The defence landscape is changing, and industry must keep pace to remain a reliable partner to the UK Ministry of Defence (MOD). It is no longer sufficient to just deliver ruggedised equipment that survives harsh environments; we must now also demonstrate that our manufacturing processes and business practices are environmentally responsible and sustainable.
In this blog, GRiD Defence Systems demystifies the Carbon Reduction Plan (CRP), and explains how it has shifted from a checkbox exercise for Tier 1 primes to a business-critical requirement across the supply chain.
Photo credit: UK Ministry of Defence © Crown Copyright 2023
Why CRP is business-critical
Under the guidance of Procurement Policy Note (PPN) PPN 06/21 (and its subsequent updates in 2024 and 2025), any supplier bidding for major government contracts, including increasingly smaller-scale MOD procurements, must demonstrate a clear commitment to achieving Net Zero by 2050.
For a defence SME like GRiD, this can feel like an administrative mountain. However, the MOD’s requirement is simple: Whitehall wants to see a documented, board-approved roadmap that tracks where a company’s carbon is coming from and how it intends to get rid of it. If a compliant CRP is not published on a website, the company is effectively locking itself out of the room before the bidding even begins. Why not check out GRiD’s here?
What does “good” look like?
A robust CRP is not about vague promises of green initiatives. It is a technical document that mirrors the precision of the engineering we do every day.
According to the latest MOD Carbon Reduction Plan requirements, a good plan must include:
1. A formal statement that your company is committed to achieving Net Zero by 2050 at the latest. This must be signed off at the highest level of your organisation.
2. A compliant plan requires data and information on, but not limited to:
- Direct emissions from sources you own (e.g., company vehicles, onsite gas boilers).
- Indirect emissions from the energy you buy (e.g., your electricity bill).
- Reporting on five specific categories:
- Upstream transportation and distribution.
- Waste generated in operations.
- Business travel.
- Employee commuting.
- Downstream transportation and distribution.
3. It should highlight practical and enacted measures. For some this might mean transitioning a fleet to Electric Vehicles or installing charging points at the facility. For others, it could involve a formal Work from Home policy that reduces employee commuting.
From paper to practice
For many SMEs, the challenge is not the will, but the way, and there are a couple of easy places to start:
Firstly, develop the baseline and start with your utility bills and fuel receipts. There are numerous UK government tools designed specifically for SMEs to help convert “litres of diesel” or “kWh of electricity” into tCO2e (tonnes of carbon dioxide equivalent).
Next, engage the workforce – true reduction happens through cultural shifts. Some ways to explore this can be commuting surveys, cycle to work schemes, or switching to LED lights.
The strategic edge
The transition to a low-carbon economy is the next great industrial challenge. For the UK defence SME and wider supply chain, the CRP is the roadmap through that transition.
By reducing our reliance on fossil fuels, we insulate our businesses from energy price volatility as experienced in recent times. By optimising our supply chains, we can become leaner and more efficient. And by leading on sustainability, we ensure that the backbone of British defence remains strong, modern, and agile.
If you want to win in the defence market of 2026, your carbon strategy must be as rugged and reliable as the hardware you produce.
The GRiD Approach
We believe that responsible business practices and sustainability initiatives are fundamental to our success. This commitment is the foundation upon which GRiD is developing its operations and supporting its workforce now and well into the future.
If you want to learn more about GRiD’s product range, please see here, or if you would like to discuss how GRiD can support your operations or upcoming requirements in more detail, please get in touch: sales@griduk.com.
