HANDBOOK CO₂-PERFORMANCELADDER June CO 2 -Performanceladder. Generic Handbook, 23 June

Transcription

1 HANDBOOK CO₂-PERFORMANCELADDER June 2011 CO 2 -Performanceladder. Generic Handbook, 23 June

2 The CO₂-Performanceladder is owned by the independent Foundation for Climate Friendly Procurement and Business (Stichting Klimaatvriendelijk Aanbesteden en Ondernemen). The contents and publication of this Handbook are the responsibility of the Foundation. To download the current version of this Handbook and for other information, visit: or Please note: Whenever a dispute arrises over the contents of this handbook, please refer to the most recent Dutch version of the Handbook. This handbook can be found on or CO 2 -Performanceladder. Generic Handbook, 23 June

3 Contents Contents 3 Foreword 5 1. INTRODUCTION: CO₂-PERFORMANCELADDER AND MEAT CRITERIA Rewarding sustainability in procurement CO₂-Performanceladder and MEAT criteria Application and introduction 9 2. ORGANIZATION Foundation for Climate Friendly Procurement and Business CO₂-PERFORMANCELADDER The CO₂-Performanceladder in brief CO₂-Performanceladder certification scheme Aspect A: Insight Aspect B: Reduction Aspect C: Transparency Aspect D: Participation Explanation of assessment MATCHING THE CO₂-PERFORMANCELADDER TO PROCUREMENT LAW: MEAT CRITERIA MEAT criteria VERIFICATION AND CERTIFICATION IN ACCORDANCE WITH THE CO₂-PERFORMANCELADDER Authorization Authorization to certify in accordance with the CO₂-Performanceladder Authorization to verify an emissions inventory Authorization of (reputable) knowledge institute Authorized institutions Design and logistics of the CO₂ awareness certificate Explanation on verification, certification and witnessing Foundation for Climate Friendly Procurement and Business witnesses the ladder assessment by the ladder CI Questions REGULATIONS Handbook is a formal framework Determining the level on the CO₂-Performanceladder Establishing the company or the organizational boundary Confirming the level on the CO₂-Performanceladder Calculating the CO₂ emissions Ladder Certifying Organization (ladder CI) Expert judgement in the event of failure to fulfil a criterion 44 CO 2 -Performanceladder. Generic Handbook, 23 June

4 6.8 Explication of external publication Periodic evaluation and checking after initial certification Combinations Validity of the CO₂-Performanceladder Period of validity of a CO₂ inventory/verification Witnessing requirement for levels 4 and Period of validity of a ladder assessment for certification or recertification Requirement for ladder assessment by the ladder CI Accreditation other than from the Dutch Accreditation Council Verification declaration The certificate 47 APPENDICES 48 APPENDIX A: Glossary 49 APPENDIX B: Organizational boundary 58 APPENDIX C: Conversion factors 63 APPENDIX D: Explanation of the requirements for Ladder Certifying 78 Colophon 110 CO 2 -Performanceladder. Generic Handbook, 23 June

5 Foreword The CO₂-Performanceladder is an instrument to stimulate companies participating in procurement to be aware of their CO₂ emissions in their own business operations and in the performance of projects. This involves in particular saving energy, using materials efficiently and using renewable energy. The instrument is part of the ambition to introduce a single clear and accessible set of instruments for sustainable procurement that can be used by all major commissioning parties. The instrument can be used by public sector organizations and private sector companies in calls for tender that are often complex. The principle behind the ladder is that effort is rewarded: a higher score on the ladder means a concrete advantage in the tendering process, in the form of a notional discount on the tender price. The CO₂-Performanceladder was originally developed by ProRail and has been used for tenders in the railway industry since However, it quickly became apparent that other commissioning parties saw the potential of the ladder as well. That is why version 2.0 of the CO₂-Performanceladder has been developed. The new version of the ladder has broader application for other organizations issuing tenders and in other sectors. The ladder is now more compatible with the Public Procurement (Tendering Rules) Decree. Experience from the first year has also resulted in improvements and clarification. Moreover, initiator ProRail privatized the CO₂-Performanceladder on 16 March 2011 and transferred the ownership to the independent Foundation for Climate Friendly Procurement and Business (SKAO). This Foundation is responsible for all matters concerning the ladder: its use, continued development, the management of the certification scheme and the broadening of participating sectors. Any organization that wants to use the CO₂-Performanceladder for tenders must have written permission to this effect from the Foundation for Climate Friendly Procurement and Business. That is how meticulous application of the ladder is guaranteed. Chapter 1 of this handbook introduces the ladder. Chapter 2 discusses the new Foundation for Climate Friendly Procurement and Business. Chapter 3 comprises the certification scheme, while Chapter 4 describes how the ladder fits in with in procurement law. Chapter 5 discusses the process of verification and certification. The appendices contain the glossary, the list of conversion factors and the explanation of requirements for Ladder-certifying organizations. CO 2 -Performanceladder. Generic Handbook, 23 June

6 1. Introduction: CO₂-Performanceladder and MEAT criteria CO 2 -Performanceladder. Generic Handbook, 23 June

7 1.1 Rewarding sustainability in procurement Encouraging sustainability in the Netherlands through sustainable procurement requires combined action by government bodies and market parties. In drawing up the appropriate frameworks and preconditions, government bodies must make it possible for market parties to make their business operations more sustainable and to develop innovations in their products and product materials, production methods and total solutions. A joint set of instruments proves very useful to market and government in developing this kind of power from sustainable procurement. A uniform set of instruments with broad application is essential for encouraging sustainable behaviour in tendering processes. Precisely this quest for a single, clear set of instruments was a major reason for a number of public commissioning parties to develop version 2.0 of the CO₂-Performanceladder. Making the CO₂- Performanceladder applicable for a broad group of public commissioning parties in diverse sectors is an attempt to improve the workability of sustainable tendering processes for businesses. 1.2 CO₂-Performanceladder and MEAT criteria Basic principles of the CO₂-Performanceladder The CO₂-Performanceladder is an instrument to stimulate companies participating in procurement to be aware of their CO₂ emissions in their own business operations and in the performance of projects. It particularly involves saving energy, using materials efficiently and using renewable energy. The CO₂-Performanceladder was developed further on the basis of two important basic principles: obtaining the best possible practical results and maximizing innovation, and a minimal restriction on the operational activities of companies. The ladder does not seek to regulate production methods or product standards, but actually creates greater scope for creativity and the renewal of company processes and products. The ambition is that for companies that register on the ladder to regard this move as an investment, with returns coming in the form of reduced energy consumption and less use of materials, for example. The purpose of the ladder is to encourage companies to recognize their own CO₂ emissions and those of their suppliers, and to permanently seek new possibilities for cutting back the climate impact of their own business operations and their own projects. The instrument stimulates companies to actually take those measures and moreover, share the acquired knowledge and together with colleagues, knowledge institutions, social parties and governments, seek further possibilities of reducing emissions. CO 2 -Performanceladder. Generic Handbook, 23 June

8 What makes the CO2-Performanceladder unique? 1. It is an initiative that originated in the market 2. It is an instrument for tenderers of complex projects and their suppliers 3. It encourages suppliers to become familiar with, to understand and to curtail their CO 2 emissions 4. It encourages structural dialogue with social organizations and public sector bodies 5. It is based on the rewarding of positive, demonstrable effort 6. It concentrates on creativity and innovation rather than on criteria and rules 7. It promotes initiative and reduces bureaucracy 8. It concerns products, production and business operations 9. It obliges companies to share solutions that are found and renewal The CO₂-Performanceladder rewards concrete improvements in the CO₂ performance of a company as a whole, which is appreciated by many parties. It currently gives the private sector the opportunity to incorporate CO₂ awareness in the way it organizes its activities, and to prepare for the desired cooperation. CO₂-Performanceladder 2.0 This principle has been maintained for Version 2.0. Version 2.0 now takes the next step, making the measures aimed at energy saving, renewable energy and the optimum use of materials more explicit in the projects, or some of them. This enhances the transparency and encourages the companies to target CO₂ reduction more clearly in the ambitions for their projects. After all, the measures in energy savings, material saving, use of renewable energy and the optimum use of materials will be realized within the projects. The CO₂- Performanceladder thus keeps up with the latest developments in the scope of the Greenhouse Gas Protocol, aimed at determining the footprint of products or services. All around the world, companies have discovered that most CO₂ emissions are not so much related to their own office locations, but rather to their own projects or products, purchase of materials, production processes of suppliers and in a number of cases, the consumption during the service life. This choice is not only logical from the point of view of aiming at a practical result. In taking this step, the CO₂-Performanceladder is a useful instrument for Dutch companies to implement the latest international developments and stay ahead in running a business with CO₂ awareness. Similar to the first version, version 2.0 of the CO₂-Performanceladder consists of the requirements for the CO₂ awareness certificate, which is a fixed set of requirements on five levels, from 1 to 5. For each level, the position of a company on the CO₂-Performanceladder is determined by these requirements. This set of requirements is based on four aspects: insight, reduction of emissions, transparency and participation. The requirements for the CO₂ awareness certificate have been slightly modified in comparison with the first version of the CO₂-Performanceladder. Version 2.0 of the CO₂-Performanceladder, besides the CO₂ awareness certificate, also consists of a package of MEAT requirements (Most Economically Advantageous Tender) linked to it. Public sector bodies and organizations can use Version 2.0 to draw up a package of MEAT requirements in the tender for a concrete project that ties in as best as possible with the requirements of the CO₂-Performanceladder. If a company has a CO₂ awareness certificate for a particular level, then that counts as sufficient evidence that the company meets these requirements when carrying out projects at that level. A company that does not have a CO₂ awareness certificate or cannot obtain one may still be eligible for an award advantage through the MEAT requirements package for specific projects. After the contract is awarded, the MEAT requirements become hard contract requirements. CO 2 -Performanceladder. Generic Handbook, 23 June

9 1.3 Application and introduction The CO₂-Performanceladder 2.0 will be used by public sector organizations and private sector companies for calls to tender, many of which are highly complex. The principle behind the ladder is that effort is rewarded. A higher score on the ladder is rewarded by concrete advantages in the calls for tender process. Transitional arrangement from version 1.2 to version 2.0 of the CO₂-Performanceladder 2.0 This handbook takes effect on 16 March From that date onwards, companies can be certified, their initial ladder assessment, on the basis of the CO₂-Performanceladder version 2.0. The Directorate-General for Public Works and Water Management (Rijkswaterstaat) adheres exclusively to version 2.0 as evidence of MEAT requirements. For ProRail, the operator of the Dutch railway infrastructure, companies can be certified until 1 June 2011 for their initial ladder assessment on the basis of version 1.2 of the CO₂-Performanceladder. Moreover, companies can continue to use version 1.2 in the next two years for their annual ladder assessment. Version 2.0 is compulsory for reassessment. The Matrix for projects For extremely small, short-term projects, a number of requirements are not in proportion with the size of the project implementation. The MEAT requirements will therefore only apply to projects of a certain size and duration. The minimum size and duration will be fixed for each sector. The matrix for a specific sector cannot be modified by individual commissioning parties, but is set in the sector-specific statement. Sector-specific statement Each sector may draw up its own sector-specific statement, to link as best as possible to the potential for realizing reductions in CO₂ that exist in that sector. It can include the projects for which the CO₂-Performanceladder will be used, how distinctive aspects of a sector can be approached in an efficient and effective manner, and how existing endeavours can be used, such as long-term energy-efficiency agreements. As in the case of the construction industry, the sector-specific statement may refer to existing norms and ISO norms. Moreover, where it is sensible to do so, the sector-specific statement may also include other existing instruments in the Netherlands, such as DuboCalc, GreenCalc and other organizations. The aim is for each sector to draw up its own sector-specific statement as much as possible, but each sector must show that it has consulted with external parties in the process. The sector-specific statements will be evaluated by the Central College of Experts (CCvD) in terms of their feasibility and their consistency with the ambitions of the CO₂-Performanceladder. In addition, the Advisory Council of the Foundation for Climate-Friendly Procurement and Business (the SKAO) will evaluate the ambitions of the sector-specific statements. The definitive version of the sector-specific statements will be laid down by the Board of the SKAO. For questions about the sector-specific statement, please contact the secretary of the Central College of Experts (accessible via the secretariat of SKAO). CO 2 -Performanceladder. Generic Handbook, 23 June

10 2. Organization CO 2 -Performanceladder. Generic Handbook, 23 June

11 2.1 Foundation for Climate Friendly Procurement and Business On 16 March 2011, initiator ProRail privatized the CO₂-Performanceladder and transferred the ownership to the independent Foundation for Climate Friendly Procurement and Business (SKAO). This Foundation is responsible for all matters concerning the ladder: its use, continued development, the management of the certification scheme and the broadening to other commissioning parties and new sectors. The starting point is that every user of the ladder - commissioning parties as well as parties accepting commissions - has an interest in having one effective CO₂-Performanceladder and one sector-specific statement for each sector. The objectives of the Foundation for Climate-Friendly Procurement and Business are: 1. Manage and further develop the CO₂-Performanceladder 2. Create support among private parties and social organizations for the approach and the method of the CO₂-Performanceladder 3. Promote and facilitate effective dialogue between companies and social organizations about climatefriendly business aimed at concrete reductions in CO₂ 4. Promote the development of and active participation in sector-wide CO₂ reduction programmes run by participating companies 5. Promote the widespread use of the CO₂-Performanceladder in multiple sectors With regard to the certification process, the foundation has the following tasks: 1. Manage and modify the certification scheme; 2. Assist in the development and subsequent setting down of sector-specific statements; 3. Enter into agreements with ladder-certifying organizations; 4. Secure recognition of the ladder as an official compliance mark by the Dutch Accreditation Council; 5. Accredit ladder-certifying organizations, until the Accreditation Council takes this over; 6. Publish all accredited ladder-certifying organizations on its website; 7. Coordinate matters of optimization and consistency with the ladder-certifying organizations. With regard to the support of companies, the foundation has the following tasks: 1. Encourage the use of the ladder by businesses; 2. Promote professional training courses and coaching for greater ladder participation; 3. Present the certification scheme, handbook and sector-specific statements on the website; 4. Make relevant knowledge, dialogue reports and relevant links accessible on the website; 5. The helpdesk function (for explanation of the handbook) for parties putting out calls for tenders and companies; 6. Publish all certified companies on the website; 7. Publish sector and chain initiatives and CO₂ reduction programmes in collaboration with public sector bodies and NGOs. The Foundation for Climate-Friendly Procurement and Business has a Board, an Advisory Council, a Central College of Experts and a secretarial office. CO 2 -Performanceladder. Generic Handbook, 23 June

12 The Board The Board is responsible for upholding the independence, the qualitative development, the operation, the organization and the promotion of the ladder. The Board comprises a broad cross-section of representatives from commissioning parties, the private sector, the academic world and social organizations. The composition of the Board can be found on the Foundation's website, The Advisory Council The Advisory Council advises the Board about the substance and applicability of the ladder, and it also puts forward relevant new developments and topics. The council thus monitors the substantive objectives and relevance of the ladder for the benefit of its applicability in practice and the concrete reduction of CO₂ emissions in the chain. The Advisory Council consists of academics, professionals involved in everyday practice, government bodies and social organizations. The composition of the Advisory Board can be found on the Foundation's website, - The Secretary of the Advisory Board is Sible Schöne Central College of Experts The Central College of Experts is responsible for the operational management of the ladder. The college is made up of experts from commissioning parties, the private sector and independent specialists. The Central College of Experts is primarily responsible for keeping the certification scheme up to date, and functions as a point of contact for the certifying organizations. In addition, the Central College of Experts deals with certification-related complaints from companies. - The Secretary of the Central College of Experts is Gijs Termeer Financing of the Foundation The financing of the foundation is based on the principle that all involved parties should contribute. The CO₂-Performanceladder is an initiative that originated in the market, so the ladder does not receive any government grants or resources. The principle behind the ladder is that every company and organization that is involved should finance it on a pro rata basis: contributions cover the costs of the website, the helpdesk, the further development of the ladder, the supervision of initiatives, the management of the certification scheme and the foundation. Being actively involved with the CO₂-Performanceladder therefore always entails making a modest contribution to the Foundation for Climate Friendly Procurement and Business: a not-for-profit foundation that became the owner, administrator and promoter of the CO₂-Performanceladder on 16 March The contributions will therefore go towards covering the costs of the ladder; they will be kept as low as possible. Who contributes? Every company and organization that uses the ladder actively (1) as an instrument for making a call to tender, (2) as an instrument for gaining certification or (3) as an instrument for actively using the ladder in other ways, such as consultation, training courses, research and certification. The use of the CO₂- Performanceladder should generate sufficient income this way to keep the ladder sharp and applicable in the future as well. The revenue of the foundation will accordingly consist of: Contributions from the organizations issuing tenders; Subscription from all companies that have been certified (turnover-related); Payments from certifying organizations for each certificate issued and for each annual assessment; Payments from companies that issue paid services and products for tender on the basis of the ladder. In concrete terms this means that a certificate is only valid if the company concerned pays its subscription to the Foundation for Climate Friendly Procurement and Business. The rates are given on the website of the foundation, and all companies and organizations are listed that contribute financially to the foundation through subscriptions and payments. CO 2 -Performanceladder. Generic Handbook, 23 June

13 3. CO₂-Performanceladder CO 2 -Performanceladder. Generic Handbook, 23 June

14 3.1 The CO₂-Performanceladder in brief The CO₂-Performanceladder uses a methodology that is based on the Capability Maturity Model (CMM). The CMM presumes that the execution of each project and the way in which processes are managed are at a certain stage of maturity. The model distinguishes five maturity levels. A company can reach the next level through implementing incremental improvements in its existing processes, and through innovations in technologies and methods. The CO₂-Performanceladder thus consciously focuses on sustainable business operations of companies that are working on it as a development pathway, from the inside out. This is far removed from a premium on a number of quick actions that could exist separately to the core of the actual business operations. The development of the CO₂-Performanceladder is also based on the Greenhouse Gas (GHG) Protocol of the World Business Council for Sustainable Development (WBCSD) and the World Resource Institute (WRI). The ISO standards prescribed here also follow on from the GHG Protocol. Levels and aspects In the CO₂-Performanceladder, the CMM has been categorized into five levels numbered from 1 to 5. A fixed set of requirements has been defined for each level, with which the CO₂ performance of a company and its projects must comply. These requirements are founded on four aspects A, B, C and D each of which has been given its own weighting. The position of a company on the ladder is determined by the highest level on which it meets the requirements. The CO₂-Performanceladder is shown below in diagrammatical form. CO 2 -Performanceladder. Generic Handbook, 23 June

15 One certificate per level The set of requirements that companies must meet is contained in a general certification scheme and related audit checklists. The audit checklists have been drawn up as sub-ladders for each aspect: there are therefore four audit checklists, each with five levels. A fixed set of criteria and scoring guidelines applies to each aspect and level. Every company assesses the CO₂ performance of its projects and internal operations on the basis of these audit checklists. f a company believes it has reached a certain level, then the evidence is collected in a portfolio. A portfolio contains policy documentation, technical reports, management reports, minutes, annual reports, communications procedures and so on. The portfolio is then submitted to an authorized ladder-certifying organization (or Ladder CI) which, using its expert judgement, assesses the evidence and awards a score to each requirement. The maximum score can only be given if the requirement in question has been demonstrably met in full. The minimum requirements with which companies must comply are also listed for each aspect and level in the audit checklists. A company only fulfils the requirements of a particular level if (1) it meets the minimum requirements for A, B, C and D of the relevant level, and the requirements of all lower-ranking levels and (2) the sum of the weighted scores of that level is at least 90% of the maximum score. This means that the company has to remain active in all aspects covered by the lower-ranking levels. Its performance at these lower levels is a prerequisite for approval of its performance at its certified level. If the Ladder CI determines that the level has been attained by the company, it will issue a CO₂ awareness certificate for the level in question - 1, 2, 3, 4 or 5 to the company. Section 3.3 of this chapter contains an example of score calculation with outcome. The levels Levels 1, 2 and 3: Own CO₂ house in order These first levels of the ladder result in the carbon footprint (scope 1 and 2) of the company and are projects with reduction objectives and the necessary internal and external communication and an active role in the sector or chain. All this is based on investigation concerning own energy consumption with makeable reduction objectives. On level 3 and higher in particular, the external communications are a requirement for the ladder to work effectively in the sector and outside of the sector. The permanent accessibility of the published information deserves explicit attention. Level 4: Together with and for the sector and industry On level 4, in addition to the insight on level 3 and lower in the scope 1 and 2 emissions, scope 3 emissions are also involved. The characteristic feature of level 4 is the innovative initiatives and results for CO₂ awareness in business operations and reduction of indirect emissions, related to scope 3. These things are based on the value chain, the innovative aspect of new knowledge and insight, joint contribution to reduction; taking initiative and participating, cross-company sectoral thinking, the open character, dialogue with the outside world, etc., which must be elaborated in accordance with policy and systematically in all aspects on this level. Level 5: On a social (national) level On this level especially, the CO₂ performance gains social significance: own tenderers participate, public commitment, cooperation with government bodies and/or non-government bodies, achieving set goals, etc. In general with regard to Ladder 2.0 CO 2 -Performanceladder. Generic Handbook, 23 June

16 Ladder 2.0 has appeared at a time when many companies have been certified for around one year and are undergoing their annual ladder assessment. It is important with Ladder 2.0 that the company continues to make progress from year to year with the formulated actions. Another point is the attention for CO₂ performance in the projects, as explained in section 1.2. In section 3.2, what all this means for each aspect for the development in the performance of the companies is explained more concretely (in boxes). Award advantage The level a company has achieved in reducing its CO₂ emissions is translated into an award advantage. The award criterion was chosen because the degree of environmental taxation (as an environmental characteristic) with which a commissioned project is executed represents an economic value. The higher the level on the certificate, the more advantage the company receives in the weighing-up for award. For award based on the lowest price, this award advantage means a (notional) discount of a certain percentage on the tender price. For award based on the most economic tender, the price component is adjusted in the score with the percentage of the award advantage. The tender documents show how this is done precisely. It is up to each individual commissioning party to determine how much (notional) discount it provides per level on the CO₂-Performanceladder. This will also be shown in the tender documents. Often a joint venture of companies participates in a tender. In that case, the company with the lowest score on the CO₂-Performanceladder is leading for the award advantage. CO 2 -Performanceladder. Generic Handbook, 23 June

17 3.2 CO₂-Performanceladder certification scheme Aspect A: Insight The purpose of aspect A is to stimulate companies to recognize (insight) their own CO₂ emissions and those of their suppliers, and to permanently look for new possibilities for cutting back the climate impact of their own company operations and their own projects. Once such insight has been acquired, reduction objectives (B: reduction) can be linked to it and communicated (C: transparency). Meanwhile, attempts can be made to find initiatives relating to the reduction of CO₂ elsewhere in the sector or even beyond (D: participation). In the spirit of the CO₂- Performanceladder, aspect A cannot be viewed separately from the other aspects. Every higher level includes the requirements of the lower levels. Companies must remain permanently active with current performance at the lower levels. Levels 1 and 2 The first levels lead to a greater insight into a company s own energy flows and levels of consumption. Level 3 Whereas the first levels lead to a greater insight into a company s own energy flows and levels of consumption, a company at level 3 converts this information into scope 1 and 2 emissions. The company has a direct influence on these emissions, which makes for a sound basis for quantified reduction objectives (3B). Meanwhile, it continues to improve in the lower areas, such as measuring instead of estimating its energy consumption, and perhaps carrying out energy audits. Internally communicating (C) about the emissions inventory makes it possible for employees to put forward ideas for improvements. Being transparent towards the outside world sends out a signal that the company is performing well in terms of CO₂, or indeed that it still has some way to go. Information about the energy consumption and CO2 emissions of a company are of course related to a large degree to projects. The longer a company is CO2 aware in its operations, the more energy and CO2 information about concrete projects it will acquire and use for its reports. With Ladder 2.0, the company will be able to highlight this information in the emissions inventory etc., by presenting information relating to individual projects separately. Level 4 The scope 3 emissions are included at level 4. It is not the intention to identify every scope 3 emission, given that this would require a disproportionate effort. The starting point here is the analysis of CO₂ generating activities, based on the value chain, which are relevant to the company and its projects, and about which reliable information is available, or can be made available. Level 4 is essentially no different for contractors than it is for firms of engineers (and similar consultancy firms). In order to reach level 4, firms of engineers should conduct their own analyses, or arrange for them to be carried out. CO 2 -Performanceladder. Generic Handbook, 23 June

18 Using the analyses and attaining CO₂ reduction objectives is a continuous process stretching out over years, perhaps in the form of contiguous (yearly) projects. Every year, companies monitor their standard of performance and make progress in terms of the requirements. This also brings important added value benefits for other parties in the same sector and for other interested parties, who naturally wish to know which companies are keeping pace with the sector and which are at the forefront. To that end, companies continue to publish their achievements on the internet (at least). Ladder 2.0 means that a company identifies and quantifies its most material (dominant, as regards CO 2 production, for example) scope 3 emissions. The result is a carefully thought-out selection of the most relevant chain analyses that are connected to the projects. Level 5 From level 5, the most important suppliers (the A-suppliers) are involved in the process of creating insight into the chain. Ladder 2.0 leaves companies free to choose how they make use of this insight. This allows the private sector to make its own explorations and to show what the next appropriate step could be when it comes to involving partners in the chain for the process of reducing CO₂. With Ladder 2.0, the quality of the performances in relation to Insight (A) will be more even across the board, while the Dutch private sector will be more closely in line with the most recent standards and developments. (1) This concerns the emissions inventories, the energy audits and the chain analyses. CO 2 -Performanceladder. Generic Handbook, 23 June

19 ID Aspect Requirements 1A The company / tenderer has partial insight into energy consumption 1.A.1. Identification and analysis of energy flows of the company and the projects for which a CO₂-related award advantage has been obtained, have taken place. 1.A.2. All energy flows of the company and the projects for which a CO₂related award advantage has been obtained, have been demonstrably recorded. 1.A.3. This list is regularly followed up and kept up to date. 2A The company / tenderer has an insight into its own energy consumption 2.A.1. All energy flows of the company and the projects for which a CO₂related award advantage has been obtained, have been quantitatively recorded. 2.A.2. The list is complete, and is regularly - and demonstrably - followed up and kept up to date. 2.A.3. The company has an up-to-date energy audit report for the company and the projects for which a CO₂-related award advantage has been obtained. 3A The company / tenderer has converted its own energy consumption into CO₂ emissions 3.A.1. The company has a detailed and up-to-date emissions inventory for its scope 1 & 2 CO₂ emissions in accordance with ISO for the company and the projects for which a CO₂-related award advantage has been obtained. 3.A.2. The 3.A.1 emissions inventory has been verified by a certifying organization to at least a limited degree of certainty. 4A The company / tenderer reports its carbon footprint in accordance with ISO for scope 1, 2 & 3. 4.A.1. The company has a demonstrable insight into the most material emissions from scope 3, and can present at least two analyses of these scope 3 emissions of GHG-generating activities, or chains of activities. 4.A.2. The company has a quality management plan for the inventory. 4.A.3. At least one of the analyses from 4.A.1 (scope 3) has been professionally endorsed or commented on by a recognized professional and independent knowledge institute. 5A The company / tenderer requires its A-suppliers to have a scope 1 & 2 emissions calculation in accordance with ISO A.1. The company includes requirements for the provision of a CO₂ emissions inventory scope 1 & 2 in its purchase terms and conditions for A- suppliers. 5.A.2. 50% of the A-suppliers report their scope 1 & 2 emissions in accordance with ISO every year. 5.A.3. The emissions inventories of the A-suppliers have been verified by one or more certifying organizations to at least a limited degree of certainty. CO 2 -Performanceladder. Generic Handbook, 23 June

20 3.2.2 Aspect B: Reduction When insight (A) into energy flows and emissions has been established, reduction objectives (aspect B: reduction) can be linked to it. These objectives can be communicated (aspect C: transparency), and an attempt made to identify initiatives based on the reduction of CO₂ in or outside the sector (aspect D: participation). In the spirit of the CO₂-Performanceladder, aspect B cannot be viewed separately from the other aspects. Every higher level includes the requirements of the lower levels. Companies must remain permanently active with current performance at the lower levels. Levels 1 and 2 The opportunities for reducing energy are examined and lead to a concrete energy-reduction target that is clear for everyone. Levels 3 and 4 Quantitative reduction objectives are set according to SMART criteria. The scale of the objective, in the light of the initial situation, is so significant that this can reasonably be described as a serious challenge. In achieving the objective, the principle of continuous improvement is applied (the Deming cycle). From level 3 onwards, reporting and communication (internal and external) of matters relating to objectives and progress become important, and form the link to aspect C. From level 4 onwards, the reduction objectives are related to scope 3. With the help of an action plan, Ladder 2.0 lays the accent on how the company sets about meeting its objectives in the projects in which it is involved. Level 5 Using analyses and attaining CO₂ reduction objectives is a continuous process of improvement stretching out over years, perhaps in the form of contiguous (yearly) projects. As soon as the stated targets have been reached, consideration should be given to new challenges. At level 5, previously formulated quantitative objectives are demonstrably achieved. As soon as the previously set targets have been reached, new challenges should be taken up. The new ladder sets clear requirements regarding reduction objectives, as well as emphasizing a continuous process of improvement. Performance is more and more in line with that of other players in the sector who, along with other interested parties, are able to view the company s annual progress in performance via the internet (at least). CO 2 -Performanceladder. Generic Handbook, 23 June