Sustainable and circular procurement are responsible consumption and supply practices that differ in their approach and specific objectives. Sustainable procurement focuses on the overall impact of a product throughout its life cycle, while circular procurement focuses on extending the life of the product and reducing waste through reuse and recycling.
Procurement is an essential lever for organisations wishing to adopt responsible practices, playing an active part in sustainable development and achieving the United Nations' Sustainable Development Goals.
Sustainable procurement is based on the three pillars of sustainability: environmental, social and economic.
Its aim is to minimise environmental impact, promote social responsibility and support a sustainable economy by choosing products and services that respect the environment and ethical standards.
Circular procurement is part of the circular economy and aims to optimise the use of resources and keep their value through re-use, repair, reconditioning and recycling for as long as possible.
The aim is to extend the lifespan of products, components and materials by establishing closed loops where resources are continuously recovered and reused, thus eliminating the notion of waste.
What are the benefits of sustainable and circular procurement for the company?
- Reduced long-term procurement costs: opting for sustainable and circular products and services can help to reduce long-term operational costs, including expenditure on maintenance, energy and repairs, and waste management.
- Improved corporate image and reputation: adopting sustainable and circular procurement practices enhances a company's image as a responsible and environmentally conscious organisation, which can improve its reputation with customers, partners and investors, and offer a competitive advantage in the marketplace, especially by obtaining recognised certifications (e.g. ISO 14001, ISO9001, B Corp, Cradle to Cradle).
- Reduced environmental impact: reducing the carbon footprint (e.g. energy efficiency of products, choice of low-impact materials, optimisation of logistics, preservation of natural resources (e.g. selection of renewable and recycled materials) and reduction of waste (e.g. possibility of reuse, repair and recycling).
- Contributing to ethical practices: choosing suppliers who contribute to improving working conditions in the supply chain.
- Improving the resilience of the supply chain to international shortages and fluctuations: encouraging supplier diversification, including small local businesses as well as companies that meet sustainability standards themselves.
These benefits show that sustainable and circular procurement is not only good for the environment and society, but can also boost the economic performance and competitiveness of small businesses.