What is a Carbon Reduction Plan and who needs one?

A Carbon Reduction Plan (CRP) is a mandatory document showing how suppliers will reduce carbon emissions. Required for all suppliers bidding on central government contracts worth £5 million+ annually from September 2021.

What is a Carbon Reduction Plan?

A Carbon Reduction Plan (CRP) is a mandatory document that demonstrates how suppliers will measure, manage and reduce their carbon emissions over time. It must show the supplier's commitment to achieving net zero carbon emissions by 2050 and include specific interim targets and actions.

Who Needs to Submit a Carbon Reduction Plan?

From 30 September 2021, all suppliers bidding for central government contracts worth £5 million or more per annum must publish and maintain a Carbon Reduction Plan. This applies to:

• Major government contracts across all departments
• Framework agreements where individual call-offs may exceed £5 million annually
• Both prime contractors and subcontractors (where subcontract value exceeds £5 million annually)
• Existing suppliers when contracts are varied or extended

CRP Requirements and Content

The CRP must be published on the supplier's website and updated annually. It must include:

• Commitment statement to achieving net zero by 2050
• Baseline emissions from a recent 12-month period (Scope 1, 2 and relevant Scope 3)
• Current emissions reporting for the most recent 12-month period
• Targets and actions showing how emissions will be reduced
• Evidence of progress including absolute emissions data

Smaller suppliers (under 250 employees) have simplified reporting requirements and may use estimated data where precise measurement is not feasible.

Compliance and Enforcement

Failure to provide a compliant CRP will result in automatic exclusion from the procurement process. Contracting authorities must verify that CRPs are published, accessible, and meet the mandatory requirements before awarding contracts. The policy supports the government's commitment to achieving net zero emissions by 2050 and leverages public sector purchasing power to drive environmental improvements across supply chains.

For detailed guidance on preparing CRPs and understanding specific requirements, suppliers should consult the government's comprehensive CRP guidance and templates available through official procurement channels.