="font-weight: 400;">only </span></i><span style="font-weight: 400;">thing that’s important is how many trees were planted within the project boundary.</span></p>
<p><span style="font-weight: 400;">Our Impact Funds help to transform this mindset: decoupling funding from </span><i><span style="font-weight: 400;">inputs</span></i><span style="font-weight: 400;"> and instead centring our thinking around strategic, thematic and carefully-curated project cohorts means that implementation partners receiving the funding are able to focus on producing restorative </span><i><span style="font-weight: 400;">outcomes </span></i><span style="font-weight: 400;">for ecosystems and communities. They also help our customers to understand that what we are doing in supporting restorative projects is not</span><i><span style="font-weight: 400;"> tit-for-tat</span></i><span style="font-weight: 400;"> – it’s us playing our part to restore our planet by supporting a blended range of projects which we acknowledge will have a holistic impact.</span></p>
<p><span style="font-weight: 400;">So through Ecologi’s first new Impact Funds, we’re not focusing on ‘paying to plant trees’. We’re focusing on </span><b>restoring forests and landscapes</b><span style="font-weight: 400;">.</span></p>
<h3><strong>Leading climate science is already taking this approach</strong></h3>
<p><span style="font-weight: 400;">Recent publications from the Science-Based Targets initiative in </span><a href="https://sciencebasedtargets.org/resources/files/Above-and-Beyond-Report-on-BVCM.pdf" target="_blank" rel="noopener"><span style="font-weight: 400;">their beyond value chain mitigation (‘BVCM’) report</span></a><span style="font-weight: 400;">, as well as </span><a href="https://www.smithschool.ox.ac.uk/sites/default/files/2024-02/Oxford-Principles-for-Net-Zero-Aligned-Carbon-Offsetting-revised-2024.pdf" target="_blank" rel="noopener"><span style="font-weight: 400;">the newly-updated Oxford Principles</span></a><span style="font-weight: 400;"> from the University of Oxford, have supported the innovative contributory approach which is exemplified in our Impact Funds. Many of our restoration partners, including </span><a href="https://www.internationaltreefoundation.org/news/beyond-offsets-an-alternative-approach" target="_blank" rel="noopener"><span style="font-weight: 400;">International Tree Foundation</span></a><span style="font-weight: 400;">, </span><a href="https://www.eden-plus.org/stories/its-time-to-go-beyond-tree-planting" target="_blank" rel="noopener"><span style="font-weight: 400;">Eden: People + Planet</span></a><span style="font-weight: 400;">, </span><a href="https://www.youtube.com/watch?v=RfBVBHNpR30" target="_blank" rel="noopener"><span style="font-weight: 400;">Acción Andina</span></a><span style="font-weight: 400;"> and </span><a href="https://www.weforest.org/what-we-do/our-restoration-principles/" target="_blank" rel="noopener"><span style="font-weight: 400;">WeForest</span></a><span style="font-weight: 400;"> have taken similar stances.</span></p>
<p>Global Forest Generation noted that:</p>
<blockquote><p><i><span style="font-weight: 400;">In some cases reforestation may only form a small part of an ecosystem restoration project. Our activities and budgets have always reflected a holistic program with many components that we have identified as essential to effective, long-term ecosystem restoration.</span></i></p></blockquote>
<p><span style="font-weight: 400;">With our new Impact Funds, Ecologi is proudly joining our friends and partners to raise our voices in a call for holistic restoration for people and our planet. </span><a href="https://x.ecologi.com/solutions/impact-funds" target="_blank" rel="noopener"><span style="font-weight: 400;">Schedule a call</span></a><span style="font-weight: 400;"> with our experts to see how your business can start contributing to the Impact Funds, or continue reading for more of a deep-dive. </span></p>


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<p><span style="font-weight: 400;">On your business’s road to net-zero, you have two central objectives:</span></p>
<ol>
<li style="font-weight: 400;" aria-level="1"><b>First:</b><span style="font-weight: 400;"> measure your business’s emissions, set ambitious reduction targets, and reduce your emissions across all scopes as much as possible, as quickly as possible.</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Then: </b><span style="font-weight: 400;">support the global transition to net-zero and the restoration of nature by contributing to climate and nature projects around the world. </span></li>
</ol>
<p><span style="font-weight: 400;">Ecologi’s Impact Funds can help you with step (2), by enabling you to </span><a href="https://x.ecologi.com/business/ecologi-impact-funds" target="_blank" rel="noopener"><span style="font-weight: 400;">support a diverse range of projects</span></a><span style="font-weight: 400;"> which will help to safeguard and restore nature, and scale-up carbon removal technologies. This is an alternative to traditional carbon offsetting, which is where you’d buy carbon credits equal to the emissions you produce. </span></p>
<p><span style="font-weight: 400;">Specifically, our Impact Funds can help you align your project funding strategy to </span><b>Goal #2</b><span style="font-weight: 400;"> of the Science-Based Targets initiative’s </span><a href="https://sciencebasedtargets.org/resources/files/Above-and-Beyond-Report-on-BVCM.pdf" target="_blank" rel="noopener"><span style="font-weight: 400;">BVCM best practice</span></a><span style="font-weight: 400;">, as well as centring all four of the SBTi’s core principles for BVCM: scalability, financing need, co-benefits and climate justice.</span></p>


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<p><span style="font-weight: 400;">Since 2020, at Ecologi we have also been aligning our work with the </span><b>Oxford Principles</b><span style="font-weight: 400;">, which as well as providing guidance for blended carbon credit-based portfolios which increasingly lean towards carbon removal with permanent storage, also stress the vital importance of businesses contributing to nature restoration beyond simply the purchasing of carbon credits. The <i>Revised Oxford Principles (2024)</i>, states:</span></p>
<blockquote><p><i><span style="font-weight: 400;">It is necessary to protect and restore ecosystems to achieve net zero globally and to support adaptation to climate change impacts, irrespective of whether such projects generate credits that are retired as offsets.</span></i></p></blockquote>
<p><span style="font-weight: 400;">Making a contribution to Ecologi’s Impact Funds won’t reduce your emissions for you, and it won’t allow you to make compensatory green claims such as carbon neutrality. But what it will do is enable your business to do its part to support the global transition to net-zero, holistically protect and restore ecosystems, and empower people and communities – whilst you’re working on reducing your emissions.</span></p>
<p><span style="font-weight: 400;">Doing so will help you meet the BVCM criteria set out by the SBTi and Oxford Net Zero today, and we believe these contributory approaches will form the backbone of project funding obligations under new and updated standards in the future too – such as the revised SBTi Corporate Standard and the ISO Net-Zero Standard (both expected to be published in Q4 of 2025).</span></p>
<p><i><span style="font-weight: 400;">We can also help you if you’re looking for </span></i><a href="https://x.ecologi.com/page/schedule-a-call" target="_blank" rel="noopener"><i><span style="font-weight: 400;">high-quality carbon removal or avoidance credits</span></i></a><i><span style="font-weight: 400;"> for your business. And if you’re a little earlier on in your net-zero journey and you need support measuring your business’s emissions, </span></i><a href="https://zero.ecologi.com/signup" target="_blank" rel="noopener"><i><span style="font-weight: 400;">we can help with that too</span></i></a><i><span style="font-weight: 400;">!</span></i></p>


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<h2><strong>Why should my business contribute to Impact Funds?</strong></h2>
<p><b>Best for our planet.</b> Our first company value is <i>Planet First </i>— and nowhere in our work is this more prominent than in our Impact Funds. We know that this strategic, holistic way of providing funding to the world’s flagship restoration projects is the right way to support projects that address climate change, restore nature and support livelihoods. This approach is innovative, transformational, and the world’s leading restoration experts support it.</p>
<p><b>Centralise your portfolio.</b><span style="font-weight: 400;"> Through our Impact Funds, you can fund a wide range of different climate and nature projects, all in one place. All of the hard work – from project selection to outcomes reporting – is done by us. You’ll have a centralised Ecologi profile where you can visualise your impact across the Funds you’ve contributed to, and deep dive on the projects supported within them.</span></p>
<p><b>High-integrity, high-quality projects. </b><span style="font-weight: 400;">Our expert in-house team selects all projects and implementation partners with great care. We’ve designed state of the art methodologies that get right to the heart of a project’s potential effectiveness, and we work tirelessly with each of our implementation partners to uphold restoration best practices and exchange knowledge. That way, you know that if a project is featured in one of our Impact Funds, it’s been carefully vetted and selected as one of the leading restoration projects anywhere.</span></p>
<p><b>Spread funding risk.</b><span style="font-weight: 400;"> When you support projects individually, there’s always a risk that if the project you supported doesn’t achieve its goals, you’ll feel that your contribution was wasted. Through Impact Funds, the funding you contribute is spread across a range of different projects within the Fund, meaning that even in the unlikely event that an individual project doesn’t work out, your funding will still have contributed to many projects which met or even exceeded their restorative aims.</span></p>
<p><b>Boost your brand.</b><span style="font-weight: 400;"> Contributing to Ecologi’s Impact Funds is an excellent way to enhance your brand’s sustainability credentials. Businesses today are increasingly expected to take action on environmental challenges, and supporting impactful projects is a powerful demonstration of your commitment to the planet. In fact, improved brand reputation is the number one driver for businesses, with over </span><a href="https://x.ecologi.com/articles/blog/climate-comittments-report-2024" target="_blank" rel="noopener"><span style="font-weight: 400;">34% of Ecologi respondents</span></a><span style="font-weight: 400;"> seeing their brand elevated as a result of climate action. By aligning with large-scale, verified restoration efforts, you not only meet consumer expectations but also stand out in a competitive marketplace, leaving a lasting impression on customers.</span></p>
<p><b>Engage and motivate your team.</b> <span style="font-weight: 400;">Supporting Ecologi’s Impact Funds aligns with the values of today&#8217;s workforce of sustainability and social responsibility; increasing satisfaction and loyalty. According to our survey, </span><a href="https://x.ecologi.com/articles/blog/climate-comittments-report-2024" target="_blank" rel="noopener"><span style="font-weight: 400;">28% of companies</span></a><span style="font-weight: 400;"> saw improved employee retention through prioritising climate action. By contributing to impactful projects, your business will foster a purpose-driven workplace and strengthen a culture of shared environmental values.</span></p>


<h2><strong>How to support Impact Funds today</strong></h2>
<p><span style="font-weight: 400;">Schedule a call with our exports today, <a href="https://x.ecologi.com/page/schedule-a-call" target="_blank" rel="noopener">here</a>. In a 30 minute discovery call they can answer any questions you may have and help find a suitable solution to suit your goals and what matters most to your business. </span></p>
<h2><strong>Our Impact Funds</strong></h2>
<p><span style="font-weight: 400;">We currently offer two Impact Funds, both funding a range of incredible projects with two distinct climate goals:</span></p>
<ul>
<li style="font-weight: 400;" aria-level="1"><b>UK Climate &amp; Nature Fund &#8211;</b><span style="font-weight: 400;"> Exclusively supports restoration and carbon removal efforts in the UK, such as reforestation, habitat restoration and biochar production.<br />
</span></li>
<li style="font-weight: 400;" aria-level="1"><b>Forests &amp; Landscapes Fund &#8211;</b><span style="font-weight: 400;"> Focused on preserving and restoring natural landscapes globally, including forest restoration, agroforestry, and coastal wetland restoration.</span></li>
</ul>


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UK corporate sustainability standards explained

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<p>In the guide we compare the strengths, weaknesses and approach to target setting, reporting and carbon offsets of the most commonly used sustainability frameworks.</p>
<p><strong>In this guide we’ll cover;</strong></p>
<ul>
<li>What are Corporate Sustainability Standards</li>
<li>Which Corporate Sustainability Standards should UK businesses know</li>
<li>Requirements of PAS 2060</li>
<li>Requirements of ISO 14068-1:2023</li>
<li>Requirements of ISO 14064-1</li>
<li>Principles of BSI Flex 3030</li>
<li>What are EightVersa’s Natural Carbon Solutions</li>
<li>SBTi Corporate Net-Zero Standards</li>
<li>How Ecologi can support your business in navigating the complexities of Corporate Sustainability Standards</li>
</ul>


<h2>What are Corporate Sustainability Standards</h2>
<p>Many organisations worldwide have pledged to meet net-zero Emissions, aiming to help keep global warming below 1.5°C as agreed at COP15. These pledges are important, but they need clear guidelines and frameworks to ensure that sustainability strategies lead to real and measurable progress.</p>
<h3>Why are there Corporate Sustainability Standards?</h3>
<p>A variety of frameworks have been developed to support organisations on their journey to reducing carbon emissions. They help align companies with global climate goals, offering guidance on topics such as resource management, goal setting and reporting. Following these guidelines ensures that organisations act responsibly, and take accountability for their impact contributing to global efforts to combat climate change.</p>
<p>To reach net zero, these sustainability standards must be widely adopted to minimise the risk of organisations participating in greenwashing and contribute to collective global action to minimise the impacts of global warming.</p>
<h2>Which Corporate Sustainability Standards should my business know about</h2>


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<h2>What is PAS 2060?</h2>
<p>PAS 2060 was first published in 2010, it aimed to provide the requirements for achieving carbon neutrality for products and organisations alike. After 15 years in operation, PAS 2060 will be retired at the end of 2025, and superseded by ISO 14068- 1:2023.</p>
<p>The standard provides organisations with a methodology for measuring and reducing greenhouse gas emissions and allows for the purchasing of carbon credits to offset any emissions that can’t be reduced.</p>
<h2>What are the requirements of PAS 2060</h2>
<h3>Measure</h3>
<p>PAS 2060 requires organisations to first measure their carbon footprint, accounting for all Scope 1 and 2 emissions, as well as any Scope 3 emissions that constitute more than 1% of the organisation&#8217;s overall emissions.</p>
<h3>Reduce</h3>
<p>Organisations must then create and implement a carbon reduction plan (CRP). This plan should clearly outline specific actions and targets for reducing emissions over time.</p>
<h3>Offset</h3>
<p>After reducing emissions, organisations can then offset remaining emissions using third-party verified carbon credits, these can be carbon avoidance or carbon removal credits.</p>
<h3>Document</h3>
<p>Organisations must document their carbon neutrality initiatives in a Qualifying Explanatory Statement (QES). This should be a public document that includes key information such as the carbon footprint calculation, reduction measures and offsetting activities.</p>
<h3>Drawbacks</h3>
<p>PAS 2060 does not require evidence of continual improvement to the organisation&#8217;s carbon footprint, which can lead to an over-reliance on carbon offsets, as opposed to meaningful reductions in carbon emissions. Additionally, a PAS 2060 application must be accompanied by at least one year’s worth of supporting data therefore, PAS 2060 should not be considered for new clients/projects after December 2024.</p>


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<h2>What is ISO 14068-1:2023</h2>
<p>ISO 14068-1:2023 is a new standard under development by the British Standards Institute (BSI). As mentioned above, ISO 14068-1 replaces PAS 2060.</p>
<p>The standard aims to provide the requirements and guidance for achieving and demonstrating carbon neutrality. Unlike PAS 2060, the standard applies to organisations only and does not apply to products.</p>
<p>ISO 14068-1:2023 is a full international standard that prioritises carbon reduction initiatives. This standard requires evidence that reduction initiatives have taken place before any carbon offsetting is allowed.</p>
<h2>What are the requirements of ISO 14068-1:2023</h2>
<h3>Measure</h3>
<p>Organisations will need to measure their Scope 1, 2 and 3 emissions under this standard.</p>
<h3>Reduce</h3>
<p>They will then need to set clear and ambitious targets to reduce their emissions. Whilst purchasing carbon credits to offset emissions is allowed under this standard, organisations must be able to justify why offsets were purchased instead of undertaking further emission reductions.</p>
<h3>Offset</h3>
<p>Carbon removal offsets are approved to offset any ‘hard to remove’ emissions, providing they are less than 5 years old. This standard does not allow for the purchasing of carbon avoidance credits.</p>
<h3>Document</h3>
<p>ISO 14068-1:2023 also requires a carbon reduction plan, which documents the resources necessary to successfully deliver the plan, and the individuals responsible. The continuous improvement of the subject’s carbon footprint is required to maintain a carbon-neutral status unlike PAS 2060.</p>
<h3>Drawbacks</h3>
<p>It could be argued that ISO 14068-1:2023 requires a deep understanding of carbon accounting, emission reduction strategies and value chain emissions. Many organisations don&#8217;t have this expertise in-house and would therefore have to appoint an external third party to support them through the process, this could result in high costs to implement this standard which new and/or small companies may not have.</p>


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<h2>What is ISO 14064-1</h2>
<p>ISO 14064 guides organisations in reporting their GHG emissions and removals. The primary objectives of the standard are to help organisations manage and report emissions, and set and achieve reduction targets. It is a part of the 3 part ISO 14064 standard and applies to any organisation of any size.</p>
<h2>What are the requirements of ISO 14064-1</h2>
<p>ISO 14064-1 is the first part of the 3-part standard, it aims to provide organisations with an approach to measure, report and verify their emissions and offsets.</p>
<h3>Measure</h3>
<p>Organisations must outline which emission sources and activities are included in their reporting however ISO 14064-1 does not require the reporting of Scope 3 emissions.</p>
<h3>Reduce</h3>
<p>ISO 14064-1 does not explicitly require organisations to reduce emissions before engaging in offsetting however it does emphasise the importance of regularly reporting GHG emissions including prioritising emission reductions.</p>
<h3>Offset</h3>
<p>ISO 14064-1 recognises the use of carbon offsets as a legitimate tool for managing GHG emissions however places a strong emphasis on transparency and accurate reporting. ISO 14064-1 allows for both avoidance and removal credits providing they are credible, verifiable and meet recognised standards for offset projects such as additionality and permanence.</p>
<h3>Document</h3>
<p>ISO 14064-1 requires an inventory management plan that outlines data collection and reporting, and regular review of the GHG inventory. Additionally, a comprehensive GHG report should be prepared to detail the organisation&#8217;s emissions and purchased offsets.</p>
<h3>Drawbacks</h3>
<p>ISO 14064-1 also requires a comprehensive understanding of GHG accounting. This standard is largely focused on reporting, as opposed to action. There is no mandated emission reduction meaning organisations can meet emission targets through purchasing offsets alone, limiting the overall impact on global climate change mitigation.</p>


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<h2>What is BSI Flex 3030</h2>
<p>BSI Flex 3030 is a set of principles that can support organisations in meeting the requirements of other initiatives such as the Science Based Targets Initiative (SBTi), the Task Force on Climate-Related Financial Disclosures (TCFD) and the Carbon Disclosure Project (CDP). BSI Flex was developed with small businesses in mind and is primarily for use by SMEs with between 5-250 employees.</p>
<p>BSI Flex 3030 is also designed to work alongside formal management systems such as ISO 14001 (Environmental Management) or BS EN ISO 50001 (Energy Management). It provides high-level principles and a framework for an organisation to deliver a transition to net zero. It covers how organisations can measure their GHG baseline, set reduction targets and create a credible pathway to net zero, it does not, however, cover how to develop and maintain a formal carbon or net-zero management system which highlights its position as a high-level framework to support organisations at the start of the carbon management journey.</p>


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<h2>Natural Carbon Solutions, Eight Versa</h2>
<p>The purpose of Natural Carbon Solutions (NCS) is to provide businesses with a transparent way to measure, verify and evidence carbon reduction efforts. This standard covers organisations, products and events.</p>
<h2>What are the requirements of Natural Carbon Solutions (NCS)</h2>
<h3>Measure</h3>
<p>Under the NCS accreditation, organisations must complete a detailed assessment of all GHG emissions associated with the organisation/product/event being measured.</p>
<h3>Reduce</h3>
<p>NSC prioritises the reduction of emissions before any offsetting activities. The framework includes setting specific and measurable carbon reduction targets.</p>
<h3>Offset</h3>
<p>Offsetting emissions is considered a valid step in the journey to net-zero but only after all efforts to reduce emissions have been made. Currently, both avoidance and removal credits can be purchased to compensate for any unavoidable emissions; however looking to the future, it is likely only removal credits will be approved under this accreditation.</p>
<h3>Document</h3>
<p>Organisations must implement a carbon reduction plan outlining the strategies and actions required to reduce their carbon footprint. If the organisation is using carbon offsets detailed documentation must be provided evidencing the chosen project is of high quality and environmental integrity.</p>
<h3>Drawbacks</h3>
<p>Although this accreditation emphasises the importance of carbon reduction, there are no mandatory reduction targets in place, this could result in some organisations relying on offsets to reach net-zero.</p>


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<h2>SBTi Corporate Net-Zero Standard</h2>
<p>The purpose of the SBTi Corporate net-zero Standard is to guide companies in setting credible and measurable targets to achieve net-zero emissions. The Corporate net-zero Standard is suitable for any organisation but is particularly useful for those with large, complex operations and significant carbon emissions to ensure they commit to credible, science-based emission reduction targets.</p>
<h2>What are the requirements of the SBTi CZS</h2>
<h3>Measure</h3>
<p>Under the SBTi standard, companies are required to measure and record their Scope 1, 2 and 3 emissions.</p>
<h3>Reduce</h3>
<p>The standard requires organisations to reduce their greenhouse gas emissions by 90-95% by 2050 or earlier across Scopes 1, 2 and 3.</p>
<h3>Offset</h3>
<p>The STBi emphasises that companies must prioritise real emissions reductions and offsetting is only permitted for unavoidable emissions. The SBTi only allows for carbon removal offsets providing they do not form part of any near-term carbon reduction targets for organisations.</p>
<h3>Document</h3>
<p>Organisations are to document near-term (5-10 years) emission reduction targets including the percentage reduction and target years in addition to long term targets for reaching net-zero by 2050 with detailed plans for reducing emissions 90-95% across all scopes. This documentation will be formally submitted to the SBTi for validation will ensure they are aligned with the science based criteria for limiting global warming emissions.</p>
<p>Organisations must report annually on their emissions and progress towards meeting their targets, they are also required to publicly disclose their targets, progress and emission data.</p>
<h3>Drawbacks</h3>
<p>The SBTi corporate net-zero standard is a detailed initiative that requires a lot of time and resources. The standard also requires organisations to only purchase permanent carbon removal credits, which are typically more costly, and less widely available making this route less desirable and achievable for smaller businesses.</p>


An overview of Corporate Sustainability Standards: 

<h2>Benefits to Corporate Sustainability Standards for your business</h2>
<p>Navigating corporate sustainability standards can be a daunting process, with so many to choose from it’s difficult to know which is going to be right for your business. Understanding and adhering to these frameworks can be of great benefit to your organisation, driving greater transparency, economic benefits and the opportunity to contribute to global decarbonisation efforts.</p>


<h2>Are you ready to take climate action?</h2>
<p>Our team of experts can help your business tackle the hurdles of corporate sustainability standards in the UK. If this guide has inspired your business to start funding climate action, talk to our team today.</p>


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