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 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.
- Similarly, 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.
- 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 (SPPNs) provide updates on current procurement policy issues.
- 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.
- 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.
- The government has created “From Now To 2030” templates to support public organisations in climate impact planning and Primary Impact Area for Climate Change (PIACC) Guides to better inform them of opportunities and considerations at each stage of the procurement journey to meet Climate Change Emergency objectives (available on the Knowledge Hub).
Embedding Sustainability Objectives within Procurement Policies and Strategies
Public bodies applying exemplary procurement practices and strategies to incorporate broader climate change considerations as part of 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:
- Glasgow City Region Sustainable Procurement Strategy (June 2021)
- The Advanced Procurement for Universities and Colleges (APUC) Operational Procurement Strategy and Action Plan (reviewed Jul 2022)
- Aberdeenshire Council’s Resources and Circular Economy Commitment.
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. The PCIP Pulse Check (due to commence in September 2023) focuses on the policies and procedures driving procurement 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.
Looking Ahead
The Climate Emergency Response Group’s “Delivering on Scotland’s Response to the Climate Emergency” 2021 report proposes measures that the Scottish Government may take in the future to further mobilise public sector expenditure to address the climate emergency. These may include mandating the incorporation of carbon assessment and whole life costing into all public sector corporate investment and spending decisions and exploring the potential of standardised, internal carbon pricing for public sector purchasing, drawing on lessons learned and experiences from the private sector.
Sweden, Denmark, and Finland are example of countries that have introduced requirements to undertake carbon assessments for companies bidding on government contracts and the potential for financial incentives if they outperform these estimates.