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Writing Your Organisation’s Carbon Reduction Plan

A carbon reduction plan is now a mandatory requirement for central government bid and tender opportunities – most commonly, as part of the selection questionnaire.

First introduced to the tendering process through PPN 06/21, suppliers were required to publish and provide a carbon reduction plan as part of a bid for any goods, works or service with a value exceeding £5 million per annum. The purpose of the carbon reduction plan is to ensure the government’s supply chain is aligned with wider emissions targets and to reach net zero by 2050.

For many suppliers, particularly small- and medium-sized businesses, the carbon reduction plan can be an intimidating part of your bid submission. In this blog, we provide detailed and practical advice on how to produce a compliant carbon reduction plan.

What is a carbon reduction plan?

Put simply, a carbon reduction plan is a formal document which outlines your organisation’s approaches for reducing carbon emissions across all 3 scopes.

The document is broken into distinct sections, outlining:

The Cabinet Office has published a carbon reduction plan template, inclusive of guidance, to support bidders in creating a compliant plan.

Why are carbon reduction plans important?

The carbon reduction plan is quickly becoming one of the most common tender appendices and additional documents which form part of the wider bid submission. As a mandatory element, you will be required to submit your carbon reduction plan or your tender will be disqualified.

As stated above, carbon reduction plans are a standard requirement for many central government buyers, such as the NHS and Crown Commercial Services (CCS). However, they are more commonly being adopted by sub-central and local authorities, including councils and housing associations.

Consequently, failing to provide a carbon reduction plan could result in being restricted from future submissions. You should treat a carbon reduction plan as importantly as any other policy and procedure – for example, your quality policy or health and safety policy.

Steps for making a compliant carbon reduction plan

Given the importance of creating a suitable carbon reduction plan, we recommend the following process for ensuring compliance with government standards and guidelines:

Begin gathering information on your carbon emissions

Suppliers are often intimidated by the need to calculate their organisation’s entire carbon footprint. They may also be worried that figures will reflect poorly or they will be penalised. In this instance, it is important to remember the plan is unscored and a demonstration of your processes and procedures rather than an attempt to ‘catch out’ suppliers.

Online resources such as the central government’s MacKay Carbon Calculator, the Carbon Trust’s SME Carbon Footprint Calculator and Normative’s Business Carbon Calculator are a good starting point for bidders to accurately capture their emissions data.

Many calculators will also automatically divide emissions into Scope 1, 2 and 3 by source and type. This makes it easier for you to enter metrics into the carbon reduction plan, reducing the burden to individually sort different emissions.

Recap your actions to date

There is no need to list a lengthy amount of material or fabricate actions you have not taken. Authorities simply want to see that you recognise the need to reduce emissions and are responding accordingly.

Within the ‘baseline emissions footprint’ section, include a brief summary of what you have achieved so far – for example, phasing out older vehicles to ensure Euro 6 compliance, or installing environmentally friendly LED lighting to replace obsolete lighting.

Set realistic carbon reduction targets

The UK central government’s target is to achieve Net Zero by 2050 – a compliant carbon reduction plan will align with or better this date. As part of this, your plan should include:

Once drafted, you can compare your plan against the Cabinet Office’s technical standard for completion of the plan, thereby ensuring your plans conform with the evaluator’s expectations.

Continuously review and improve your plan

There is a requirement to provide annual updates of carbon reduction plans and calculate emissions for each calendar year. You should also include nominated individuals or task groups to convene for periodic meetings; it is still suitable and sufficient and aligns with best practice.

Bid and tender support

Since 2009, we have supported clients with over 7,000 PQQ, SQ and ITT submissions, maintaining an 85% success rate. This includes:

If you would like to learn about how we can help you win a tender, our sales and marketing team are contactable at info@executivecompass.co.uk or via telephone 0800 612 5563.

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