PPN 006 vs SECR: what's the difference?

PPN 006 (Procurement Policy Note 06/21) is Cabinet Office procurement policy. It replaced the earlier PPN 06/21 numbering — same policy, different label — and requires suppliers bidding for central-government contracts above £5 million including VAT per year to publish a Carbon Reduction Plan (CRP).

According to the PPN 006 Technical Standard, a compliant CRP must include:

• A commitment to achieving net zero by 2050 at the latest (earlier is encouraged)
• A baseline year for your greenhouse-gas emissions
• Scope 1 and Scope 2 emissions in tonnes of CO2 equivalent
• The five mandated Scope 3 categories: upstream transportation & distribution (4), waste generated in operations (5), business travel (6), employee commuting (7), and downstream transportation & distribution (9)
• Reduction targets and the reduction initiatives behind them
• Sign-off by a director (or equivalent) with the board-approval date
• Publication on the supplier's own website, with the link prominent on the homepage; updated annually

Crucially, PPN 006 is tied to the contract, not your company size. An SME well below any statutory reporting threshold can still be required to publish a CRP to be eligible to bid.

SECR — Streamlined Energy & Carbon Reporting — is a statutory UK obligation introduced by the Companies (Directors' Report) and Limited Liability Partnerships (Energy and Carbon Report) Regulations 2018. It applies to quoted companies and to large unquoted companies and LLPs.

A company is "large" for SECR if it meets at least two of these three thresholds (the Companies Act 2006 definition):

• Turnover of £36 million or more
• Balance-sheet total of £18 million or more
• 250 or more employees

According to the gov.uk Environmental Reporting Guidelines, a SECR disclosure covers UK energy use, Scope 1 and Scope 2 emissions, at least one intensity ratio, and the energy-efficiency actions taken in the year. Scope 3 is limited — typically only business travel where the company chooses to report it. The disclosure sits inside the annual directors' report, which is filed at Companies House. There is no separate net-zero commitment or reduction plan required.

Here is the contrast across the dimensions that matter most when you are deciding which applies to you:

Yes — in methodology, not in output. Both PPN 006 and SECR use the GHG Protocol and DEFRA conversion factors, so the Scope 1 and 2 figures you calculate for a SECR disclosure can feed straight into a Carbon Reduction Plan. A company large enough for SECR that also bids for major government contracts will be subject to both at once.

But a CRP is a separate, public-facing document. It adds a net-zero commitment, the five Scope 3 categories, reduction targets and initiatives, and director sign-off — published on your own website rather than buried in a Companies House filing. You cannot simply submit your SECR report in place of a CRP.

A quick decision helper:

• Bidding for public-sector or NHS contracts? You likely need a PPN 006 Carbon Reduction Plan — even as an SME below the SECR thresholds. Your tender pack confirms it.
• A large company or LLP over the size thresholds? SECR is a legal filing you must include in your directors' report, regardless of whether you bid for public work.
• Both? Calculate once, use twice — your Scope 1 and 2 data serves both, but you still produce two separate documents.

Most SMBs who reach this page need a CRP, not SECR. Not sure whether your tender requires one? Use the free tender requirement checker.

Is SECR mandatory?

Yes — SECR is a statutory obligation. A large UK company or LLP that meets at least two of the three size thresholds (turnover £36m+, balance sheet £18m+, 250+ employees) must disclose its energy use and emissions in its annual directors’ report, which is filed at Companies House. It is a legal filing requirement, not optional guidance.

Does PPN 006 apply to small businesses?

It can. PPN 006 is tied to bidding for in-scope public contracts (generally those above £5 million including VAT per year), not to your company size. An SME below the SECR thresholds may still need to publish a Carbon Reduction Plan to be eligible to bid — your tender pack is the source of truth.

Can my SECR report be used as my Carbon Reduction Plan?

No. They share GHG-Protocol methodology, so your SECR Scope 1 and 2 figures can feed into a CRP, but a Carbon Reduction Plan is a separate public document. A CRP must also include a net-zero-by-2050 commitment, the five mandated Scope 3 categories, reduction targets and initiatives, director sign-off, and be published on your website — none of which a SECR directors’-report disclosure provides.

Has PPN 06/21 been replaced by PPN 006?

It is a rename, not a new policy. “PPN 006” and “PPN 06/21” refer to the same Cabinet Office procurement policy on taking account of Carbon Reduction Plans in major government contracts. You may see either label in tender documents — they mean the same requirement.

Which one do most SMBs bidding for contracts need?

Most small and medium businesses that land on this question need a PPN 006 Carbon Reduction Plan, not SECR. SECR only bites once you cross the large-company size thresholds. If you are an SME bidding for public or NHS work, the CRP is almost always the document being asked for.

Do PPN 006 and SECR use the same emissions methodology?

Yes. Both are built on the GHG Protocol and use DEFRA conversion factors to turn activity data (energy, fuel, travel) into tonnes of CO2 equivalent. That shared methodology is why your SECR Scope 1 and 2 numbers can be reused inside a CRP — but the two outputs and audiences remain different.