What suppliers need to know about creating and maintaining Carbon Reduction Plans – Supplier Specifics

In this article, Marta Hyder, Crown Commercial Service’s (CCS) CRP compliance lead, advises suppliers on how to meet their net zero requirements to continue to work with the public sector.

What is a Carbon Reduction Plan?

A Carbon Reduction Plan (CRP) is a strategy that demonstrates how an organisation is committed to reaching net zero by 2050 in line with the Government’s ambitions. It is designed to help buyers understand the impact a contract has upon the environment.

It should:

• state the supplier’s clear commitment to achieving net zero by 2050 or before
• contain carbon emissions data from the most recent 18-month reporting period before the CRP’s submission
• outline the emissions reduction measures and projects you already have in place, or will implement, that will be used in the delivery of the contract for which you are bidding
• detail any structural changes that might impact your environmental activity
• be published on your website within the last 12 months

A CRP is a compliance requirement for UK Government suppliers when bidding for government contracts with an anticipated annual value (including VAT) of £5 million or above.

To stay compliant you are responsible for reviewing your CRP and updating your current emissions data at least annually.

Why do public sector suppliers need a CRP?

In June 2021, Cabinet Office published a new Procurement Policy Note (PPN), called PPN 06/21, that required suppliers who bid for public sector contracts valued at £5 million per year and above to submit an updated CRP. 

This means suppliers bidding for public sector contracts valued over that threshold are required to submit a plan at the selection stage of the procurement. It is judged against a set of criteria that determines whether it meets the necessary standard.

Suppliers who do not have a CRP, or submit an outdated plan, will not meet this requirement and therefore will not be able to continue with their bid.

Under the Procurement Act 2023, which governs all procurement activity commencing after 24 February 2025, a new PPN has been published which maintains the same basic requirements, called PPN 006. All procurements undertaken prior to this date will remain subject to PPN 06/21 until the agreement or contract expires.

Guidance has been published by Cabinet Office to assist suppliers with their CRPs under both PPN 06/21 and PPN 006, including the information that you must include and how it should be presented.

5 top tips for suppliers when creating a CRP

1. Check whether you need a CRP

If the contract you are bidding for does not meet the £5 million per year threshold, it will not require a CRP to be submitted. This threshold means plenty of contracts are exempt from CRP requirements.

However, putting a CRP in place, even when not strictly required, could prove a benefit for you. Using less energy and cheaper renewable sources will ultimately save businesses money, and having a CRP ready can also help you more easily move on to new larger-scale opportunities in the long term.

2. Get help calculating your current carbon footprint

A number of private sector organisations offer support and tools for businesses wanting to calculate their carbon footprint, although there are also plenty of free resources available to assist in this process. Some of these services in the private sector are available for free, easing the burden on smaller suppliers. 

A Government-endorsed carbon footprint calculator is available via the UK Business Climate Hub, and can be accessed through our dedicated CRP webpage. 

3. Understand what you need to include

Creating a CRP does not mean every single piece of information relating to carbon net zero or environmental impact you have needs to be included.

CRPs from suppliers bidding for the same contract are not ‘scored’ or compared to each other as part of the procurement process – you simply have to meet the required standard. 

The requirements clearly state the information that is expected as part of these plans and can be found through the Cabinet Office guidance on the respective PPNs.

4. Use the resources available

Suppliers are encouraged to make use of the CRP template that is included in Annex A of PPN 06/21 and Section 7 of PPN 006. This gives a clear framework to help lay out your plans and save you time and resources. 

Cabinet Office has also created a more extensive frequently asked questions (FAQ) page about CRPs that is available on GOV.UK. This page covers a wide range of questions and information for suppliers about the process of creating a plan and its application in the bid process.

5. Sign up for dedicated CRP training

The CCS Sustainability team offers monthly training sessions to help suppliers create a compliant CRP.

These training sessions’ primary objective is to help break down the process of creating a CRP. The sessions look at the critical components required and common mistakes to avoid.

Suppliers and customers can sign up for training sessions or view the sessions on demand.

Find out more

To learn more about our work in the journey towards carbon net zero, visit our dedicated web page. 

To learn more about how CCS is levelling the playing field for suppliers of all sizes, download our digital brochure.

We always welcome feedback, suggestions or queries. These can be submitted to smefeedback@crowncommercial.gov.uk.