Carbon Reduction Plans: Everything You Need To Know

Want to see an example Carbon Reduction Plan? Download our free template here.

If your business is serious about tackling climate change by taking part in the shift toward a low carbon economy, you'll need to do more than just measure emissions - you need a carbon reduction plan. This guide breaks down everything you need to know about carbon reduction plans, from what they are, to how to create one that’s credible, actionable, and commercially useful.

Whether you’re bidding for a public sector contract, working towards B Corp certification, reporting to clients or investors, or simply want to get a handle on your impact - carbon reduction plans help you move from talk to action.

What is a Carbon Reduction Plan?

A carbon reduction plan is a formal strategy that sets out how your business plans to reduce its greenhouse gas emissions over time. It’s your commitment to achieving Net Zero: where you are now, where you want to be, and what you’ll do to get there.

There’s no single “correct” format. Depending on your objective, your carbon reduction plan might take one of several common forms:

PPN 006 (previously 06/21) Carbon Reduction Plan – Required by UK government departments and public sector bodies for suppliers bidding on contracts worth over £5 million.
Climate Transition Plan (CTP) – Increasingly used by businesses to demonstrate long-term commitment to Net Zero. Larger B Corps will soon be required to submit one as part of recertification.
General sustainability or impact report – Often voluntary, but an increasingly common way for businesses to share their carbon footprint and climate strategy with clients, investors or the public.

Different types of carbon reduction plan formats

No matter the format, the fundamentals are the same: measure your carbon footprint, set emission reduction targets, and define the actions that will help you meet them.

Why does having a Carbon Reduction Plan matter?

A carbon footprint tells you where your emissions are coming from. But that’s just the starting point. A carbon reduction plan is how you drive change.

1. It’s good for the planet

Let’s start with the obvious one. Climate change is driven by greenhouse gas emissions. A reduction plan ensures your business is playing its part - not just tracking emissions, but actively cutting them.

And not in a vague way. A good plan focuses on the most material areas of impact, sets ambitious but achievable targets, and defines specific actions to reduce emissions over time.

2. It strengthens internal operations

Carbon reduction often aligns with operational efficiency. Cutting energy use, streamlining logistics, or sourcing smarter materials can save money as well as carbon.

But more than that, a plan forces alignment across your team. It assigns ownership to different departments, defines governance and accountability structures, and ensures everyone’s working toward the same climate goals.

This can be especially useful in SMEs, where sustainability often sits between roles or isn’t formally owned.

3. It engages your employees

Most employees care about climate - but many don’t know what their employer is doing about it. A clear carbon reduction plan is a powerful internal comms tool. It shows that the business has a genuine strategy in place - not just vague values or greenwashing headlines.

Surveys show this matters: according to Anthesis, 60% of employees say they’d be more loyal to a company with a credible climate plan. For younger talent, it’s even higher.

4. It strengthens your commercial position

There are also direct commercial advantages.

Public sector contracts: If you’re bidding for UK government work, a PPN 006 (06/21) compliant plan is a legal requirement.
Client requests: Larger businesses are increasingly asking suppliers for carbon data and Net Zero commitments as part of their procurement process.
Marketing and differentiation: A detailed, quantified plan gives you a genuine story to tell - far beyond the typical vague “sustainability” page.

What should a Carbon Reduction Plan include?

Although formats vary, most credible carbon reduction plans will include three core components:

Carbon Reduction Plans: simple 3-step framework

1. A baseline year carbon footprint

This is your starting point for your carbon reduction plan. It involves measuring your baseline emissions in line with the Greenhouse Gas (GHG) Protocol, broken down by:

Scope 1: Direct emissions from owned assets (e.g. fuel used in company vehicles).
Scope 2: Indirect emissions from purchased electricity, steam, or heating.
Scope 3: All other indirect emissions - including purchased goods, business travel, employee commuting, waste and more.

Some formats, like PPN 006 (06/21), only require emission reporting for a subset of Scope 3. But many businesses choose to disclose their full Scope 3 impact.

The more complete your footprint, the more robust your plan.

2. Targets for reducing carbon emissions and achieving Net Zero

What are you aiming to achieve? Your targets are about looking at your current emissions, and stating exactly what your target is for reducing those emissions. Your emission reduction targets should be:

Quantified: Avoid vague intentions. Instead of “cutting emissions,” state clearly: “Reduce total emissions by 42% by 2030.”
Time-bound: Set target dates that are both short-term (e.g. 2030) and long-term (e.g. 2050) goals.
Aligned with science: Following the Science Based Targets initiative (SBTi) is a strong way to show that your targets align with global climate goals, particularly the 1.5°C limit from the Paris Agreement. This provides substance and credibility to targets like "we're aiming to achieve Net Zero emissions by 2050".

If you're applying for B Corp certification, targets aligned with SBTi will soon be a requirement for larger businesses, and recommended for SMEs.

3. Your carbon reduction projects

This is the practical bit. What carbon emission reduction actions will you actually take?

Your plan might include:

Existing actions already in place
Planned future initiatives to reduce emissions
Quantification of impact (if available)
Ownership and accountability (who’s responsible)
Timelines and budgets

For a Climate Transition Plan, you’ll also want to show how your plan is integrated into your wider business strategy - and how you’re engaging teams, suppliers and customers in the process.

What are some Carbon Reduction Plan examples?

Let’s take a look at three real-world examples, each using a different format.

1. PPN 006 (06/21) Plan – NS Optimum

NS Optimum supplies IT equipment and services to schools across the UK. When bidding for a place on the Crown Commercial Services (CCS) framework, they needed a compliant carbon reduction plan.

Their plan includes:

A GHG Protocol-aligned footprint showing current emissions across Scopes 1, 2 and select Scope 3 categories.
Carbon reduction projects such as switching to an electric vehicle fleet, improving warehouse energy efficiency, managing upstream distribution and reducing business travel.
A commitment to reduce carbon emissions by 50% vs. their baseline year by 2030.
A commitment to be Net Zero by 2050, in line with the SBTi.

📄 View their full PPN 06/21 plan

2. Climate Transition Plan – Bank of England

The Bank of England's Climate Transition Plan commits to achieving net-zero emissions from its operations by 2040 through systematic measurement, significant reduction targets, and sustainability initiatives.

Key points:

The Bank measures emissions starting from a 2015/16 baseline, covering Scope 1, 2, and selected Scope 3 categories.
It targets a 90% absolute emissions reduction by 2040, with interim milestones (40% by 2025, 62% by 2030).
Major emission sources include heating (natural gas), air travel, and polymer banknote production.
Reduction actions include switching to renewable electricity, improving energy efficiency, and working with suppliers to cut emissions.

This is a great example of a well-evidence, comprehensive transition plan from a large organisation.

As more B Corps are required to produce a Climate Transition Plan as part of B Corp certification, you can expect to see a lot more of these from SMEs too!

📄 View the BoE's Climate Transition Plan

3. General Sustainability Summary – BibliU (EdTech)

BibliU, a fast-growing education technology platform, has taken a simpler approach, but still delivers impact.

Key highlights:

Paperless by design: As a digital-first platform, they’ve eliminated printed materials across their product line.
Hosting with impact: Their cloud infrastructure is powered by AWS, which offers a significantly lower carbon footprint than traditional hosting.
Reforestation efforts: 1,200 trees planted in Kenya to support carbon removals.

This isn’t a formal PPN or extensive Climate Transition Plan - but it’s a great example of an SME communicating meaningful action in a clear, credible way.

📄 See BibliU’s full climate overview

How can I create a Carbon Reduction Plan?

You don’t need to be an expert to get started. At Seedling, we’ve built tools and templates to make the whole process fast, accurate and easy to navigate.

Start with these free resources:

🧩 PPN 006 (06/21) Carbon Reduction Plan Template

🌍 Climate Transition Plan Template (for B Corps)

Or work with us directly. We’ll help you: