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Carbon Reduction Plan

Carbon Reduction Plans in Tenders

Monday 19 February, 2024

We are seeing an increase in the number of tenders requiring bidding businesses to have a Carbon Reduction Plan in place. Previously the plans were needed for all contracts worth over £5m. However, we are now seeing this requirement on smaller value contracts too. The NHS, for example, is now asking all bidders, regardless of contract size, to have a Carbon Reduction Plan.

What is a Carbon Reduction Plan?

A Carbon Reduction Plan (CRP) is a declaration of your commitment to achieving Net Zero by 2050 (or earlier if you choose), details of your carbon emissions and information about the initiatives you have in place, or have already undertaken in order to reduce your emissions and progress to Net Zero.It needs to be published on your website.

Why is there such a focus on having a Carbon Reduction Plan?

With the ever-increasing focus on our global climate emergency, immediate action is needed. The requirement to include a link to your Carbon Reduction Plan within the selection questionnaire of your tender response demonstrates how seriously the government are taking this emergency and signals their commitment to combat climate change and minimise the UK’s carbon footprint. Including your Carbon Reduction Plan in your tenders assures regulatory compliance while demonstrating your proactive approach to sustainability.

What do I need to include within my Carbon Reduction Plan?

Your Carbon Reduction Plan must include the following key elements as detailed in the government’s template:

  1. A commitment to achieve ‘Net Zero’ by 2050 or an earlier specified date

  2. Your calculated Scope 1, Scope 2 and Scope 3 emissions for your baseline year. Your baseline year is the first year you calculated your emissions. What constitutes Scope 1 (direct emissions), Scope 2 (indirect energy emissions) and Scope 3 (other indirect emissions) is outlined here

  3. Your emissions for the current reporting year. If this is your first Carbon Reduction Plan, these will be the same as your baseline year emissions

  4. Your emission reduction targets – what are you going to reduce your emissions to over the next five years? E.G. you are aiming to reduce your scope 1 emissions by 50% in the next 5 years and your scope 2 emissions by 60%

  5. Progress against any targets already in place

  6. Details of any Carbon Reduction Projects – what initiatives have you already started, how will you improve these, what else do you have planned?

  7. A signed declaration from your board of directors affirming your commitment

As environmental concerns continue to gain momentum, your commitment to reducing carbon emissions will become a crucial aspect of your business’s success. Including a robust Carbon Reduction Plan within tender submissions demonstrates a genuine effort to address climate change, comply with regulations, and distinguish oneself from competitors. Moreover, it positions your business as a responsible corporate citizen and opens doors to increased market share, cost savings,and stakeholder engagement. Embracing sustainability within tender processes is not merely a response to market trends; it is an urgent call to action that paves the way for a greener and more sustainable future.

If you need help getting started with your Carbon Reduction Plan, get in touch.

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