Carbon Reduction Plan

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Effective from: July 2025

Last Updated: June 2026

 1. Executive Summary

CDS Heating Services Ltd is committed to achieving Net Zero greenhouse has emissions by 2040.

CDS Heating Services is strongly committed to reducing its carbon footprint and promoting sustainability in all areas of its operations within the outlined date. As a gas and heating company specializing in renewable energy solutions such as air source heat pumps, solar installations, and hybrid heating systems, we recognize our responsibility to minimize greenhouse gas emissions while supporting our customers’ transition to low-carbon technologies.

This Carbon Reduction Plan outlines our current emissions profile, measurable targets, and the strategies we will implement to achieve significant carbon reductions as we grow. Our goal is to continually improve our environmental performance and align with national and global efforts to combat climate change.

2. Company Profile

We are a gas and heating company focused on renewable energy solutions for both commercial and domestic clients. Our services include the installation, servicing, repair, and maintenance of boilers and heating systems, as well as consultancy.

Currently, our company consists of three employees: a Director, an Apprentice, and an Office Manager. We operate from a home office with solar panels installed, reducing our reliance on grid electricity. Our single company van is used for site visits and is driven in eco mode with carefully planned routes to minimize fuel consumption.

3. Baseline Carbon Footprint

Baseline Year: 2025

Current reporting year: 2026

CDS Heating Services has established 20205 as its baseline year against which future carbon reductions will be measured. Our primary sources of greenhouse gas emissions are company transport, electricity consumption, and purchased goods and services.

Emissions Source

Activity

Estimated Emissions (tCO2e)

Scope 1

Company van (estimated 3,840 litres diesel/year)

10.39

Scope 2

Office electricity (3,300 kWh/year) *

To be calculated

Scope 3

Purchased goods and services, waste, business travel, employee commuting

Currently being assessed

Total

Scope 1 + Scope 2

10.63

* Electricity is partially offset by electricity generated from the solar PV system installed at the home office.

Carbon Footprint Methodology

Carbon emissions have been calculated using the UK Government Greenhouse Gas Reporting: Conversion Factors 2025. Emissions are reported in tonnes of carbon dioxide equivalent (tCO2e). Where actual emissions data is not yet available, reasonable estimates have been used based on available operational data. As the business grows, CDS Heating Services will improve the accuracy of its reporting through collection of actual fuel, electricity and procurement data.

Understanding our current carbon footprint is key to measuring progress. We have identified our main emission sources as follows:

• Scope 1 (Direct emissions): During the baseline year, the company operated 1 diesel van, which travelled approximately 40,000 miles during business. Based on estimated annual diesel consumption of approximately 3,840 litres and using the UK Government Greenhouse gas Reporting: Conversion Factors 2025 (2.706 kgCO2e per litre of diesel), Scope 1 emissions are estimated at 10.39 tCO2e.

• Scope 2 (Indirect emissions): During the baseline year, approximately 1,345.8 kWh of electricity was purchased from the UK electricity grid for the whole premises of which the company operates, after accounting for the on-site electricity generated by the property’s solar photovoltaic (PV) system. Using the UK Government 2025 conversion factor of 0.17700 kgCO2e per kWh, this represents approximately 0.24 tCO2e.
• The installation of solar PVR has significantly reduced the reliance on grid electricity and forms an important part of the company’s carbon reduction strategy. As the business grows, CDS Heating Services will continue to monitor electricity consumption and renewable energy generation to improve the accuracy of emissions reporting and identify further opportunities to reduce Scope 2 emissions.

• Scope 3 (Other indirect emissions): Scope 3 emissions represent indirect greenhouse gas emissions airing rom activities that are not directly owned or controlled by the company. For CDS Heating Services, these are primarily associated with the purchase and transportation of materials and equipment, waste generated during installation and maintenance activities, employee commuting, and any business travel undertaken using personal vehicles or public transport.

As this is the company’s first carbon Reduction Plan, Scope 3 emissions have not yet been fully quantified. During the next reporting period, CDS Heating Services will work with suppliers to obtain emissions data where available, improve the recording of waste and recycling information, and collect data relating to employee commuting and business travel. This will enable a more complete and accurate assessment of scope 3 emissions in future Carbon Reduction Plans.

We will begin monthly monitoring of fuel and electricity use to maintain accurate emissions data and refine our baseline.

4. Carbon Reduction Targets

To reduce our carbon footprint effectively, we have set the following targets:

• Short-term (1-2 years):
  • Cut van fuel emissions by 10% through improved route planning and eco-driving training.
  • Achieve net zero electricity use at the home office by maximizing solar energy use and reducing consumption.
• Medium-term (3-5 years):
  • Transition the company van to a hybrid or electric vehicle.
  • Move into an energy-efficient commercial office with a renewable energy supply.
• Long-term (5-10 years):
  • Achieve net zero operational emissions, including all travel and office energy use.
  • Embed sustainability criteria into procurement and supplier contracts.

5. Carbon Reduction Measures and Strategies

Fleet and Transport

• Continue eco mode driving and group jobs geographically to minimize mileage.
• Train staff in eco-driving techniques to improve fuel efficiency.
• Plan to replace the current van with an electric or hybrid vehicle at the earliest financially feasible opportunity.

Office Energy

• Maximize use of solar panels and install energy-efficient equipment (LED lighting, smart plugs).
• At relocation, prioritize offices with renewable energy or install on-site renewable generation.
• Encourage switching off devices when not in use to reduce electricity consumption.

Materials and Procurement

• Communicate with suppliers to assess and reduce the carbon footprint of purchased goods.
• Prefer low-carbon, recycled, and locally sourced materials when possible.

Waste Management

• Implement recycling schemes for packaging and materials from installations and servicing.
• Promote reuse and repair to reduce waste sent to landfill.

Employee Engagement

• Conduct regular training on sustainability practices and carbon reduction.
• Encourage staff participation in identifying environmental improvement opportunities.

Carbon Offsetting

• Evaluate and invest in verified carbon offset projects for residual emissions (e.g., tree planting, renewable energy projects) to balance unavoidable emissions.

5.1 Measures Implemented During the Baseline Year

Since establishing its baseline year, CDS Heating Services has implemented several practical measures to reduce greenhouse gas emissions and improve environmental performance. These include: 

·  Operating from a home office supported by an on-site solar photovoltaic (PV) system, reducing reliance on electricity imported from the UK grid.

·  Careful planning of work schedules and geographical routing to minimise unnecessary vehicle mileage. 

·  Driving the company vehicle on “Eco mode” wherever practicable to improve fuel efficiency. 

·  Monitoring fuel consumption and electricity usage to establish accurate emissions baseline for future reporting.

·  Recycle metal waste and packaging materials generated through installation and maintenance activities wherever suitable recycling facilities are available. 

·  Promoting energy-efficient working practices, including switching off electrical equipment when not in use. 

6. Monitoring and Reporting

• Monitor fuel consumption, mileage, and electricity use monthly.
• Record procurement activities with sustainability notes.
• Produce an annual Carbon Reduction Report to track progress, challenges, and opportunities.
• Review and update the plan annually to reflect new data, technology, and growth.

7. Governance and Responsibility

• The Director will act as Carbon Reduction Lead, overseeing plan implementation and reporting.
• Carbon reduction goals will be incorporated into business planning and reviewed quarterly.
• As the company grows, consider forming a sustainability committee to support these efforts.

8. Risks and Opportunities

Risks:

• Fuel price increases raising operational costs.
• Evolving regulatory requirements around carbon emissions and reporting.

Opportunities:

• Differentiation in the market as a sustainable, renewable energy specialist.
• Operational cost savings from fuel efficiency and energy reduction.
• Attraction of employees and customers who value sustainability.

9. Review and Continuous Improvement

This Carbon Reduction Plan will be reviewed annually and updated to incorporate new technologies, regulations, and company growth. We will also explore government incentives for electric vehicles, renewable energy, and energy efficiency to support our efforts.

10. Approval

This Carbon Reduction Plan has been completed in accordance with Welsh Procurement Policy Note (WPPN) 006 and the associated reporting guidance. The reported Greenhouse Gas Conversion Factors represent, to the best of our knowledge, a true and fair representation of CDS Heating Services’ operational emissions for the reporting period.

Approved by:

Name & Position: Mr Ceri Dawe, Director

June 2026

References: 

UK Government. Greenhouse Gas Reporting: Conversion Factors 2025/

Greenhouse Gas Protocol Corporate Accounting and Reporting Standard.

Welsh Government- WPPN 006: Carbon Reduction Plan