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The recession has encouraged many business owners to review their procurement policy in a bid to identify cost savings. Green procurement – which essentially means buying products and services based on specific sustainability criteria – not only helps to significantly lower operational costs but also enables companies to reduce their impact on the environment. With suppliers, clients and consumers all becoming more environmentally conscious, green procurement could help provide a significant commercial advantage, not to mention help future-proof operations.
So where should a business start?
So where should a business start? Well firstly, look at your supply chain. When renegotiating contracts ask your suppliers to adhere to certain environmental criteria before a new contract is signed or before a new purchase is made. This promotes closer working relationships within the supply chain, improves green credentials for all parties - plus helps to mitigate risks associated with compliance for example.
Closer to home, businesses should also make sure their own house is in order. So if you manufacture products, then review your packaging policy. If packaging can be redesigned in a way that uses fewer raw materials, or enables more items to be transported at any one time, then this will save you money as well as lower your environmental impact. End-users of the product – the householder for instance - can also reap cost and environmental benefits as a result of this activity.
Ecolabels
You may find that some suppliers offer the presence of an ‘ecolabel’ on a product or service to demonstrate that it has been produced in a sustainable way. In most cases, certification to a labelling scheme is undertaken by an independent third-party organisation. It involves adherence to a strict set of criteria which are reviewed regularly by a board or working group. However, be aware that the presence of a label does not always guarantee legitimate green claims. So before deciding to buy or to engage with a company providing a service or product with a ‘green’ label, always investigate exactly what the symbol means and how it is verified.
More free, practical advice on green procurement criteria is available from sustainability experts Envirowise. Their Green Procurement Guide (GG921) includes a simple step-by-step approach to help companies realise the benefits of green procurement, together with examples of good practice and a ‘traffic-light’ style toolkit to help businesses identify areas that need to be addressed more thoroughly.
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