How and Why to Integrate Sustainable Business Principles

In this article, you will be introduced to the concept of sustainable procurement and will explore how and why businesses can integrate sustainable principles into their traditional procurement practices.

A journey of a thousand miles begins with a single step.

_{Laozi, Chinese philosopher (604-531 BCE)}

Defining sustainable procurement

…acquisition of goods and services in a way that ensures that there is the least impact to society and the environment throughout the full life cycle of the product.

_{(Meehan and Bryde 2011)}

…achieve optimal value for money in delivering development objectives.

_{(World Bank 2019)}

…generate benefits to the organisation and the society whilst minimising damage to the environment.

_{(CIPS 2009)}

The procurement process

Why should businesses adopt sustainable procurement practices?

1. Financial

2. Risk management

3. Commitments and goals

4. Stakeholders’ expectations

5. Attractiveness

Benefits of sustainable procurement practices

Challenges of sustainable procurement practices

Ecolabels

References

_{Active Sustainability (2018) ‘How to Use Ecolabels’. Acciona [online]. available from https://www.activesustainability.com/sustainable-life/how-to-use-ecolabels/ [8 July 2019]}

_{CIPS (2009) ‘Sustainable Procurement Knowledge Summary’. CIPS Knowledge Works [online]. UK Chartered Institute of Procurement and Supply. available from https://www.cips.org/en-GB/knowledge/procurement-topics-and-skills/sustainability/sustainable-and-ethical-procurement/sustainable-procurement/ [8 July 2019]}

_{DEE (2018) ‘Sustainable Procurement Guide’. Australian Government, Department of Environment and Energy [online]. Commonwealth of Australia 32. available from http://www.environment.gov.au/protection/waste-resource-recovery/publications/sustainable-procurement-guide [8 July 2019]}

_{Gatari, C. N., and Were, S. (2014) ‘Challenges Facing Implementation of Green Procurement in Manufacturing Sector in Kenya: A Case Study of UNGA Limited in Kenya’. European Journal of Business Management 2 (1), 1-11}

_{Gormly, J. (2014) ‘What are the Challenges to Sustainable Procurement in Commercial Semi-state Bodies in Ireland?’ Journal of Public Procurement 14 (3), 395-445}

_{IAPWG (2006) ‘Sustainable Procurement’. in UN Procurement Practitioner’s Handbook [online]. Interagency Procurement Working Group (IAPWG). available from https://www.ungm.org/Areas/Public/pph/ch04s05.html [8 July 2019]}

_{Meehan, J., Bryde, D. (2011) ‘Sustainable Procurement Practice’. Business Strategy and the Environment 20 (2), 94-106}

_{World Bank (2019) Sustainable Procurement. An Introduction for Practitioners to Sustainable Procurement in World Bank IPF Projects. 2nd edn. Washington DC: The World Bank, 60}