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.
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:
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.
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:
◆ 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: