The choices made in procurement today can significantly influence the world of tomorrow. Unsustainable decisions support industries detrimental to the environment and society, while sustainable procurement promotes practices that benefit both the planet and communities. In 2022, the global public procurement market was estimated at $12-13 trillion. The potential impact if this spending were guided by climate and social considerations is substantial.
“The core principle of sustainable procurement is to use global public spending power to encourage institutions and organizations to adopt and maintain environmentally and socially sustainable practices,” said Ed Mountfield, Vice President for Operations Policy and Country Services (OPCS) at the World Bank. “The goal is to create a positive cumulative impact for both people and the planet.”
Governments worldwide are increasingly focusing on green or sustainable public procurement. While policy objectives may vary, sustainable procurement aids countries in developing greener transport systems, housing developments, and climate-resilient infrastructure with minimal environmental harm.
World Bank-supported projects using sustainable procurement approaches have shown significant benefits, including support for small and minority-owned businesses, emission reductions through innovative technology, and fostering green industries.
In South Africa, Battery Energy Storage Systems were financed to aid the country's transition to renewable energy. Evaluation criteria targeted historically disadvantaged groups resulting in about one-fifth ($47.4 million) of a $237 million contract value awarded to small and medium businesses from these groups.
The Dakar Bus Rapid Transit Project required bidders to meet strict international emissions standards, leading many to propose e-buses. This shift from diesel buses is expected to prevent 1.2 million tons of GHG emissions over 30 years.
In Viet Nam, the construction of a wastewater treatment plant financed by the Bank incentivized consideration of life-cycle costs during bidding processes. Bidders proposed environmentally friendly solutions accounting for climate change impacts while reducing carbon footprints in design and construction.
“Countries around the world are increasingly recognizing the importance of sustainable public procurement,” noted Hiba Tahboub, Chief Procurement Officer at the World Bank. To support this shift, resources developed by the World Bank aim to enhance countries' procurement skills for sustainability goals.
A recent five-day training program in West Africa provided participants with knowledge crucial for implementing sustainable procurement in Bank-financed projects.
Tools provided by the World Bank include guidance documents offering options for identifying environmental and social risks through procurement; interactive eLearning modules; a risk mitigation tool addressing forced labor, child labor, sexual exploitation, occupational health, and environmental impacts; and optional contract clauses for national bidding documents.
These resources highlight the World Bank’s commitment to helping countries achieve sustainability goals while preventing social and environmental harm through effective investment strategies.