Sustainable Procurement

Definition

Sustainable Procurement means ensuring that products and services procured by an organisation achieve value for money on a life cycle cost basis and generate benefits not only for the organisation, but also for the environment, society and the economy.

To procure in a sustainable way involves looking beyond the short-term needs of the organization and considering the longer-term impacts of each purchase or contract.

Sustainable procurement is used by both public and private sector organisations to ensure that their purchasing reflects broader goals linked to resource efficiency, climate change, social responsibility and economic resilience. In the context public sector procurement it may be termed SPP (Sustainable Public Procurement).

Key Sectors

• Construction
• ICT
• Cleaning
• Food and Catering
• Vehicles
• Electricity (See Sustainable Electricity, Renewable Energy Procurement)

Benefits

• Meeting environmental policy goals
• Meeting other sustainability policy goals
• Financial efficiency
• Reputation
• Risk Reduction and Compliance
• Market transformation and innovation

Issues and Challenges

• Lack of understanding of the benefits of sustainable procurement
• Lack of clear definitions
• Lowest Price mindset
• Missing market intelligence
• Inflexible procedures and attitudes
• Lack of internal communication and support
• Misinformation and misconceptions

See Also

• Green Public Procurement