If you’re bidding for public sector contracts in the UK, creating a compliant Carbon Reduction Plan (CRP) could be essential to your success. Under Procurement Policy Note (PPN) 06/21, many suppliers must demonstrate their commitment to achieving Net Zero by 2050 and provide details of their greenhouse gas emissions and reduction strategy.
A well-prepared Carbon Reduction Plan is more than a procurement requirement—it demonstrates your organisation’s commitment to sustainability, improves transparency and can strengthen your position when competing for government contracts. In this guide, we’ll explain how to create a Carbon Reduction Plan that meets PPN 06/21 requirements and supports your wider sustainability goals.
What Is PPN 06/21?
PPN 06/21 is a UK Government procurement policy that requires suppliers bidding for certain central government contracts to demonstrate their commitment to Net Zero.
Where applicable, suppliers must submit a Carbon Reduction Plan that outlines:
- Their commitment to achieving Net Zero emissions by 2050.
- Their current greenhouse gas emissions.
- Their baseline emissions.
- The actions they are taking to reduce emissions.
- Their ongoing carbon reduction strategy.
The aim is to ensure that organisations supplying the public sector are actively contributing to the UK’s Net Zero ambitions.
Step 1: Measure Your Carbon Footprint
Before you can create a Carbon Reduction Plan, you need to understand your current emissions.
This involves measuring greenhouse gas emissions across your organisation, typically including:
Scope 1 Emissions
Direct emissions from assets you own or control, such as company vehicles, gas boilers and on-site fuel use.
Scope 2 Emissions
Indirect emissions generated through purchased electricity, heating and cooling.
Scope 3 Emissions
Indirect emissions across your value chain, including business travel, employee commuting, purchased goods, waste disposal and supplier activities.
Many organisations find Scope 3 emissions the most challenging to calculate because they involve data from multiple suppliers and operational activities.
Accurate emissions data provides the foundation for every Carbon Reduction Plan.
Step 2: Establish Your Baseline Year
Your baseline year acts as the starting point against which future emissions reductions are measured.
It should represent a typical year of business operations and include complete emissions data across all relevant reporting categories.
Choosing an appropriate baseline is important because it allows progress to be measured consistently over time.
Where significant organisational changes occur—such as acquisitions or major restructuring—the baseline may need to be reviewed.
Step 3: Set a Clear Net Zero Commitment
PPN 06/21 requires suppliers to demonstrate a commitment to achieving Net Zero greenhouse gas emissions by 2050.
Your Carbon Reduction Plan should include a formal commitment from senior management confirming your organisation’s Net Zero ambition.
Many organisations also publish interim reduction targets to demonstrate continuous progress.
These might include reducing operational emissions by a defined percentage over the next five or ten years.
Step 4: Identify Carbon Reduction Measures
Your Carbon Reduction Plan should clearly explain the practical actions your organisation is taking to reduce emissions.
Examples include:
- Switching to renewable electricity.
- Improving energy efficiency.
- Installing LED lighting.
- Reducing business travel.
- Electrifying company vehicles.
- Improving waste management.
- Working with lower-carbon suppliers.
- Introducing sustainable procurement policies.
The most effective Carbon Reduction Plans focus on genuine operational improvements rather than relying solely on carbon offsetting.
Step 5: Consider Carbon Offsetting
While carbon reduction should always come first, some emissions cannot currently be eliminated.
Many organisations choose to offset these residual emissions through verified carbon offset projects.
Examples include:
- Tree planting.
- Woodland restoration.
- Renewable energy schemes.
- Carbon capture projects.
Offsetting should support—not replace—emissions reduction.
Step 6: Keep Your Carbon Reduction Plan Updated
A Carbon Reduction Plan is a living document.
It should be reviewed annually to:
- Update emissions data.
- Report progress against targets.
- Include new reduction initiatives.
- Reflect organisational changes.
- Demonstrate continual improvement.
Regular updates help maintain compliance with procurement requirements while providing confidence to customers and stakeholders.
Common Mistakes to Avoid
Many organisations unintentionally weaken their Carbon Reduction Plans by making avoidable mistakes.
Common examples include:
- Omitting Scope 3 emissions where relevant.
- Using incomplete or inaccurate emissions data.
- Failing to establish a baseline year.
- Including vague or unrealistic reduction commitments.
- Relying entirely on carbon offsetting without reducing emissions.
- Not updating the plan annually.
- Using generic statements that lack measurable actions.
Avoiding these issues can significantly strengthen both compliance and credibility.
Why a Strong Carbon Reduction Plan Matters
A well-prepared Carbon Reduction Plan does far more than satisfy procurement requirements.
It can help organisations:
- Improve operational efficiency.
- Identify cost-saving opportunities.
- Strengthen ESG performance.
- Increase stakeholder confidence.
- Enhance brand reputation.
- Support Net Zero objectives.
- Improve competitiveness when bidding for contracts.
Increasingly, sustainability credentials are becoming an important differentiator during procurement processes.
How Carbon Neutral Group Can Help
Developing a compliant Carbon Reduction Plan requires accurate emissions data, a clear reduction strategy and an understanding of evolving procurement requirements.
Carbon Neutral Group supports organisations across Leeds, Yorkshire and the UK by providing:
- Carbon footprint assessments.
- Scope 1, 2 and 3 emissions reporting.
- Carbon Reduction Plan development.
- Net Zero consultancy.
- Carbon offsetting programmes.
- PPN 06/21 compliance support.
Whether you’re preparing your first Carbon Reduction Plan or reviewing an existing document, our team can help ensure it is accurate, practical and aligned with current guidance.
Frequently Asked Questions
Is a Carbon Reduction Plan mandatory for every business?
No. However, many organisations bidding for central government contracts under PPN 06/21 must provide one.
Can I write my own Carbon Reduction Plan?
Yes, provided it meets procurement requirements and accurately reflects your emissions and reduction strategy. Many businesses choose specialist support to ensure compliance.
How often should a Carbon Reduction Plan be updated?
At least once a year, or whenever significant organisational changes occur.
Does carbon offsetting count towards PPN 06/21?
Carbon offsetting can support your wider Net Zero strategy but should complement genuine emissions reduction rather than replace it.
What happens if my Carbon Reduction Plan isn’t compliant?
An incomplete or non-compliant plan could affect your eligibility during certain public sector procurement processes.
Get Started Today
Creating a Carbon Reduction Plan doesn’t need to be complicated. With the right data, a clear strategy and expert guidance, your organisation can produce a compliant plan that supports both procurement success and long-term sustainability.
Contact Carbon Neutral Group today to discuss your Carbon Reduction Plan and take the next step towards Net Zero.