Transport for London (TfL), the integrated transport authority responsible for the operation and improvement of London’s transport network, is currently testing the use of the CO2 Performance Ladder in the UK. In a podcast hosted by UK partner Action Sustainability, Anna Fish and Henry Yeomans of TfL talk about why they are embracing the CO2 Performance Ladder based on their first experiences.

Using the CO2 Performance Ladder as an award criterion in tenders encourages organisations to reduce CO₂ emissions when carrying out projects. TfL’s adoption of the Ladder is another step in its rollout in the UK. What makes the Ladder such a suitable tool for contracting authorities, according to TfL?

1. The Ladder is a powerful tool for achieving environmental impact

The CO2 Performance Ladder has proven itself as a recognised tool for effective management and reduction for CO2 emissions for over 15 years. As one of the UK’s largest public procurers, Henry Yeomans, Head of Commercial and Procurement, sees the Ladder as a way to align procurement with TfL’s corporate environmental plan. “Our supply chain has a big impact on London and the rest of the UK. It would be remiss of us to ignore that impact. It is really important to us to have a framework like the CO2 Performance Ladder that allows us to bring our suppliers on that journey.”

2. The Ladder is easy to integrate and use

The TfL team tasked with integrating the Ladder into tenders finds the tool surprisingly easy to use and adopt, says Anna Fish, Environment Manager for Scope 3 and Supply Chain. “We found it really easy to implement the Ladder in many of our procurements so far.” Yeomans agrees with Fish. “The Ladders allows consistency, continuity and standardisation within our tender approach. And it also doesn’t involve a huge amount of investment and creating additional sets of KPI’s.”

“We found it really easy to implement the Ladder in many of our procurements so far.”

Anna Fish, Environment Manager for Scope 3 and Supply Chain

3. The Ladder drives industry maturity through green procurement

Using the Ladder is driving maturity in the industry, Fish says. “There are many sectors that are still working through their carbon journey and really trying to advance their efforts in this space. The CO2 Performance Ladder helps to support that journey for many sectors and create a good relationship between the client and the supplier. Our advice for procurement professionals is to target procurements in sectors where the Ladder can really drive the maturity and perhaps on procurements where you have carbon intensive materials or activity.”

4. The Ladder bridges the relationship between cost and carbon

The CO2 Performance Ladder gives a clear alignment of cost and carbon considerations. Fish: “The Ladder is a really effective incentivisation mechanism, which is something that’s not so easy to do within procurement. The tool makes that really smooth and bridges the relationship between cost and carbon through the procurement process. For us, making that link is really important.”

“The Ladder is a really effective incentivisation mechanism.”

Anna Fish, Environment Manager for Scope 3 and Supply Chain

5. The Ladder helps meet other standards and targets

Using the CO2 Performance Ladder also helps TfL meet public procurement standards, such as Procurement Policy Note (PPN) 002 (previously 06/20 prior to the Procurement Act 2023, taking account of social value in the award of central government contracts) and PPN 006, (previously 06/21,taking account of Carbon Reduction Plans in the procurement of major government contracts). In addition, the Ladder promotes contribution to the Sustainable Development Goals (SDGs). For instance, the Ladder interfaces with SDG 7 (clean energy) and SDG 13 (climate action).

Finally, Fish and Yeomans have some advice for parties considering using the Ladder in tenders: go for it! Fish: “I think we’re often too hesitant and want to make sure that things run right. Of course assurance is always an important piece when running a pilot. But the CO2 Performance Ladder is so simple and effective. You only really experience that when you dive right in and deploy the Ladder in a huge range of purchases. As we have done. And we are still looking to expand.”

Listen to the full podcast here: