A global research study identified eight best practices for sustainable purchasing in public procurement by local governments. These practices include building on complementary policies, using environmental product information, integrating e-purchasing systems, tracking sustainable spending, enhancing vendor relationships, assigning top-level management responsibility, fostering a culture of innovation, and participating in professional networks. Implementing these sustainable public procurement processes empowers organizations to leverage their purchasing power, promote sustainability, and achieve cost savings.

So what are the best practices associated with organizations’ sustainable purchasing? To find out, with our global research partners, we surveyed more than 4,000 directors of finance, public works, and environment across 6 different countries: Australia, Italy, Japan, Mexico, South Korea, and the U.S.

We identified eight practices used by local governments that lead to successful sustainable purchasing:

1. Build on complementary policies and practices.

Local governments that implement complementary policies and activities, such as recycling and water conservation policies, are in a strong position to adopt and successfully implement a sustainable purchasing policy.

This is because synergies are created within an organization for managing both types of policies and activities, which can create economies of scale and reduce operational costs, while enhancing management commitment and shared vision.

2. Use information about environmentally preferred products.

Individuals need information to make even simple decisions. That is why such environmental product information as ecolabels and certifications can help local governments create a successful sustainable purchasing program.

In the absence of this information, the impact of local governments' sustainable purchasing policies will be constrained.

For a list of preferred ecolabels, see the U.S. Environmental Protection Agency's report: Recommendations of Specifications, Standards, and Ecolabels. While designed to assist with federal purchasing, the guidelines apply to any organization.

3. Use e-purchasing systems that integrate environmental product information.

To be effective for sustainable purchasing, e-purchasing systems should integrate information on sustainable products and services. Doing so reduces purchasing officers' search costs for sustainable product options and incentivizes sustainable purchasing behavior. These systems can also create default requirements in favor of sustainable purchasing and ways for local governments to track their sustainable product spending and elevate the prominence of products that are more sustainable.

4. Track spending related to sustainable purchases.

Organizations manage what they measure. So, organizations that track their sustainable purchase spending therefore are more likely to elevate the importance of sustainable purchasing in their routines and practices. Tracking spending also facilitates the development of sustainable purchasing goals and targets. Ideally, tracking of sustainable purchases should be integrated into an e-purchasing system to assess sustainable product attributes throughout the purchasing process and as part of the contract management process. 

5. Enhance collaborative vendor relationships.

Sustainable purchasing can be complex. While the number of sustainable product options is often limited, organizations typically don't have a lot of information about them. This is why vendors can help facilitate sustainable purchasing success. How? They know a lot about sustainable products and services and can point out more sustainable purchasing choices.

6. Assign responsibility to top-level management.

When responsibility for sustainable purchasing is assigned to top managers, it creates a clear line of accountability. It also signals the importance of sustainable purchasing throughout the organization and helps build momentum and commitment. 

7. Foster a culture of innovation.

Sustainable purchasing programs are more successful with empowered employees who can take managed risks. Incentives help create this culture for innovation. Align internal recognitions and rewards. Consider developing creative competitions among (or across) departments or for specific purchasing categories to foster a culture of innovation and further embed sustainable purchasing in routines and practices.

8. Participate in professional networks to share best practices.

Learn from those who have done it! Networks can help you connect other organizations to share best practices. Networks also offer training webinars and conferences and have access to important information about external support as grants and awards and recognitions related to sustainable purchasing.

These eight practices can help local governments (and many other organizations!) leverage their purchasing power to promote a sustainable economy and save money along the way.