Carbon Reduction Plan: Why Your Business Needs One and How It Helps You Win Tenders.

What Is a Carbon Reduction Plan?

A Carbon Reduction Plan (CRP) is a concise, publicly available document that sets out your organisation's current greenhouse gas (GHG) emissions and the steps you will take to reduce them over time. Completed using the Government's official template, a compliant CRP typically includes your baseline emissions measured in accordance with the GHG Protocol, near-term reduction targets on the path to Net Zero by 2050, the specific initiatives you will implement to deliver those reductions, and formal sign-off from senior management.

Think of it as your organisation's decarbonisation roadmap comparable across suppliers, published on your website, and designed to give buyers a clear view of both where you stand today and how you plan to improve.

Why Does It Matter for Tenders?

A CRP is increasingly a prerequisite for winning public sector work. Under PPN 06/21, all central government bodies must require a compliant CRP as a pass/fail selection criterion when procuring goods or services with an average annual contract value exceeding £5 million (excluding VAT). If you do not have a valid CRP, you cannot pass the selection stage it is as straightforward as that.

The reach of this requirement extends well beyond individual high-value contracts. Major government frameworks including the likes of DOS and G-Cloud now ask for a compliant CRP as part of the application process, regardless of the value of individual call-off contracts. The intention is to future-proof suppliers for high-value work and raise environmental standards across the board. So even if your typical contracts are smaller, you may still need a CRP to be eligible for framework membership.

The NHS has gone further still. As of April 2024, a full CRP is required for all NHS procurement, irrespective of contract value. The Welsh Government has also adopted PPN 06/21, and CRPs are increasingly encouraged as best practice across the wider public sector.

In short: without a compliant CRP, you risk being locked out of a growing number of opportunities.

What Does a Compliant CRP Include?

The Government's technical guidance sets out five key elements:

1. Net Zero commitment — A public statement committing your organisation to achieving Net Zero emissions by 2050 at the latest. Best practice is to align with the Science Based Targets Initiative (SBTi), which requires a 90% reduction in emissions before offsetting the remainder.

   
   

2. Emissions data — Your carbon footprint for both a baseline year and the most recent reporting year, covering all Scope 1 and 2 emissions plus a defined subset of Scope 3 (business travel, employee commuting, upstream and downstream transport, and waste).

   
   

3. Reduction targets — Clear, measurable targets showing how your emissions will decrease over the coming years, ideally expressed in both absolute terms and relevant intensity metrics such as emissions per employee or per £m of revenue.

   
   

4. Reduction initiatives — A substantive list of the measures you have implemented or plan to implement, from energy efficiency audits and renewable energy procurement to cycle-to-work schemes and sustainable travel policies. Assessors typically expect to see 10–20 specific statements.

   
   

5. Declaration and sign-off — A formal declaration of compliance, signed by the board of directors or equivalent management body.

A CRP must be updated annually — within six months of your financial year end — and remain published on your website to stay valid.

Beyond Compliance: The Competitive Advantage

Although the CRP is assessed on a pass/fail basis, a strong plan does more than keep you in the game. It signals credibility and maturity to buyers, answers sustainability questions up front (reducing bid friction), and helps you identify cost-saving efficiency measures across your operations. The guidance also notes that suppliers may wish to explain any increase in emissions and the measures being taken to address it — suggesting that there is room for qualitative assessment even within the pass/fail framework.

How Can Procter Street Help?

Navigating CRP requirements and embedding them into your wider bid strategy can be complex. Procter Street is a management consultancy with deep expertise in procurement, commercial strategy, and bid management. We help organisations across multiple sectors to prepare for and win public sector contracts.

If you need a CRP in place or want to ensure your existing plan is working hard for you in every tender, get in touch with Procter Street today.

Contact us today: hello@procterandstreet.co.uk | 0161 560 1138