More than two-thirds of all Ladder certified organisations are Small and Medium-sized Enterprises (SMEs), ranging from companies in the civil engineering and transport sector to consultancy firms. In this article, we lay out the interesting benefits the CO₂ Performance Ladder can have for SMEs and how you can make smart use of the Ladder.

1. What do I gain as an SME from the CO₂ Performance Ladder?

Work structurally on CO₂ reduction

The CO2 Performance Ladder is a good means of making the CO₂ emissions of your organisation transparent and of taking a structured approach to reducing CO₂ emissions. Thanks to the Ladder, you set ambitious goals and have structural insight into your progress. The annual check by an auditor is a big incentive. With a certificate, you can also show the outside world that you are actively reducing CO₂.

Cost savings through lower energy consumption

CO₂ emissions are often closely linked to energy consumption. When you work on CO₂ reduction, this often also means that you will use less energy. This can result in substantial cost savings.  Additionally, optimizing travel and transport – such as combining trips, choosing more efficient routes, or using alternative transport methods -can significantly reduce both fuel costs and emissions.

Award advantage in tenders

For SMEs tendering for public contracts, Ladder certification can provide a competitive edge. Contracting authorities regularly offer an award advantage to organisations that have or commit to obtaining Ladder certification. This can take the form of a discount on the tender price or additional points in the evaluation process. The higher the certification level, the greater the potential benefit. The extent of this advantage and the associated conditions depends on the requirements set by the tendering authority, based on SKAO’s advice.

Exemptions for SMEs

As an SME with lower emissions, you have an advantage on level 4 and 5 of the CO2 Performance Ladder (version 3.1) compared to larger companies with higher CO2 emissions. This is because you get an exemption for some requirements. Below a certain level of emissions, for example, you do not have to participate in projects or collaborations in the sector. And you do not have to make two, but one, chain analyses. In version 4.0, there are two exemptions on Step 3, namely that small organisations do not have to test their Climate Transition Plan with an independent expert, and that they do not have to play a supporting role within a collaboration.

2. How do I get started with the CO₂ Performance Ladder?

Read and register

It is best to start by reading up on the CO₂ Performance Ladder via our website. The Certification page will help you get started, or take a look at our frequently asked questions. A Practical Manual is also available for version 3.1 of the CO2 Performance Ladder. It describes what the CO₂ Performance Ladder entails, the steps you need to take and how to interpret standards and requirements from the Handbook. You can then register to start working with the CO₂ Performance Ladder. For version 4.0, you do not need to consult the Practical Guide, because additional information can be found in the login environment. This way, you will find exactly the information you need at any given moment during the certification process.

Define your organisational boundary

One of the most important steps to getting certified is defining what is covered by the certificate, known as ‘your organisational boundary’. See this blogpost for more information on how to do this. As a small business, this will likely not be too complex.

Insight into energy flows

Once you start working with the CO₂ Performance Ladder, it is important to gain insight into your organisation’s energy flows and CO2 emissions. Think, for example, of the electricity consumption in your office or factory and the fuel consumption of the vehicle fleet. You can convert these flows into CO₂ emissions using emission factors for your country, or for instance with factors determined by the International Energy Agency. This gives you accurate insight into the CO₂ footprint of your company.

Targets and measures

Based on this data, you set goals for your CO₂ reduction. What do you want to save in x number of years? And what measures will you use to achieve this? You will gain the most if you focus on processes and flows with the largest emissions. While you determine your own goals and measures, they must be ambitious enough—an independent auditor will assess this during the certification process. You then upload these ambition documents in My.co2performanceladder.com (see also Audit by Certification Body below).

3. Who checks my objectives and whether my company meets them?

Audit by Certification Body (CB)

The audits are carried out by an independent auditor. You decide which Certifying Body  (CB) conducts the audit. However, the CB must be accredited for the CO₂ Performance Ladder. You may already be working with one of these CBs for another certification within your company, such as various ISO standards. Then it may be useful to also use them for the CO₂ Performance Ladder, if they’re accredited to carry out audits for the Ladder as well.

Objectives sufficiently ambitious

The auditor first assesses whether your reduction objectives are ambitious enough. The auditor not only looks at the objectives in relation to your current emissions, but also in relation to similar organisations and industry peers. This provides insight into whether you are ahead or behind in your sector. In the latter case, your targets will have to be more ambitious than if you are already in the lead.

Certification CO₂ Performance Ladder

After the auditor’s visit, you will receive – if you meet the requirements – a certificate for your level of ambition. This certificate is valid for three years. During these three years, the auditor checks each year whether you are making sufficient progress. If not, you must take measures until you do comply. If progress is still not made, your certificate may be temporarily suspended or even withdrawn. If all goes well, this process will start again after three years. Of course, you can choose to climb higher on the Ladder in the meantime.

4. I have limited time and resources to do all this, how do I manage it efficiently?

Low-hanging fruit

Collecting data, setting targets and taking action can be a difficult and time-consuming task, especially for smaller companies. That is why it is smart to look at the low-hanging fruit first. Replacing equipment with more fuel-efficient options or limiting travel movements often takes little time and money and can pay off handsomely. Switching to green electricity that is produced in your own country is also often easy to arrange.

Find inspiration

You do not have to reinvent the wheel when thinking of what to do. You can use our Measure List or the overview of participants in the CO₂-Performance Ladder to get inspiration from companies in your sector or area. You will also find practical stories from other companies on our website. For example, Spanish construction company FCC successfully used the CO₂ Performance Ladder to secure a €900 million infrastructure tender in the Netherlands by demonstrating its commitment to sustainability. Likewise, at Riwald Recycling metal recycling and CO2 savings go hand in hand, showing how businesses can integrate sustainability into their core operations.

Help from a consultant

It may help to enlist external support, such as a sustainability consultant. However, bear in mind that this will incur costs, and the consultant may only fill a limited role. Your company must implement and manage the entire system of measures itself, and an employee of your organisation must act as spokesperson during the audit. That said, hiring a consultant is not necessary to get certified. We provide plenty of resources to support you, such as our Practical Manual, FAQ, and helpdesk, ensuring that you can successfully navigate the certification process on your own if you prefer.

5. My company has very limited CO₂ emissions. Does the CO₂ Performance Ladder still have added value?

Few emissions or already doing well

It may be that your company already has a low CO₂ footprint. For instance, because you are a small company, buy few materials or you are already very aware of sustainability in your business operations. In that case, you have to weigh up whether using the CO₂ Performance Ladder is worthwhile. After all, having your company certified also costs money.

CO₂ Performance Ladder sometimes useful after all

Nevertheless, even with few emissions it can sometimes be useful to start working with the CO₂ Performance Ladder. For example, because it gives you a clear overview of your CO₂ emissions and you can actively pursue reductions. It provides structure and motivation to continually improve. In addition, even minor improvements can lead to certification. This, in turn, can provide benefits in a tender.  

You can also look beyond emissions within your own organisation and operations. Advising or obliging your chain partners to become more sustainable – your scope 3 emissions – is an additional requirement for obtaining a certificate at level 4 or 5 (version 3.1) or step 2 or 3 (version 4.0). This way you can increase your positive impact and improve your chances of being awarded projects.