Carbon Reduction Plan

A mandatory document for large suppliers showing how they will achieve net zero carbon emissions by 2050, required for contracts above £5 million under PPN 06/21.

What it is

A Carbon Reduction Plan (CRP) is a formal document that suppliers must provide when bidding for UK public sector contracts worth over £5 million. Introduced through Procurement Policy Note 06/21 in June 2021, it demonstrates the supplier's commitment to achieving net zero carbon emissions by 2050.

The CRP must include the supplier's current carbon footprint baseline, covering Scope 1 (direct emissions), Scope 2 (energy indirect emissions), and relevant Scope 3 emissions (other indirect emissions). Suppliers must also detail their carbon reduction targets, planned initiatives, and progress monitoring methods.

Requirements and scope

The policy applies to central government departments and their arm's length bodies for contracts above the £5 million threshold. Suppliers must publish their CRP and update it annually, ensuring transparency in their environmental commitments.

CRPs must align with the UK government's net zero strategy and demonstrate credible pathways to carbon neutrality. This includes interim targets, specific reduction measures, and evidence of progress against previous commitments.

Why it matters

The CRP requirement leverages the government's significant purchasing power—worth approximately £290 billion annually—to drive environmental change across the supply chain. It ensures that major suppliers take concrete steps towards decarbonisation rather than making vague commitments.

For procuring organisations, CRPs provide standardised information to assess suppliers' environmental credentials consistently. This supports the government's broader climate objectives while encouraging innovation in low-carbon solutions across all sectors supplying to the public sector.