Procurement involves a complex network of sourcing, storing and delivering materials, activities that significantly affect the environment, society and economy. Green procurement addresses these impacts by embedding sustainability into every step of the purchasing process.
What is Green Procurement?
Green procurement refers to environmentally and socially responsible purchasing practices. It aims to reduce waste, emissions and resource use while supporting ethical labor, fair wages and biodiversity protection. It contributes positively to the triple bottom line: people, planet and profit.
Core Focus Areas
A green procurement strategy typically focuses on:
- 1. Efficient use of natural resources
- 2. Sustainable waste management
- 3. Low-emission delivery practices
- 4. Reducing carbon footprint
- 5. Supplier collaboration on sustainability
- 6. Upholding ethics and fair pay
Benefits of Green Procurement
- 1. Better Risk Management: Avoids suppliers with unethical or harmful practices
- 2. Compliance Readiness: Prepares for carbon regulations and future costs
- 3. Investor Appeal: Meets sustainability expectations from investors
- 4. Social Impact: Supports local and ethical suppliers, creating green jobs
How to Incorporate Green Procurement
Businesses can implement green procurement by:
- 1. Reducing unnecessary purchases
- 2. Choosing products with recyclable or sustainable materials
- 3. Minimizing packaging waste
- 4. Prioritizing local and eco-conscious suppliers
- 5. Avoiding toxic materials and supporting ethical practice
Conclusion
With rising environmental regulations and consumer expectations, green procurement is no longer optional, it’s a strategic necessity. Organizations must start now to build resilient, sustainable supply chains.