How do you make sustainable procurement decisions?

1 Assess your needs

Before you start looking for suppliers, you need to define what you really need and why. This will help you avoid unnecessary purchases, waste, and over-specification. You can use tools such as the SMART criteria (Specific, Measurable, Achievable, Relevant, and Time-bound) to set clear and realistic objectives for your procurement. You should also consider the total cost of ownership, which includes not only the initial price, but also the maintenance, operation, disposal, and environmental and social costs of the goods and services.

2 Identify your options

Once you have a clear idea of your needs, you can explore the different options available in the market. You should look for suppliers that offer products and services that meet your quality, performance, and delivery standards, as well as your sustainability goals. You can use criteria such as the environmental and social certifications, policies, and practices of the suppliers, as well as their compliance with relevant laws and regulations. You can also use tools such as life cycle assessment, eco-labels, and green procurement databases to compare the environmental impacts of different options.

3 Evaluate your risks

Another important step in making sustainable procurement decisions is to assess the potential risks associated with each option. These risks can be environmental, social, economic, or reputational, and they can affect your organization, your suppliers, or your stakeholders. You should identify the sources, likelihood, and severity of these risks, and develop strategies to mitigate, transfer, or avoid them. You can use tools such as risk matrices, SWOT analysis, and stakeholder mapping to help you with this process.

4 Negotiate your terms

After you have selected the best option for your needs, you need to negotiate the terms and conditions of the contract with your supplier. You should aim to establish a fair and transparent relationship that benefits both parties and supports your sustainability objectives. You can include clauses and indicators that specify the environmental and social performance, responsibilities, and expectations of both parties, as well as the mechanisms for monitoring, reporting, and resolving disputes. You can also seek opportunities for collaboration, innovation, and continuous improvement with your supplier.

5 Monitor your results

The final step in making sustainable procurement decisions is to monitor and evaluate the results of your contract. You should measure and report the outcomes and impacts of your procurement in terms of cost, quality, delivery, and sustainability. You should also collect feedback from your supplier, your staff, and your stakeholders, and use it to identify the strengths, weaknesses, opportunities, and challenges of your procurement. You should also recognize and reward the achievements and best practices of your supplier, and share the lessons learned and best practices with others.

Sustainable procurement is not a one-time event, but a continuous process that requires planning, implementation, and review. By following these tips, you can make sustainable procurement decisions that benefit your organization, your suppliers, and the planet.

6 Here’s what else to consider

This is a space to share examples, stories, or insights that don’t fit into any of the previous sections. What else would you like to add?