How to Write a Carbon Reduction Plan for Small Businesses

Winning public contracts increasingly depends on credible environmental action. A carbon reduction plan for small businesses shows buyers you can measure what matters, set realistic targets, and deliver progress without slowing operations. It proves readiness for frameworks and tenders that expect a published plan, annual updates, and board-level accountability.

The good news is this is achievable with a focused approach. Follow official guidance, use recognised data sources, and turn findings into practical actions that cut cost and carbon. At Thornton & Lowe, we help organisations build robust carbon reduction plans that are compliant, credible, and tender ready from day one.

What Is a Carbon Reduction Plan and When Is It Required?

A Carbon Reduction Plan is a short, public document that sets out your current greenhouse gas emissions, the actions you will take to cut them, and a formal commitment to reach net zero by 2050. It focuses on Scope 1 and Scope 2 emissions, plus specified Scope 3 categories that are material to most suppliers. The plan must be approved at director level, published on your website, and updated at least once every 12 months to meet central government expectations.

For central government contracts, the requirement originates from PPN 06/21 and, from February 2025, is rebadged as PPN 006 under the Procurement Act, keeping the same core expectations. It applies to in-scope procurements above £5 million per year including VAT, based on the advertised annual value averaged over the life of the contract. Other public bodies may choose to apply the same approach.

Many contracting bodies below that threshold now mirror the approach. Environmental performance is considered relevant to most contracts, which is why buyers increasingly ask for a plan even when it is not strictly mandated. Preparing one puts you on the front foot across frameworks and call offs.

Non-Negotiables in UK Guidance

A compliant carbon reduction plan for small businesses is simple once you know what cannot be missed.

• State a formal commitment to reach net zero by 2050 in the UK. Include this alongside your emissions summary and planned measures.
• Cover the right emissions. Report Scope 1 and Scope 2, plus the specified Scope 3 categories in the technical standard. Keep the plan concise and use it as a summary, not a full footprint report.
• Publish the plan and refresh it at least annually. Buyers expect a live URL, a publication date, and the latest 12-month data.
• Secure director-level approval and a named signatory. Ownership from the top builds evaluator confidence.
• Use current UK government conversion factors. Align calculations to the latest DESNZ or DEFRA greenhouse gas conversion factors.
• Follow the official structure. Stick to the headings and sequence in the Cabinet Office template or CCS guide to avoid omissions.

Scopes and Data

A credible carbon reduction plan for small businesses starts with the right emissions map.

• Scope 1 covers direct fuel you burn, such as gas for heating and fuel used in company vehicles.
• Scope 2 covers purchased electricity, heat or steam used on your sites.
• Scope 3 in a CRP focuses on specific categories that central government expects suppliers to report. These include business travel, employee commuting, waste generated in operations, and upstream transportation and distribution. Where relevant, cover downstream transportation and distribution for goods you deliver. The official materials specify the minimum categories to include.

Collect data you can verify. Work from the last financial year and document assumptions.

• Energy: electricity kWh by meter and tariff, natural gas kWh, LPG or oil litres if used.
• Transport: business mileage by mode, fuel purchased for fleet, grey fleet records, rail and air journeys from booking tools.
• Waste: weights by stream if available, or collection schedules with bin size and frequency.
• Commuting: staff travel patterns via a short survey, by mode and frequency.
• Logistics: upstream and downstream transport where you control the movement or can obtain supplier data.

When you calculate emissions, use the government greenhouse gas conversion factors for the relevant reporting year. For 2025, use the 2025 factors and note any changes in the “what’s new” summary. Keep your spreadsheets and methodology in an evidence pack for audit.

How to Build a Carbon Reduction Plan for Small Businesses

A focused week is enough to create a compliant plan. Keep the schedule tight, record assumptions, and line up approvals early.

Day 1: Set boundaries and governance
Confirm the reporting period and which sites, vehicles and services are in scope. Assign a senior owner and a working lead. Decide the baseline year and where the plan will be published on your website.
Outputs: project brief, chosen baseline, draft contents.

Day 2: Gather energy and fleet data
Collect electricity and gas bills, meter reads and kWh by site. Pull fuel card exports and receipts for company vehicles. Note any on-site generation and export.
Outputs: energy and fleet data table with sources.

Day 3: Gather travel, commuting, waste and logistics data
Export business travel records from booking tools or expenses. Run a short commuting survey. Request waste weights or collection schedules from your provider. Capture upstream or downstream transport where you control movements or can obtain reliable data.
Outputs: non-energy data table with gaps flagged and agreed estimates.

Day 4: Calculate emissions and document methods
Apply current conversion factors to produce tCO₂e totals. Separate Scope 1, Scope 2 and the required Scope 3 categories. Keep a clear audit trail of factors, formulas and estimates.
Outputs: calculation workbook, draft emissions summary.

Day 5: Set targets and actions that stand up to evaluation
Define short term actions you can start this year. Set medium and long term measures with owners, budgets and milestones. Add supplier engagement steps to improve Scope 3 data.
Outputs: target table with dates, action plan with owners and KPIs.

Day 6. Draft the plan and secure approvals
Write a concise plan that follows the official structure. Include a clear net zero by 2050 statement, the emissions summary, and planned measures. Obtain director approval and a named signatory.
Outputs: final draft CRP, signed approval with date.

Day 7: Publish, brief the team and schedule the refresh
Publish the plan on a live webpage and produce a PDF copy for tenders. Add the link to standard selection responses and credentials. Brief the bid team and contract managers so they can reference the plan in delivery. Set a reminder to refresh at least annually.
Outputs: public URL, PDF evidence pack, internal briefing notes, review date.

Need help compressing this into a tender-ready package and aligning it to live opportunities? Our bid writing
team can fold your plan into method statements and social value responses.

Targets that Stand Up in Evaluation

Targets should be specific, time bound and linked to real measures in delivery. Evaluators look for a clear line from what you will do to how it reduces emissions on the contract.

• Set both absolute and intensity targets. Use an absolute reduction from your baseline and an intensity measure that reflects growth, such as tCO₂e per £m revenue or per unit delivered.
• Prioritise short term wins. Optimise building controls, install LED where it is missing, consolidate deliveries, train drivers on efficient driving, default to rail for domestic trips, and improve waste segregation.
• Plan medium and long term investments. Consider high efficiency heating and cooling, heat pumps where feasible, on-site solar, renewable electricity purchasing, fleet replacement plans and charging strategy.
• Engage suppliers to improve Scope 3 data and action. Request billed weights for waste, distance and mode for logistics, and emissions data from key suppliers, starting with those influencing the largest sources.
• Make delivery part of the target. Specify measures that will happen on day one, such as renewable electricity at service locations or a minimum percentage of low emission vehicles on site.
• Publish a simple roadmap. Show milestones for the next 12, 24 and 36 months, then use quarterly or six-monthly checkpoints so results flow into your next annual refresh.

For structured implementation and continuous improvement, our bid success programme pairs technical planning with live opportunity support, so progress is visible in tenders and on contract.

Avoid the Common Pitfalls

• No live URL or out-of-date plan. Host a permanent page, keep the PDF in sync, and diarise the annual review.
• Using old conversion factors. For reporting years in 2025, apply the current DESNZ or DEFRA factors and record the version used.
• Missing mandatory scopes. Summarise Scope 1 and Scope 2, plus the specified Scope 3 categories. If a category is not relevant, explain why in one line rather than omitting it.
• No board approval or named signatory. Director-level approval is required; include the approver’s name, role and date.
• Over-reliance on offsets. Use offsets only for residual emissions that are hard to remove and focus the plan on real reductions.
• Forgetting sector specifics. Healthcare opportunities often look for NHS supplier alignment. Be ready to reference your Evergreen position and planned improvements.

Turn Your CRP Into a Strength

Carbon reduction plans are key for winning public sector bids, but it's all too common to treat them as an add-on. Instead, see them as a way to stand out. A strong carbon reduction plan for small businesses should lift scores across the whole submission, not just pass selection. Treat it as live evidence that underpins delivery.

Selection stage
Add the live URL in standard credentials and selection responses. Keep a short line confirming annual refresh, director approval, and the latest reporting year. If the buyer provides a table, mirror your Scope 1, Scope 2 and required Scope 3 totals so the evaluator can cross-check quickly.

Method statements
Translate targets into delivery measures on the contract. Specify how buildings, vehicles, logistics and waste will run from day one. Include owners, monitoring frequency and data sources. Where relevant, show how your approach to carbon neutral tenders protects service quality while cutting emissions.

Mobilisation and implementation plans
Front-load actions that score well, such as switching to renewable electricity at service locations, setting a minimum percentage of low emission vehicles on site, or introducing remote-first internal meetings. Show week one tasks, month one tasks and the first quarterly review.

KPIs and contract management
Propose simple KPIs that match your plan, for example total tCO₂e for in-scope sources, kWh per site, litres of fuel per 100 km, or percentage of journeys made by rail. Link these KPIs to your internal carbon reduction plans so reporting stays consistent.

Social value
Anchor commitments in your CRP actions. Offer training for staff on energy and travel efficiency, supplier engagement to gather Scope 3 data, or a community initiative that reduces emissions locally.

Evidence pack
Keep a lightweight pack for clarifications and presentations. Include the emissions summary table, calculation workbook, a one-page roadmap, and short bios for people who will deliver. Maintain a copy of your published plan and the PDF in case the buyer cannot access the webpage.

FAQs

Do micro businesses need a CRP?
If you are bidding for central government contracts above the in-scope threshold, you will need a compliant plan. Many buyers below that level request one because it shows capability and reduces evaluation risk.

How often should we update it?
Refresh at least annually. Use the most recent 12 months of data, keep the baseline consistent, and show progress against targets. Publish a new version on your website with the approval date.

What if we have limited Scope 3 data?
Start with the required categories, use best available data, note assumptions, and set an action to improve data quality over the next year. Ask key suppliers for billed weights, distance and mode for logistics, and waste weights from your provider.

Can offsets count toward our targets?
Use offsets only for residual emissions you cannot reasonably remove. Focus on real reductions first. If you use offsets, describe the standard and the volume in tCO₂e.

Where should the CRP sit on our website?
Host it on a permanent, public page with a clear URL. Include a publication date, the signed approval and the latest reporting year, then keep a synced PDF for tenders.

Do frameworks below £5m still ask for CRPs?
Often yes. Many authorities mirror the central approach where environmental performance is relevant to delivery.

Why Work With Us

Thornton & Lowe blends practical sustainability expertise with deep bid experience. Our carbon reduction plans
service builds a compliant, buyer-ready plan that fits how you operate. We map your footprint, set targeted actions, and prepare the evidence pack buyers expect, including a signed plan for publication and a simple refresh schedule.

We then turn the plan into bid strength. Our bid writing team weaves your CRP into method statements, KPIs and social value, so evaluators can see how measures will work in delivery. For longer programmes, our bid success programme keeps targets live in contract management, captures results, and feeds improvements into future submissions.

What you can expect from Thornton & Lowe:

• A rapid CRP build that follows the official structure and uses current conversion factors.
• Clear, costed actions with owners, timelines and day-one measures for contracts.
• A tidy evidence pack with calculations, boundaries and assumptions ready for clarifications.
• Integration into live tenders, including positioning for carbon neutral tenders where environmental scoring is high.
• Ongoing annual refresh and data improvement, supported by simple tools and team briefings.

If you want a fast start, we can scope your footprint, draft the plan, secure approval, and publish on your site, then align it to your next submission.