What is a Carbon Reduction Plan, and do I need one?

Since 30 September 2021, suppliers bidding for major government contracts with an anticipated value of over £5m per annum (Including Frameworks and DPS), are required to demonstrate their commitment to achieving ‘Net Zero’ by 2050 within the UK by creating a Carbon Reduction Plan.

This requirement will be included in all relevant notices, and will be utilised in England by Central Government Departments, their Executive Agencies and Non-Departmental Public Bodies. It is not mandatory for Devolved Administrations, but they can adopt this requirement on a voluntary basis.

What is a Carbon Reduction Plan (CRP)?

A CRP is a statement from suppliers identifying their current carbon footprint and the commitment they will make to help the UK achieve Net Zero emissions by 2050.

The purpose of a CRP is to identify what impact the project will have on the environment by asking suppliers to provide details of the environmental management measures in place when fulfilling the contract.

Suppliers only need to create one CRP, which they will keep up-to-date and use whenever there is a CRP requirement.

The details suppliers will be expected to include within their plans are:

Confirmation of the supplier’s commitment to achieving Net Zero by 2050 for their UK operations.
Provision of current emissions for the sources included in Scope 1 and 2 of the GHG Protocol, and a defined subset of Scope 3 emissions*.
Provision of emissions reporting in CO2e (Carbon Dioxide Equivalent) for the six greenhouse gases covered by the Kyoto Protocol4.
Details of environmental management measures in effect, including certification schemes or specific carbon reduction measures the supplier has adopted, and will be applied when delivering the contract to support achieving Net Zero by 2050.
Approval from the board of directors (or equivalent management body) within 12 months of the date of the procurement.
Confirmation the CRP has been published on the supplier’s website.

The evaluation of CRPs is a review to determine whether or not suppliers meet the requirements, for which suppliers can either pass or fail – there is no other scoring method. A supplier’s CRP will not be compared to those of other bidders, and their overall bid will be scored and evaluated as detailed within the contract notice.

A template for the CRP can be found within the PPN: Taking Account of Carbon Reduction Plans in the procurement of major government contracts.

Please note, even if reducing emissions is included within a Corporate Social Responsibility statement or other documentation – no other reference can be submitted in place of the CSP.

How can Tenders Direct help you with Carbon Reduction Planning?

You only need to create a plan once, then publish it publicly and update it annually. As this is a major commitment for your business, our experts can help make sure you get it right.

There are specific guidelines for creating a CRP, and we will support you to include all the required details:

Confirmation of your commitment to achieving Net Zero by 2050 for your UK operations
Provision of current emissions for the sources included in Scope 1 (gas) and 2 (electricity) of the GHG Protocol, and a defined subset of Scope 3 (transport, commute, waste) emissions
Provision of emissions reporting in CO2e (Carbon Dioxide Equivalent) for the six greenhouse gases covered by the Kyoto Protocol4
Ensuring your key differentiators are prominent throughout the response
Details of environmental management measures in effect, including certification schemes or specific carbon reduction measures the supplier has adopted, and will be applied when delivering the contract to support achieving Net Zero by 2050
Approval from the board of directors (or equivalent management body) within 12 months of the date of the procurement
Confirmation the CRP has been published correctly

Carbon Reduction Planning Support

Our consultants can help you create a robust Carbon Reduction Plan for your business.

Learn more

*Scope of Greenhouse Gasses

◆ Scope 1 emissions are direct greenhouse gas emissions that occur from sources that are controlled or owned by the reporting organization. e.g., emissions associated with fuel combustion in boilers, furnaces, vehicles.

◆ Scope 2 emissions are indirect greenhouse gas emissions associated with the purchase of electricity, steam, heat, or cooling. They are accounted for by the reporting organization as they are a result of the organization’s energy use.

◆ Scope 3 emissions include all sources not within an organization’s scope 1 and 2 boundary. Scope 3 emissions often represent the majority of an organization’s total greenhouse gas emissions, and the CRP is interested in those related to: