Sustainable Procurement: Real Life Examples

Sustainable procurement aims to reduce environmental impact, minimize reliance on non-renewable resources, ensure fair contract terms, and promote equality and diversity in the supply chain.

To enhance efficiency, companies follow guidelines like ISO 20400, an international standard for sustainable procurement. It outlines key principles, including defining sustainable procurement, understanding its impact, and practical implementation.

Applicable to all organizations, ISO 20400 supports best practices but does not replace legal, ethical, or policy regulations governing procurement.

Sustainable Procurement Examples:

Procurement of Low-Carbon Residential Buildings Using Life-Cycle Assessment Criteria in The City of Helsinki

Finland’s capital, Helsinki, is home to over 1.5 million people and aims to reduce its carbon emissions, which are primarily due to building heating, electricity consumption, and traffic. Helsinki has implemented the Carbon Neutral Helsinki 2035 Action Plan to mitigate climate change effects through public procurement. Their procurement objectives include reducing the project’s climate and environmental impacts by setting minimum requirements and assessment criteria for design and construction, with material specifications scrutinized for sustainability. The ultimate goal is to achieve carbon neutrality by 2035.

Learning: It is crucial to enforce sufficient emphasis on climate criteria to ensure they have a real impact and that bidders see the value in investing in them. Market dialogue is also vital to inform tenderers about new environmental and climate criteria, allowing them to adjust requirements and potentially source more affordable materials.

The Environment and Resources Authority of Malta

Malta’s Environment and Resources Authority (ERA) is striving to achieve green procurement by applying a combination of social and environmental criteria. Their aim is to minimize procurement’s environmental impact and improve citizens’ quality of life. A tender was published requiring bidders to provide proof that products carried the EU Ecolabel or to submit a list of substances used if not. It also mandated that bidder employees work in a safe environment with all safety measures available.

Learning: The second national action plan for Green Public Procurement (GPP) from 2023 to 2027 will audit bidders for contract compliance, helping all parties understand GPP implementation at an operational level. It is also important to train procurement officials on GPP to ensure more qualitative tenders and procedures.

Upgrading Streetlights Using an Energy Service Company (ESCO) Model in the Municipality of Gabrovo

The municipality of Gabrovo in Bulgaria upgraded its entire street lighting network from sodium-vapor lamps to LED lamps. Due to the large investment required, they decided to use an Energy Service Company (ESCO) model. An energy audit recommended changing high-pressure sodium lamps to LEDs and implementing an intelligent management system for remote and centralized lighting control, saving 150 annual lighting hours. Bidders needed an environmental management system (ISO standard or equivalent) related to road lighting equipment activities to qualify.

Learning: Gabrovo utilized a competitive dialogue during negotiations, which allowed bidders to propose innovative solutions for the city’s needs and helped Gabrovo understand its requirements better. Transparency from the municipality also helped bidders find solutions for complex issues like the cable network.

Socially Responsible Public Procurement of Computer Equipment

The City Council of Barcelona aims to engage with the electronics industry to promote innovation and strengthen ecological and social standards, particularly by fostering a more transparent mining supply chain. They incorporated an award criterion to give points to bidders presenting a long-term strategy to increase supply chain transparency. They also partnered with reuse organizations (Pangea and Ereuse) to contribute to a circular and social economy, avoiding premature recycling.

Learning: Political support is significant to signal a city’s long-term commitment to an issue, thereby incentivizing market change.

Procuring Solar Vehicle-To-Grid (V2G) Charging Stations For Electric Vehicles in The Barcelona Metropolitan Area

The Barcelona Metropolitan Area approved its Climate and Energy Plan 2030, which includes creating a network of metropolitan photovoltaic (PV) car-parking pergolas with charging spots for electric vehicles. They wanted solar charging stations to provide clean energy for electric vehicles and supply clean energy to local public buildings when no car is around. A call for nine solar charging stations was published, with the contract divided into three lots, one of which sought experts to validate technical requirements for the complex installation.

Learning: Solar PV charging stations are complex, and their procurement and installation require the right technical expertise. Selection criteria are crucial to choose suppliers with appropriate knowledge and experience.

Socially Responsible Public Procurement of ICT equipment in Sweden

Region Stockholm, responsible for healthcare and public transport, centrally procures ICT for its operations. Collaborating with 22 other regions in Sweden, they identified ICT as a high-risk category due to human rights, labor rights, and child labor violations. Since 2010, Region Stockholm has applied environmental requirements for ICT procurement and implemented binding contract conditions to address social criteria.

Learning: It is important to have binding contractual requirements that protect human rights, workers’ rights, and anti-corruption throughout the supply chain. Sustainability extends to protecting people affected by a company’s supply chain, not just the environment.

Vending Machines For Food and Beverages at The University of Cagliari

The University of Cagliari (UNICA) in Italy is committed to reducing and eliminating the use of disposable plastic items. Their vending machine initiative aligns with the EU plastics strategy and EU Directive on single-use plastics. The contract for vending machine spaces and food/beverages must follow the University’s policies for plastic reduction and sustainable waste management. Technical specifications require at least 40% of food to be from organic production, and vending machines should provide non-plastic cups.

Learning: The contract is thoroughly checked to ensure correctness and compliance with execution clauses, based on tender specifications and technical reports from bidders, ensuring both parties comply with the binding and monitored contract.

Conclusion

Sustainable procurement presents both challenges and opportunities in pursuing environmentally and socially responsible practices within the supply chain. These real-life examples illustrate that sustainability is not only achievable but can also be a competitive advantage, contributing to long-term business success. They highlight the growing importance of sustainable procurement as a strategic imperative for businesses navigating the evolving landscape of socially and environmentally conscious practices

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