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Posted: February 6th, 2024

Sustainable Project Procurement Practices

Sustainable Project Procurement Practices

Sustainable procurement is the process of integrating environmental, social, and governance (ESG) criteria and performance factors into a company’s procurement process and sourcing decisions. Sustainable procurement aims to create value for the organization and its stakeholders by promoting resource efficiency, circularity, well-being, and resilience.

Why is sustainable procurement important?

Sustainable procurement is important for several reasons. First, it can help companies reduce their environmental impact and carbon footprint by choosing suppliers and products that use less energy, water, materials, and generate less waste and emissions. This can also lower operational costs and improve profitability. Second, sustainable procurement can help companies manage their supply chain risks and reputation by ensuring compliance with environmental laws and standards, avoiding unethical or illegal practices, and enhancing transparency and traceability. Third, sustainable procurement can help companies meet the expectations and demands of their customers, investors, regulators, and other stakeholders who are increasingly concerned about ESG issues and performance. Fourth, sustainable procurement can help companies innovate and differentiate themselves from their competitors by offering products and services that are more sustainable, socially responsible, and aligned with their values and mission.

How to implement sustainable procurement practices?

Implementing sustainable procurement practices requires a strategic approach that involves the following steps:

– Define the vision and objectives of sustainable procurement for the organization. This should be aligned with the overall corporate strategy and ESG goals.
– Assess the current state of procurement practices and identify the gaps and opportunities for improvement. This can be done by using tools such as sustainability audits, life cycle assessments, supplier surveys, or scorecards.
– Develop a sustainable procurement policy and framework that outlines the principles, criteria, standards, and guidelines for sourcing decisions and supplier management. This should be communicated to all relevant stakeholders internally and externally.
– Integrate sustainability criteria into procurement processes, such as category strategies, tender specifications, contract clauses, evaluation methods, supplier selection, performance monitoring, and reporting. This should be done in a systematic and transparent way that balances financial and non-financial factors.
– Engage with suppliers and other partners to collaborate on sustainability initiatives, share best practices, provide feedback, support capacity building, and drive continuous improvement. This should be done in a respectful and mutually beneficial way that fosters trust and long-term relationships.
– Measure and report on the outcomes and impacts of sustainable procurement practices on the organization’s ESG performance, as well as on the environment and society. This should be done using relevant indicators, metrics, data sources, and reporting frameworks.

Examples of sustainable procurement practices

Some examples of sustainable procurement practices are:

– Incorporating environmental and social sustainability criteria into procurement processes, including energy efficiency, carbon footprint, fair labor practices, and local sourcing.
– Using recycled or renewable materials, implementing water conservation measures, deploying renewable energy management practices.
– Removing hazardous/forbidden materials and waste in the supply chain.
– Thoroughly vetting suppliers for compliance with environmental laws and standards.
– Building strong relationships with high-quality suppliers that share the same ESG values.


: Achieving sustainable procurement | McKinsey
: Sustainable Procurement – Definition, Examples, Benefits & Best Practices
: write my thesis How can green public procurement contribute to a more sustainable future
: Sustainable Procurement | CIPS
: What is sustainable procurement? | IBM


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