Comparing the EcoVadis Rating System with the CO₂ Performance Ladder

The EcoVadis rating system and the CO₂ Performance Ladder (the Ladder) are two effective tools for organisations seeking to tackle climate change and reduce carbon emissions. While they share common objectives, their approaches, scope, and practical applications differ. This article offers a detailed comparison to help organisations understand how these tools align, where they diverge, and how they might complement each other.

Understanding the Tools

EcoVadis offers sustainability ratings and performance improvement tools for global supply chains, focusing on three key areas:

• Sustainability Ratings – A globally recognised evaluation system that helps buyers assess and compare supplier sustainability. Companies receive a scorecard detailing strengths, areas for improvement, and access to EcoVadis tools for a one-year period to support ongoing progress. Organisations demonstrating strong sustainability performance can earn EcoVadis medals (Platinum, Gold, Silver, or Bronze), enhancing their credibility and competitive position.
• Carbon Management Scorecard – Provides insights into corporate carbon performance and tools to support supplier engagement in decarbonisation. Buyers receive data on suppliers’ greenhouse gas management, while rated companies gain resources to strengthen their emissions reduction strategies.
• Continuous Improvement Tools – Identifies areas for development (Corrective Action Plans), offers online sustainability training (EcoVadis Academy), access to external sustainability experts (Training Partner Programme), and tools to assess sustainability practices across the supply chain (“Assess My Business Partners”).

EcoVadis ratings remain valid for one year.

The CO₂ Performance Ladder, by contrast, provides a structured management system that helps organisations reduce carbon emissions and energy use. Based on the Plan-Do-Check-Act (PDCA) cycle of continuous improvement, the Ladder certifies organisations at various levels according to the maturity of their carbon and energy management. Certification is conducted by accredited, independent third parties, ensuring robust and credible evaluation. Like ISO certification, it is valid for three years, with annual audits and a full recertification process every three years.

While the Ladder addresses broader sustainability themes—such as energy efficiency and stakeholder engagement—its core emphasis remains carbon and energy reduction, making it a focused and practical tool for environmental management.

Key similarities between EcoVadis and the Ladder

EcoVadis and the CO₂ Performance Ladder are both sustainability assessment tools aimed at improving corporate environmental performance. While distinct in their design, they share several core features:

• Focus on sustainability and carbon management – Both assess corporate sustainability with a strong emphasis on reducing carbon emissions.
• Performance Assessment – EcoVadis offers Environmental, Social and Governance (ESG) ratings; the Ladder certifies carbon and energy management maturity across five levels.
• Supply chain engagement – Both encourage sustainable procurement by evaluating suppliers’ environmental practices.
• Ongoing improvement – Companies must demonstrate continuous progress to maintain their rating or certification.
• Use in strategic procurement  – Many organisations use both tools in supplier selection and broader procurement strategies.

Core Differences

Scope and Approach

EcoVadis evaluates broader corporate social responsibility (CSR) performance across four themes: Environment, Labour & Human Rights, Ethics, and Sustainable Procurement. Assessments are based on a questionnaire tailored to company profile, supported by documentation, and result in overall and thematic scores.

The Ladder focuses specifically on energy and carbon management using a structured system built on the Plan-Do-Check-Act (PDCA) cycle. It features five certification Levels, from internal emissions measurement (Scopes 1 and 2) to full supply chain integration (Scope 3). Unlike EcoVadis, the Ladder requires formal third-party audits, including site visits and interviews, conducted under an accredited scheme.

In summary: EcoVadis provides a broad, evidence-based CSR rating. The Ladder delivers a formal, progressive certification based on rigorous audit and verification.

Use in Procurement

EcoVadis primarily functions as a CSR assessment tool, allowing companies to evaluate their suppliers’ environmental, social, ethical, and sustainable procurement performance via a scoring system. It is widely adopted in the private sector to support responsible sourcing policies, assess suppliers during tenders, and monitor ongoing commitments. However, it cannot be used directly as an award criterion in public procurement, as its scoring is not specifically linked to the subject of the contract.

The CO₂ Performance Ladder, by contrast, includes a built-in procurement incentive. Buyers can award competitive advantages—such as bonus points or fictitious discounts—to suppliers actively reducing carbon emissions. The Ladder is compatible with EU procurement law (2014 Directive), making it suitable for use as an award criterion in public tenders. In the private sector, organisations also use Ladder certification levels as part of their purchasing decisions, particularly favouring suppliers with higher certification.

Validation and Certification

EcoVadis assessments are based on a scoring system, providing an overall score along with sub-scores across four pillars: Environment, Labour & Human Rights, Ethics, and Sustainable Procurement. Validation relies on a review of submitted documentation by EcoVadis analysts. However, it does not constitute an official certification. The assessment is comparative and market-based, drawing on peer benchmarks, and does not follow a structured or progressive system.

The CO₂ Performance Ladder offers a formal, multi-level certification process. Companies are certified across five Levels, progressing from internal emissions management (Scopes 1 and 2) to full supply chain integration (Scope 3). Certification is granted by an accredited, independent body—separate from the scheme owner—ensuring credibility and transparency. This structured approach enables organisations to improve at their own pace, with certification Levels linked to potential procurement benefits.

Broader Sustainability Aspects

EcoVadis goes beyond carbon management to offer a holistic view of corporate sustainability, assessing four key areas: Environment, Labour & Human Rights, Ethics, and Sustainable Procurement. This approach helps organisations identify strengths and gaps across multiple CSR domains. With detailed sub-scores and industry-specific benchmarks, EcoVadis supports the development of comprehensive ESG strategies that extend beyond carbon performance alone.

The CO₂ Performance Ladder remains centred on carbon reduction but incorporates broader environmental elements as companies progress. These include energy efficiency, circularity, stakeholder collaboration (such as sector-wide initiatives), and lifecycle cost analysis. Higher certification levels demand a more integrated sustainability approach, focusing on transparency, supply chain cooperation, and the full impact of emissions across the value chain.

Overlap and effort required for compliance

Where the tools align

EcoVadis and the CO₂ Performance Ladder share a common objective: encouraging organisations to improve sustainability and reduce environmental impact. EcoVadis’ environmental criteria include aspects of carbon management that align with key requirements of the Ladder, particularly around emissions reporting and reduction targets. Companies performing well in EcoVadis on carbon-related topics are likely to find synergies with the Ladder’s approach—especially in areas such as emissions measurement and reduction strategies.

The two tools are complementary rather than interchangeable.

Additional requirements for Ladder certification

Companies using EcoVadis that wish to obtain Ladder certification will need to take several additional steps:

• Implement a formal management system based on the Plan-Do-Check-Act (PDCA) cycle for managing CO₂ emissions.
• Set clear, measurable reduction targets and commit to progressive improvement.
• Strengthen procurement to include a sharper focus on carbon reduction—more specific than EcoVadis’ broader CSR-based approach.
• Undergo thorough auditing, including internal and external audits, site visits, interviews, and third-party verification by an accredited body.
• Conduct a full carbon footprint assessment:
  • For Levels 1–3: measure Scopes 1 and 2 emissions.
  • For Levels 4 and 5: include Scope 3 emissions, integrating the full supply chain into the decarbonisation strategy.

While EcoVadis offers tools like the Carbon Calculator and Carbon Action Manager, these are geared towards estimation and planning rather than certified, audit-based verification.

Additional requirements for EcoVadis rating

Conversely, a company already certified under the Ladder and seeking an EcoVadis rating must:

• Broaden its scope beyond carbon and energy to cover additional CSR areas.
• Address all EcoVadis themes, including Labour & Human Rights, Ethics, and Sustainable Procurement.

Summary

Criteria	EcoVadis	CO2 Performance Ladder
Scope	Broad CSR assessment across four themes: Environment, Labour & Human Rights, Ethics, and Sustainable Procurement.	Specialised, certified carbon management system focused on GHG reduction and stakeholder involvement.
Structure	Second-party rating based on document review, with overall and thematic scores.	Multi-level certification (5 Levels) of management system maturity, verified by accredited third parties.
Procurement	Used in supplier evaluations and to inform procurement policies. No formal incentive mechanism in contract awarding.	Incentive-based system. Higher certification levels can earn advantages (e.g. bonus points or fictitious discounts) in both public and private tenders.
Validation	Based on company-provided documents. No official certification.	Independent, accredited third-party certification ensures compliance with scheme requirements.
Costs	Internal effort required for documentation and ESG questionnaires. Cost depends on company size and package (EUR 429–8339).	Costs include: system implementation, certification audits, and SKAO contribution.

EcoVadis offers a broad-based sustainability assessment, covering multiple CSR themes. It is particularly effective for internal ESG monitoring and private-sector supplier evaluations. In contrast, the CO₂ Performance Ladder is a specialised tool for carbon and energy management, built around a progressive, certified framework.

While EcoVadis enables companies to benchmark their sustainability maturity, the Ladder creates tangible incentives for decarbonisation—particularly within procurement, where certification can provide a competitive advantage.

Together, the two systems can complement each other: EcoVadis helps companies manage and report on sustainability across the value chain, while the Ladder provides a robust structure for measurable carbon reduction, supported by third-party verification.

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