Businesses are increasingly expected to play a critical role in reducing greenhouse gas emissions. Whether to meet regulatory requirements like the EU CRSD, appeal to eco-conscious customers, or simply do the right thing for the planet, creating a Carbon Reduction Plan (CRP) is now a strategic imperative.

This guide outlines the key steps to building a credible, actionable CRP, along with how platforms like Lune can help logistics and spend management platforms simplify and enhance this process for their users.

1. Understand the purpose of a carbon reduction plan

A Carbon Reduction Plan is a structured document that details an organisation’s current carbon emissions and sets out clear, time-bound actions to reduce them.

Under the UK Government’s Procurement Policy Note (PPN) 06/21, CRPs are now mandatory for businesses bidding on major public contracts over £5 million, and they are fast becoming best practice in the private sector. This is critical to demonstrating your commitment as a business to achieving net zero by 2050.

Typical components of a specific and measurable CRP include:

• A baseline carbon footprint
• Emissions reduction targets (e.g. Net zero by 2050)
• A timeline of actions
• Responsibilities and governance
• Transparent reporting mechanisms

2. Measure your carbon footprint (accurately and efficiently)

Establishing an accurate emissions baseline is the foundation of any CRP. This involves calculating your emissions across:

Scope 1: Direct emissions (like company vehicles and on-site fuel use)

Scope 2: Indirect emissions from purchased energy (such as electricity or gas suppliers)

Scope 3: All other indirect emissions (including employee commuting, purchased goods, and business travel)

Many businesses struggle with Scope 3 emissions due to data complexity. That’s where Lune can make a tangible difference. Lune offers automated emissions measurement that integrates directly with spend management, procurement, or logistics platforms, ensuring precise, up-to-date, and auditable data.

By streamlining carbon accounting with Lune, you save your clients’ time, reduce errors, and reinforce your credibility and brand ethics.

3. Set clear and ambitious targets

Next, define exactly how much you’re aiming to reduce your carbon emissions by. These goals should align with climate science and be achievable within your industry context.

Common target types include:

• Absolute reductions: e.g. 50% reduction by 2030 from a 2020 baseline
• Intensity-based targets: e.g. kgCO₂e per employee or unit of revenue

Our emissions tracking tools monitor progress against emission reduction targets in real time, enabling better decision-making and allowing you to help your clients set realistic goals by using your platform to inform them.

4. Identify and prioritise your emission hotspots 

With your baseline and emission reduction targets in place, map out your priority carbon reduction areas and create a reduction roadmap. Focus on high-impact areas first.

Common actions include:

• Upgrading insulation, switching to renewable tariffs, or installing solar
• Electrifying fleets, reducing air travel, and incentivising cycling
• Choosing low-carbon suppliers and sustainable materials
• Reducing cloud infrastructure emissions and using green servers

Lune identifies emissions hotspots for users of your platform, allowing for targeted, high-impact carbon reduction that makes real impact. 

5. Engage your team and assign responsibilities

Carbon reduction must be a cross-functional effort with buy-in from all major decision-makers. Engage stakeholders across operations, finance, procurement, HR, and marketing.

Establish:

• A sustainability champion or group
• Defined roles and ownership of initiatives
• A governance structure for reporting and review

Use internal training and regular updates to maintain momentum and awareness across the entire business 

6. Report progress transparently

Publish updates to show stakeholders, customers, and regulators that you’re delivering on your commitments.

Best practice includes:

• Annual emissions reporting with year-on-year comparisons
• Updates on reduction measures
• Reassessing targets if necessary
• Independent verification, where feasible

Lune provides downloadable audit-ready impact reports and decision-useful dashboards to support transparent carbon disclosures as part of Carbon Reduction Plans. 

Developing a Carbon Reduction Plan is now a reputational, operational, and financial necessity. 

By using tools like Lune, logistics, spend management, and procurement platforms can help their clients accelerate their carbon strategy, from accurate measurement to actionable reductions and audit-ready reporting. Find out more about how we’re helping logistics and spend management platforms make emission reduction and tracking capabilities a USP.