Procurement

Public procurement refers to the design, award and management of contracts, suppliers and supply chains by public bodies. Sustainable procurement means making sure that the products and services we buy are as sustainable as possible, with the lowest environmental impact and most positive social results.

Procurement has a key role to play in supporting sustainable economic growth in Scotland. Whether we are buying goods, works or services, the public sector can use its considerable spending power to help improve our economy, society, and environment. Although Scotland’s statutory emissions reduction targets are based on emissions from sources located here in Scotland, our wider carbon footprint associated with the goods and services we import is also very important. At some £16 billion annual spend, Scotland’s public sector procurement budget can go a considerable way to meeting net zero targets and delivering a just and equitable transition.

The manufacture and development of products and materials can involve the generation of significant GHG emissions, which is referred to as their embodied carbon. Public procurement policy should create a culture that supports a circular economy and promotes strategic decisions on ‘whether’, ‘what’, ‘how’, and ‘how much’ organisations buy and end-of-life/reuse options, as detailed in the Scottish Government’s public sector procurement page. Bidders and suppliers should be asked to provide low-carbon goods and services, and to deliver circular solutions.

Procurement Process Principles and Approaches

Sustainable procurement is more than quantifying associated emissions from upstream and downstream products and processes. Embedding sustainable procurement duties at the outset of developing a business case or renewing a contract is critical to ensuring that potential impacts are identified, and any data or knowledge gaps can be addressed to enable informed and auditable decision-making. Public bodies should use their influence to encourage sustainable practices and demonstrate robust management systems that support decision-makers.

Key resources
  • The Procurement Journey

    The Procurement Journey website offers detailed step-by-step guidance and templates to guide procurers through the various stages of the procurement processes; from brief preparation to tender and through to contract and supplier management. It provides clarification on which type of procurement process is required, as this is dependent on the nature and value of a procurement.

  • The Supplier Journey

    The Supplier Journey website provides detailed guidance for suppliers on the Scottish public sector procurement process and further guidance specific to suppliers can be found on the Scottish government website, including information regarding the Supplier Development Programme.

  • Scottish Government Sustainable Procurement Tools

    The Scottish Government provides Sustainable Procurement Tools and guidance to support the implementation of the sustainable procurement duty. These include the Procurement Prioritisation Tool, the Flexible Framework Assessment tool, Life Cycle Impact Mapping and the Sustainability Test. Sustainable Procurement Guidance supports these tools to help public sector organisations embed sustainability into their procurement processes.

  • The Scottish Procurement Policy Notes

    The Scottish Procurement Policy Notes (SPPNs) provide updates on current procurement policy issues.

  • Public Procurement and Property Blog

    The Scottish Government blog on Public Procurement and Property provides news and updates for public sector professionals, suppliers, potential suppliers, and the general public about public procurement in Scotland.

  • Scottish Government Website

    The Scottish Government website on Public Sector Procurement gives a good overview of up-to-date information on various procurement policy areas, including links to guidance and support.

Embedding Sustainability Objectives within Procurement Policies and Strategies

Public bodies applying exemplary procurement practices and strategies to incorporate broader climate change considerations into tender submissions include Scottish Enterprise, Scottish Water, The Scottish Police Authority, Highland Council, and Fife College (see pages 18-20 of the SSN Public Bodies Climate Change Duties Report 2020/21). Some examples of criteria used include:

  • Requiring suppliers to detail their current carbon footprint, their commitment to carbon reduction solutions and to set annual targets for reductions in GHG emissions
  • Requiring suppliers to outline their commitments on areas such as: energy/fuel efficiency measures in buildings/vehicles/operations, emissions class of fleet vehicles, site waste management plans, circular economy initiatives, reuse of materials, carbon neutrality initiatives, recycling, and reuse of packaging
  • Contracting authorities will consider whole-life cost analysis to determine estimated contract costs rather than initial purchase costs alone
  • Contracting authorities will consider the embodied carbon within the goods/materials to be supplied. (Scottish Water – though subject to different regulations – has developed an Embodied Carbon Calculator to calculate this based on information provided by suppliers, at the pre-qualification stage.)

Further exemplary procurement strategy examples include:

 

The Procurement and Commercial Improvement Programme

The Procurement and Commercial Improvement programme PCIP assessment, which replaces the previous Procurement Capability Assessment (PCA), provides a means of measuring and reporting on the procurement and commercial capability of organisations.

PCIP Pulse Check commenced in 2023, offering a new approach support the sector. The PCIP Pulse Check focuses on the policies and procedures drivingprocurement performance and, more importantly, the results they deliver. The type of assessment is dependent on the value and profile of each organisation’s spend. Organisations are assessed every two to three years. Rather than having to supply specific data for the PCIP, the data needed will be taken from the body’s annual procurement report.

Further information on the PCIP can be obtained at the Scottish Government website.

More procurement guidance