What is Green Procurement?

Global warming, air pollution, and weather-related tragedies have been on the increase in recent
times. This has called for the need to adopt more environmentally-friendly practices to make our
planet more habitable and sustainable. Green Procurement is one of such practices.

It refers to the purchase of products and services that results in little or no

negative environmental impact. 
Although companies make once-in-a-while decisions that have a positive ecological impact,
realizing that it gives them a good image in the public’s eye, Green procurement is much more
than that. It is a long-term commitment to consider the environmental impact of a product
throughout its lifecycle.

It involves assessing your supply chain, evaluating what the products are made of and where they
are from. It also involves looking at what happens to the products when you are done with them.
Based on these factors, you decide if a purchase should be made at all. If it should be made, what
quantity should be purchased to eliminate wastage? 

What are the main benefits of

Green procurement?
There is a common misconception about green procurement. Business owners often see it as
expensive and unsustainable. On the contrary, green procurement plays a major role in
minimizing wastes, helping you manage your resources better.

Additionally, customers are drawn to businesses that give top priority to their environment.
Other benefits of green procurement include:

Improved Employee Health and Safety

Green procurement helps to preserve your worker’s health, safety, and total well-being. For
instance, purchasing eco-friendly cleaning products can help prevent the health challenges often
caused by toxic cleaning products.

Also, purchasing organic and locally-made food items can keep them healthy and strong,
resulting in a more productive workforce. 
Employee Engagement
Adopting green procurement practices in the workplace can teach workers all they need to know
about sustainable products. They’ll also learn healthy, eco-friendly habits. This will help sustain
a green work culture and inspire workers to adopt it in their private lives.

Mitigated Risks
Purchasing eco-friendly products can eliminate the risk of using toxic products or partnering
with unethical manufacturers. As a result, you’ll be safe from lawsuits and unnecessary legal
action. This will also earn you a high level of public trust.

Improved Public Image

Everyone loves the idea of using eco-friendly products. However, they prefer businesses that
have good working ethics and are socially responsible. With a green procurement policy set in
place, you can work transparently with your customers, workers, and stakeholders. They are free
to know everything about the products you use, suppliers, and your purchasing habits. 

Increased Profitability
This is probably the major reason why we run businesses – to make profits. Green procurement
can result in higher profits in a couple of ways. Firstly, it comes with customer attraction and
loyalty. It also results in cost savings in the long run. 

Green Procurement Summary

By adopting green procurement practices, we help to build a healthy environment for everyone
to live in. To get started, you can source products only from credible and certified sources. You
should also opt for products made out of 100% biodegradable materials.

When you do these, you’ll enjoy all the benefits green procurement has to offer. 
 What is Green Procurement?
Green Procurement means purchasing products and services that cause minimal adverse environmental
impacts. It incorporates human health and environmental concerns into the search for high quality products and
services at competitive prices.

As early as year 2000, the Government amended its procurement regulations to require bureaux and
departments to take into account environmental considerations when procuring goods and services.
Specifically, bureaux and departments are encouraged to avoid single-use disposable items, and purchase
products:

 with improved recyclability, high recycled content, reduced packing and greater durability;
 with greater energy efficiency;
 utilizing clean technology and/or clean fuels;
 which result in reduced water consumption;
 which emit fewer irritating or toxic substances during installation or use; or
 which result in smaller production of toxic substances, or of less toxic substance, upon disposal.
Current Government Green Procurement Practice
For the purchase of common user items, the Government has adopted green specifications
as "MANDATORY" requirements in the tender specifications when the items are available on the market with
adequate models and quantities in supply.

For new green specifications developed with uncertain market availability, the green specifications will be
included in the tender specifications as "DESIRABLE" features. Tenderers are invited to indicate in their offers
whether their items can comply with these green features and, where appropriate, to submit supporting
documents for verification.
The tender assessment panel will evaluate tender offers which can meet the mandatory requirements and
recommend either the lowest conforming offer or the highest scoring conforming offer for acceptance. Where
there are two or more lowest conforming offers which are identical in all respects, the one which could meet the
desirable green specifications could be given the preference.

  Product A Product B Product C

Price $ $$$ $ $

Mandatory Green
✔ ✔ ✔
Specification 1

Desirable Green Specification

X ✔ X
1
 Sustainability Concepts

Green Procurement
A. Definition

Green procurement is the purchase of environmentally friendly products and services, the selection
of contractors and the setting of environmental requirements in a contract.

B. Main Features

Green procurement steams from pollution prevention principles and activities. Also known as green
or environmental purchasing, green procurement compares price, technology, quality and the
environmental impact of the product, service or contract. Green procurement policies are applicable
to all organisations, regardless of size. Green procurement programs may be as simple as
purchasing renewable energy or recycled office paper or more involved such as setting
environmental requirements for suppliers and contractors.

"Green" products or services utilise fewer resources, are designed to last longer and minimise their
impact on the environment from cradle to grave. In addition, "green" products and services have less
of an impact on human health and may have higher safety standards. Whilst some "green" products
or services may have a greater upfront expense, they save money over the life of the product or
service.

Before a green procurement program can be implemented, current purchasing practices and policies
must be reviewed and assessed. A life cycle assessment of the environmental impacts of products
or services is required and a set of environmental criteria against which purchase and contract
decisions are made has to be developed. The outcome is a regularly reviewed green purchasing
policy that is integrated into other organisational plans, programs, policies. A green purchasing
policy includes date-stamped priorities and targets, the assignment of responsibilities and
accountability and a communication and promotion plan.

Green procurement policies and programs can reduce expenditure and waste; increase resource
efficiency; and influence production, markets, prices, available services and organisational
behaviour. They can also assist countries in meeting multi-lateral requirements such as the Kyoto
Protocol and Rotterdam Convention. International Standards Organisation and other bodies have
established guidelines for green procurement programs.

Obstacles to implementing a green procurement program include: lack of readily available

environmental friendly products; expensive or zero environmental alternatives; inaccurate studies;
lack of organisational support; and inaccurate or unsupported environmental claims by
manufacturers and suppliers.

Legislation, organisational policies, directives, environmental management systems or multi-lateral

agreements often require organisations to implement a green procurement program.

C. Case Studies and Examples

1. Fujitsu
Fujitsu Japan has a green procurement policy that selects materials; parts; products; and production
equipment based on price; environmental impact; quality; and delivery. Environmental
considerations include: avoidance of toxic substance during production and disposal; resource and
energy conservation; recyclablity; and ease of disassembly for processing and disposal.

2. Ikea
Ikea, a furniture and household goods retailer, has implemented a code of conduct for its 2,000
suppliers. The code of conduct focuses on environmental impact and working conditions. An
external body verifies information submitted by suppliers. If suppliers do not meet the code, they are
requested to remedy the situation and if suppliers continually breach the code, they can be removed
from Ikea's suppliers list.

The code includes a list of supplier musts (waste and emission reductions, handling, storage and
disposal of hazardous chemicals, recycling, etc) and must nots (use of chemical compounds and
substances banned or restricted by Ikea and source of wood).

3. Japan Travel Bureau

Japan Travel Bureau (JTB), a Japanese Travel Agency, implemented an ISO 14001 accredited
Environmental Management System (EMS) in 1999. The EMS required the development of a green
purchasing policy, which covers office supplies and sales kits.

D. Target Sectors / Stakeholders

Governments, decision makers, suppliers, purchasers and industry are the main stakeholders of a
green procurement program. Senior management and purchasing staff support is essential to
implement and ensure the on-going success of a green procurement program. Suppliers need to be
advised of and included in the establishment of a green procurement program. This will help
maintain healthy working relationships and avoid legal implications. Further, suppliers may be able
to provide additional product information.

Other stakeholders include all organisational employees since they often request products or
services, the community, standard organisation and organisational institutions.

E. Scale of Operation

Implementation of green procurement is best done on the business scale.

F. Links

 Business and Sustainable Development: A Global Guide - Green Procurement

 Business and Sustainable Development - Ikea Case Study
 Buy Green
 ICLEI - Green Purchasing Good Practice Guide
 Fujitsu Green Procurement
 Tour Operators Initiative for Sustainable Tourism Development - Case Studies
 OECD - Greener Public Purchasing. Issues and Practical Solutions