How the CO₂ Performance Ladder Validates Your Decarbonisation Efforts

Decarbonisation has become essential for organisations across all sectors and throughout the supply chain as they work to reduce their carbon footprints and contribute to a sustainable future. As environmental concerns grow, the need for innovative tools that both validate and drive these efforts is more pressing than ever. This is particularly critical for procurement teams, who recognise the importance of embedding carbon reduction requirements into tenders but may lack the expertise or confidence to interpret supplier responses accurately. Tools that provide external validation and assurance, such as the CO₂ Performance Ladder, can be invaluable in supporting these teams.

What is the CO₂ Performance Ladder? 

The CO₂ Performance Ladder is an instrument designed to help organisations reduce carbon emissions across their operations, projects, and the wider business sector. Originating in the Netherlands, the Ladder has gained recognition as a proven instrument for effective carbon management across Europe. 

The Ladder is structured into five levels, with each step representing a deeper commitment to decarbonisation. Up to Level 3, organisations focus on reducing emissions within their own operations and projects. At Levels 4 and 5, the focus expands to include emissions reductions within the organisation’s supply chain and broader industry sector. By achieving higher levels on the Ladder, organisations demonstrate a strong commitment to sustainable practices, which has become increasingly critical in public sector procurement. 

Certification on the Ladder is awarded based on four key criteria: 

• Insight – Identifying energy streams and calculating the organisation’s carbon footprint. 

• Reduction – Setting ambitious CO2 reduction targets. 

• Transparency – Communicating policies and progress on emissions reductions. 

• Participation – Engaging in industry initiatives to drive sector-wide emissions reductions. 

The Ladder’s procurement tool element introduces a unique award advantage mechanism in tendering processes in the form of a fictitious discount, effectively integrating sustainability criteria into the commercial evaluation. The advantage, determined by the procuring party, is based on an organisation’s Ladder level, with higher levels typically earning a greater competitive edge. Organisations bidding on tenders can either demonstrate existing certification on the Ladder or commit to achieving certification, with progress monitored through contract management. This approach allows procuring parties to incentivise sustainable practices, rewarding organisations that prioritise carbon reduction within their operations and across the supply chain. 

Did you know? Organisations certified on the Ladder reduce CO₂ emissions at twice the national average. Utrecht University research shows certified organisations achieve annual reductions of 3.2%, compared to the Dutch national average of 1.6%. 

The CO₂ Performance Ladder: Aligning with Public Sector Standards and Global Sustainability Goals 

The CO₂ Performance Ladder plays a crucial role in helping organisations comply with important public sector procurement standards, particularly PPN 06/20 and PPN 06/21. These procurement policy notes require organisations to actively integrate carbon reduction measures into their operations, and the Ladder provides a clear framework for achieving this. Through certification, organisations can not only demonstrate compliance with these regulations but also showcase their commitment to sustainable procurement, which has become a key differentiator in public sector tenders. 

In addition to meeting these public sector guidelines, the CO₂ Performance Ladder supports organisations in advancing the United Nations Sustainable Development Goals (SDGs). By reducing carbon emissions, organisations contribute to SDG 13 (Climate Action) and SDG 7 (Affordable and Clean Energy), while fostering sustainable consumption and production aligned with SDG 12. The Ladder also encourages collaboration among organisations and public authorities, enhancing partnerships for sustainable development, as outlined in SDG 17. 

Through the Ladder’s structured approach, organisations not only reduce their environmental impact but also promote the use of renewable energy sources, energy-efficient technologies, and green supply chain initiatives, all of which are key contributors to achieving the SDGs. 

Next Steps: How to Integrate the CO₂ Performance Ladder into Your Decarbonisation Journey 

The CO₂ Performance Ladder Performance Ladder provides a clear, structured framework for validating your decarbonisation efforts while ensuring compliance with public sector requirements like PPN 06/20 and PPN 06/21. By embedding the Ladder into your sustainability strategy, your organisation can achieve measurable progress toward a lower-carbon future. 

Action Sustainability is the national coordinating partner for the implementation of the CO₂ Performance Ladder in the UK. To learn more about how your organisation can integrate the Ladder into your decarbonisation journey, contact us today.