CO₂ Performance Ladder: Turning Climate Action into a Bidding Advantage

Introduction

Introduced in 2009 by Dutch rail infrastructure manager ProRail, the CO₂ Performance Ladder is a climate-action standard that links a company’s carbon management to public contracts. It was designed to reward contractors that measure and reduce their emissions, instead of focusing only on lowest price. Today the Ladder is owned and managed by the independent Foundation for Climate Friendly Procurement and Business (SKAO), which maintains the rules and oversees certification via accredited auditors. Unlike many generic ESG or ISO standards, the Ladder is both a CO₂ management system and a green public procurement tool: certified companies can receive a bid advantage when tendering for works and services. More than 8,000 organizations and over 300 public authorities in the Netherlands, Belgium and other European countries now use it, turning climate reporting and reduction into a competitive factor in supply chains and practical milestones on the way.

Climate-reporting implications for companies

For companies, the Ladder is an ongoing climate-reporting and improvement cycle, not just a badge. Certification requires companies to:

• Measure emissions – Prepare a CO₂ footprint (Scopes 1 and 2, plus relevant Scope 3 categories) using recognized GHG-accounting methods.

• Set targets – Define short- and long-term reduction targets; Step 3 in 4.0 requires a transition plan towards net zero by 2050. See SKAO’s blog on the three Steps.

• Plan and document measures – Maintain written reduction plans covering operations, projects and key value-chain emissions.

• Publish and communicate – At least annually (often every six months), publish the footprint, targets and progress on the company website and communicate internally and externally.

• Undergo audits – Complete internal reviews and regular external audits by accredited certification bodies.

SKAO facilitates implementation through a Practical Manual for companies.

Who Uses the CO₂ Performance Ladder?

The CO₂ Performance Ladder has seen widespread adoption across various sectors and regions. It was originally developed for the infrastructure sector but has since expanded to be used by a diverse range of entities. Over 8,000 organizations already hold a CO₂ Performance Ladder certificate. Most certificate-holders are suppliers that deal frequently with public contracts:

• Construction and infrastructure companies (civil engineering, road and rail, utilities), where public works are a major client base.

• Transport, logistics, waste and energy providers, where emissions and procurement are both material.

• Professional and technical services such as engineering and consultancy firms that want a structured CO₂ framework. For these entities, certification is a strategic tool to demonstrate commitment, streamline internal management, and gain an edge in public and private tenders.

Moreover, from a government perspective, the Ladder is a ready-made low-carbon procurement instrument: SKAO’s Procurement Guide 4.0 explains how authorities can build it into award criteria.

Current Status and Future Outlook

The CO2 Performance Ladder is in a dynamic phase of evolution. As of late 2025, the system is actively expanding across Europe, with established use in the Netherlands and Belgium and ongoing implementation in countries including France, Germany, Ireland, Portugal, and the United Kingdom.

The future outlook is dominated by the transition to Version 4.0, which was officially released in January 2025. This update represents a significant shift to align the Ladder with global frameworks like the Paris Agreement and the Corporate Sustainability Reporting Directive (CSRD). Key changes include:

• A streamlined structure with three certification steps instead of the previous five levels.

• A stronger emphasis on reducing emissions across Scope 1, 2, and 3.

• A requirement for higher-level certified organizations to develop long-term climate transition plans aligned with net-zero by 2050.

There is a transition period for adaptation, and by January 2027, only Version 4.0 will be recognized for new certifications.

Resources

• CO₂ Performance Ladder Version 4.0 | Certification Regulation

• CO₂ Performance Ladder Version 4.0 | Step 1

• CO₂ Performance Ladder Version 4.0 | Step 2

• CO₂ Performance Ladder Version 4.0 | Step 3

• CO₂ Performance Ladder Handbook 3.1

• Ubitricity's Implementation of the CO₂ Performance Ladder