Carbon Reduction Plan
Required document under PPN 06 committing to net zero by 2050 with interim targets; mandatory for central government contracts above £5M.
Definition
A Carbon Reduction Plan (CRP) is the document required under Procurement Policy Note 06 (formerly PPN 06/21) committing the supplier to achieving net zero by 2050 with interim emissions reduction targets. CRPs are mandatory for central government suppliers bidding on contracts above £5 million annual value. The plan must cover Scope 1 emissions (direct), Scope 2 emissions (indirect from electricity), and Scope 3 emissions (indirect from supply chain and business activities). The plan must be publicly published on the supplier's website.
How it works in practice
A compliant CRP follows the structure set out in PPN 06 guidance. It opens with the organisation's commitment to net zero by 2050 (or earlier), states the current emissions baseline by scope (typically the most recent financial year), describes the carbon reduction projects in place, sets specific interim emissions targets (typically by 2030 and 2040), and is signed off at director level. The emissions data should be calculated using the GHG Protocol or equivalent recognised methodology; many SMEs use the gov.uk emissions calculation factors as a starting point. Scope 3 emissions are the most challenging to estimate accurately because they involve supply chain data the supplier does not directly control; PPN 06 guidance accepts proxy data and estimation provided the methodology is documented. The plan must be updated annually; older plans that have not been refreshed attract evaluation scepticism. For SMEs the CRP requirement can feel disproportionate to organisational scale; specialist sustainability advisors offer SME-tailored CRP preparation services. Beyond compliance, a strong CRP supports broader social value evaluation under PPN 002 by evidencing environmental commitment. The Procurement Act 2023 transparency regime increases CRP visibility; suppliers should treat CRPs as public-facing documents reflecting genuine commitment rather than tick-box compliance.
Common questions
When is a Carbon Reduction Plan required?
For central government contracts above £5 million annual value under PPN 06. Some local government and NHS buyers extend the requirement voluntarily to all above-threshold suppliers. SMEs bidding into central government should prepare a CRP regardless of contract size because the requirement can apply unexpectedly across the bid pipeline.
What is the difference between Scope 1, 2, and 3 emissions?
Scope 1 is direct emissions from owned sources (vehicles, boilers, on-site combustion). Scope 2 is indirect emissions from purchased electricity. Scope 3 is all other indirect emissions including supply chain, business travel, employee commuting, waste, and use of sold products. Scope 3 is typically the largest category for services-based businesses but the hardest to estimate accurately.
How often must the CRP be updated?
Annually. The CRP must reflect current emissions baseline and progress against interim targets. Older plans (>12 months) attract evaluation scepticism; the carbon reduction commitments need to be genuinely tracked and updated, not published once and forgotten.