The Procurement Shift: Why Sustainability is the New Standard
Green Public Procurement (GPP) is a powerful tool that public authorities use to align their purchasing decisions with environmental and sustainability goals. At its core, GPP means choosing goods, services, and works that have a reduced environmental impact throughout their life cycle—compared to alternatives serving the same purpose. From office supplies and construction projects to energy systems and transport services, GPP is about embedding environmental responsibility into every stage of the procurement process.
But GPP is more than just buying "green" products. It’s a strategic approach to reduce greenhouse gas emissions, promote resource efficiency, support circular economy principles, and influence markets toward more sustainable production and consumption patterns. By leveraging the enormous purchasing power of the public sector, GPP has the potential to drive widespread change—supporting innovation, setting higher industry standards, and encouraging suppliers to improve their sustainability performance.
As governments around the world commit to climate targets and sustainable development, GPP stands out as a practical, results-driven way to integrate those commitments into everyday operations. For businesses, it presents both a challenge and an opportunity: aligning with green procurement expectations isn’t just about compliance—it’s a chance to lead, innovate, and grow.
Green Public Procurement in Ireland
In early 2024, the Irish Government unveiled its updated Green Public Procurement (GPP) Strategy and Action Plan for 2024–2027, marking a significant step in embedding sustainability across public sector purchasing. With public procurement accounting for up to 12% of Ireland’s GDP—roughly €18.5 billion annually—the plan recognizes the public sector’s unique potential to lead the transition toward a low-carbon, circular economy.
The strategy sets out clear objectives:
Accelerate GPP adoption across public bodies
Provide consistent national criteria and guidance
Support implementation through training, monitoring, and reporting
Align procurement practices with ISO 20400 (Sustainable Procurement) standards
Expand the use of GPP across key sectors like energy, construction, ICT, food, transport, and textiles
By the end of 2025, all public bodies with procurement spends over €200 million will be required to align with ISO 20400. Crucially, at least 5–10% of scoring in public tenders will now reflect environmental criteria—creating new expectations and opportunities for businesses engaging with the public sector.
How This Impacts the Private Sector
While GPP is led by government bodies, its ripple effects extend into the private sector. As public contracts increasingly include environmental criteria, private companies—especially those in the supply chain—must adapt to meet these expectations.
For businesses, this shift means more than just adjusting to new paperwork. It’s about demonstrating that your products, services, and operations meet sustainability standards. Whether you're a manufacturer, service provider, or consultant, your ability to show energy efficiency, waste reduction, low emissions, or ethical sourcing could make or break a deal—even in sectors that traditionally didn’t emphasize sustainability.
Larger companies are also taking cues from public procurement rules, applying similar criteria to their own supplier relationships. This means that even if you’re not bidding on public tenders, your clients might be—and they’ll need your environmental data to complete their submissions. Some examples of how businesses are including green procurement into their strategies include:
Accenture: Accenture employs a Sustainable Procurement Hub to evaluate and monitor suppliers on environmental sustainability, human rights, and ethical compliance. This hub is integrated into their procurement processes, ensuring that sustainability considerations are a core part of supplier engagement.
Covestro: Covestro integrates sustainability into procurement by adhering to environmental, social, and ethical standards outlined in their Supplier Code of Conduct. They participate in the "Together for Sustainability" initiative to collaborate with other companies on sustainable supply chain practices.
Pepsi: PepsiCo integrates sustainability into its procurement by embedding its Supplier Code of Conduct (SCoC) into supply contracts and utilizing supplier scorecards to assess performance in areas like environmental management and labor practices. This approach is part of their broader sustainable sourcing efforts, which include programs like the Sustainable Farming Program to promote regenerative agricultural practices.
Ultimately, GPP signals a broader market shift: sustainability is becoming a basic requirement, not a bonus. Businesses that prepare early—by setting environmental targets, tracking impact, and gathering proof points—will not only stay in the game but stand out from the competition.
How SMEs Can Be Ready
Whether private companies are working to win public contracts, achieve their own sustainability goals, or comply with customer expectations, the result for SME suppliers is the same. It will be necessary to have sustainability information ready to respond to information requests and win private contracts.
So, how can SMEs get ready?
Know Your Environmental Impact
Start by identifying and tracking key areas such as:
Energy use and efficiency
Greenhouse gas emissions
Waste and recycling
Water consumption
Sustainable materials or packaging
Even simple baseline data is valuable. Tools like carbon calculators or the VSME framework can help small businesses get started.
Document your Practices
Have clear records of:
Environmental policies
Certifications (e.g. ISO 14001, FSC, Fairtrade)
Past projects with sustainable outcomes
Any sustainability actions you’ve already taken (e.g. switching to LED lighting, reducing packaging)
Be Ready to Share
Your partners might ask you to complete sustainability questionnaires, provide documentation, or contribute to their emissions reporting. Keep your information organised so you can respond quickly and confidently.
Tell Your Story
Don’t underestimate the power of clear communication. Be ready to explain how your business is taking sustainability seriously—even if you’re still early in the journey. A short statement or case study can go a long way in building trust.
Bottom Line for SMEs
If you want to supply to companies using GPP principles—or stay competitive as procurement continues to evolve—having structured, verifiable sustainability information is a must. The VSME framework is your starting point. The VSME (Voluntary SME Sustainability Reporting Framework) is a practical tool designed specifically for small and medium-sized enterprises. It helps you understand, document, and communicate your environmental, social, and governance (ESG) performance in a way that aligns with what larger partners and buyers are asking for. It simplifies the process, helps you communicate your impact clearly, and ensures you’re opportunity-ready when the next contract comes your way.
Being ready with this information doesn’t just help your partners—it can help you stand out as a reliable, forward-thinking supplier. It opens doors to new contracts, long-term partnerships, and a stronger position in an increasingly sustainability-driven market.
If you would like more information on the VSME or preparing for supply chain data requests, reach out to our team and we will be happy to assist. (action@ensoimpact.com)
