GREEN

PROCUREMENT
Shubham Nevase
PG-20-083
 Procurement
• Procurements have significant effects on the other operating functions of an
enterprise’s logistics system
• Functions such as the production, processing, storage, transportation,
distribution and use of the products affect the environment, since they
consume energy and raw materials, and emit gases contributing to climate
change and/or other harmful pollutants
• Green procurements related to all these products and services – the
production, processing, storage, transportation, distribution and use thereof –
have less of an environmental impact compared to the corresponding
conventional products or services
 Green Procurement
• Green Procurement is the purchase/acquisition of environmentally friendly –
that is, green – products or services
• Green procurements seek green/environmentally friendly products such as raw
materials or semi-finished products with no environmental or social impact
• Focuses on the social and economic aspects of procurement, such as
sustainable development
• Objective also includes that executives, employees but also the business
partners of a business adopt a mentality with respect to procurements and
product purchases
 Factors that contribute to increasing interest

• Traditional procurement focuses on the “value for money” aspects of

in green procurement

procurement
• Aim of green procurement is to integrate environmental considerations into the
procurement procedure thus aiming to reduce its adverse impact on human
health, social conditions and the environment, thereby saving money for
organizations and the community at large
• Reducing harmful emissions, waste generation and the use of natural resources
• Improving air and water quality and preventing pollution by supplying/procuring
low carbon
• Energy/water-saving non-toxic products
• Products with recycled content
 Benefits from the implementation of Green
Practices

• Reduction of harmful emissions, waste generation and the use of natural

resource
• Incremental savings of cost, by rationalizing superfluous purchasing
• Improvement of work conditions
• Creation and offer of green products to the market
• Establishment of a framework of engagement, transparency and ethics between
the company and its suppliers
• Support of local producers (local industry) who apply green production
practices
Green procurement life cycle
 Barriers to broader adoption of green
procurement
Product and market
• Perception that environmentally friendlier products and services may be more
expensive than conventional ones
• Products and services are not as mature as conventional ones
• Lack of a range and variety of green products in the market
• Lack of common/broadly accepted assessment and implementation
environmental standards
 Barriers to broader adoption of green
procurement
Organizational and staff
• Lack of integrating green procurement programs
• Lack of top management support and commitment in green procurement
programs
• Lack of knowledge about the critical issues of the environment, the concepts
and terminology of green procurement and how to develop environmental
criteria
• Lack of training, culture and technical knowledge for procurement staff on
environmental management standards in the green procurement cycle and
specifically in the application of environmental criteria and techniques –
environmental specifications
 Barriers to broader adoption of green
procurement
Information and tools
• Lack of integrated information systems for managing the supply cycle
• Lack of information sharing among supply chain members
• Absence of monitoring mechanisms (methods and tools) to evaluate the
performance of green procurement programs and strategy
Thank you