The Procurement Glossary » Sustainable Procurement

Sustainable Procurement

Compliance & Risk

Also known as: Green Procurement

Definition

Buying in a way that minimises environmental harm and maximises social and economic benefit over the whole life cycle.

Explanation

Sustainable (or green) procurement weighs environmental and social factors alongside cost and quality — energy, emissions, recyclability, labour. It supports ESG goals and is increasingly driven by regulation, customers and investors.

Example

Sustainable procurement picks the recyclable, lower-carbon packaging even at a small premium.

Related terms

• Environmental, Social & Governance (ESG) — A framework for assessing an organisation's environmental, social and governance performance.
• Corporate Social Responsibility (CSR) — A company's commitment to operate ethically and contribute positively to society and the environment.
• Scope 3 Emissions — Indirect greenhouse-gas emissions across a company's value chain, including those from purchased goods and services.
• Life-Cycle Costing — A costing method that sums all costs of an asset across its whole life, from acquisition through operation to disposal.

Frequently Asked Questions

What is Sustainable Procurement?

Buying in a way that minimises environmental harm and maximises social and economic benefit over the whole life cycle. Sustainable (or green) procurement weighs environmental and social factors alongside cost and quality — energy, emissions, recyclability, labour. It supports ESG goals and is increasingly driven by regulation, customers and investors.

Can you give an example of Sustainable Procurement?

Sustainable procurement picks the recyclable, lower-carbon packaging even at a small premium.

Back to the procurement glossary | Procurement concepts | Contact us