IGPN - International Green Purchasing Network

July 20, 2026

Practices Collection Showcase: Innovative Application of Carbon Label and Carbon Reduction Integrated Supply Chain Management (Vol. 4) CO2 Performance Ladder: A proven and effective GPP best practice

Lately, the report of Practices Collection-Innovative Application on Carbon Label and Carbon Reduction Integrated Supply Chain Management was jointly released within the collaboration between International Green Purchasing Network (IGPN) and the One Planet Network Sustainable Public Procurement (SPP) Programme, which was produced by IGPN Secretariat-China Environmental United Certification Center (CEC).
The Practices Collection brings together innovative supply chain practices from seven organizations across four countries: China, the United States, Thailand, and the Netherland. By summarizing practical experience and demonstrating phased achievements, the Practices Collection effectively enhances supplier capacity, promotes the adoption of carbon labelling, and stimulates market and supply-side demand for sustainable products and services.

Practice #4｜CO2 Performance Ladder: A proven and effective GPP best practice

Theme: Public institute/corporation supplier management; Low carbon logistics; Carbon inclusion

Core Content
This practice focuses on the “CO2 Performance Ladder” (Ladder) which integrates carbon management, green procurement incentives and third-party verification, in order to achieve global climate targets through helping organizations to eliminate carbon emissions by 2050 or before. These include, on one hand, defining three Steps of ambition for organizations to realize energy savings and reduce CO2 emissions in their own organization, projects and in the supply chain; and on other hand, providing advice to contracting authorities on how they can incorporate the "Ladder" into their tenders, procurement policies, rules and requirements. The third-party verification, shifts the burden of proof for procurers, making it easier to be applied.
It is essential to highlight that the Ladder, contributes to the monitoring of GPP, and encourages participants to develop new tools, products and methods to reduce emissions.

Innovation in Supply chain Management
This practice demonstrates how can facilitate innovation from aspects of low-carbon procurement management mechanism and establish a standardized carbon management system in supply chain management:
Low-carbon procurement management mechanism: incorporating the Ladder award criterion into the procurement documents; incorporating the advantage available per ‘CO2 Ambition level’ in the tender document; awarding contract based on the price-quality ratio and the CO2 ambition level offered by the contractors. target which recorded in the contract. After signing the contract, the winning contractor(s) shall execute the contract and demonstrate its compliance with the offered CO2 ambition level within a set period, and annually thereafter.
Standardized carbon management system: organizations can choose themselves at which of the three steps established by the Ladder they wish to be certified. Then, they can take different measures by following the specific requirements of the ladder, grouped into four ‘angles’ - "insight, reduction, communication and collaboration" and by implementing a continuous improvement (PDCA) cycle, in order to structurally manage and reduce energy use and carbon emissions.

This practice introduces a carbon management system for government purchasing, built on three core measures: tiered rating standards, tender rewards and independent third-party checks. Using government purchasing power to encourage suppliers to actively cut carbon emissions, this model offers practical new ideas for public organizations to decarbonize their supply chains and roll out carbon benefit programs.

Learn more at the report Practices Collection: Innovative Application on Carbon Label & Carbon Reduction Integrated Supply Chain Management.

category : Topics