CO2 Performance Ladder and Metal Recycling: How Does It Work?

Metal recycling naturally counts toward the CO2 performance ladder. By having your scrap metal recycled, you reduce emissions in your waste stream, and with a certified processor, you immediately have proof of that in writing. This is useful for both your CO2 reporting and your standing in competitive bidding processes. A true win-win situation!

But how exactly does that system work? And what role does your choice of a metal recycler play in it? We’ll explain it clearly in this blog.

How does the CO2 Performance Ladder work?

The CO2 Performance Ladder is a certification system that rewards companies for measuring, reducing, and reporting their CO2 emissions. The system was developed by SKAO (Foundation for Climate-Friendly Procurement and Business) and is widely used in the construction, infrastructure, engineering, and industrial sectors. An independent auditor verifies whether your approach is sound and whether your goals are realistic—which is only fair.

Good to know: Starting with version 4.0, the ladder no longer has five levels, but three steps:

• Step 1: Reducing CO2 emissions within your own organization
• Step 2: Reducing CO2 emissions with and within your value chain
• Step 3: Aim for zero emissions by 2050 at the latest

Do you still come across explanations online about levels 1 through 5? That’s the old classification from version 3.1. Companies with an existing certificate are transitioning to the new levels through a transitional arrangement, and major clients are following suit: ProRail, for example, will use version 4.0 for relevant new tenders starting January 1, 2027.

So, the higher your level, the stronger your position in tenders issued by government agencies and large clients. A client can also reward bidders with a certificate by awarding them points or a notional discount on the bid price. Please note: the contracting authority determines for each tender whether the ladder applies, what level of ambition is required, and how significant the benefit is. A certificate therefore does not automatically result in a fixed discount percentage.

What do Scope 3 emissions have to do with this?

This is where it gets interesting for companies that work with metal. The CO2 Performance Ladder doesn’t just look at your own energy consumption (Scope 1 and 2), but also at emissions in your supply chain: Scope 3 emissions. These are emissions caused by others on your behalf, such as suppliers, transporters, and waste processors. Version 4.0, in particular, places greater emphasis on that value chain: any company seeking to advance to Level 2 must demonstrate that it is reducing emissions in collaboration with its supply chain partners.

If you choose a certified metal recycler that processes your scrap metal into secondary raw materials, you’ll reduce your company’s Scope 3 emissions. Primary metal production consumes a lot of energy: recycling aluminum saves up to 95 percent of that energy. In your Scope 3 reporting, you should therefore use a much lower emission factor for recycled scrap metal than for waste that is landfilled or incinerated.

How does metal recycling help move up the ladder?

Metal recycling makes two concrete contributions to your position on the CO2 Performance Ladder. First, you reduce your Scope 3 emissions by having scrap metal processed responsibly instead of disposing of it as waste. Second, partnering with a certified processor is a supply chain measure, and that value chain is central starting at Step 2.

But, to be fair: certification isn’t a one-time effort. It requires ongoing data collection, documentation, and audits—and that takes time and money. The business case is strongest for companies that regularly bid on contracts in construction, infrastructure, engineering, or transportation. But that’s precisely when it applies: every supply chain measure you can document—such as your metal recycling efforts—strengthens your case without adding extra administrative burden on your end.

What certifications must a metal recycler have?

Please note that not every metal recycler is a suitable partner for your CO2 Performance Ladder certification.

Krommenhoek Metals is certified under ISO 9001 (quality management) and ISO 14001 (environmental management). In addition, we hold the WEEELABEX Collection & Logistics certificate for electronics processing, the MRF seal of approval, and the End of Waste certificate, which demonstrates that our recycled material meets the requirements for a secondary raw material. These aren’t just paper qualifications: external auditors regularly inspect our processes, so you can be sure that your materials are being processed properly.

In this helpful blog post, you can read about exactly which documents you’ll receive after submitting your forms and how to use them in your record-keeping.

How does this work in practice for your company?

Imagine: You’re a plumbing and heating contractor that generates a few thousand kilograms of copper and aluminum pipes as scrap each year. You then deliver that scrap to Krommenhoek Metals. We handle the processing of your metals in-house, from collection to processing. That means shorter supply chains, complete transparency during weighing, and a competitive price. But it also means you have a verifiable, documented processing flow that you can include in your CO2 reporting. Pretty handy, right? Want to know in advance exactly what your copper scrap is worth? Then read this blog.

Do you have larger volumes, or would you like to set up a regular waste removal schedule? Then our container service is the logical choice. We deliver 20-, 30-, or 40-cubic-meter containers, usually within 24 hours, throughout the Netherlands. If you deliver more than 1,000 kg, we’ll pick up your scrap metal for free. Good to know for larger waste streams: the difference between light and heavy scrap metal partly determines how much your shipment is worth.

If your company sells scrap metal, the VAT reverse charge mechanism also applies. You can read about how this works from an administrative standpoint in our blog post on the VAT reverse charge mechanism for the sale of scrap metal.

We’ve been doing this work as a family business since 1925. The CO2 Performance Ladder has simply made the core of our craft more practical: your sustainability goals are our responsibility, too. That way, we’re stronger together!

Frequently Asked Questions

What exactly is the CO2 Performance Ladder?

The CO2 Performance Ladder is a certification system that rewards companies for measuring, reducing, and transparently communicating their CO2 emissions. Version 4.0 has three levels: reduction within your own organization, reduction across your value chain, and working toward net-zero emissions by 2050 at the latest. In tenders, a certificate can result in points or a notional discount; the exact amount is determined by the contracting authority.

What is the difference between version 3.1 and version 4.0?

Version 3.1 had five levels, while version 4.0 had three tiers. The new version places greater emphasis on Scope 3, the value chain, and a climate transition plan aimed at achieving net-zero emissions. Existing certificate holders will transition under a transitional arrangement.

Do my residual metals count toward the CO2 performance ladder?

Yes. The processing of your scrap metal falls under Scope 3 emissions: the emissions that occur within your supply chain. By having scrap metal recycled instead of disposing of it as waste, you demonstrably reduce those emissions. You will need proof of this from your processor.

How can Krommenhoek Metals help me with my CO2 reporting?

We provide you with documentation regarding the processing of your materials, including our certifications. You can use this documentation as evidence in your CO2 report. Contact us for personalized advice, or stop by one of our locations in Rotterdam or Wateringen.

Is the CO2 Performance Ladder also relevant for small businesses?

That depends on your situation. The system is most commonly used in sectors such as construction, infrastructure, engineering, and transportation, and certification takes time and money. If you rarely participate in competitive bidding, you should weigh in advance whether the investment is worth the benefit. In any case, tracking your emissions—including Scope 3—already gives you insight into your actual environmental impact.