PUBLIC PROCUREMENT – AN AGENT FOR CHANGE
Given their substantial buying power, contracting authorities can have significant leverage over global supply chains. This makes public procurement an important tool for promoting environmental standards and respect for human rights.
High-risk goods
The value of goods and services procured by public authorities in the EU – ranging from computers to food items to construction materials – exceeds EUR 2 trillion annually. A large portion of the goods are produced in countries with a high risk of adverse human rights and environmental impacts including forced labour, excessive overtime and pollution.
Procurement as a lever to mitigate impacts
By strategically include and monitor sustainability criteria that aim to safeguard human rights and the environment in the production of procured goods, contracting authorities have the possibility to mitigate salient risks and impacts in global supply chains. This is in line with internationally endorsed guidelines such as the UN Guiding Principles on Business and Human Rights and the Agenda 2030, target 12.7 which promotes sustainable public procurement.
Opportunity to strengthen EU legislation
The EU Public Procurement Directive, reformed in 2014, encourages greater consideration of environmental, social, and innovative aspects. However, the approach remains voluntary, and the share of procedures using award criteria beyond price is still limited. According to Swedwatch, this is one of the key issues that must be addressed in the revised directive.
“A key recommendation, as outlined in our position paper, is to clarify legal provisions and ensure the integration of mandatory sustainability requirements across all public procurement processes,” says Sofia Käll, Program Officer at Swedwatch, and the organisation´s representative in the European Commission’s Stakeholder Expert Group on Public Procurement (SEGPP) where Swedwatch recently secured a place.
1️⃣Align legislation with internationally recognised frameworks for responsible business conduct.
2️⃣Make sustainability requirements legally sound and mandatory.
3️⃣Require human rights and environmental due diligence as a minimum.
4️⃣Increase transparency around contractors’ supply chain and sustainability performance.
5️⃣Recognise public procurers as change agents for sustainability.
Reports: Uncovering appalling conditions in procurement supply chains
