Climate change is no longer a distant or theoretical risk. A 2024 study published in Nature Geoscience estimates that human activity has caused 1.49°C of global warming relative to a pre-1700 baseline. According to the World Meteorological Organization (WMO), 2025 was one of the top three warmest years since records began in 1850.
The link between greenhouse gas emissions and rising global temperatures is clear: the more greenhouse gases we emit, the greater the impact on our climate. For businesses, this makes understanding and managing greenhouse gas emissions increasingly important. Organisations can influence not only the emissions generated by their own operations, but also those associated with their procurement and supply chains.
But why should organisations care about their impact on the planet, and how can businesses reduce their carbon footprint? Read on to find out.
Why reducing your carbon footprint matters
Businesses use energy, transport goods and rely on complex supply chains, all of which can generate significant greenhouse gas emissions. The UK is committed to reaching Net Zero greenhouse gas emissions by 2050, and organisations have an important role to play in meeting this goal.
For unquoted companies and LLPs, SECR reporting requirements generally apply where an organisation meets at least two of the following criteria:
- More than 250 employees
- Turnover of more than £36 million
- Balance sheet total of more than £18 million
Quoted companies are also subject to SECR requirements, subject to the applicable exemptions.
Businesses outside the current SECR requirements can still benefit from understanding and managing their greenhouse gas emissions, particularly as sustainability expectations and reporting requirements continue to evolve.
But it’s not just about environmental responsibility and meeting government targets. Employees, customers, investors and other stakeholders are increasingly interested in the environmental performance of the organisations they work with and for. This means demonstrating your commitment to reducing your impact can lead to significant reputational benefits.
In addition, reviewing processes can lead to improved efficiencies and a positive impact on the cost base of an organisation.
Developing a Carbon Reduction Plan
Reducing emissions begins with understanding where they originate. Before implementing improvements, organisations should establish a clear picture of their current carbon footprint and identify the areas likely to have the greatest impact.
A carbon reduction plan can set out an organisation’s current emissions, reduction targets and the actions it intends to take to reduce its greenhouse gas emissions over time.
For suppliers bidding for certain central government contracts, specific Carbon Reduction Plan requirements also apply under the UK Government’s procurement policy.
Your plan might include:
- Understanding your energy use and identifying focus areas
- Making your business fleet more sustainable by selecting electric vehicles
- Providing driver training to encourage more fuel-efficient driving
- Lessening business travel and encouraging working from home where possible
- Improving compressed air systems
- Reviewing lighting and moving to energy-efficient solutions
- Adjusting heating to match working hours
- Moving away from fossil fuels
- Streamlining processes to reduce energy use
- Purchasing high-performance IT equipment that is more energy efficient
- Going paperless
- Adopting ‘switch-off policies’
- Educating employees regarding their carbon footprint and empowering them to make changes
A Carbon Reduction Plan should align with business objectives and include measurable actions that can be monitored over time. Reviewing procurement activity alongside operational processes allows organisations to prioritise initiatives that deliver meaningful improvements without disrupting day-to-day operations.
Organisations such as Positive Planet can help businesses to calculate their carbon footprint and better understand how a range of initiatives could affect their environmental impact.
Improving sustainability across the supply chain
An important action for all businesses is to look wider than their current organisation and aim to decarbonise their supply chain. Procurement can support carbon reduction by reviewing purchasing decisions and identifying opportunities to improve efficiency.
This can be achieved through actions such as supplier incentives, sharing knowledge on climate impacts, developing procurement standards relating to greenhouse gas emissions and evaluating supplier performance.
Reducing emissions requires collaboration throughout the supply chain. Working closely with suppliers helps organisations understand environmental performance and encourages suppliers to adopt more sustainable practices.
Supplier evaluation should consider environmental performance alongside quality and commercial capability. If your organisation does not have the skills to implement an effective supply chain decarbonisation strategy, procurement consultancies can provide invaluable support.
How employees can play their part
The UK has made significant progress in reducing its carbon footprint. In 2023, the UK’s consumption-based emissions (which cover consumption of all goods and services) were estimated at 699 million tonnes of CO₂e – a 24% reduction since 1990. But there’s still a long way to go.
Every person living in the UK contributes to carbon emissions. So, for businesses, successful carbon reduction depends on more than procurement processes alone. Employees influence energy use and travel decisions, and everyday purchasing behaviour matters too. Creating greater awareness across the organisation and providing practical guidance can encourage employees to contribute to wider sustainability goals, while supporting long-term cultural change.
So, what can employees do to address their carbon footprint?
- Improve home energy efficiency through better insulation and more efficient heating.
- Use energy wisely by switching off lights and electrical equipment when not in use.
- Choose renewable energy tariffs where available.
- Work from home where possible and reduce unnecessary commuting.
- Use public transport, walk, cycle or car share where practical.
- Reduce unnecessary business travel and consider online meetings instead of travelling.
- Choose seasonal food options and reduce food waste.
- Buy less, reuse, repair and recycle where possible.