What a Carbon Reduction Plan is
A Carbon Reduction Plan is a short public document setting out an organisation's UK carbon footprint, the measures it is taking to reduce emissions, and its commitment to reaching Net Zero by 2050 at the latest. Suppliers bidding for major central government contracts are required to publish one under Procurement Policy Note 006, which replaced PPN 06/21 for procurements commenced from 24 February 2025.
It is a summary, not a full carbon accounting exercise — but the figures in it need to be defensible, because they are published and compared year on year.
The requirements, in four parts
What the plan must report
- All Scope 1 and Scope 2 emissions for UK operations.
- Five defined Scope 3 categories: upstream transport and distribution, waste generated in operations, business travel, employee commuting, downstream transport and distribution.
- The seven Kyoto Protocol greenhouse gases, in tonnes of CO2 equivalent.
- Emissions reduction measures taken and planned, with the projected trajectory.
Who signs it off
- Approval by the board of directors or equivalent management body, stated in the plan with the date of approval.
- Sign-off by a director or equivalent — or a designated member for an LLP — giving name, job title and date.
- A physical signature is not required, but the plan must clearly state it has been signed.
How often it is updated
- Reviewed and updated annually.
- Updated within six months of the organisation's financial year-end.
- A single, consistent reporting period used throughout the document.
Where it is published
- Published on the supplier's UK website, linked prominently from the homepage.
- Previous versions kept available so progress can be tracked.
- Where there is no website, a written copy supplied on request within 30 days.
The 25% myth
A widely repeated claim is that PPN compliance requires a minimum 25% emissions reduction target. It does not. The technical standard asks suppliers to confirm a commitment to Net Zero by 2050 at the latest, report emissions to the specified scope, and describe their reduction measures. Percentage benchmarks may be useful ambition-setting tools, but they are not a compliance threshold and should not be presented as one.
Common questions
Has PPN 06/21 been replaced?
Yes. For procurements commenced on or after 24 February 2025, PPN 006 applies, aligned to the Procurement Act 2023. Procurements commenced before that date continue under PPN 06/21.
Which contracts are in scope?
Relevant central government contracts with an estimated value above £5 million per year including VAT, unless applying the requirement would not be relevant or proportionate to the contract.
Is there a minimum percentage reduction target?
No. The technical standard requires a commitment to achieving Net Zero by 2050 at the latest, together with emissions reporting and reduction measures. It does not mandate a minimum percentage cut, and any claim that 25% is required is incorrect.
Does the plan need to be independently audited?
No. Independent assurance is optional. The plan must follow recognised reporting standards, but PPN 006 does not require third-party verification.
Does a Carbon Reduction Plan cover climate adaptation?
No. It addresses emissions only. Physical risks such as flooding or heat need to be handled separately in your risk planning.
Sources
- PPN 006: Taking account of Carbon Reduction Plans in the procurement of major government contracts, Cabinet Office (published February 2025, updated July 2025).
- PPN 006: Technical standard for completion of Carbon Reduction Plans, Cabinet Office.
Build and publish your plan
Zero to Green helps UK organisations produce a Carbon Reduction Plan and publish a public commitment alongside it.