Let’s talk about Green Procurement…

❓ What you’ll learn

• What it is and why it matters.

• The diverse landscape of green procurement solutions through fifteen profiles of organisations and the people behind them.

• Nine real-world case studies demonstrating the effectiveness of green procurement and supply chain management through a sustainability lens. 

• Five predictions into the future of green procurement.

• Four recent rounds totaling c.€109 million.

• Five Frequently Asked Questions and Answers on green procurement.

💎 Why it matters

The vendors you select and your decision-making process behind that can significantly impact your organisation's emissions and sustainability credentials in society.

🔍 Problem

By integrating environmental, governance and social factors into your procurement processes, organisations need to grabble with supply chain complexity, data availability, cost concerns, green supplier availability, and change resistance. 

💡 Solution

With the right people, vendors, tools, and data in place, green procurement practices can help organisations comply with regulations, minimize operational risks, reduce waste, improve supply chain efficiency, and contribute to broader sustainability goals.

📈 ROI

While there is a perception that green procurement is more expensive, the long-term benefits often outweigh the upfront costs through improved brand reputation, tender bidding success, reduced operating expenses, and improved efficiency.

🏁 Players:

🚩 Heroes launching solutions

Tools and platforms:

• Ignite’s sustainable procurement platform empowers responsible purchasing decisions, by Sigbjørn and Børge. 

• Vizibl helps manage every aspect of the supplier/buyer relationship for sustainable collaboration, by Mark.

• Carbmee is a carbon management solution for complex supply chains, by Christian and Robin.

• Spherics (now Sage Earth), helps you reach net-zero in your supply chain, by Mike and George.

• WorldFavor’s sustainable sourcing solution enables you to build a clean supply chain, by Andreas.

Data measurement and management:

• CRIFVision-Net offers ESG scores on the companies you do business with, by Christine.

• Open Supply Hub provides supply chain data that anyone can browse and contribute to, by Natalie.

• Miagen collects and manages the supplier data you need for sustainability reporting and compliance, by Teddy.

• Sphera provides actionable insights and auditable supplier data to simplify ESG reporting, by Paul.

People & marketplaces:

• Green Office supplies environmentally friendly office supplies, by Kevin and Philip.

• Clearstream advises companies on how to manage their supply chain from a sustainability perspective, by Brian. 

• TalkDEI is bringing diversity to supply chains for positive change, by Alan.

• CinSOIL enables AgriFood companies decarbonise their supply chains at farm level, by Giorgi, Antonella, and Tavseef.

Frameworks:

• EcoVadis provides its procurement members with sustainability ratings on other member organisations.

• BCorp platform can be used by procurement to source B Corps locally or internationally.

🚩 Fighters launching initiatives

• Trinity College implements the “top 50 supplier procurement programme” and more (link).

• Sphera’s AI engine allows Dana to get the risk data they need for a full and accurate picture of the risk threatening their supply chain (link).

• How VITA used Ignite to get an overview of their suppliers, work with them systematically, and comply with Norway’s Transparency Act (link).

• Geo Green Power reduced its supply chain emissions with Yardlink’s local supplier network (link).

• Carbmee empowers Ravensburger’s material selection to reduce scope 3 emissions (link).

• Ubloquity’s blockchain-enabled technology allowed for better resource and production planning at the NI border, reducing food miles and carbon footprint (link).

• SW used Tacto to turn the Supply Chain (ESG) Act in Germany as an opportunity instead of a cost factor (link).

• Hewlett Packard (HP) established a sustainable impact programme that integrates ESG factors into all of its procurement decisions (link).

• Unilever implemented a sustainable sourcing program with 79% of its materials sourced sustainably in 2023 (link).

🔮 Predictions

1. Sustainability and social responsibility will take precedence over profits:

   • "Triple-bottom lines," including people, planet, and profit, will be the focus of procurement.

2. Sustainable procurement will become a strategic necessity:

   • Procurement will become increasingly prominent as a critical function in promoting sustainability and resilience.

3. Supplier engagement and transparency will be vital:

   • It will be crucial to gather accurate data on suppliers' environmental and social practices.

4. Legislation and regulations will continue to emphasize sustainability, driving the adoption of green procurement practices across industries and sectors:

   • Life cycle analysis will become a crucial component of procurement decisions.

   • The circular economy will be integrated into procurement practices, focusing on the reuse, recycling, and reduction of waste, and the use of recycled materials.

   • Public procurement policies will be updated to prioritise sustainability, ensuring that public bodies and private sector organisations adopt environmentally responsible practices.

5. Talent development and capability enhancement will be necessary:

   • Procurement teams will need to acquire new skills and expertise to navigate the changing sustainability landscape.

💰 Recent Rounds

Akirolabs raised $5 million in seed funding in January 2024.

Pivot raised €20 million in series A funding in December 2023.

Tacto raised €50 million in series A funding in December 2023.

ORO Labs raised $34 million in series B funding in November 2023.

✨ Frequently Asked Questions on Green Procurement

What is green procurement?

Green Procurement is the acquisition of goods and services with less environmental and human health impact. It considers the lifecycle impacts of a product or service, including production, transportation, use, and disposal.

What is Green Procurement policy?

A Green Procurement Policy is an organisation's commitment to prioritize environmental and social sustainability in its procurement processes. It details the principles, goals, and actions for integrating environmental considerations.

How to implement green procurement?

1. Goals and Objectives:

   • Set targets for green procurement, such as reducing carbon footprint, minimizing waste, and promoting sustainability.

2. Policy Development:

   • Draft a policy to formalize commitment to green procurement and criteria for product selection.

3. Staff Training:

   • Educate staff about green procurement principles and benefits.

4. Green Criteria:

   • Set environmental and social criteria for evaluating suppliers and products, like certifications, lifecycle assessments, and sustainability practices.

5. Supplier Engagement:

   • Share procurement goals with suppliers, urging them to offer sustainable products and services.

6. Process Integration:

   • Incorporate green criteria into procurement procedures, contracts, and evaluations.

7. Performance Monitoring:

   • Track and assess the impact of green procurement initiatives for continuous improvement.

How to improve my green procurement?

1. Continuously Review and Update Policies:

   • Regularly review the green procurement policy to ensure it stays relevant and effective.

2. Enhance Supplier Collaboration:

   • Work closely with suppliers to improve their sustainability practices and develop innovative solutions.

3. Leverage Technology:

   • Use digital tools and platforms to track and manage the environmental impact of procurement activities.

4. Increase Transparency:

   • Make procurement processes more transparent by sharing sustainability goals and performance metrics with stakeholders.

5. Educate and Engage Stakeholders:

   • Regularly update and involve employees, customers, and other stakeholders in green procurement initiatives.

6. Benchmark and Share Best Practices:

   • Learn from industry leaders and share successful strategies and practices within the organization.

Why organisations prefer green procurement? 

1. Environmental Responsibility:

   • Reducing environmental footprint and supporting global sustainability.

2. Regulatory Compliance:

   • Meeting legal environmental standards.

3. Cost Savings:

   • Saving through energy efficiency, waste reduction, and resource management.

4. Reputation:

   • Attracting eco-friendly customers and investors.

5. Risk Management:

   • Preventing supply disruptions and ensuring stability.

6. Innovation:

   • Providing a competitive edge with sustainable products and services.