How to Develop a Climate Transition Plan with the CO₂ Performance Ladder
Many sectors in the Netherlands face major sustainability challenges. Organizations need to drastically reduce their impact on climate, energy consumption, and material use, while regulations are becoming increasingly stringent. The construction sector is a prime example: demand for housing and infrastructure is growing, while nitrogen issues, biodiversity loss, and the need to meet climate targets are becoming increasingly pressing. Consider regulations such as MPG, (B)ENG/EPC, Paris Proof goals, and the introduction of zero-emission buildings under EPBD IV.
To meet these demands, sustainable business practices are increasingly important, and the CO₂ Performance Ladder plays a central role. This tool helps organizations structurally reduce emissions and report transparently through certification. With the introduction of version 4.0, the Ladder has been significantly updated. Where version 3.1 operated with five levels, the new version has three steps that place greater emphasis on supply chain emissions and the path to net zero. The biggest addition is the climate transition plan, in which organizations set out their strategy toward climate neutrality by 2050, including intermediate targets and concrete measures. The new handbook also aligns better with international frameworks such as the Paris Climate Agreement and the CSRD, and imposes stricter requirements for data quality, transparency, and supply chain collaboration.
These updates mean the CO₂ Performance Ladder 4.0 not only helps companies reduce their own emissions, but also strengthens their position in tenders, with financiers and clients, and ensures a proactive approach to regulations. The Ladder requires concrete reduction targets, a clear roadmap, and annual monitoring, making climate strategy tangible, measurable, and future-proof.
How to Develop a Climate Transition Plan
Step 1: Measure to Understand
Start with a baseline measurement. Map not only scope 1 and 2 emissions, but also scope 3. Previously, only business travel and commuting were mandatory to report; now, the full scope 3 footprint is expected. In construction, the largest emissions often lie in the supply chain: production of concrete, steel, and asphalt, transportation, and building usage. The CO₂ Performance Ladder increasingly requires companies to measure these systematically, ensuring that the analysis is not a one-off exercise but a structured process that provides annual insight into progress.
Step 2: Set Concrete Targets
Define clear reduction targets, for example in line with the Science Based Targets initiative (SBTi). This makes your efforts measurable and comparable. Major construction companies such as Dura Vermeer, BAM, and Heijmans have already taken this step, as have international building materials suppliers such as Heidelberg, Rockwool, and Kingspan. Under version 4.0, organizations are explicitly expected to include reduction targets in the climate transition plan, with a clear route to net zero by 2050 and concrete intermediate targets at the supply chain level (scope 3). Financiers, investors, and clients increasingly evaluate these plans; companies that commit clearly not only improve their chances in tenders but also strengthen their market position.
Step 3: Act on the Right Levers
Identify which actions will truly make a difference. Think of prefab construction to halve emissions per m², circular material flows, procurement from suppliers with validated climate goals, and greening construction sites. The CO₂ Performance Ladder requires not just targets, but measurable actions with concrete impact.
Step 4: Investments and Strategy
A transition plan often also involves investing in new technologies and production processes. Even more importantly, it may require adjusting your business model. Prefab construction, for example, demands a different organizational structure than traditional building. Companies that strategically embrace these changes early are more agile and better prepared for future tender requirements.
Step 5: Reporting and Monitoring
Finally, publish, report, and undergo external verification. The CO₂ Performance Ladder requires an annual update of your action plan and reporting of progress. Plans are also expected to be reviewed with independent experts or societal organizations. This ensures credibility and transparency. A transition plan should never be a paper exercise, it is a tool to align everyone inside and outside the organization.
Why Now?
Banks and investors increasingly ask for a climate transition plan and reward companies that take this seriously. Governments are imposing stricter requirements in tenders, where the CO₂ Performance Ladder is often decisive. Regulations such as EPBD IV and the updated MPG make zero-emission buildings and stricter CO₂ pricing unavoidable. Companies that invest now in a robust climate transition plan gain competitive advantage and future resilience.
Working Together on Your Climate Transition Plan
Want to learn more about certification under the CO₂ Performance Ladder and how your organization can achieve it? Visit the official certification page. At 2impact, we help companies develop a concrete and achievable climate transition plan, fully aligned with the requirements of CO₂ Performance Ladder 4.0. From baseline measurement to external verification, and from SBTi-certified reduction targets to practical implementation, we guide you through every step. Curious how we can help your organization take the next step toward a climate-neutral and future-proof operation? Contact our colleague at Jonah at jonah@2impact.nl.
