Comparing ISO 20400:2017 with the CO₂ Performance Ladder  

ISO 20400:2017 and the CO₂ Performance Ladder (the Ladder) are two influential frameworks for embedding sustainability in procurement. While one provides strategic guidance, the other serves as both a procurement instrument and a certifiable CO₂ management system, making them highly complementary. This article explores how these frameworks intersect and how organisations can benefit from applying them in tandem. 

What is the CO₂ Performance Ladder (the Ladder)? 

The CO₂ Performance Ladder is both a procurement instrument and a certifiable CO₂ management system. Developed in the Netherlands, it is now widely used across Europe to integrate emissions reduction into business operations, projects, and supply chains.

As a certifiable CO₂ management system, the Ladder helps organisations reduce their CO₂ emissions and operate more sustainably. It consists of five levels, each reflecting a greater commitment to decarbonisation. At the lower levels, organisations focus on optimising their own business operations by reducing energy consumption and cutting direct (Scope 1) and indirect (Scope 2) emissions. Higher levels challenge organisations to look beyond their own footprint, including supply chains and industry-wide activities (Scope 3). Certification is awarded through independent verification, ensuring credibility and transparency.

In addition to being a certifiable CO₂ management system, the Ladder is widely used as a procurement instrument. Procuring organisations apply the Ladder in tender processes to incentivise sustainable supplier behaviour—typically through fictitious discounts or points-based systems in award evaluations. This dual role makes the Ladder a powerful mechanism for accelerating decarbonisation both within individual organisations and across value chains.

What is ISO 20400:2017?

ISO 20400:2017 is an international standard providing guidance on sustainable procurement. Unlike certification standards, ISO 20400 is a voluntary guidance framework, useful for helping organisations of any size or sector integrate sustainability within procurement policies and practices. It covers environmental, social, and economic dimensions.

It encourages organisations to:

• Align procurement with sustainability goals 

• Engage suppliers and stakeholders 

• Consider full life-cycle impacts and cost 

• Establish good governance and a cycle of continuous improvement

What are the main similarities between the Ladder and ISO 20400:2017? 

Voluntary Participation: 

Both tools are voluntary but signal a strong commitment to driving sustainability across operations and procurement. 

Sustainable Procurement Focus: 

Each framework empowers organisations to influence supplier practices, improve decision-making, and prioritise long-term environmental and social value. 

Stakeholder Engagement: 

Both encourage meaningful internal and external collaboration—whether with cross-functional teams or key suppliers and partners. 

Continuous Improvement: 

ISO 20400:2017 promotes ongoing enhancement of procurement practices, and the Ladder is built around the PDCA (Plan-Do-Check-Act) cycle—ensuring carbon reduction becomes an iterative, embedded process.

What are the main differences?

Scope, Structure and Certification: 

• ISO 20400:2017 is a guidance standard with a wide sustainability focus across procurement. It is not certifiable. 

• The Ladder is a certifiable system focused specifically on CO₂ reduction, embedded within a management system framework. It offers multi-level certification verified by accredited auditors. 

Application in Procurement: 

• ISO 20400:2017 shapes how procurement decisions are made (policies, processes, supplier criteria). 

• The Ladder provides an incentivisation mechanism in procurement, including the use of fictitious discounts or points-based systems in award evaluations. This approach rewards higher ambition levels and drives systemic decarbonisation across supply chains. 

Costs of Engagement and Certification:  

• ISO 20400:2017 there is a minimal cost related to purchasing the standard. There is a free self-assessment tool available, however organisations can also opt to approach third parties / consultancy for external assessments to review their alignment to ISO 20400.  

• The Ladder: Achieving certification has associated costs, including contributions to the scheme manager (based on organisation size), internal resources required for implementation, and third-party audit fees, which can vary depending on the certification level and auditor. 

Additional Work Required for Compliance to the Ladder and ISO 20400:2017

• For organisations aligned to ISO 20400 looking to adopt the Ladder: Additional effort is needed to build a carbon management system, quantify emissions (Scopes 1–3), and achieve certification through third-party audits. 

• For organisations certified against the Ladder looking to align with ISO 20400: While the Ladder already includes some procurement and stakeholder requirements, aligning with ISO 20400 may involve expanding the scope to include social and economic sustainability dimensions and enhancing governance practices. 

Summary at a Glance

Criteria	ISO 20400:2017	CO2 Performance Ladder
Scope	Sustainable procurement with a wide sustainability focus (social, environmental, economic)	A management system for carbon reduction
Structure	Voluntary guidance, flexible implementation	Multi-level certification
Procurement	Shapes sustainable procurement decisions	Multi-level incentivisation through fictitious discounts in procurement
Validation	No certification; self-assessment or third-party assessment are possible	Third-party validation conducted by accredited certifying bodies
Cost Summary	Costs associated with purchasing the standard and, third-party assessments (optional)	Costs include a contribution to the scheme manager (based on organisation size), internal resources for implementation, and third-party auditing fees. Auditing fees vary based on level, organisation size and auditor

ISO 20400 offers strategic, flexible guidance, while the Ladder provides a certifiable, performance-based structure focused on decarbonisation and procurement incentives. Together, they offer a holistic and practical pathway to transform procurement from a transactional function into a key driver of sustainability. Organisations aiming to decarbonise supply chains while embedding broader sustainability principles stand to benefit greatly from integrating both frameworks. 

To learn how the CO₂ Performance Ladder can support your organisation’s decarbonisation journey, contact us today.