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Green Procurement

Name: Rabia Siddique


Class: MBA 1.5 B
Course: Purchasing
Submitted to: Sir Bilawal
Green Procurement

Definition:
Green Procurement means purchasing products and services that cause minimal adverse
environmental impacts. It incorporates human health and environmental concerns into the
search for high quality products and services at competitive

Green procurement is the purchase of environmentally friendly products and services, the
selection of contractors and the setting of environmental requirements in a contract.

Sustainable procurement

Sustainable procurement is a spending and investment process typically associated


with public policy, although it is equally applicable to the private sector. Organizations practicing
sustainable procurement meet their needs for goods, services, utilities and works not on a
private costbenefit analysis, but with a view to maximizing net benefits for themselves and the
wider world. In doing so they must incorporate extrinsic cost considerations into decisions
alongside the conventional procurement criteria of price and quality, although in practice the
sustainable impacts of a potential supplier's approach are often assessed as a form of quality
consideration. These considerations are typically divided thus: environmental, economic and
social.

Sustainable procurement involves a higher degree of collaboration and engagement between all
parties in a supply chain. Many businesses have adopted a broad interpretation of sustainable
procurement and have developed tools and techniques to support this engagement and
collaboration.

Green procurement steams from pollution prevention principles and activities. Also known as
green or environmental purchasing, green procurement compares price, technology, quality and
the environmental impact of the product, service or contract. Green procurement policies are
applicable to all organizations, regardless of size. Green procurement programs may be as
simple as purchasing renewable energy or recycled office paper or more involved such as
setting environmental requirements for suppliers and contractors.
"Green" products or services utilize fewer resources, are designed to last longer and minimize
their impact on the environment from cradle to grave. In addition, "green" products and services
have less of an impact on human health and may have higher safety standards. Whilst some
"green" products or services may have a greater upfront expense, they save money over the life
of the product or service.

Before a green procurement program can be implemented, current purchasing practices and
policies must be reviewed and assessed. A life cycle assessment of the environmental impacts
of products or services is required and a set of environmental criteria against which purchase
and contract decisions are made has to be developed. The outcome is a regularly reviewed
green purchasing policy that is integrated into other organizational plans, programs, policies. A
green purchasing policy includes date-stamped priorities and targets, the assignment of
responsibilities and accountability and a communication and promotion plan.

Green procurement policies and programs can reduce expenditure and waste; increase
resource efficiency; and influence production, markets, prices, available services and
organizational behavior. They can also assist countries in meeting multi-lateral requirements
such as the Kyoto Protocol and Rotterdam Convention. International Standards Organization
and other bodies have established guidelines for green procurement programs.
Obstacles
Obstacles to implementing a green procurement program include: lack of readily available
environmental friendly products; expensive or zero environmental alternatives; inaccurate
studies; lack of organizational support; and inaccurate or unsupported environmental claims by
manufacturers and suppliers.

Legislation, organizational policies, directives, environmental management systems or multi-


lateral agreements often require organizations to implement a green procurement program

Examples
1. Fujitsu

Fujitsu Japan has a green procurement policy that selects materials; parts;
products; and production equipment based on price; environmental impact;
quality; and delivery. Environmental considerations include: avoidance of toxic
substance during production and disposal; resource and energy conservation;

recyclability; and ease of disassembly for processing and disposal.

Target Sectors / Stakeholders


Governments, decision makers, suppliers, purchasers and industry are the main
stakeholders of a green procurement program. Senior management and purchasing
staff support is essential to implement and ensure the on-going success of a green
procurement program. Suppliers need to be advised of and included in the
establishment of a green procurement program. This will help maintain healthy working
relationships and avoid legal implications. Further, suppliers may be able to provide
additional product information.
Other stakeholders include all organizational employees since they often request
products or services, the community, standard organization and organizational