Picture this: You’re steering your business, navigating the unpredictable seas of today’s economy. Just as you wouldn’t set sail without a map, you wouldn’t want to departure on the journey toward sustainability without a carbon reduction plan in hand. Now, we know what you’re thinking—“Another plan? Really?” but bear with us.

Creating a carbon reduction plan isn’t just another box to tick off. It’s the compass that guides your business each step of the way toward a future where profit and planet can coexist harmoniously.

We recently covered the whys of a carbon reduction plan, and in this one we will cover the hows. The sooner you start, the more benefits you’ll create—both in business and in doing your part for the planet. And trust us, the planet is one tough customer you want to keep happy.

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Carbon reduction plan in 5 steps

Step 1: Establish your baseline emissions
Before you can cut the carbon, you need to know how deep you’re in. Start by figuring out your business’s current carbon footprint—think of it as stepping on the scale after the holidays. Energy use, waste disposal, business travel, procurement—it all adds up. This baseline will be your ‘before’ picture, so you can track your progress toward a greener future.

Step 2: Report on current emissions
Now that you’ve got your carbon snapshot, it’s time to share it.

It may not be pretty – but at this stage, what matters in not how bad it is, but that you act transparently and boost the credibility of your approach.

Adopt a recognised reporting standard like the GHG Protocol’s corporate standard or SBTi’s Corporate Net-Zero Standard (just keep in mind, this one is under review so you should wait for V2.0) to ensure you’re speaking the same language as your stakeholders. This isn’t just about being transparent—it’s about showing your board and management that you’re serious about slashing your carbon emissions while remaining profitable.

Step 3: Identify reduction opportunities and set targets
With your baseline in hand, it’s time to play detective. Where are the carbon culprits hiding in your operations? Whether it’s embodied carbon, energy efficiency, renewable energy sourcing, optimising business travel, or tightening up your procurement process, there are always opportunities to slim down those emissions. Think of it as a treasure hunt, except the prize is a healthier planet and a more resilient business.

Step 4: Analyse the cost and impact
Alright, time to crunch some numbers. Every carbon reduction project has its price tag and its payoff, and it’s your job to weigh them both. This isn’t just an exercise in feel-good environmentalism—it’s about making smart decisions that benefit both your bottom line and the planet.

Step 5: Prioritise and implement your plan
Armed with your analysis, it’s time to put your plan into action. Prioritise the projects that give you the most carbon reduction impact. And lay out a timeline with milestones – you can either do this alone or bring in external expertise to save time.

And don’t forget—your team and stakeholders are your biggest allies in this journey, so engage them early on.

Remember, this isn’t a one-time sprint—it’s a marathon. It may take a while to choose the right emission factors and become proficient in your approach and in regularly reviewing your targets. Progress is key, and in the global campaign to reduce carbon, there’s no competition–we are all on the same team.

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Conducting a carbon footprint assessment

Conducting a robust carbon footprint assessment is like taking a deep breath before a big run—it’s the essential first step for any organisation serious about reducing its carbon emissions. This process involves gathering and converting data on everything from direct emissions (think fuel combustion and company vehicles) to the less obvious ones in scope 3, like the emissions linked to the goods you procure from suppliers.

Now, tracking and measuring these emissions might sound tedious, but it’s vital. A systematic approach ensures that your carbon reduction plan is built on solid ground, allowing your business to set realistic and achievable carbon reduction targets. From there, the fun bit begins—whether it’s optimising energy use, rethinking your procurement strategy, or rolling out projects to tackle emissions from business travel and waste disposal.

Emission conversion factors are the unsung heroes of this process. They transform raw data into clear insights, giving you a true picture of your greenhouse gas emissions. With this information, you can make informed decisions and set science-based targets.

A well-planned approach, backed by a supportive board and a committed management team, will set your organisation on a path to meaningful carbon reductions. And as a bonus, you’ll also be ticking off those big government contract requirements, setting a new standard for environmental management in your industry and beyond.

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Setting carbon reduction targets

Setting carbon reduction targets isn’t just about doing the right thing for the planet—if you’re a UK business, it’s also a compliance must-do. With the UK aiming to slash greenhouse gas emissions by 80%, on a path to net zero by 2050, these targets are now non-negotiable. For NHS suppliers handling contracts worth over £5 million annually, the clock started ticking in April 2023. From that date, they’re required to comply with the Carbon Reduction Plan, covering Scope 1 and 2 emissions, and certain Scope 3 emissions as well.

But it doesn’t stop at disclosure. Suppliers need to deliver their carbon reduction plans, aligning with the NHS’s net zero goals and the national carbon reduction targets. And here’s the kicker: these targets must be absolute—no fudging the numbers by factoring in projected business growth. The Government’s guidance is clear on this to ensure that emission reductions are both genuine and effective.

Requirements	Details
Scope	1 and 2, and select Scope 3 emissions
Expenditure Cap	Contracts over £5 million per annum
Reporting Standard	Net zero-alignment & national targets
Types of Emissions	GHG emissions, including carbon dioxide
Emissions Targets	Must be absolute, excluding business growth projections

The key to success lies in a laser-focused effort to reduce your carbon footprint across every aspect of operations—whether it’s energy use, business travel, waste disposal, or procurement. The path forward is clear: embed robust environmental management measures at the heart of your operations, so you’re able to set the pace for a sustainable innovation.

For the public sector and its key vendors, including boards of directors and management teams, the moment has arrived to align purpose, process, and reporting with Science-Based Targets (SBTi). It’s time to take a no-compromise approach to Carbon Reduction and lead the charge.

Here are 4 fundamental principles to keep you on the right track:

1. Time-frame your targets: Carbon reduction targets need to be set within a defined time frame that’s short-to-medium term. Think of it like setting a deadline for a major project—only this one involves saving the planet. Align your timing with relevant regulations (like the CSRD if you’re in the EU) or industry standards to stay ahead of the game.
2. Baseline is key: You can’t track progress without knowing where you started. Set your emissions reduction targets based on a baseline year, and make sure your carbon reduction plan breaks down your emissions—from sources to scopes—so you can monitor progress effectively.
3. Make it measurable: Clear targets are a must. They need to be measurable, achievable, and crystal clear to your customers, regulators, and stakeholders. If they can’t see it, they won’t believe it.
4. Align with science: Finally, make sure your carbon reduction targets are in line with Science-Based Targets (SBTs). SBTs give you a climate-science-backed framework, ensuring your goals aren’t just ambitious—they’re effective in mitigating climate change.

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Identifying carbon reduction projects

Identifying carbon reduction projects within your organisation is like laying the foundation for a greener, more sustainable future. Creating a solid carbon reduction plan is key to strategically cutting emissions across several main areas. Here are some initiatives that should be on your radar:

1. Energy efficiency upgrades: Time to bring in the tech that trims energy consumption—think of it as putting your operations on an energy diet.
2. Renewable energy adoption: Ready to make the switch? Solar, wind, and other renewables.
3. Sustainable supply chain: Green your procurement process by embedding environmental considerations every step of the way.
4. Product lifecycle management: Design, produce, and dispose of your products with sustainability in mind—from start to finish, the eco-friendly way. How? To nail sustainable product lifecycle management, start by designing products with recyclable or biodegradable materials—think long-lasting, not disposable. In production, aim for energy efficiency and waste reduction like a pro, and when it comes to distribution, why not go green with local sourcing or electric vehicles? Offer take-back programs or recycling options because, let’s face it, everyone loves a good second chance—especially the planet. Our last suggestion – pursue eco-certifications and conduct lifecycle assessments to continuously improve environmental impact.
5. Smarter business travel: Encourage public transport, car-sharing, and video conferencing to cut down those pesky travel emissions.
6. Carbon offsetting: Invest in projects that help balance out your organisation’s carbon footprint—it’s like giving the planet a bit of payback.

Each of these projects is carefully aligned with established emission conversion factors and meets the latest reporting standards to ensure your data is as credible as it is accurate. Once your plan is locked and loaded, it’s time to get the green light from the board of directors or the relevant management body. The ultimate goal? To aim for science-based emissions reduction targets that align with government and public sector requirements. Not only will these measures help you hit those carbon reduction targets, but they’ll also boost your company’s social responsibility cred and competitive edge in the market.

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Evaluating and adjusting your carbon reduction plan

In the pursuit of carbon reduction, businesses need to keep their strategy as agile as possible. Evaluating and adjusting your carbon reduction plan isn’t a one-and-done task—it’s a continuous cycle that thrives on regular check-ins and fine-tuning.

Performance dashboard: Think of it as your carbon command centre. Implement a robust dashboard that tracks all your carbon reduction metrics in real time. By displaying this data on internal channels, you not only keep everyone in the loop but also spark a bit of friendly competition to keep those emissions in check.

Budgeting for regional action: Give your regional leadership the green light—and the green budget—to tackle emissions locally. By allocating funds specifically for environmental initiatives, you empower each office to craft carbon reduction measures that fit their unique context, ensuring a more effective approach to cutting emissions.

Annual review integration: Carbon reduction shouldn’t just be a company goal—it should be a personal one. Make environmentally focused actions a key part of every employee’s Annual Review. This way, everyone knows their contribution counts, and accountability becomes a shared responsibility.

Knowledge Sharing: Keep the conversation going. Use blogs, newsletters, webinars, and even Lunch-and-Learn sessions to keep your team informed and inspired. The more they know about the company’s environmental impact, the more they’ll want to pitch in and help.

This ongoing review and upgrade process will turn your carbon reduction efforts into a well-oiled machine, keeping your strategy both nimble and impactful.

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It all begins with a solid blueprint. In a world where businesses are expected to lead the charge toward sustainability, simply having a plan isn’t enough—you need a carbon reduction plan that’s actionable, measurable, and impactful.

Not sure where to start? Our team of project managers and strategic consultants is here to guide you through every step of the process. From assessing your baseline emissions to setting targets and implementing effective strategies, we’ll free up your plate. We’ll work with you to create, prioritise, and deliver a pipeline of carbon reduction projects.

Whether you’re starting from scratch or need a little help refining your existing plan, reach out today to take decisive steps on your carbon reduction journey.

Stay tuned for part 2 of this blog which will tackle the organisational and cultural hurdles of business carbon reduction.