Carbon Reduction Plan template for UK small business

Carbon Reduction
Carbon reduction plans
Jul 17, 2024

If you know exactly what you’re going to do to reduce carbon, you already have everything to fill out a carbon reduction plan template . Your Carbon Reduction Plan is your chance to show how you’ve measured emissions, set targets, and implemented energy efficiency measures, renewable energy technologies, sustainable travel policies, and employee engagement initiatives.

If you don’t have all your emissions figures at your finger tips, or a cohesive plan for what to do about them, don’t worry. Gopher Zero’s online Carbon Reduction Planning tool is designed to simplify the process of creating a CRP for UK small businesses.

Gopher guides you through each step, from calculating baseline emissions to setting reduction targets. It features automated calculations, customisable templates, and integration with UK-specific emissions factors. Created with UK government requirements and best practices in mind, the Gopher tool enables small businesses to create compliant and effective CRPs without the need for expertise or expensive consultants.

What is a carbon reduction plan?

A carbon reduction plan (CRP) is a document published on a company website that sets out a company’s carbon footprint and what it’s going to do to reduce carbon. Exactly what it includes is up to you, but many companies have published carbon reduction plans in order to comply with procurement legislation for UK government contracts, so called PPN 06/21. These CRP templates consist of 6 elements:

A declaration of your commitment to achieving net zero emissions (including a target year)
Baseline emissions footprint
Current emissions report (the emissions from the most recent year calculated )
Emissions reduction targets (5-year reduction target and report of progress against pre-existing targets)
Carbon Reduction Projects, both completed and changes that you plan to make in the future. These may include environmental management measures, certification schemes or specific carbon reduction measures.
Declaration and Sign Off by a director

The UK Government website has published a sample Carbon Reduction Template in a format accessible for Microsoft Word. There’s a Word CRP template version and a download for a Google Docs version of the UK government CRP template from our archive.

Creating Your Carbon Reduction Plan: A Step-by-Step Guide

Creating a Carbon Reduction Plan (CRP) may seem like a daunting task for UK small businesses, but it can be broken down into manageable steps. According to a survey by the British Chambers of Commerce, the average time taken by UK SMEs to complete a CRP is 2-4 weeks. However, tools like Gopher Zero’s can significantly reduce this time, making the process more efficient and achievable.

Establishing Your Baseline Emissions Footprint

The foundation of a CRP is accurately measuring your current emissions. Start by collecting and analysing data on your energy use, business travel, and other relevant activities. The Department for Business, Energy & Industrial Strategy (BEIS) states that the average UK SME emits 2.5 tonnes of CO2e per employee annually. Use standardised emissions factors from the UK government’s Greenhouse Gas Conversion Factors repository to ensure accurate calculations.

Calculating Scope 1 Emissions (Direct Emissions)

Scope 1 emissions are direct emissions from sources owned or controlled by your business, such as fuel consumption in company-owned vehicles or on-site gas boilers. To calculate these emissions, use activity data and emission factors. Practical tips for data collection include using fuel card reports or energy bills. According to the Carbon Trust, Scope 1 emissions typically account for 20-30% of a UK SME’s total carbon footprint.

Measuring Scope 2 Emissions (Indirect Emissions from Electricity)

Scope 2 emissions primarily come from purchased electricity. Use the location-based accounting method, which is most appropriate for UK small businesses, and source emission factors for UK grid electricity (418 gCO2/kWh in 2021, according to BEIS). Switching to a renewable energy tariff can significantly reduce Scope 2 emissions, potentially to zero if using a 100% renewable tariff with Renewable Energy Guarantees of Origin (REGO) certificates.

Assessing Scope 3 Emissions (Other Indirect Emissions)

Scope 3 emissions are indirect emissions that occur in your value chain, such as business travel, employee commuting, and purchased goods and services. While not all Scope 3 categories may be relevant, it’s important to consider key areas. Use spend-based or average-data methods to estimate these emissions. According to Global carbon disclosure charity CDP, Scope 3 emissions often account for more than 70% of a business’s carbon footprint. As an SME, your Scope 1 and Scope 2 emissions are key to unlocking powerful net zero progress for enterprise customers upstream looking at you to achieve their Scope 3 reduction targets.

Setting Realistic Emission Reduction Targets

Set achievable yet ambitious emission reduction targets aligned with the UK’s overall target of a 78% reduction in emissions by 2035 compared to 1990 levels. Typical reduction targets for UK SMEs range from a 30-50% reduction over 5-10 years, based on case studies from the SME Climate Hub. Consider applying the concept of Science-Based Targets to ensure your goals are in line with climate science.

Developing a Carbon Footprint Methodology

Establish a consistent methodology for calculating and reporting emissions by choosing appropriate organisational and operational boundaries for your small business. Align with recognised standards such as the Greenhouse Gas Protocol or ISO 14064 to build credibility with stakeholders and allow for year-on-year comparisons.

Crafting Your Commitment to Achieving Net Zero

Articulate a clear and meaningful commitment to achieving net-zero emissions, which is the UK government’s preferred goal. According to a survey by the British Chambers of Commerce, 64% of UK SMEs are committed to reaching net-zero, but only 30% have a formal plan in place. Look at examples of commitment statements from UK SMEs that have successfully implemented CRPs for inspiration.

Outlining Current Emissions Reporting Practices

Document your current emissions reporting practices within your CRP, emphasising transparency and accuracy. Choose reporting formats and frequencies suitable for your small business, such as annual reports aligned with financial years. While detailed reporting is not mandatory for most SMEs, regular monitoring and reporting can help track progress and identify areas for improvement.

Identifying Carbon Reduction Projects and Initiatives

Identify and prioritise carbon reduction projects suitable for your small business, ranging from low-cost behavioural changes to larger investments in energy-efficient technologies or renewable energy systems. Popular initiatives among UK SMEs include:

LED lighting upgrades, which can reduce lighting energy consumption by up to 80% (Carbon Trust)
Installing solar PV systems, which can typically provide 30-50% of an SME’s electricity needs

Consider both short-term wins and longer-term strategic projects when creating your plan.

Creating an Action Plan for Implementation

Develop a practical action plan to implement your identified carbon reduction projects. Assign responsibilities, set timelines, and allocate resources using a template or framework that includes columns for project description, expected carbon savings, cost, timeline, and responsible person. SMEs with a formal carbon reduction plan are three times more likely to have already made significant progress in reducing their emissions, according to a survey by the British Chambers of Commerce.

Establishing Monitoring and Reporting Procedures

Set up an effective monitoring and reporting system for your CRP, including regular data collection and analysis to track progress against targets. Choose appropriate key performance indicators (KPIs) and report on these internally and externally. Tools and software, such as Gopher Zero’s online platform, can assist with monitoring and reporting. Businesses that actively monitor and manage their carbon emissions can achieve annual energy cost savings of 5-10%, according to the Carbon Trust.

Drafting the Declaration and Sign-Off Section

Complete the declaration and sign-off section to demonstrate commitment and accountability. Include a statement of your organisation’s commitment to the CRP, confirmation of the accuracy of the reported information, and a signature from a senior responsible person (e.g., a director). This public commitment can be a powerful tool for engaging employees and stakeholders in your carbon reduction journey.

What’s Included in a Carbon Reduction Plan Template?

Business Name: Clearly state your business name.
Year You Plan to Reach Net Zero: Typically, this is 2050 unless you have a more aggressive plan.
Baseline Emissions: This year’s emissions unless you’ve reported emissions in previous years.
Five-Year Carbon Plan: Be realistic as you’ll use this for future reports to show progress.
How you will achieve your reduction: This may include environmental management measures, certification schemes or specific carbon reduction measures. You can do everything from including certifications like ISO14001 or PAS 2060, signing up to SBTI, or measures like installing LED lights, changing policies on flights, or getting electric vehicles.
Declaration and Sign-Off: By the board of directors or equivalent management body.

What Low-Cost Measures Can You Include in a Carbon Reduction Plan?

Energy Efficiency: Upgrade to energy-efficient lighting and equipment to cut down on energy use.
Renewable Energy: Consider installing solar panels or using wind power.
Transport: Encourage carpooling, use electric vehicles, or promote public transport.
Waste Reduction: Boost your recycling efforts and aim to produce less waste.

Implementing Your Carbon Reduction Plan: Strategies and Technologies

Implementing a Carbon Reduction Plan (CRP) is an ongoing process that should be integrated into your small business’s overall strategy and operations. There are a variety of practical strategies and technologies suitable for different types and sizes of UK SMEs, ranging from low-cost operational changes to more significant investments in green technologies. Let’s explore some of these options and see how they can help your business reduce its carbon footprint.

Energy Efficiency Measures for Small Businesses

One of the most accessible ways to start implementing your CRP is through energy efficiency measures. These can include simple behavioural changes, like encouraging staff to switch off equipment when not in use, as well as technological solutions, such as installing smart meters or energy management systems. According to the Carbon Trust, SMEs can reduce energy costs by up to 25% through energy efficiency measures. Consider the specific needs of your sector, whether it’s retail, hospitality, or small-scale manufacturing, and prioritise measures that will have the greatest impact.

Adopting Solar Technology as a Key Enabler for Carbon Reduction

Solar PV systems offer significant benefits for UK small businesses, including reduced electricity costs and carbon emissions. While the upfront investment may seem daunting, the long-term rewards are substantial. The Solar Trade Association estimates that a typical SME solar installation can have a payback period of 5-7 years and potentially save 40-50% on electricity bills. Even in the UK climate, a well-designed system can generate significant power. The government’s Smart Export Guarantee (SEG) scheme also provides financial incentives for businesses that export surplus solar energy to the grid.

Exploring Other Renewable Energy Solutions

In addition to solar, there are other renewable energy options suitable for UK small businesses, such as wind turbines, biomass boilers, or heat pumps. The key is to assess which technologies are most suitable for your specific circumstances. For example, rural businesses may benefit from small-scale wind turbines, while hospitality businesses might find biomass heating systems more appropriate. The UK government’s Renewable Heat Incentive (RHI) scheme offers financial support for businesses adopting renewable heat technologies.

Sustainable Business Travel and Commuting Policies

Business travel and employee commuting can contribute significantly to your organisation’s carbon footprint. Developing sustainable travel policies is an essential part of your CRP implementation. Strategies might include reducing business travel through video conferencing, promoting public transport use, and transitioning to electric or hybrid vehicles for company fleets. Cycle-to-work schemes can also encourage employees to choose low-carbon commuting options. With 68% of UK commuters currently travelling by car (according to the Department for Transport), there’s significant potential for emissions reduction in this area.

Supply Chain Management for Reduced Carbon Footprint

Your business’s carbon footprint extends beyond your own operations and into your supply chain. Working with suppliers to reduce Scope 3 emissions is a crucial aspect of CRP implementation. Start by conducting a supply chain carbon audit and setting criteria for supplier selection based on environmental performance. Consider local sourcing, which can benefit both carbon reduction and the local economy. A survey by HSBC found that 31% of UK SMEs plan to invest in their supply chains to become more sustainable in the next three years.

Waste Reduction and Recycling Initiatives

Reducing waste and improving recycling rates should be a key component of your CRP implementation. The waste hierarchy (reduce, reuse, recycle) provides a useful framework for addressing this issue. Consider sector-specific strategies, such as reducing food waste in hospitality businesses or packaging waste in retail. With UK businesses producing over 41 million tonnes of commercial and industrial waste each year (DEFRA data), there’s significant room for improvement.

Green IT and Digital Solutions for Carbon Reduction

Digital technologies and green IT practices can play a significant role in your carbon reduction efforts. Energy-efficient computing practices, cloud computing, and digital tools for optimising business processes can all contribute to reduced resource use and emissions. According to a report by techUK, the UK’s digital technology sector has the potential to enable a 24% reduction in UK carbon emissions by 2030. Simple steps like extending the lifespan of IT equipment or choosing energy-efficient data centres can make a big difference.

Employee Engagement and Behaviour Change Programmes

Engaging your employees is critical for the success of your CRP implementation. Develop education and training programmes to foster a culture of sustainability within your organisation. Initiatives like green teams or sustainability champions can help drive behaviour change and generate new ideas. A survey by Carbon Trust found that 93% of UK workers are concerned about the environment, indicating a strong potential for employee engagement in sustainability initiatives.

Accessing Clean Finance Options for Carbon Reduction Projects

Funding your carbon reduction projects may require exploring clean finance options. Green loans, sustainability-linked loans, and grants are available for UK small businesses investing in energy efficiency and renewable energy. The Green Business Fund and regional initiatives offer additional support. When building a business case for sustainability investments, emphasise both environmental and financial returns. UK Finance reports that 70% of SMEs consider environmental impact when seeking business finance.

Leveraging Government Incentives and Support Schemes

Take advantage of the various UK government incentives and support schemes available for small businesses working on carbon reduction. These include tax incentives like Enhanced Capital Allowances (ECAs) for energy-efficient equipment, as well as grants and technical support programmes. Organisations like the Carbon Trust and local energy hubs can provide valuable guidance and resources. Leveraging these schemes can significantly boost your CRP implementation efforts.

Collaborating with Industry Partners for Enhanced Impact

Collaboration is key to enhancing your carbon reduction impact. Consider joining sustainability-focused business networks or local green business initiatives. Partnering with other organisations can lead to innovative solutions, such as local circular economy projects or shared renewable energy schemes. A report by Business in the Community found that 80% of UK SMEs believe collaboration is essential for achieving sustainability goals.

Measuring and Verifying Carbon Reduction Achievements

As you implement your CRP, it’s crucial to accurately measure and verify your carbon reduction achievements. Use a consistent methodology and ensure high data quality to track your progress effectively. Third-party verification can enhance the credibility of your emissions reduction claims, particularly if you plan to make public statements about your achievements. UK standards and certification schemes, such as PAS 2060 for carbon neutrality, can provide a framework for measuring and communicating your success.

Implementing Your Carbon Reduction Plan: Strategies and Technologies

Energy Efficiency Measures for Small Businesses

Adopting Solar Technology as a Key Enabler for Carbon Reduction

Exploring Other Renewable Energy Solutions

Sustainable Business Travel and Commuting Policies

Supply Chain Management for Reduced Carbon Footprint

Waste Reduction and Recycling Initiatives

Green IT and Digital Solutions for Carbon Reduction

Employee Engagement and Behaviour Change Programmes

Accessing Clean Finance Options for Carbon Reduction Projects

Leveraging Government Incentives and Support Schemes

Collaborating with Industry Partners for Enhanced Impact

Measuring and Verifying Carbon Reduction Achievements

How to Keep Carbon Reduction on Track

Adjust CRP as Needed

Flexibility is key to a successful CRP. As you monitor your progress, you may find that some strategies are more effective than others. Regularly review your plan and be prepared to make adjustments based on what is working and what isn’t.

If certain actions aren’t yielding the expected results, analyse why and explore alternative approaches. For instance, if your efforts to reduce energy consumption through behavioural changes aren’t sufficient, you might need to invest in more energy-efficient equipment or renewable energy sources.

Keep an open line of communication with your team and encourage feedback. Sometimes, those on the front lines can offer valuable insights into potential improvements. By remaining adaptable and responsive, you can continuously refine your plan to achieve better results.

Be Transparent

Transparency is vital for maintaining credibility and trust. Share your carbon reduction progress with your customers, employees, and other stakeholders. Regular updates on your achievements and challenges can help build a sense of community and shared purpose.

Consider publishing an annual sustainability report that details your emissions, the steps you’ve taken to reduce them, and your future plans. This report can be a powerful tool for communicating your commitment to sustainability and demonstrating accountability.

In addition to formal reports, use your website, social media, and other communication channels to keep stakeholders informed. Transparency not only builds trust but also encourages others to support and participate in your efforts.

Promote Your Efforts

Promoting your carbon reduction achievements can enhance your brand and attract eco-conscious customers. Highlight your sustainability initiatives in your marketing campaigns, on your website, and through social media.

Create content that showcases your progress, such as case studies, blog posts, and videos. Share stories about the positive impacts of your actions, whether it’s reducing waste, saving energy, or supporting local environmental projects. These stories can resonate with your audience and differentiate your business from competitors.

Engage your customers and the broader community by inviting them to join you in your sustainability journey. Offer tips on how they can reduce their carbon footprint and involve them in initiatives like tree planting or recycling programmes. By actively promoting your efforts, you can build a loyal customer base that values your commitment to the environment.

If you’re looking to make a first step, try creating your CRP online at Gopher Zero. Our simple flat fee can save you hundreds of £££s on consultancy fees, with a step-by-step onboarding that allows you to develop a robust and effective Carbon Reduction Plan in as little as 30 minutes.

Frequently Asked Questions

What are the costs associated with creating and implementing a Carbon Reduction Plan for small businesses in the UK?

The costs of creating and implementing a CRP can vary depending on the size and complexity of your business. However, many low-cost or no-cost measures can be taken, such as adopting energy-efficient practices and encouraging sustainable employee behaviours.

How can small businesses in the UK ensure their Carbon Reduction Plan aligns with national and international climate targets?

Small businesses can align their CRPs with national and international climate targets by setting science-based emissions reduction goals, using recognised methodologies like the Greenhouse Gas Protocol, and referring to the UK’s net-zero target and the Paris Agreement.

What support is available for UK small businesses to help them develop and implement their Carbon Reduction Plans?

Various organisations, such as the Carbon Trust, Energy Saving Trust, and local chambers of commerce, offer guidance, resources, and support for UK small businesses developing and implementing CRPs. Gopher Zero offers an online platform to fast-track the process, and empower small businesses in the energy transition.

How often should UK small businesses review and update their Carbon Reduction Plans?

Every year. It is recommended that small businesses review and update their CRPs annually to ensure they remain relevant and effective. Regular monitoring and reporting of emissions data will help track progress and identify areas for improvement.

What are the potential risks and challenges UK small businesses may face when implementing their Carbon Reduction Plans, and how can they be mitigated?

Potential risks and challenges include financial constraints, lack of technical expertise, and resistance to change from employees or stakeholders. These can be mitigated through careful planning, seeking external support, and engaging employees in the carbon reduction journey.