Saving the planet through procurement: Governments are identifying ways to use purchasing to achieve and support sustainability goals

Written by Tammy Rimes, MPA

Sustainable government procurement is the process of acquiring goods and services that meet the government entity’s needs while minimizing environmental and social impacts.

According to the MarketLinks blog, Sustainable Public Procurement and the Business Environment, “taxpayers around the world are increasingly holding governments accountable to spend public funds for their social and economic benefit in a sustainable manner. Public procurement is key to this endeavor because public institutions and state enterprises must procure vast amounts of goods, services, and works to do their jobs. How they carry out that duty, therefore, can affect whether they can achieve their sustainable development goals.”

Origins of sustainable public procurement
The roots of sustainable public procurement have been traced to the 1992 United Nations (UN) Conference on Environment and Development. Calling for a “new global partnership for sustainable development,” it was referred to as the Earth Summit, and resulted in a comprehensive plan of action called Agenda 21. This report encouraged governments big and small to improve the “environment content” of their purchasing policies.

Fast forward to 2015, where during the United Nations Summit, all UN member states adopted the 2030 Agenda for Sustainable Development, with a set of 17 Sustainable Development Goals (SDGs) and 169 targets with a plan to achieve them in 15 years. Sustainable Development Goal (SDG) No. 12 Responsible Consumption and Production, calls for a systemic approach and cooperation among all stakeholders along the supply chain to achieve sustainable production and consumption patterns. Specifically, SDG 12.7 calls for the promotion of “public procurement practices that are sustainable, in accordance with national policies and priorities.”

The UN’s Sustainable Development Goals serve as “the blueprint to achieve a better and more sustainable future for all. They address the global challenges we face, including those related to poverty, inequality, climate change, environmental degradation, peace and justice.

As environmental issues have become more important to governments and administrations within the last few decades, it has gotten easier to identify ways to leverage purchasing to support these goals. Many national and international certifications exist to assist in developing requirements or evaluating proposals with green purchasing components or goals. In addition, there are several comprehensive guides to green purchasing available online, including from the Nation Association of State Procurement Officials (NASPO).

Pursuing a sustainability plan
When a procurement team is committed to green purchasing, there are a variety of strategies that can be considered. Easier decisions can be made for environmental goals that most people are aware of, such as purchasing paper made with recycled or certified content and remanufactured printer cartridges. Even small purchasing decisions can have a huge impact. For example, opting for reusable or compostable plates, cups and cutlery in the school cafeteria; using safer cleaning supplies through seeking certified cleaners or reviewing the material safety data sheets (MSDS), and purchasing a higher volume of energy-efficient products can all add up.

As ecosystems themselves, with thousands of students, visitors and employees in multiple buildings, universities and school districts have a direct impact on the environment through energy and water use, waste and greenhouse gas emissions. In one successful case study, Boston University (BU) climate action plan aims to reduce carbon emissions on its campuses to zero by 2040, an ambitious goal that includes their cleaning program. Having earned high marks from the Association for the Advancement of Sustainability in Higher Education (AASHE), some of BU’s efforts include:

Procurement may be asked to help support a broader strategic plan, such as energy management. A multi-year effort often covers a wide range of buildings across a jurisdiction, extending well beyond a simple commodity purchase. Lighting retrofits for greater energy-efficient lighting and expertise in securing federal, state and local incentives may require consultative services. It would be difficult for a typical buyer to know about the energy efficiency of every type of lightbulb including halogen, linear fluorescent and LED bulbs. Therefore, relying on suppliers as partners in sustainability education is key. By taking advantage of any value-added consulting services, the role of procurement is taken from a simple transactional mode to one of strategic planning to ultimately reduce energy costs for the institution.

E-waste is a growing concern
Electronic waste has become one of the fastest-growing waste streams in the world. According to a Statistica report, 62 million metric tons were generated worldwide in 2022 as the volume of discarded electronic material has nearly doubled since 2010. Also known as e-waste, it refers to electronic products nearing the end of their useful life, including computers, cell phones, televisions, copiers and fax machines. The report continues, “E-waste holds large volumes of valuable raw materials including gold, palladium, silver, iron, copper and rare earth minerals. However, just 22.3 percent of e-waste generated worldwide, or roughly 14 million metric tons, was documented as collected and properly recycled.”

The fate of the remaining millions of metric tons of e-waste generated annually is mostly unknown, with a large share estimated to end up in landfills. Due to a lack of recycling infrastructure, many countries deal with e-waste by exporting large amounts to developing regions that lack proper waste management systems and regulations.

One goal may be to contract with companies that are good stewards and take an active role in reducing their own environmental footprint. This factor might be included as an important score in the overall evaluation rating scale. It can be a deciding factor of why one company may rank higher over another, with pricing and other key factors being the same. As such, many companies are concentrating efforts and resources toward this mission to ultimately benefit all communities with responsible corporate practice and international sustainability efforts that extend well beyond any specific contract.

A governing thought leadership paper, produced by Governing and sponsored by OMNIA Partners entitled, How Procurement Can Support IT Sustainability Cooperatives, offers expertise and resources for green operations. “When it comes to sustainability, governments are asking how to get there as fast as the public expects,” says Sergio Paneque, a Center for Digital Government (CDG) senior fellow and former chief procurement officer for the state of New York.

The report shares, “as governments continue to struggle with how to identify, procure and manage solutions, one resource is a cooperative purchasing organization that offers broad sourcing and established contracts to procure green IT solutions from vetted vendors. ‘The ability to use an established agreement with a purchasing cooperative makes it easier to apply sustainability standards for equipment and services purchases, even if government IT is decentralized,’ says Sean McSpaden, CDG senior fellow and former deputy state CIO in Oregon. These agreements also make sustainable purchasing easier for smaller organizations, including local governments and school districts.”

As governments use more devices—sensors, mobile phones, computers, servers and storage systems—they want to use them efficiently and recycle or dispose of them responsibly. These concerns can be addressed in several ways:

Government fleets lead the way with green procurement
A carbon footprint refers to the total amount of greenhouse gases (GHGs), primarily carbon dioxide (CO2), and other emissions produced directly or indirectly by a company. It is a crucial metric for evaluating the environmental impact of an operation or product. According to Mansfield Oil, adopting simple strategies can significantly reduce emissions, lower operating costs and contribute to a greener fleet.

Many government fleets, particularly those with fuel-using equipment, can reduce their emissions by transitioning to sustainable fuels. Traditional gasoline and diesel-powered vehicles are notorious for contributing to greenhouse gas emissions. Consider shifting to cleaner fuel alternatives, such as biofuels—including ethanol, biodiesel and renewable diesel. Each of these options has its advantages and can significantly lower emissions.

Proper vehicle maintenance is crucial for reducing emissions and prolonging a fleet’s lifespan. Scheduled maintenance checks, including air filter changes, tire maintenance, and engine tune-ups, ensure vehicles operate efficiently and produce fewer pollutants. Fleet management software provides real-time data on vehicle performance, driver behavior and fuel consumption. This data empowers organization in making informed decisions, optimizing a fleet’s efficiency, reducing carbon footprint and cutting operating costs.

Finally, personnel training through eco-friendly driving techniques can significantly enhance fuel efficiency and reduce emissions. Training drivers to practice smooth acceleration, gentle braking, and consistent speed leads to substantial fuel savings. Mansfield Oil’s Director of Sustainability, Jessica Masters, states, “Whether you manage a small township or a large city public safety department, taking steps to reduce your fleet’s emissions is not just for sustainability reasons, it’s also a smart business move.”

Using equipment longer, or leasing when needed, is another way to reduce waste. Canada’s Government Account Manager for United Rentals shares this observation, “Since the supply chain delays from a few years back, we have seen a mindset change within public works departments across Canada. Prior to the manufacturing bottlenecks, only new equipment would be procured for operational needs. However, since obtaining this equipment was often linked to delays and backlogs, they began to show more openness for slightly used equipment purchases. Even though delivery schedules have returned to normal, the purchase of previously used equipment remains strong.”

Electrification becoming a higher priority
Two years after Congress agreed to spend $7.5 billion on electric vehicle (EV) charging nationwide, there’s yet to be much accomplished. In addition, electricity prices have risen consistently over the past three years, making the touted major benefit of fueling cost reduction not as big a selling point. However, as states such as California and Illinois have mandated electrification for the future, procurement and fleet departments are continuing to navigate the costs and implementation process.

Lauren Trzeciak, Textron Specialized Vehicles’ (TSV) director of customer experience, discussed what a government team should be thinking when pursuing a sustainability strategy as it relates to electrification. “For organizations just starting out on their sustainability journey, the best place to begin is to understand your footprint so you know where the most impact can be made to reduce. Gathering data to measure waste, water usage, energy consumption, and greenhouse gases emitted will help organizations identify where they can optimize operations to use less. Then, setting targets to drive reductions will go a long way.”

Ryan McClellan, director, commercial business, shares further, “Government teams should be questioning the use of gas vs electric. Older electric vehicles usually have lead acid batteries, which are costly to maintain and replace, while also signaling a message from a branding perspective that may not support staying current with technological trends. Government teams are looking to us to help them decarbonize their facilities by leveraging our electrification platform. This discussion usually includes a comprehensive point of view that includes methodologies that help transition them out of gas guzzling mini-vans and small pickup trucks.” Compared to lead acid batteries, lithium batteries provide zero tailpipe emissions, have 95% less harmful environmental waste, charge twice as fast and are hundreds of pounds lighter.

As a company commitment, by 2035, 75% of all Cushman and E-Z-GO products will be electric or hybrid. Trzeciak says, “Furthermore, we have begun engaging with our dealer network to foster conversation and growth around sustainable practices at customer-facing operations. E-Z-GO and Cushman/TSV is working to understand opportunities at the end of the vehicles’ life to be able to recover materials that can be reused, recycled, or otherwise disposed of in a responsible manner.”

As environmental issues have become more important to governments and administrations, it has become easier to identify ways to use purchasing to support these goals. The ongoing challenge will be managing limited resources with competing priorities to truly make a difference.

Tammy Rimes, MPA, is the executive director of the National Cooperative Procurement Partners (NCPP). She formally served as purchasing agent for the city of San Diego, the ninth largest city in the nation, and emergency logistics chief during the 2007 Witch Creek Fires. Under her leadership, the city consolidated its warehouse operations, centralized all purchasing and contracting operations, and moved to a more customer focused approach.

Editor’s Note: This article originally appeared in the Sept. 2024 issue of Government Procurement.