Green procurement involves considering environmental impacts in purchasing decisions, adapting procurement procedures to benefit the environment, and sourcing sustainably manufactured products. It can lead to environmental certification, marketing advantages, and a growing market for green products.
Green procurement is an approach to procurement where environmental impacts play a large role in purchasing decisions, with procurement officers concerned about more than just price and quality. Companies that pride themselves on environmental stewardship and thoughtful care for the environment can use this sourcing method, among many other tactics, to ensure they are doing business in an environmentally responsible manner. Many aspects of the procurement process can be adapted to meet an environmental sustainability mission.
Within a purchasing department, green procurement may involve changes in department procedure designed to benefit the environment. For example, instead of asking people to submit purchase orders and inquiries in paper form, procurement could switch to electronic methods of communication so paper isn’t wasted. The office may also engage in environmentally conscious activities such as reducing energy use, maintaining office equipment to improve air quality, or purchasing carbon offsets to offset the office’s energy use. .
During the sourcing process, this type of sourcing involves looking for sustainably manufactured products. On a simple level, green procurement can prompt companies to look for office supplies made from environmental products or products made by companies committed to environmental stewardship. The office might also require minimal packaging on the products it orders, look for products handled with biodiesel, look for manufacturing facilities with environmental certifications, or indicate to potential suppliers that it would prefer products from companies that are committed to minimizing waste and benefiting environment.
Purchasing environmentally friendly products can be a risky occupation. Labeling and certification requirements vary, so a procurement manager may think they are doing the right thing by buying a product that carries a ‘green’ label and later learn that the product is no more environmentally responsible than a competitor’s , even if it is more expensive. Good purchasing officials will scrutinize their sources, taking the time to confirm that a company’s claims are accurate, and comparing data from different sources to see which supplier is the best.
Companies that engage in green procurement processes are eligible for environmental certification, formal government recognition and other benefits. Projecting a sustainable image can also be a valuable marketing tool that a business can use to gain an edge over the competition. Environmental advocates also point out that as more companies apply for green procurement, the market for green products is expanding, making them cheaper and easier to obtain. These advocates hope to see green procurement become the norm, rather than an unusual occurrence.
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