Sustainable procurement… is it possible?

Written byKaarin Wilkinson, Director, Waite Campus Childrens Centre. If you would like further information on sustainable procurement in practice, please contact Kaarin to hear about the sustainable procurement initiatives in place at Waite Campus Childrens Centre.

What is sustainable procurement?

Sustainable procurement essentially involves purchasing goods and services based on environmental and social as well as financial aspects. It is about purchasing that goes beyond the up-front costs of making the purchase to determine the whole of life environmental and social costs; or total life cost (TLC). There are many variations associated with different commodities and services. For example buying local is always best but not always available. An organisation with a focus on sustainable procurement is aiming to reduce consumption of resources, minimise the environmental impact of the resources it does require, and support and promote environmentally healthy goods.

Issues with sustainable procurement?

Sustainable procurement takes time. The process of sustainable procurement is complex and time consuming when done appropriately, and can be difficult for small business operators to achieve. Researching information on products or services to determine their environmental and social impacts can be quite onerous.

Small organisations and businesses have little influence to drive the sustainability objectives of their suppliers. With infrequent and low purchasing needs, most suppliers will not be concerned about losing a customer or two if they don’t meet your sustainable procurement objectives.

Options to achieve greater influence for small businesses can be created through partnering with other organisations to increase the purchasing power e.g. a cooperative of similar services. Small businesses are also helped by external certifications. This is where an external body or agency certifies the sustainability of a product. Knowing if the product has trusted certification (e.g. FSC, Fair Trade, Australian Energy Standards) will save you time and energy as the key questions about the environmental and social costs have been researched by an external body in order for the product to receive the certification.

More and more businesses are documenting their carbon footprint and the life cycle of their products. It may be difficult for individuals to do all the research needed so you can use the information from organisations like Oxfam whose Behind the Brand provides assessments of big companies sources and supply chains.

Sustainable procurement should at least be used when purchasing major items like computers, printers and white goods. Suppliers of these products should have environmental policies and even carbon reduction reports available for customers.

What you can do?

Despite the difficulties you can still have sustainable procurement as a goal. All individuals and businesses can start with the following key points:

  • The first step in sustainable procurement is always to avoid or reduce consumption.
  • Remember, ‘the lowest cost option up-front may not be the cheapest over the life of the asset’.
  • Have conversations with suppliers to promote sustainable practices.
  • Develop a procurement checklist that is used before any new item or services are purchased.

A Procurement Checklist - What sort of questions should be in a sustainable procurement checklist?

After first checking is the purchase /service really needed? Consider the following:

  • Does the product include post-consumer recycled content?
  • Is the product made from renewable resources?
  • What is the products life expectancy?
  • What are the transport related impacts?
  • Does the product have trusted certification?
  • Does the company demonstrate transparent ethical policies?
  • Does the supplier have an Environmental Management Plan or environmental policy?

Depending on the product or service you are purchasing you can ask more or less questions and rate the importance of these to your organisation. A sustainable procurement checklist that is used by everyone involved in purchasing promotes awareness of the importance and benefits of sustainable procurement across the organisation. Investigating the environmental and social impacts of products increases awareness of green wash where suppliers make ‘vague, unsubstantiated, misleading and deceptive claims’ about their goods and services.

It will also promote your team’s awareness of sustainable procurement and supports everyone to develop understandings of eco-labelling, certification and standards.

Useful Resources:

  • Commonwealth of Australia, 2013 Sustainable Procurement Guide, prepared by ECO-Buy Limited.
  • Commonwealth of Australia, 2013 Green office Guide.
  • Jenkins W, 2012 How to create a sustainable procurement policy.
  • Government of Western Australia Department of Finance 2011 Sustainable Procurement Practice Guidelines.
  • Shop Ethical, Your Ethical Consumer Guide website.
  • Buy Nothing New Month website.
  • The Story of Stuff website.