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Sustainable Development, Value Chains & People

Sustainable procurement

Sustainable procurement is the practice of integrating environmental, social, and economic considerations into the acquisition and management of goods, services, and works across their life cycles. It uses needs analysis, specifications, supplier selection, contract terms, performance monitoring, and end-of-life planning to pursue value while reducing adverse impacts.

Type
Solution or practice
Updated

In simple terms

Sustainable procurement considers more than the purchase price. Buyers first examine whether a need can be avoided, shared, repaired, or met differently, then evaluate relevant life-cycle costs and impacts. Criteria can address materials, energy, emissions, waste, accessibility, labour conditions, durability, and recovery. The approach applies in public and private organizations, although procurement law and organizational rules shape what criteria may be used. A requirement should be relevant, proportionate, measurable, and supported by evidence; broad claims or labels should not substitute for checking their scope.

Why it matters

Purchasing decisions influence product design, supplier behaviour, and market demand at scale. Well-designed criteria can advance environmental justice, decent work, and a living wage while reducing environmental harm. They can also help identify risks of modern slavery and child labour. Poorly designed requirements, however, may exclude smaller suppliers or shift costs upstream, so market engagement and contract management matter.

Example

A municipality buying uniforms defines durability and repair requirements, specifies restricted substances, asks for worker-risk controls, and scores whole-life cost. It checks whether evidence is valid for the supplied product and monitors delivery outcomes. If smaller suppliers face documentation barriers, the municipality simplifies evidence routes without weakening the underlying performance criteria.

How it differs

Living wage

Sustainable procurement is a purchasing and contract-management practice across many impacts; a living wage is a context-specific wage benchmark that may form one social procurement criterion.

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Next reading

  1. Life cycle costingPeople & value chains
  2. Circular economyCircular materials
  3. Green public procurementPeople & value chains

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Browse nearby terms

These alphabetical neighbours support browsing; they are not semantic relationships.

  1. Sustainable financeReporting & governance
  2. Take-back schemeCircular materials