A carbon reduction plan is a published document in which a supplier sets out its current carbon footprint and its commitment to reaching net zero by 2050. For many public sector bids, it is now a pass-or-fail requirement — no compliant plan, no contract. This guide explains what a carbon reduction plan is, when you need one, and how to produce one that keeps you eligible to bid.
If you are building your wider bidding capability, our guidance on social value in tenders pairs closely with this topic.
What is a carbon reduction plan?
A carbon reduction plan (CRP) is a short, standardised document that reports your organisation’s greenhouse gas emissions and your strategy for cutting them. It must confirm a public commitment to achieving net zero by 2050 for your UK operations. It must also report your emissions using the Greenhouse Gas Protocol and describe the measures you are taking to reduce them.
The requirement comes from a government policy known as PPN 006. Importantly, PPN 006 is simply the renamed version of the old PPN 06/21 — the reference changed in February 2025 to align with the Procurement Act 2023. The substance did not change.
When do you need a carbon reduction plan?
In practice, the formal trigger is contract value. A carbon reduction plan is required when bidding for central government contracts with an average value above £5 million per year, including VAT. In these procurements, the CRP is set as a condition of participation — a gateway you must pass before your bid is assessed.
However, the requirement now reaches much further in practice. The NHS asks for a compliant plan on all its procurement, regardless of value. Many framework agreements also ask for a CRP at application stage. So even if your typical contracts are smaller, you may well need one to stay eligible.
What must a compliant carbon reduction plan include?
For clarity, the plan follows a set template, and buyers check it against a clear standard. A compliant carbon reduction plan must include:
- A net zero commitment. A clear public statement that your organisation will reach net zero by 2050 for its UK operations.
- Your carbon footprint. Emissions data covering Scope 1 and Scope 2, plus a defined subset of Scope 3 emissions.
- A baseline and latest year. Figures that let the buyer see your progress over time.
- Reduction measures. The environmental management steps and certifications you have in place.
- Sign-off and publication. Board-level approval, with the plan published on your UK website.
You only fail this gate if your plan is missing or non-compliant. In other words, a properly completed CRP keeps you in the running; a sloppy or absent one takes you out.
How the carbon reduction plan differs from social value
Suppliers often confuse the two, but they are separate exercises. The carbon reduction plan is a pass-or-fail check at the selection stage, focused on your organisation’s overall emissions. Social value, by contrast, is scored at the award stage and focuses on the wider benefits your delivery will bring to the contract and community.
Either way, you need to handle both well. Treat the CRP as a compliance gate you must clear, and treat social value as an opportunity to win points. Our guide to how to win a tender explains how the pieces fit together.
How to prepare your carbon reduction plan
A strong plan is built on real data, so start early. Gather 12 months of energy, fuel, travel and waste data. Convert it into a carbon footprint using the Greenhouse Gas Protocol and the latest government conversion factors. Then set your reduction targets, describe your initiatives, secure board sign-off, and publish the plan on your website. Remember to refresh it every 12 months so it stays current.
If your emissions reporting feels daunting, a professional bid writer can help you present a compliant plan clearly and integrate it into your wider submission.
Frequently asked questions
Is PPN 006 the same as PPN 06/21?
Yes. PPN 006 is the renamed version of PPN 06/21. The reference changed in February 2025 to align with the Procurement Act 2023, but the carbon reduction plan requirements themselves did not change.
Do small businesses need a carbon reduction plan?
There is no exemption based on business size. If you bid for an in-scope contract — above £5 million per year, or any NHS contract — you need a compliant plan regardless of how small your organisation is.
How often must a carbon reduction plan be updated?
A carbon reduction plan must be refreshed at least every 12 months, with your latest emissions figures, and the current version published on your website.
What emissions must a carbon reduction plan cover?
It must cover Scope 1 and Scope 2 emissions in full, plus a defined subset of Scope 3 emissions, measured using the Greenhouse Gas Protocol methodology.
Stay eligible and win more with a compliant plan
A carbon reduction plan is now a gateway to major public sector work. If you would like help producing or presenting one as part of a winning bid, our team can support you. Get in touch with Together: The Hudson Collective to start winning more, faster.
Source: GOV.UK — PPN 006. This article is for general guidance and does not constitute legal advice.