Carbon reduction plan

In the UK, “carbon reduction plan” usually means the specific document required under PPN 006 for central government contracts worth over £5 million a year. Other buyers may ask for something similar on smaller contracts, so check each tender pack.

What it means for a small business

Under PPN 006, a Carbon Reduction Plan must use the government template (Annex A) and include:

• A commitment to achieving net zero by 2050 at the latest
• Your Scope 1 and Scope 2 emissions, plus a defined set of Scope 3 categories: upstream and downstream transportation and distribution, waste generated in operations, business travel and employee commuting
• A baseline year and your current emissions
• The environmental management measures you have in place or plan
• Sign-off by a director, publication on your UK website and an update at least every year

The reporting period must end no more than 18 months before the tender notice. Buyers will not accept a general CSR statement instead. The official requirements are on GOV.UK.

An example

A 40-person facilities firm bidding for a large government contract measures its footprint for the last financial year as its baseline, commits to net zero by 2045, lists LED upgrades and a switch to electric vans as reduction measures, and has a director sign the plan before publishing it on its website.

How ESG Now handles it

ESG Now does not generate a PPN 006 Carbon Reduction Plan document. It gives you the carbon footprint, baseline, and figures you need to complete the official CRP template. The ESG Now footprint covers most of the required Scope 3 categories, including waste, business travel and an estimate of employee commuting, but not downstream transport paid for by your customers, which would need adding separately. Our guides to the PPN 006 carbon reduction plan and the carbon reduction plan template explain each section. Start your free report to get your baseline.