Green Procurement
Expert-defined terms from the Professional Certificate in Procurement Sustainability Practices course at London School of Business and Administration. Free to read, free to share, paired with a globally recognised certification pathway.
Green Procurement #
Green procurement, also known as sustainable procurement, is the process of purc… #
This concept involves considering environmental factors such as energy efficiency, waste reduction, and recyclability when making purchasing decisions. Green procurement aims to minimize negative environmental impacts while still meeting the organization's needs and objectives.
- Sustainable Procurement #
- Sustainable Procurement
- Environmental Procurement #
- Environmental Procurement
- Eco-Friendly Purchasing #
- Eco-Friendly Purchasing
Example: #
Example:
An organization implementing green procurement practices may choose to purchase… #
An organization implementing green procurement practices may choose to purchase office supplies made from recycled materials, select energy-efficient appliances for their facilities, and partner with suppliers who have strong environmental policies in place.
Challenges: #
Challenges:
One of the main challenges of green procurement is balancing environmental consi… #
Sometimes, environmentally friendly products may come at a higher price or have lower performance levels compared to traditional products. It can also be challenging to find suppliers who meet the organization's sustainability criteria while still offering competitive pricing and quality.
Life Cycle Assessment (LCA) #
Life Cycle Assessment (LCA) is a methodology used to evaluate the environmental… #
LCA considers factors such as energy consumption, greenhouse gas emissions, water usage, and waste generation to provide a comprehensive understanding of the product's environmental footprint.
- Environmental Impact Assessment #
- Environmental Impact Assessment
- Carbon Footprint Analysis #
- Carbon Footprint Analysis
- Sustainability Assessment #
- Sustainability Assessment
Example: #
Example:
A company conducting a life cycle assessment on a new product may analyze the en… #
This information can help identify areas for improvement and guide decision-making towards more sustainable practices.
Challenges: #
Challenges:
Life cycle assessments can be complex and time #
consuming to conduct, requiring detailed data collection and analysis. The availability and reliability of data from suppliers and partners can also pose challenges, making it difficult to obtain a complete picture of the product's life cycle impacts.
ISO 14001 #
ISO 14001 is an international standard for environmental management systems that… #
Compliance with ISO 14001 demonstrates a commitment to environmental sustainability and can help organizations reduce their environmental impact through systematic management practices.
- Environmental Management System #
- Environmental Management System
- ISO Certification #
- ISO Certification
- Environmental Compliance #
- Environmental Compliance
Example: #
Example:
An organization seeking ISO 14001 certification may develop environmental polici… #
An organization seeking ISO 14001 certification may develop environmental policies, set objectives and targets for improving environmental performance, implement procedures to monitor and measure environmental impacts, and conduct regular audits to ensure compliance with the standard.
Challenges: #
Challenges:
Implementing an ISO 14001 environmental management system requires significant t… #
Organizations may face challenges in integrating environmental considerations into existing business processes, engaging employees at all levels, and demonstrating continuous improvement in environmental performance.
Carbon Neutral #
Carbon neutral, also known as carbon neutrality, refers to achieving a balance b… #
Organizations can become carbon neutral by reducing their emissions through energy efficiency measures and renewable energy sources and offsetting any remaining emissions through carbon offset projects.
- Net Zero Emissions #
- Net Zero Emissions
- Carbon Offsetting #
- Carbon Offsetting
- Climate Neutrality #
- Climate Neutrality
Example: #
Example:
A company that aims to become carbon neutral may invest in energy #
efficient technologies, switch to renewable energy sources like solar or wind power, and purchase carbon offsets from projects that reduce or capture greenhouse gas emissions, such as reforestation or renewable energy projects.
Challenges: #
Challenges:
Becoming carbon neutral can be challenging for organizations, especially those w… #
Identifying and measuring emissions sources, implementing emission reduction strategies, and verifying the effectiveness of carbon offset projects are complex tasks that require expertise and resources.
Renewable Energy #
Renewable energy refers to energy derived from natural resources that are replen… #
Unlike fossil fuels, renewable energy sources are sustainable, nondepletable, and have lower environmental impacts, making them a key component of green procurement and sustainability efforts.
- Solar Energy #
- Solar Energy
- Wind Power #
- Wind Power
- Hydropower #
- Hydropower
Example: #
Example:
An organization committed to using renewable energy may install solar panels on… #
An organization committed to using renewable energy may install solar panels on their buildings, purchase wind energy from a utility provider, or invest in renewable energy certificates to offset their electricity consumption from fossil fuels.
Challenges: #
Challenges:
Transitioning to renewable energy sources can be challenging for organizations d… #
Transitioning to renewable energy sources can be challenging for organizations due to high initial costs, limited availability of renewable energy options in certain regions, and regulatory barriers that may hinder investment in renewable energy infrastructure.
Resource Efficiency #
Resource efficiency refers to using resources in a sustainable and efficient man… #
This concept involves maximizing the value derived from resources while minimizing inputs, emissions, and waste generation.
- Circular Economy #
- Circular Economy
- Waste Reduction #
- Waste Reduction
- Lean Manufacturing #
- Lean Manufacturing
Example: #
Example:
A company implementing resource efficiency practices may redesign products to us… #
A company implementing resource efficiency practices may redesign products to use fewer materials, optimize production processes to reduce energy consumption, and implement recycling programs to reuse materials and reduce waste sent to landfills.
Challenges: #
Challenges:
Achieving resource efficiency requires a shift in mindset and organizational pra… #
Companies may face challenges in identifying opportunities for resource efficiency improvements, measuring resource use and waste generation, and overcoming resistance to change within the organization.
Environmental Certification #
Environmental certification, also known as eco #
labeling, is a voluntary process through which products and services are assessed against specific environmental criteria and awarded a certification or label to indicate their environmental performance. Environmental certifications help consumers and organizations make informed purchasing decisions and support sustainable production practices.
- Eco-Certification #
- Eco-Certification
- Green Labeling #
- Green Labeling
- Sustainability Certification #
- Sustainability Certification
Example: #
Example:
Products bearing environmental certifications such as ENERGY STAR, Forest Stewar… #
Products bearing environmental certifications such as ENERGY STAR, Forest Stewardship Council (FSC), or Organic Certification have been independently verified to meet certain environmental standards, such as energy efficiency, sustainable forestry practices, or organic farming methods.
Challenges: #
Challenges:
The proliferation of environmental certifications and labels can lead to confusi… #
It can be challenging for companies to navigate the landscape of environmental certifications, select the most relevant ones for their products, and communicate the value of certification to customers.
Waste Management #
Waste management encompasses the collection, transportation, disposal, recycling… #
Effective waste management strategies help reduce waste generation, increase recycling rates, and divert waste from landfills.
- Recycling #
- Recycling
- Composting #
- Composting
- Waste-to-Energy #
- Waste-to-Energy
Example: #
Example:
A company implementing waste management practices may establish waste reduction… #
A company implementing waste management practices may establish waste reduction targets, segregate waste streams for recycling and composting, implement a waste audit program to track waste generation and diversion rates, and collaborate with waste management partners to ensure proper disposal and treatment of waste materials.
Challenges: #
Challenges:
Waste management poses challenges for organizations due to increasing waste gene… #
Companies may encounter difficulties in implementing waste reduction strategies, engaging employees in waste management initiatives, and complying with waste regulations.
Supplier Diversity #
Supplier diversity refers to the intentional inclusion of businesses owned by un… #
Supplier diversity programs aim to promote economic equity, foster innovation, and create opportunities for diverse suppliers to compete for contracts and contribute to the organization's success.
- Diversity and Inclusion #
- Diversity and Inclusion
- Minority-Owned Business #
- Minority-Owned Business
- Small Business Enterprise #
- Small Business Enterprise
Example: #
Example:
An organization with a supplier diversity program may establish goals for sourci… #
An organization with a supplier diversity program may establish goals for sourcing goods and services from diverse suppliers, provide training and resources to support the growth of diverse businesses, and track supplier diversity metrics to measure progress and impact.
Challenges: #
Challenges:
Implementing a supplier diversity program requires commitment from top managemen… #
Organizations may face challenges in identifying diverse suppliers, ensuring equal opportunities for all suppliers, and overcoming biases or barriers that hinder supplier diversity efforts.
Carbon Footprint #
A carbon footprint is the total amount of greenhouse gas emissions, typically me… #
Calculating carbon footprints helps quantify environmental impacts, identify emission sources, and set targets for emission reduction and offsetting.
- Greenhouse Gas Emissions #
- Greenhouse Gas Emissions
- Carbon Accounting #
- Carbon Accounting
- Emission Reduction #
- Emission Reduction
Example: #
Example:
An organization calculating its carbon footprint may assess emissions from sourc… #
This information can help prioritize emission reduction strategies and investments in carbon offset projects.
Challenges: #
Challenges:
Measuring and managing carbon footprints can be complex and resource #
intensive, requiring accurate data collection, emission factors, and calculation methodologies. Organizations may face challenges in accounting for indirect emissions, setting science-based emission reduction targets, and integrating carbon footprinting into sustainability reporting and decision-making processes.
Energy Efficiency #
Energy efficiency refers to using less energy to perform the same tasks or achie… #
Energy-efficient technologies, practices, and behaviors help conserve resources, improve operational efficiency, and mitigate climate change.
- Energy Conservation #
- Energy Conservation
- Energy Management #
- Energy Management
- Energy Star #
- Energy Star
Example: #
Example:
An organization implementing energy efficiency measures may upgrade lighting sys… #
An organization implementing energy efficiency measures may upgrade lighting systems to LED bulbs, install programmable thermostats for heating and cooling, optimize equipment operation schedules, and conduct energy audits to identify opportunities for energy savings.
Challenges: #
Challenges:
Achieving energy efficiency requires investment in energy #
efficient technologies, employee engagement in energy-saving behaviors, and ongoing monitoring and maintenance of energy systems. Organizations may face challenges in overcoming upfront costs, changing entrenched energy consumption patterns, and measuring and verifying energy savings.
Sustainability Reporting #
Sustainability reporting is the process of communicating an organization's envir… #
Sustainability reports provide transparency, accountability, and insight into the organization's sustainability practices, impacts, and progress towards sustainability goals.
- Corporate Social Responsibility (CSR) #
- Corporate Social Responsibility (CSR)
- ESG Reporting #
- ESG Reporting
- Triple Bottom Line Reporting #
- Triple Bottom Line Reporting
Example: #
Example:
An organization preparing a sustainability report may disclose information on en… #
Sustainability reports often include key performance indicators (KPIs), targets, and narratives to communicate the organization's sustainability story effectively.
Challenges: #
Challenges:
Sustainability reporting can be challenging for organizations due to the complex… #
Companies may face challenges in aligning sustainability reporting with business strategy, meeting reporting standards and guidelines, and engaging stakeholders in the reporting process.
Circular Economy #
The circular economy is an economic model that aims to maximize resource efficie… #
In a circular economy, products, materials, and resources are kept in use for as long as possible through recycling, reuse, remanufacturing, and repair.
- Cradle-to-Cradle #
- Cradle-to-Cradle
- Waste-to-Value #
- Waste-to-Value
- Closed-Loop System #
- Closed-Loop System
Example: #
Example:
An organization transitioning to a circular economy model may design products fo… #
An organization transitioning to a circular economy model may design products for durability, reuse materials in production processes, offer take-back programs for end-of-life products, and collaborate with suppliers to close the loop on material flows and minimize waste generation.
Challenges: #
Challenges:
Adopting a circular economy approach requires redesigning products, processes, a… #
Companies may face challenges in rethinking linear production systems, collaborating with stakeholders across the value chain, and scaling circular economy practices to achieve systemic change.
Carbon Offset #
A carbon offset is a unit of measure that represents the reduction, removal, or… #
Carbon offsets can be purchased by individuals or organizations to compensate for their own emissions and support projects that reduce emissions elsewhere.
- Emission Reduction Credits #
- Emission Reduction Credits
- Carbon Trading #
- Carbon Trading
- Offset Projects #
- Offset Projects
Example: #
Example:
An organization purchasing carbon offsets may invest in projects such as refores… #
By purchasing carbon offsets, organizations can neutralize their carbon footprint and support sustainable development projects.
Challenges: #
Challenges:
Evaluating the quality and credibility of carbon offset projects, ensuring addit… #
e., that emissions reductions would not have occurred without the offset funding), and addressing concerns about double counting and leakage are key challenges in the carbon offset market. Organizations may face challenges in selecting reputable offset providers, verifying the environmental benefits of offset projects, and communicating offsetting efforts transparently.
Environmental Management System (EMS) #
An environmental management system (EMS) is a structured framework that helps or… #
EMSs provide a systematic approach to identifying environmental aspects, setting objectives and targets, implementing procedures, and monitoring performance to achieve environmental goals.
- ISO 14001 #
- ISO 14001
- Environmental Policy #
- Environmental Policy
- Compliance Management #
- Compliance Management
Example: #
Example:
An organization implementing an environmental management system may establish an… #
EMSs help organizations demonstrate commitment to environmental sustainability and regulatory compliance.
Challenges: #
Challenges:
Implementing an environmental management system requires leadership support, emp… #
Organizations may face challenges in integrating EMS into existing management systems, ensuring cross-functional collaboration, and maintaining compliance with environmental regulations and standards.
Sustainable Supply Chain #
A sustainable supply chain integrates environmental, social, and economic consid… #
Sustainable supply chains aim to minimize environmental impacts, enhance social conditions, and create economic value for all stakeholders along the supply chain.
- Responsible Sourcing #
- Responsible Sourcing
- Ethical Procurement #
- Ethical Procurement
- Supply Chain Sustainability #
- Supply Chain Sustainability
Example: #
Example:
An organization with a sustainable supply chain may work with suppliers who adhe… #
An organization with a sustainable supply chain may work with suppliers who adhere to ethical labor practices, reduce greenhouse gas emissions in transportation and logistics, source materials from sustainable sources, and engage in community development initiatives in supply chain regions.
Challenges: #
Challenges:
Building a sustainable supply chain requires collaboration with suppliers, trans… #
Companies may face challenges in identifying sustainable suppliers, assessing supplier performance, and addressing sustainability risks in the supply chain.
Green Building #
Green building, also known as sustainable building, refers to the design, constr… #
Green buildings incorporate energy-efficient technologies, sustainable materials, and environmentally friendly practices to achieve high performance and sustainability.
- LEED Certification #
- LEED Certification
- Energy Star Building #
- Energy Star Building
- Passive Design #
- Passive Design
Example: #
Example:
A green building project may incorporate features such as solar panels, green ro… #
Green buildings can provide cost savings, environmental benefits, and improved indoor comfort and air quality.
Challenges: #
Challenges:
Designing and constructing green buildings require expertise in sustainable desi… #
Organizations may face challenges in balancing upfront costs with long-term benefits, navigating complex green building certification processes, and educating stakeholders on the value of green building practices.
Social Responsibility #
Social responsibility refers to an organization's commitment to acting ethically… #
Socially responsible organizations prioritize social and environmental considerations in decision-making, operations, and interactions to create positive impacts and contribute to sustainable development.
- Corporate Citizenship #
- Corporate Citizenship
- Stakeholder Engagement #
- Stakeholder Engagement
- Community Investment #
- Community Investment
Example: #
Example:
A socially responsible organization may implement programs to promote diversity… #
A socially responsible organization may implement programs to promote diversity and inclusion in the workplace, support community initiatives through volunteerism and philanthropy, reduce environmental impacts through sustainable practices, and uphold ethical business conduct throughout its operations.
Challenges: #
Challenges:
Practicing social responsibility requires alignment with stakeholder expectation… #
Organizations may face challenges in balancing social and economic objectives, addressing social issues within the supply chain, and measuring and reporting social performance.
Zero Waste #
Zero waste is a philosophy and goal that aims to eliminate waste generation, max… #
Zero waste initiatives focus on reducing waste at the source, redesigning products and processes, and diverting waste from landfills through recycling and composting.
- Waste Reduction #
- Waste Reduction
- Recycling #
- Recycling
- Composting #
- Composting
Example: #
Example:
An organization pursuing zero waste may implement waste reduction strategies, co… #
An organization pursuing zero waste may implement waste reduction strategies, conduct waste audits to identify opportunities for improvement, educate employees on waste separation and recycling practices, and partner with waste management providers to optimize waste diversion and recovery.
Challenges: #
Challenges:
Achieving zero waste requires a cultural shift, organizational commitment, and c… #
Organizations may face challenges in overcoming barriers to waste reduction, engaging employees in waste management initiatives, and investing in waste infrastructure and technologies to support zero waste goals.
Environmental Impact Assessment (EIA) #
An environmental impact assessment (EIA) is a process that evaluates the potenti… #
EIAs help identify environmental risks, assess impacts on ecosystems and communities, and inform decision-makers on mitigation measures to minimize adverse effects.
- Environmental Risk Assessment #
- Environmental Risk Assessment
- Impact Mitigation #
- Impact Mitigation
- Stakeholder Consultation #
- Stakeholder Consultation
Example: #
Example:
A company planning to build a new manufacturing facility may conduct an environm… #
The EIA process helps identify risks, engage stakeholders, and develop strategies to minimize and mitigate environmental impacts.
Challenges: #
Challenges:
Conducting environmental impact assessments requires expertise in environmental… #
Organizations may face challenges in predicting complex environmental impacts, addressing uncertainties and limitations in the assessment process, and incorporating feedback from stakeholders into decision-making.
Greenwashing #
Greenwashing is a deceptive marketing practice in which a company misleads consu… #
Greenwashing tactics can include using vague or misleading language, making false or irrelevant claims, and creating the illusion of environmental responsibility without meaningful action.
- Environmental Marketing #
- Environmental Marketing
- Sustainability Spin #
- Sustainability Spin
- Eco-Baiting #
- Eco-Baiting
Example: #
Example:
A company claiming its products are "eco #
friendly" without providing evidence of environmentally friendly practices, certifications, or verifiable data may be engaging in greenwashing. Greenwashing can erode consumer trust, damage brand reputation, and undermine genuine efforts to promote sustainability.
Challenges: #
Challenges:
Detecting and preventing greenwashing requires critical thinking, transparency,… #
Consumers and organizations may face challenges in distinguishing between genuine sustainability efforts and greenwashing practices, verifying environmental claims, and holding companies accountable for misleading marketing tactics.
Climate Change #
Climate change refers to long #
term changes in global or regional climate patterns, including rising temperatures, shifting weather patterns, melting ice caps, and rising sea levels