A2X Consulting

Definition of Green Procurement

Green procurement is also known as environmentally responsible procurement. It involves the selection of products and services that minimize the negative impact on the environment as well as human health. Focus of green procurement is on the impact of sourcing of the raw materials, manufacturing, transporting, storing, handling and disposal of the product.

Purchasing in green procurement is based on various criteria including the need to purchase in the first place and the alternatives for disposal.

Green Procurement Methods

Green procurement involves integrating environmental and human health factors into its policies typically in the following way:

• While considering environmental impact, other factors such as product safety, performance and availability should be a part of the process
• Reducing toxic air and water pollution from the start of the process based on the item purchased
• Looks at the purchase in terms of the overall cost of product ownership, spread over the lifecycle of the product. This would account for cost of disposal for example.
• Emphasizes materials that are sustainable and recyclable and that minimize water and energy use. These benefits should be made clear in the lifecycle pricing model that drives the purchase decision.