What is a Carbon Reduction Plan and what must it include?

A Carbon Reduction Plan is a formal document that quantifies your greenhouse gas emissions and commits your organisation to net-zero by 2050. It is the specific document required under PPN 006 for government suppliers.

Unlike a general sustainability policy or CSR statement, a CRP follows a specific structure defined by the Crown Commercial Service. According to the UK Government's procurement guidance, it must include calculated emissions data using DEFRA conversion factors, not estimates or aspirations.

A compliant CRP must contain quantified Scope 1, 2 and 3 emissions, a baseline year, reduction targets, and board-level sign-off. According to the Crown Commercial Service template, all seven elements listed below are mandatory.

The required elements are:

• Scope 1 emissions — direct emissions from owned or controlled sources such as company vehicles and on-site gas boilers
• Scope 2 emissions — indirect emissions from purchased electricity, heating, and cooling
• Scope 3 emissions — at least five categories of indirect value chain emissions, such as business travel, employee commuting, and purchased goods. See our scope emissions guide for details.
• A baseline year — the reference year against which future reductions are measured
• A Net Zero commitment — a formal commitment to achieving Net Zero by 2050 at the latest
• Reduction targets and measures — specific, quantified actions you will take to reduce emissions
• Board-level sign-off — signed by a director or equivalent senior figure

According to DEFRA, all emissions must be calculated using their official conversion factors and reported in tonnes of CO2 equivalent (tCO2e). You can view the full CRP template requirements in our template guide.

A CRP is quantitative and auditable, while a CSR statement is qualitative and aspirational. The two documents serve fundamentally different purposes in procurement.

A CSR (Corporate Social Responsibility) statement is a broad document that covers social, environmental, and governance commitments. It typically includes qualitative statements about your values, community involvement, and environmental awareness.

A Carbon Reduction Plan is fundamentally different. It is quantitative — it must include specific emissions data calculated using recognised methodology. It is structured — it follows the Crown Commercial Service template. And it is auditable — procurement teams can verify the data and methodology.

According to the UK Government's procurement guidance, having a CSR statement does not satisfy the PPN 006 requirement. You need a separate, dedicated Carbon Reduction Plan.

Creating a CRP manually can take weeks, but automated platforms like CarbonPass reduce this to under 20 minutes. The time depends on whether you already have your emissions data calculated.

If you are starting from scratch with no emissions data, creating a CRP manually involves gathering utility bills, understanding DEFRA factors, building a spreadsheet, and formatting the final document. According to sustainability consultants surveyed by the British Chambers of Commerce, this process typically costs between £1,500 and £6,500 when outsourced.

With CarbonPass, you upload your utility bills, answer a few questions about your business, and the platform calculates your emissions using the latest DEFRA 2024 factors and generates a fully compliant CRP. Most businesses complete the process in under 20 minutes.

What is a Carbon Reduction Plan?

A Carbon Reduction Plan (CRP) is a formal document that reports your company's greenhouse gas emissions, sets a Net Zero target, and outlines the specific actions you will take to reduce your carbon footprint over time.

Is a Carbon Reduction Plan the same as a CSR statement?

No. A CSR statement is a broad document covering social and environmental commitments. A Carbon Reduction Plan is a specific, structured document that must include quantified emissions data, DEFRA-based calculations, and a Net Zero commitment.

What data do I need to create a CRP?

You need your energy bills (gas and electricity), fuel receipts for company vehicles, and information on business travel. CarbonPass calculates your emissions from these using DEFRA 2024 conversion factors.

How often do I need to update my Carbon Reduction Plan?

You should update your CRP annually to reflect the most recent reporting period. Procurement teams expect to see a current plan — an outdated CRP may raise questions during evaluation.

Does my CRP need to be published on my website?

Yes. PPN 006 requires that your Carbon Reduction Plan is publicly accessible on your company website. You must provide the URL as part of your bid submission.

Can I use CarbonPass to generate a CRP?

Yes. CarbonPass calculates your Scope 1, 2 and 3 emissions from your utility bills and generates a fully PPN 006 compliant Carbon Reduction Plan in under 20 minutes — no consultants or spreadsheets required.

What is the difference between a CRP and a carbon footprint report?

A carbon footprint report measures your total emissions. A Carbon Reduction Plan goes further — it includes a net-zero commitment, specific reduction targets, and a structured format required by the Crown Commercial Service for government procurement.

Do small businesses need a Carbon Reduction Plan?

If you bid for government contracts over five million pounds per year or any NHS contracts, yes. Even if you are below those thresholds, many prime contractors now require supply chain partners to have a CRP to report Scope 3 emissions accurately.