With climate change and environmental sustainability dominating the current public debate, integrating environmental principles into public procurement is becoming a priority. ESG criteria are rapidly becoming an integral part of public procurement – ​​and can provide you, as a contracting authority, with a basis for environmentally responsible decision-making and support for sustainable development.

Public procurement is an important tool for promoting sustainability, allowing contracting authorities to exert direct influence on the market and stimulate demand for environmentally friendly products and services. According to Section 6(4) of the Public Procurement Act, contracting authorities may emphasise the principles of socially and environmentally responsible procurement, which opens the door to integrating environmental aspects into all stages of the procurement process.

Sustainability in public procurement

Environmentally responsible decision-making at all levels of the procurement process includes reducing greenhouse gas emissions, supporting renewable energy sources, protecting biodiversity, effectively managing natural resources, etc. These activities include, for example, circular procurement, which takes into account the entire life cycle of products and services in order to minimize impact and maximize material recycling.

A real-world example of the use of circular procurement is offered by a project where a public contracting authority purchases furniture from recycled or renewable materials and at the same time obliges suppliers to take back products at the end of their life.

Another key aspect is energy efficiency, i.e. reducing energy consumption and carbon footprint. As a public contracting authority, you can, for example, invest in energy-efficient buildings or switch to electric company vehicles.

An expanding idea for supporting sustainable mobility in cities can be provided by the purchase of electric buses, the operation of which can be considered a significant step towards decarbonizing urban transport and reducing dependence on fossil fuels.

Another example is provided by a city project that, as part of its sustainable development strategy, replaced old lighting with energy-saving LED lamps. Green roof projects not only improve building insulation and reduce energy consumption, but also promote biodiversity and rainwater retention, which points to the multifunctional benefits of sustainable design. Equally important is the emphasis on the environmental friendliness of products that are created with minimal environmental impact.

A practical example is the procurement of cleaning services, where the contracting authority requires the use of biodegradable, environmentally friendly cleaning agents and materials that do not have a negative impact on aquatic ecosystems. By requiring the use of compostable packaging in public catering services, the contracting authority can then take a step towards reducing plastic waste.

When formulating tender specifications and selecting suppliers, it is essential to prioritise criteria that are directly linked to sustainability, while being measurable and enforceable. By including environmental criteria in evaluation processes and using tools for life cycle assessment of products and services, you can concretely promote environmental responsibility.

What complications are possible?

The management of public funds is under the scrutiny of journalists and the public. Transparent and proactive communication about the meaning, objectives, benefits and results of sustainable procurement is a key tool for preventing misunderstandings and criticism, while strengthening public support for sustainable initiatives.

Finding the balance between sustainability and legislative requirements is a key challenge . As a contracting authority, you may face challenges in defining specific environmental criteria that are compliant with legislation while effectively supporting environmental objectives. Stringent regulation and the need for transparency can make it difficult for you to incorporate innovative and sustainable solutions into public procurement.

Potential objections from suppliers to sustainable criteria in the tendering process pose another challenge: They may argue, for example, that sustainability requirements are too costly or technically unfeasible for them, or that they give an advantage to other suppliers. This requires careful preparation by contracting authorities to ensure that all requirements are clear, objectively measurable and fair to all participants. Decisions by the Office for the Protection of Competition also play an important role. As contracting authorities, you must carefully consider potential objections and prepare for the possibility that your selection decision may be subject to scrutiny.

Practical examples show that the Office places emphasis on adhering to transparent and fair procedures, while at the same time recognising the need to integrate sustainable principles into public procurement. In this context, focus on careful preparation of tender documents, clear formulation of criteria and open communication with all parties involved – for example, in the form of preliminary market consultations or hiring independent experts.

Actively addressing potential conflicts and challenges through timely dialogue can lead to successful dispute resolution and strengthen trust in public procurement. You can find support in decisions S0176/2022/VZ and R0101/ /2022/VZ**, where the Office emphasized that contracting authorities have an obligation to take into account not only immediate costs, but also life cycle costs when evaluating bids – which supports sustainable purchasing and takes into account long-term impacts on society and the environment.

Last but not least, it is essential to create strong internal policies and processes that support sustainable procurement and ensure that these principles are deeply embedded at all levels of your organization. Special attention should be paid to training employees to understand the meaning and methods of sustainable procurement. This will increase internal awareness and the ability to respond effectively to the challenges associated with implementing sustainable practices.

Examples from foreign practice show that international cooperation can play a crucial role in supporting sustainable public procurement. The exchange of experience, best practices and the joint development of standards and methodologies can help overcome barriers and accelerate the transition to more sustainable practices. Key initiatives and programmes include the European Green Deal, the Sustainable Public Procurement Partnership, the International Sustainable Public Procurement Alliance, the World Bank's Green Procurement and others.

What do the legislation and directives say?

The Public Procurement Act serves as a legislative framework supporting sustainable procurement. In addition, European directives and national methodological guidelines provide further guidance on how contracting authorities can effectively integrate sustainability into public procurement. While the importance of legislative support is undisputed, legal frameworks need to be further developed and updated to reflect the latest trends and challenges in the area of ​​sustainability.

This includes, for example, revising existing laws and directives to increase flexibility, enable innovative approaches, while ensuring a high level of environmental protection. The National Public Procurement Strategy in the Czech Republic for the period 2024–2028, approved by the government in February this year, places emphasis on environmentally and socially responsible public procurement. It points out that, despite current legislative and educational support, responsible procurement is not yet a generally accepted standard and price and technical criteria prevail in practice. This highlights the need for full implementation of the principles of socially and environmentally responsible procurement.

In line with the National Strategy, the Sustainable Procurement Action Plan contains specific steps and measures to achieve the given objectives, including setting minimum standards for OVZ in various categories, such as cleaning, security, office paper, food, food services and catering.

The next phase will include the extension of the aforementioned standards to other selected performance items. Monitoring and evaluating the use of OER according to the described standards in eForms and assessing contributions to environmentally and socially responsible procurement are other key aspects of the Action Plan.

Section 6 of the Public Procurement Act allows for emphasising compliance with the principles of socially and environmentally responsible procurement when preparing tender specifications and selecting suppliers. Justification of the contracting authority's procedure is essential for transparency and accountability in public procurement, which requires that you, as contracting authorities, are prepared to communicate and justify your decision-making processes and selection criteria at the outset of the tender procedure.

A model for the private sector: Integrating sustainability criteria into public administration brings not only a wide range of opportunities but also challenges that require careful balance and strategic management. Key opportunities include the ability of public administration to act as a model for the private sector, stimulating positive social and environmental change. While integrating sustainability into public procurement offers enormous potential for the green transformation of the market, overcoming the challenges requires a coordinated approach, education and the involvement of all stakeholders.

Incorporate digital tools and new technologies

Progress in sustainable public procurement necessarily requires the integration of innovations and technologies that promote eco-efficiency.

Examples include intelligent buildings with minimal energy requirements or applications of artificial intelligence to optimize energy and resource consumption in public administration buildings. At the administrative level, this involves the use of digital tools that enable contracting authorities and suppliers to communicate more effectively, reduce the administrative burden, and allow for more precise monitoring and evaluation of the environmental impacts of contracts.

The use of digital tools to monitor project performance in real time supports adherence to sustainable standards throughout the project lifecycle. For example, remote monitoring systems can monitor the energy consumption and performance of photovoltaic panels installed on the roofs of public buildings, helping to identify areas for further efficiency improvements.

Advanced data analytics and supply chain management tools using AI and machine learning will then allow you to more easily track the environmental impacts of your suppliers, their products, and services.

Thanks to the technologies described, you can perform a comprehensive evaluation of bids in terms of carbon footprint, material recycling and energy efficiency. The integration of digital tools and innovative technologies into public procurement is therefore key to achieving greater efficiency, transparency and sustainability. In this way, public procurers can respond more flexibly to the environmental challenges of today and contribute to protecting the environment for future generations.

SUMMARY

• In an era where environmental sustainability is gaining importance, it is crucial that public procurement plays a central role in supporting sustainable development.
• The integration of ESG criteria – especially environmental aspects – into the Corporate Governance Code represents an effective mechanism for supporting eco-innovations, reducing the carbon footprint and promoting the circular economy.
• The challenges associated with implementing sustainable principles in practice require strategic management, legislative support, and active cooperation between the public and private sectors.
• By joining forces, we can effectively address the environmental challenges of today and contribute to sustainability for future generations.

** taken from the Digital Custom Team course presentation