The UN Environment Programme describes Sustainable Public Procurement (SPP) as a “sleeping giant,” emphasizing its immense but underutilized potential. Rooted in SDG 12.7, which falls under the broader umbrella of Responsible Consumption and Production, its significance is clear.
According to the Open Contracting Partnership and the Spend Network, governments worldwide collectively spend an estimated $13 trillion annually on public contracts for goods, services, and infrastructure. Given this vast purchasing power, implementing a robust policy framework for Sustainable Public Procurement could serve as a catalyst for enforcing standalone sustainability laws and regulations that are currently ineffective or underutilized.
SPP is a powerful tool for driving socio-economic growth and environmental responsibility by embedding sustainability principles into public procurement processes.
When considering the benefits of making those sustainable polices and regulations effective, the capacity of SPP to address a number of economic and social challenges as well as environmental issues are huge as illustrated below:
1. Economic and Social
The economic and social benefits expected can be a real gamechanger as they enable government to focus on their local priorities, for instance to support women and the youth, who are often outside the realm of public procurement, and at the same time to send a strong signal to the market. Three of the ways SPP can transform the socio-economic landscape are through the following:
- Market Stimulation for Sustainable Products: By prioritizing eco-friendly goods and services, the government leverages its purchasing power to stimulate markets for sustainable products, thereby fostering green industries and innovation.
- Support for SMEs and Local Enterprises: By emphasizing social inclusion by supporting small and medium enterprises (SMEs), promoting gender equality, and protecting workers’ rights, thereby contributing to equitable economic growth.
- Long-Term Economic Efficiency: Adopting life-cycle costing ensures long-term value for money, enhancing the overall efficiency and sustainability of public spending..
2. Environmental Stewardship
The strength of a SPP Policy is that it serves as a push to make environmental policies effective and ensure that the businesses adhere to not only local laws, but also to set the standard and align to good practices in their respective field of activities. At the same time, it forces the procurement officer and the user department to rethink and to make use of strategic instruments such as life-cycle impact assessments to decide on the most sustainable solutions. The potential benefits we may be looking at can be summarized around three key areas:
- Pollution Reduction: By prioritizing the procurement of clean energy and energy-efficient, and socially responsible goods and services, it directly contributes to national targets for reducing greenhouse gas emissions.
- Promotion of Resource Efficiency: By encouraging the use of renewable energy and fostering the transition to a circular economy, government support the sustainable management of natural resources.
- Waste Reduction: Focusing on eco-friendly products and services can lead to reduced waste and pollution and help achieve environmental sustainability goals.
In a nutshell, a strong SPP Policy Framework is extremely powerful and can drive socio-economic development and environmental stewardship by leveraging government purchasing power to promote sustainable practices, stimulate local industries, and encourage innovation.
Sources:
https://www.open-contracting.org/what-is-open-contracting/global-procurement-spend/
https://blogs.worldbank.org/en/developmenttalk/how-large-public-procurement
