What is a carbon reduction plan and do I need it? – Tenders Direct Blog
From September 30, 2021, suppliers who bid on major government contracts with an expected value of over £ 5million per year (including executives and DPS) will need to demonstrate their commitment to achieving ‘Net Zero’ by 2050 in the UK with the inclusion of a Carbon Reduction Plan.
This new requirement will be included in all relevant notices and will be used in England by central government departments, their executive agencies and non-ministerial public bodies. This is not compulsory for Deconcentrated Administrations, but they can adopt this requirement on a voluntary basis.
What is a Carbon Reduction Plan (PRC)?
A CRP is a supplier statement identifying their current carbon footprint and the commitment they will make to help the UK achieve net zero emissions by 2050.
The purpose of a PRC is to identify the impact of the project on the environment by asking suppliers to provide details of the environmental management measures in place during contract execution.
Suppliers only need to create one CRP, which they will maintain and use whenever there is a CRP requirement.
The details that suppliers will need to include in their plans are:
◆ Confirmation of supplier’s commitment to achieve Net Zero by 2050 for its UK operations.
◆ Provision of current broadcasts for sources included in Scopes 1 and 2 of the GHG Protocol, and a defined subset of Scope 3 * broadcasts.
◆ Provision of reporting on CO2e (Carbon Dioxide Equivalent) emissions for the six greenhouse gases covered by the Kyoto protocol4.
◆ Details of environmental management measures in effect, including certification programs or specific carbon reduction measures that the supplier has adopted and that will be applied upon contract delivery to support the achievement of equity zero by 2050
◆ Approval of the board of directors (or equivalent management body) within 12 months of the date of the contract.
◆ Confirmation that the CRP has been published on the supplier’s website.
The CRP assessment is a review to determine whether or not suppliers meet requirements, for which suppliers may pass or fail – there is no other scoring method. A supplier’s CRP will not be compared to that of other bidders, and their overall offer will be scored and evaluated as detailed in the contract notice.
A CRP template can be found in the PPN: Taking Carbon Reduction Plans into account in the award of major public contracts.
Please note that even if the emission reduction is included in a corporate social responsibility statement or other document, no further reference can be submitted in place of the CSP.
How can Tenders Direct help you?
Tenders Direct has a team of experienced offer writing consultants who will be happy to help you write your CRP and any other documents you need. We know what contracting authorities are looking for and have helped companies in many industries get jobs in the public sector. Let us help your business stand out from the competition.
Please visit our Advice page or contact us on 0800 222 9009 to find out how we can help you.
* Scope of greenhouse gases
◆ Scope 1 emissions are direct greenhouse gas emissions from sources controlled or owned by the reporting organization. for example, emissions associated with the combustion of fuel in boilers, ovens, vehicles.
◆ Scope 2 emissions are indirect greenhouse gas emissions associated with the purchase of electricity, steam, heat or cooling. They are accounted for by the reporting organization because they are the result of the organization’s energy consumption.
◆ Scope 3 emissions include all sources that do not fall within the scope of scopes 1 and 2 of an organization. Scope 3 emissions often represent the majority of an organization’s total greenhouse gas emissions, and the CRP is interested in those related to:
● Business trips
● Employee travel
● Waste generated during operations
● Upstream transport and distribution
● Downstream transport and distribution.