Responsible Procurement: A Tool for Everyone!
By Claude Belley, Strategic advisor in Sustainable Development
Purchasing is an important responsibility today for companies of all sizes. Managers have come to realize the essential nature of the function as it affects quality, costs, and the environment.
Responsible procurement is a process that considers the impact of purchasing decisions on the organization and its environment. The process is part of a larger corporate social responsibility (sustainable development applied to businesses), which seeks to reduce the negative impacts of organizations on society and the environment.
Responsible procurement is a supply method that integrates social and environmental criteria in the purchasing process for goods and services. The goal is to reduce the impact on the environment, increase social benefits, and strengthen the economic sustainability of organizations throughout the life cycle of the products and services involved.
The latest practices in responsible procurement are:
- Specification sheets that include social and environmental criteria (certifications, etc.)Â in calls for tender;
- Guidance and training for buyers and people submitting orders on the issues involved in responsible procurement;
- Responsible procurement policies;
- Procurement analyses to determine priorities;
- Tools to calculate the total cost of ownership.
Most of these practices enable cost reductions and can be implemented within a reasonable timeframe. The total cost of ownership provides important information to the buyer; it is a financial estimate of the direct and indirect costs of a product or system. For example, the main costs in the purchase of a photocopier are not in its price tag but rather in the materials required to supply it, such as ink and paper. By considering the purchase price as well as the costs of operation, maintenance, and disposal at the end of its useful life, a buyer will have a more complete picture in terms of the product’s quality-price ratio.
Responsible procurement is a widespread practice in Quebec. The Baromètre québécois des achats durables réalisé en 2012[1] examined responsible procurement in Quebec and found the following trends:
- 82% of organizations consider responsible procurement as a major or critical issue;
- The organization’s moral values, regulatory compliance, and brand image are the main factors leading to action;
- Responsible procurement is practised by 66% ofQuebecorganizations.
Ultimately, responsible purchases are also those that are not made at all. Careful needs analyses that consider sustainable development may lead to the elimination of some of your purchases.
[1] Carried out in cooperation with the Espace québécois de concertation sur les pratiques d’approvisionnement responsable (ECPAR), the UQAM’s École des Sciences de la gestion, and the Baromètre de la consommation responsable du Québec.