Here we review what is a Carbon Reduction plan and do you need one?
As the governments tighten down on their commitments and targets to Net Zero, public procurement policies are becoming more focused on carbon emissions and decarbonisation planning. This has had an impact on private bodies who are now in turn asking those questions from their suppliers, so you may becoming increasing familiar with the term Carbon Reduction Plan or CRP PPN06/21 or Carbon Management plan. You may have been asked recently by your clients to provide one of these documents. Simply put a carbon reduction plan is a document outlining you organisations commitment to monitoring and targeting your organisation’s journey to Net Zero emissions by 2050. We have seen various iterations but the most common requirements to ensure you are compliant are :
- Include a carbon footprint breakdown for your chosen baseline year if you have one. You should include Scopes 1 and 2 as a minimum. Some suppliers such as UK Government require a further subset of 5 categories within Scope 3 such as Employee commuting, business travel, Upstream and downstream transportation and Well to Tank.
- Include your last financial year emissions for scopes 1,2 again as a minimum and again if tendering for Government or NHS work include the Scope 3 ( 5 subsets)
- Note what Carbon Reduction projects you have completed to date and any in the pipeline within the year ahead. Be as concise as possible with projects that have made a difference. For future projects, only include those within your budget and are realistically achievable.
- Be clear on your targets and trajectory by including a graph outlining your plan to net zero. Best practice would align with Science Based Targets (SBTi)and thus should include a short term 5-10 year target and a long term 2050 target
- Outline your organisations commitment to achieve Net Zero by 2050 in a statement and ensure the board of directors have reviewed and signed the document
- Add the management procedures which will ensure the plan and targets are reviewed annually.
So…. Do you need a Carbon Reduction Plan?
In some cases this may not even be a question, if you supply to NHS, Large retail chains or certain Hotels you may already have been asked to supply one and hence you are reading this article. In this case you know to continue business as usual and retain your clients, you will need to act and obtain a Carbon Reduction plan. If you have not yet been asked for one we would advise you to start making plans on gathering the data and putting a plan in place to complete a CRP. The regulations and legislations are only getting stricter and it is best to be prepared for the day your client requests one as part of their sustainability strategy within their supply chain. It makes good business sense as there are numerous benefits to having a live CRP within your organisation:
- Clearly demonstrates your commitment to sustainability to clients and stakeholders
- Can identify significant energy and carbon savings
- Accelerate your decarbonisation and net zero journey
- Provide brand awareness and increase market share
- Ensure stability of your client base
If you are feeling slightly overwhelmed on where to start, we can assist you and start you on your journey simplify the process and ensure you have a CRP to hand when asked.