Unlocking the power of public procurement
Public procurement accounts for a staggering 14% of the EU’s GDP. With this immense purchasing power comes a unique opportunity to combat the exploitation of workers and the environment in global supply chains. As the EU revises its Public Procurement Directive, now is the time to embed stronger sustainability requirements. Swedwatch’s latest position paper outlines five key recommendations on how public procurement can drive positive change, and be integrated into the directive revision.
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.
A mandatory approach would also strengthen public procurement’s role in upholding human rights and protecting the environment, aligning with internationally recognised frameworks for responsible business conduct, such as the UN Guiding Principles on Business and Human Rights (UNGPs). From a business perspective, this would create a level playing field, preventing responsible bidders from being undercut by competitors who compromise on labor and environmental standards.
Along the same lines, and inspired by the Corporate Sustainability Due Diligence Directive (CSDDD), the revision of the Public Procurement Directive presents a unique opportunity to establish human rights and environmental due diligence as an award criterion for tenderers. It is however crucial that such due diligence processes prioritise meaningful stakeholder engagement—especially with affected workers and communities—rather than relying exclusively on social audits, which research has shown to be neither sustainable nor effective.
Additionally, Swedwatch calls for an obligation for contractors in the EU market to disclose data on their operations, subsidiaries, and business partners, as companies often withhold critical supply chain data, making it difficult for procurers to exclude non-compliant suppliers without concrete evidence of violations.
A final but equally crucial recommendation is to recognize public procurers as key agents of change for sustainability by facilitating capacity-building and providing additional resources for procurement officials across EU Member States.
“Efforts to raise awareness and build knowledge among contracting authorities — such as effective monitoring of supplier compliance and incorporating sustainability criteria — are just as essential as addressing legislative shortcomings,” says Sofia Käll.
Key recommendations for EU public procurement legislation
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.
A key recommendation is to clarify legal provisions and ensure the integration of mandatory sustainability requirements across all public procurement processes.
More on the subject
February 10 Swedwatch hosted a digital side-session at the 2025 OECD Forum on Due Diligence in the Garment and Footwear Sector, exploring the links between the Corporate Sustainability Due Diligence Directive (CSDDD) and public procurement. Recording 👇🏼.