CRP (Carbon Reduction Plan)
Acronym for Carbon Reduction Plan; the net-zero commitment document required under PPN 06 for central government suppliers above £5M.
Definition
CRP is the acronym for Carbon Reduction Plan, the document required under Procurement Policy Note 06 committing the supplier to 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, 2, and 3 emissions, be signed off at director level, and be publicly published on the supplier's website. CRP is one of the most consequential PPN-mandated documents currently in UK public procurement.
How it works in practice
See the detailed Carbon Reduction Plan glossary entry for substantive coverage. The short version: a compliant CRP follows the PPN 06 structure -- net-zero commitment, current emissions baseline by scope, carbon reduction projects in place, interim emissions targets (typically by 2030 and 2040), and director-level sign-off. Emissions data should be calculated using the GHG Protocol or equivalent. Scope 3 emissions (supply chain, business travel, commuting, waste) are typically the largest category for services-based businesses but the hardest to estimate accurately; PPN 06 guidance accepts proxy data with documented methodology. The plan must be updated annually. SMEs without specialist sustainability capability often need external advisor support for first-time CRP preparation; cost typically £5K-£15K for SME CRP, more for complex multi-site operations. Beyond compliance, a strong CRP supports broader social value evaluation under PPN 002.
For suppliers entering the public sector market, CRP preparation should be planned alongside ISO 14001 implementation: the two efforts share substantial underlying work (emissions baseline, reduction projects, governance, monitoring) and a phased implementation can spread the cost while building toward both deliverables. The KimonBids compliance module tracks CRP renewal dates and surfaces emerging policy changes that affect CRP requirements.
Common questions
When is a CRP required?
For central government contracts above £5 million annual value under PPN 06. Some local government and NHS buyers extend the requirement voluntarily. SMEs bidding into central government should prepare a CRP regardless of contract size because the requirement can apply unexpectedly across the bid pipeline.
How are CRPs verified?
Self-certified by the supplier with director sign-off. The CRP must be publicly published on the supplier website. Verification at procurement is typically through SQ self-declaration plus published CRP review. PA 2023 transparency regime increases CRP visibility; sustained failure to publish or update can affect the supplier conduct record.
Can SMEs realistically prepare a compliant CRP?
Yes. The PPN 06 guidance accepts simplified approaches for smaller organisations including proxy emissions calculation methods. Specialist sustainability advisors offer SME-tailored CRP services for £5K-£15K covering scoping, calculation, and document preparation.