Abstract
This book chapter examines the crucial role of government in promoting sustainable procurement, which is an important tool for achieving sustainable development goals. The chapter provides an overview of sustainable procurement, its benefits, and challenges, and discusses the potential for government to use procurement policies to promote sustainability. The chapter highlights the importance of government leadership, legal frameworks, and institutional capacity for the effective implementation of sustainable procurement practices. The chapter also provides examples of successful sustainable procurement initiatives from around the world and identifies key lessons learned. The chapter concludes with recommendations for government action to promote sustainable procurement, including the need for strategic planning, stakeholder engagement, and ongoing monitoring and evaluation.
TopOverview Of Sustainable Procurement
According to the European Commission (2020), sustainable procurement is the process of acquiring goods, services, and works in a manner that considers the economic, social, and environmental impacts of the procurement process. Olinga and Gelbman (2013) affirms that sustainable procurement aims to achieve value for money while ensuring that the procurement process supports sustainable development goals. The United Nations defines sustainable procurement as “a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment” (United Nations Environment Programme, 2017).
The European Commission also defines sustainable procurement as “the integration of environmental and social considerations into all stages of the procurement process with the aim of reducing the environmental and social impact of the goods and services procured, while also ensuring value for money.” (European Commission, 2020).
The three authors converge on the fact that sustainable procurement aims to meet the triple bottom-line requirements and ensure effective value for money to the procuring entity (United Nations Environment Programme, 2017).
Government of South Africa (2017) expounded that the concept of sustainable procurement in government instituitions has gained prominence in recent years as organisations recognise the importance of promoting sustainable development and addressing environmental and social challenges. Sustainable procurement involves considering the full lifecycle of the goods, services, or works being procured, from the extraction of raw materials to the disposal of waste. This involves evaluating the environmental impact of the products being procured, ensuring that they are produced in a sustainable manner, and considering the social and economic impacts of the procurement process (Happaerts & Van de Walle, 2011).
Cauchois et al. (2017) advised that there are several benefits of sustainable procurement for organisations, including reducing costs, improving brand reputation, and contributing to sustainable development goals. By procuring products that are environmentally friendly and socially responsible, organisations can reduce their environmental footprint and enhance their reputation as responsible corporate citizens. Sustainable procurement can also create opportunities for innovation and collaboration with suppliers, leading to the development of more sustainable products and services (El-Nemr et al., 2017).
Sustainable procurement requires a strategic approach and collaboration with suppliers, stakeholders, and customers. Organisations need to establish clear sustainability objectives, integrate sustainability into their procurement processes, and evaluate the performance of suppliers based on their sustainability credentials. This involves setting sustainability criteria and performance indicators, such as the carbon footprint of products and the working conditions of suppliers (El-Nemr et al., 2021).
Several organisations and initiatives have developed frameworks and tools to support sustainable procurement. These include the United Nations Sustainable Development Goals, the ISO 20400 standard for sustainable procurement, and the Global Reporting Initiative's Sustainable Procurement Guidelines (Loivet et al., 2020).
Overall, sustainable procurement is an important approach for organisations to consider in order to promote sustainable development and achieve their environmental, social, and economic objectives. It involves considering the environmental and social impacts of the products being procured, ensuring that they are produced in a sustainable manner, and evaluating the performance of suppliers based on their sustainability credentials. Sustainable procurement can create value for organisations, stakeholders, and the environment, and can contribute to a more sustainable future (Mahfod et al., 2019).
Key Terms in this Chapter
Government: A system or group of people responsible for governing and controlling a particular community, country, or territory. It is a political organisation that exercises authority and power over its citizens or subjects, enforces laws and regulations, and provides public services and programs to promote the well-being of its people.
Lifecycle assessment: The evaluation of the environmental impact of a product or service throughout its entire lifecycle, from the extraction of raw materials to the disposal of waste.
Sustainable Development: A development approach that seeks to meet the needs of the present generation without compromising the ability of future generations to meet their own needs. It is a framework that aims to balance economic growth, social progress, and environmental protection in a way that is sustainable over the long term
Sustainable Procurement: The process of acquiring goods, services, and works in a manner that considers the economic, social, and environmental impacts of the procurement process.
Social Responsibility: The obligation of an organisation to act in the best interests of society and the environment, beyond its legal obligations.
Triple Bottom Line: A business approach that considers the economic, social, and environmental impacts of its operations.
Supply Chain Management: The management of the flow of goods and services, from raw materials to the final product, including the coordination and collaboration with suppliers.