What Is A Carbon Reduction Plan and Why Is It Important?

Does Your Business Need a Carbon Reduction Plan?

The UK strives to be a world leader when it comes to combatting the climate crisis, with a set target of reaching Net Zero by 2050 at the latest. To achieve this, the Government has begun introducing green legislation for business.

While this will likely extend to all companies in the future, it is essential for businesses planning on or going through the tendering process to know what is required, which is a Carbon Reduction Plan.

Educational content written by Carys Burton 

What is a Carbon Reduction Plan?

A Carbon Reduction Plan, or CRP, is a statement from suppliers identifying their current carbon footprint and commitment to helping the UK achieve Net Zero emissions by 2050.

CRPs help suppliers and customers understand the impact of the contract and their wider operations on the environment by asking the company to provide details of the environmental management measures in place.

Within their CRP, suppliers must confirm their organisational commitment to achieving Net Zero by 2050 at the latest, consistent with the UK Government’s commitment under the Climate Change Act.

What Details Need to be Provided in a CRP?

A Carbon Reduction Plan focuses on recording and reporting all Scope 1 and 2 emissions as well as a subset of Scope 3 emissions.

Scope 1 emissions are direct greenhouse gas emissions from sources controlled or owned by the reporting organisation, i.e. emissions associated with fuel combustion in boilers, furnaces, and vehicles.

Scope 2 emissions are the indirect greenhouse gas emissions associated with the purchase of electricity, steam, heat, or cooling.

Scope 3 emissions are slightly different, encompassing all other indirect emissions produced by a company’s activities.

While they can represent up to 80% of a business’s total emissions, they are often harder to tackle.

Due to this, businesses going through the tendering process are only required to detail their emissions in five Scope 3 categories.

This includes upstream and downstream transportation and distribution, waste generated in operations, business travel, and employee commuting.

Alongside emissions reporting, a CRP also needs to include details on all environmental management measures in effect, including certification schemes or specific carbon reduction measures, that will support achieving Net Zero by 2050.

The Carbon Reduction Plan should be reviewed and updated annually to show how progress is being made over time. On top of that, companies must publish their latest CRP in a prominent place on their UK website to increase transparency.

More specific information on the requirements needed for a CRP can be found in Government guidance.

Future Changes to the Process

Recently, during the COP27 climate summit in Egypt, the UK announced that it will require companies to provide “granular details” to back up their decarbonisation claims in an attempt to stamp out greenwashing.

According to the statement published on Tuesday, the government-backed Transition Plan Taskforce is seeking feedback on its disclosure framework, which requires firms to produce evidence of concrete short-term action taken to reduce their carbon footprints.

This could also include firms being required to disclose current and planned environmental activities with companies in their supply chains as well as customers.

According to the Head of Policy at the UK Centre for Greening Finance, Jacques Morris, the framework is not only looking to weed out greenwashers but also looking to tackle companies wary of putting their climate pledges up for public scrutiny.

Play It Green Can Help You Prepare Your CRP

Upcoming green legislation will shift the priorities of every business, making them focus on people and the planet as much as revenues.

At Play It Green, we are helping businesses prepare for this change through our unique 3-step solution to climate change: Reduce, Repair, and Regive.

We provide tips and advice on reducing your business’s footprint, along with providing access to our Net Zero Framework and network of sustainability experts to help your business on the journey to Net Zero.

Through our partnership with Eaasi Carbon, we can also offer carbon footprint reporting for SECR scope 1, 2 or 3 with the option to rebalance the historical and current company emissions to become carbon neutral.

All this is done while making a positive social impact through the trees planted, benefiting members of the local communities in Madagascar, and by giving back to a charity of your choice.

We will also be launching our Carbon Reduction Plan Support shortly allowing you to have hands on support to develop your business CRP to help you close more tenders and have an actual plan to act upon..

Whatever you do, it’s up to you to ensure your business is prepared for upcoming green legislation. If you haven’t started taking action, the time to do so is now.

Get in touch with Play It Green using the form below to find out how we can help your business on its journey to a sustainable future!

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