A Carbon Reduction Plan (CRP) is a formal document that sets out how your business will reduce emissions over time. In the UK, it must be PPN 06/21 compliant for government and NHS contracts over £5m. A CRP provides a clear baseline, measurable targets, and a roadmap aligned with the national goal of net zero by 2050.
Key Components
- Baseline year: Your starting point for emissions.
- Targets: Clear reduction goals aligned with net zero.
- Actions: Practical steps such as energy efficiency, travel policies, and supply chain engagement.
- Monitoring: Annual updates to track progress and demonstrate accountability.
Why It Matters
A Carbon Reduction Plan is essential for businesses that want to compete in public procurement. It signals to evaluators that your company has a clear baseline, measurable targets, and a roadmap aligned with net zero by 2050. This builds trust and positions you as a credible partner in delivering sustainable outcomes.
But the benefits go beyond compliance. A well‑designed plan can uncover efficiency opportunities that reduce costs, strengthen reputation, and engage employees in sustainability. By updating progress annually, businesses can show they are not just making promises but delivering measurable results.
The Business Case
Developing a Carbon Reduction Plan is a strategic investment. It enables companies to access new markets, particularly government and NHS contracts, where sustainability credentials are now a prerequisite. Beyond tender readiness, a CRP helps businesses cut energy bills, reduce exposure to carbon taxes, and build resilience against future regulation. It also enhances brand reputation, making your company more attractive to clients, investors, and employees who increasingly value sustainability. In short, a CRP is both a compliance requirement and a growth driver.
Benefits for SMEs
- Ensures tender readiness for public contracts.
- Identifies cost‑saving opportunities through efficiency.
- Strengthens credibility with clients and investors.