Advancing Sustainability through Public Procurement: A Triad of People, Planet, and Prosperity

According to UNAIDS, procurement is defined as the overall process of acquiring goods, services and works through purchasing, lease, rental, hire-purchase or other legal means of contracting.

The World Bank recently stated that according to research, public procurement activities are directly or indirectly responsible for 15% of greenhouse gas emissions, which is seven times the amount emitted by the entire aviation industry. This sounds very logical because public procurement represents a substantial portion of the global economy, encompassing a vast array of goods and services, from construction projects to office supplies.

The government's sheer scale of procurement gives it the potential to shape markets, encourage responsible business practices, and drive sustainability across industries. According to Jocelyne Jabbour et al, given the government's central position in public spending, procurement can be a lever to implement a whole-of-economy approach to climate change, by aligning purchasing decisions with sustainability and climate goals, engaging with suppliers to drive positive change, and promoting innovation and transparency throughout the supply chain.

Sustainable public procurement (SPP) is a strategic approach that extends beyond the traditional focus on cost-effectiveness and efficiency. It is a comprehensive process where public sector organizations acquire goods, services, works, and utilities with an overarching aim of achieving value for money while concurrently generating benefits for society and the economy. The three key dimensions that define the success of sustainable public procurement are planet, people, and prosperity.

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On Planet

The environmental dimension of sustainable public procurement revolves around minimizing the ecological footprint associated with procurement activities. Public sector organizations are increasingly adopting environmentally friendly practices, such as sourcing products with lower carbon footprints, reducing waste generation, and favouring renewable energy sources. By prioritizing eco-friendly options, public procurement can play a pivotal role in mitigating environmental damage, addressing climate change concerns, and contributing to the global effort to build a sustainable future.

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On People

One of the primary dimensions of sustainable public procurement is the well-being of people. SPP seeks to enhance societal welfare by prioritizing fair labour practices, inclusivity, and social responsibility in the procurement process. This involves considerations such as supporting local businesses, promoting diversity and inclusion, and ensuring the safety and well-being of workers throughout the supply chain. By integrating social criteria into procurement decisions, public sector organizations contribute to the development of communities, fostering a more equitable and socially responsible business environment.

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On Prosperity

The economic dimension of sustainable public procurement emphasizes fostering economic development and prosperity. By supporting local businesses and small enterprises, SPP can stimulate job creation, enhance economic resilience, and contribute to the overall prosperity of communities. Additionally, investing in sustainable products and services often results in long-term cost savings, creating a positive economic impact for public sector organizations. SPP thus becomes a catalyst for economic growth while ensuring that procurement decisions align with the principles of sustainability.

Examining the implementation of Sustainable Procurement

Implementing sustainable public procurement is not without its challenges, especially given the complexities and multiple stakeholders involved. Change in public procurement can be challenging due to inertia, resistance to new practices, and a myriad of blockers. Engaging allies, mobilizing resources, and effective communication are crucial in overcoming these hurdles.

Like every newly introduced concept, proper implementation of sustainable public procurement will require initial investments in training, technology, and infrastructure. Mobilizing resources efficiently is also critical to overcoming financial barriers. Public sector organizations can explore partnerships with external entities, tap into grant opportunities, and develop innovative financing models to ensure that the necessary resources are available for the transition to sustainable practices.

Also, building a coalition of allies within and outside government is essential for the successful implementation of SPP. By garnering support from key stakeholders, including decision-makers, suppliers, and the community, public sector organizations can create a collective commitment to sustainability. These allies can provide valuable expertise, resources, and advocacy, making it easier to navigate the complexities of change.

Communicating Effectively is crucial to SPP

Effective communication is pivotal in conveying the benefits and rationale behind sustainable public procurement. By transparently sharing the long-term advantages, including social, environmental, and economic benefits, contractors and suppliers can garner support and build awareness. This involves creating tailored communication strategies for different stakeholders, ensuring that each group understands the positive impact of SPP on their interests and objectives.

Sustainable public procurement is a multifaceted approach that goes beyond traditional cost considerations, aiming to benefit people, the planet, and prosperity. While change in public procurement can be challenging, engaging allies, mobilizing resources, and effective communication are key strategies to overcome inertia and blockers. By embracing the principles of sustainable public procurement, public sector organizations can lead the way in fostering a more responsible, resilient, and sustainable future.