Measuring the effect of Sustainable Public Procurement

Abstract

Many purchasing services of the Dutch local and central governments, aim to include the effects of products and services on human health and the environment in the procurement process. Sustainable procurement (SP) encompasses more than just price and quality considerations. SP can result, for example, in reduced greenhouse emissions and more reuse and recycling (circular economy). RIVM presents a method to calculate the effect of SP. The method is tested and illustrated by application to eight product groups: company cars, business trips, contract transport (e.g. for scholars), transport services (e.g. taxis), occupational clothing, electricity, solar panels and gas. Analyses of the procurement activities of the government in 2015 and 2016 concerning these product groups showed that SP had a positive effect. For example, it resulted in a reduction in greenhouse gas emission of more than 4.9 megaton CO2 during the contract period of the supplied products and services. This is equivalent to the average annual emissions from transport and energy of more than 600,000 households. Other benefits due to SP were reduction in the emission of toxic substances, more recycling and job opportunities for people with a distance to the labour market. At the same time, the RIVM analysis shows that SP is not always applied. Furthermore, the ambition with which SP is applied differs strongly between tenders. Applying SP does not guarantee effect because minimum demands are not always more stringent than what is available on average on the market. Furthermore, these demands and criteria are not always included in the final contracts. The analyses show that calculation of the effect of SP is already possible with basic data (such as driven distance and type of car) but often this is data is not currently available. Governments who would like more insight into the effect of their efforts to purchase in a sustainable way are recommended to administrate this data along the procurement process. Furthermore, for different product groups a database with generic information on the impact of products and materials over their entire life cycle is required. This way, possible trade-offs in the supply and consumption chain can be included.