A Carbon Reduction Plan (CRP) outlines your organisation’s commitment to reducing greenhouse gas emissions and achieving Net Zero. For businesses bidding for UK public sector contracts, having a compliant Carbon Reduction Plan is often a requirement under Procurement Policy Note (PPN) 06/21.
However, many organisations are unsure exactly what needs to be included. A compliant Carbon Reduction Plan is much more than a statement of intent. It should demonstrate that you’ve measured your emissions, understand where your environmental impact comes from and have a credible strategy for reducing emissions over time.
In this guide, we’ll explain the key components of a Carbon Reduction Plan, why each section matters and how businesses can develop a plan that supports both compliance and long-term sustainability.
Why Is a Carbon Reduction Plan Important?
A Carbon Reduction Plan demonstrates that your organisation is taking meaningful action to reduce its environmental impact.
For businesses tendering for government contracts, it can also demonstrate compliance with PPN 06/21 and provide confidence that sustainability is embedded within the organisation.
Beyond procurement, a Carbon Reduction Plan can help businesses:
- Measure their carbon footprint.
- Identify opportunities to reduce emissions.
- Improve ESG performance.
- Support Net Zero commitments.
- Demonstrate environmental responsibility to customers and stakeholders.
A well-prepared plan provides a clear roadmap for continual improvement rather than simply documenting current emissions.
Company Information
Every Carbon Reduction Plan should begin with basic organisational information.
This normally includes:
- Company name.
- Registered address.
- Nature of the business.
- Reporting period.
- Contact details where appropriate.
Although straightforward, this information establishes who the plan relates to and provides important context for the emissions data that follows.
A Commitment to Achieving Net Zero
One of the most important sections of a Carbon Reduction Plan is your organisation’s commitment to achieving Net Zero greenhouse gas emissions.
For organisations complying with PPN 06/21, this should include a commitment to achieving Net Zero by 2050.
This statement demonstrates long-term intent and provides the foundation for the actions outlined later in the document.
Your Carbon Footprint
A Carbon Reduction Plan should clearly present your organisation’s greenhouse gas emissions.
This usually includes:
Scope 1 Emissions
Direct emissions from sources owned or controlled by the business, such as company vehicles or fuel used on-site.
Scope 2 Emissions
Indirect emissions from purchased electricity, heating and cooling.
Relevant Scope 3 Emissions
Indirect emissions generated throughout your value chain, which may include:
- Business travel.
- Employee commuting.
- Purchased goods and services.
- Waste disposal.
- Freight and logistics.
- Water consumption.
Presenting accurate emissions data provides the baseline against which future reductions can be measured.
Carbon Reduction Initiatives
This section explains the practical steps your organisation is taking to reduce emissions.
Examples include:
- Switching to renewable electricity.
- Improving building energy efficiency.
- Introducing electric or hybrid vehicles.
- Encouraging remote working where appropriate.
- Reducing business travel.
- Improving recycling and waste management.
- Working with sustainable suppliers.
- Investing in staff sustainability training.
Where possible, explain which initiatives have already been implemented and which are planned for the future.
Future Carbon Reduction Targets
A Carbon Reduction Plan shouldn’t only focus on what has already been achieved.
It should also explain where the organisation is heading.
Future targets may include:
- Annual emissions reduction goals.
- Energy efficiency improvements.
- Fleet electrification.
- Supply chain improvements.
- Increased renewable energy use.
- Waste reduction targets.
Targets should be realistic, measurable and aligned with your wider sustainability strategy.
Governance and Responsibility
Reducing emissions requires commitment across the organisation.
Your Carbon Reduction Plan should explain:
- Who is responsible for delivering the strategy.
- How progress is monitored.
- How performance is reviewed.
- How sustainability is embedded within the business.
This demonstrates that carbon reduction is part of normal business operations rather than a one-off exercise.
Carbon Offsetting
For many organisations, some emissions cannot currently be eliminated.
In these circumstances, carbon offsetting may form part of a wider Net Zero strategy.
However, it’s important to remember that offsetting should complement emissions reduction rather than replace it.
The general approach should always be:
- Measure emissions.
- Reduce emissions wherever possible.
- Offset only unavoidable emissions.
This provides a balanced and credible sustainability strategy.
Declaration and Approval
For organisations producing a Carbon Reduction Plan under PPN 06/21, the document should conclude with a formal declaration confirming that:
- The information is accurate.
- The emissions have been calculated using recognised methodologies.
- The plan has been approved by senior management.
This provides confidence that the document represents the organisation’s official position.
Common Mistakes to Avoid
When preparing a Carbon Reduction Plan, avoid:
- Using estimated emissions without evidence.
- Ignoring relevant Scope 3 emissions.
- Setting unrealistic reduction targets.
- Failing to review the plan annually.
- Treating the document as a one-off compliance exercise.
- Copying generic wording without tailoring it to your organisation.
A well-prepared Carbon Reduction Plan should accurately reflect your business and demonstrate genuine progress towards Net Zero.
Frequently Asked Questions
Is there a standard Carbon Reduction Plan format?
There is no single template, but organisations bidding for public sector contracts should ensure their plan meets the requirements of PPN 06/21 and includes all relevant emissions data and commitments.
Do all businesses need a Carbon Reduction Plan?
Not all businesses require one, but many organisations tendering for central government contracts will need a compliant Carbon Reduction Plan.
How often should a Carbon Reduction Plan be updated?
It should normally be reviewed and updated annually to ensure emissions data and reduction initiatives remain current.
Can Carbon Neutral Group help?
Yes. Carbon Neutral Group works with businesses across the UK to measure emissions, prepare compliant Carbon Reduction Plans and develop practical Net Zero strategies.
How Carbon Neutral Group Can Help
Creating a Carbon Reduction Plan doesn’t have to be complicated.
Carbon Neutral Group supports organisations throughout the entire process, from calculating emissions and identifying reduction opportunities to preparing compliant Carbon Reduction Plans that support procurement requirements and long-term sustainability goals.
Whether you’re creating your first plan or updating an existing one, our experienced consultants can help you develop a practical strategy tailored to your business.
Contact Carbon Neutral Group today to find out how we can help.