Considering CO2 emissions when selecting suppliers in The Netherlands

Organizations can obtain a certificate with their level on the Ladder, which they can use to receive an award advantage for their registration on tenders. In this way, contractors can benefit for a reduction of the submission price by proving and developing their efforts to reduce CO2 emissions. This mechanism is sometimes known as an optimal discounts system. As can be seen in the example on the following table, although supplier C had a higher entry price, the application of the discount associated with their level on the CO2 ladder (level 4) results in them being awarded the contract. By taking this approach to accounting for carbon emissions in procurement processes, sustainable suppliers can be selected even if the contract is awarded solely based on price.