What Should a Carbon Reduction Plan Include?

The Structure of a Compliant Carbon Reduction Plan

A carbon reduction plan (CRP) is not just a document — it is a structured commitment to understanding and reducing your business's greenhouse gas emissions. Whether you need one for PPN 006 compliance, client expectations, or your own sustainability goals, the content and structure matter. A vague environmental policy will not satisfy procurement evaluators, and it will not help you actually reduce emissions.

Here is a detailed walkthrough of every section a professional carbon reduction plan should include, based on the Crown Commercial Service guidance and the GHG Protocol Corporate Standard.

1. Commitment to Net Zero

Your plan should open with a clear, unambiguous commitment to achieving Net Zero greenhouse gas emissions. The PPN 006 requirement specifies a commitment to Net Zero by 2050 at the latest. Many businesses choose an earlier target date to demonstrate greater ambition.

This is not just a statement of intent. It should specify:

• The target date for achieving Net Zero
• The scope of the commitment (which emission scopes are included)
• Senior leadership endorsement (a named director or board member)

2. Baseline Emissions Footprint

The baseline is the starting point against which all future reductions are measured. It should present your organisation's total greenhouse gas emissions for a defined reporting period (typically the most recent complete financial year), broken down by scope:

• Scope 1 — Direct emissions from owned or controlled sources (company vehicles, gas boilers, on-site fuel combustion)
• Scope 2 — Indirect emissions from purchased electricity and heat
• Scope 3 — All other indirect emissions in your value chain (business travel, employee commuting, purchased goods, waste, water)

Each figure should be expressed in tonnes of CO2 equivalent (tCO2e) and the emission factors used should be clearly stated. For UK businesses, this means DEFRA UK Government GHG Conversion Factors.

3. Current Emissions Reporting

If your baseline year is not the most recent year, you should also include current emissions for the latest reporting period. This allows evaluators and stakeholders to see your trajectory — are emissions going up or down since your baseline? If this is your first plan, the baseline and current reporting year will be the same.

4. Emission Reduction Targets

Targets should be specific, measurable, and time-bound. The most credible approach is to align targets with the Science Based Targets initiative (SBTi) methodology, which defines reduction pathways consistent with limiting global warming to 1.5°C above pre-industrial levels.

A good CRP includes:

• Short-term targets (e.g., 50% reduction by 2030 from baseline year)
• Long-term targets (e.g., Net Zero by 2050)
• Interim milestones where appropriate
• The methodology used to set targets (e.g., SBTi absolute contraction approach)

Avoid setting targets that are too easy to achieve. Evaluators can tell when a target lacks ambition, and it undermines the credibility of your entire plan.

5. Carbon Reduction Projects and Measures

This is where your plan moves from measurement to action. You should list specific measures your business will take or is already taking to reduce emissions. These should be concrete and relevant to your business, not generic pledges.

Examples of effective reduction measures:

• Switching to a 100% renewable electricity tariff (reduces Scope 2 to near zero)
• Transitioning company vehicles to electric or hybrid models
• Implementing a cycle-to-work scheme and public transport season ticket loans
• Installing LED lighting and smart building controls
• Requiring video conferencing as default for internal meetings to reduce travel
• Engaging top suppliers on their own carbon reduction plans
• Switching to a waste contractor with higher recycling rates

Where possible, include estimated emission reductions for each measure. This shows evaluators that you have thought through the impact, not just listed activities.

6. Governance and Reporting

A credible CRP explains how the plan will be governed. This means identifying who is responsible for implementation, how progress will be tracked, and how often the plan will be reviewed and updated. At minimum, this should include:

• A named individual or role responsible for the plan
• Commitment to annual reporting of emissions
• A review cycle (typically annual) for updating targets and measures

7. Publication and Declaration

PPN 006 requires that your carbon reduction plan is published on your company website. The plan should include a declaration confirming that the information is accurate and that the organisation commits to the stated targets. This is typically signed by a director or senior officer.

Publishing the plan is not just a compliance requirement — it signals transparency and seriousness to clients, investors, and partners.

Getting It Right First Time

Every Carbonhogs plan includes all seven sections above, fully populated with your business data, calculated using DEFRA 2024 factors, and structured to meet PPN 006 requirements. You answer the questions; we produce the plan. It is that simple.