Making Canada greener, one contract at a time

After a year of heatwaves, catastrophic wildfires, and historic flooding, it is impossible to ignore the urgency of addressing the climate crisis. The Canadian federal government has set a goal of a 40-45 per cent reduction in greenhouse gas (GHG) emissions by 2030 and net-zero emissions by 2050, but there is a big difference between setting ambitious targets and making them a reality. While legislation is important, governments have a unique opportunity to lead by example by developing and modelling sustainable procurement practices. Government agencies can accelerate Canada’s transition to a vibrant, low-carbon, circular economy with experts championing circular public procurement as a crucial step. A recent pilot project run by Green Economy Canada, supported by HP Canada, showed it is possible to increase sustainable procurement in Canada’s broader public sector. Given the risks of failing to meet sustainability goals and the breadth of work required to get there, we must use all the tools in our collective toolboxes. Public-sector spending plays a major role in Canada’s economy, with government procurement accounting for an estimated 13.3 per cent of the nation’s gross domestic product. This scale of economic activity presents an opening to drive sustainability action throughout Canada’s economy. Historically, the procurement process focused on balancing price and functionality, epitomized by a short-sighted focus that often overlooked long-term costs. The total value and cost of a good or service should consider factors like ongoing maintenance and disposal, but those are typically left out of the equation. Author Mary Ann Yule is president and CEO of HP Canada. Photograph courtesy of HP Canada A recent analysis found that only 12 per cent of bids evaluated integrated sustainability as an independent category within the evaluation section in bids over $1-million—and Requests for Proposals that included sustainability criteria typically gave little indication of how considerations would be measured or validated. Embracing sustainability requires a change in mindset and culture, key performance metrics, along with accountability and strong leadership. Every team member should be empowered to look for opportunities to reduce the organization’s carbon footprint, whether large or small. In a recent report, the World Economic Forum states that almost all companies can realize at least one-third of emissions reductions at net-zero costs to their business, with some managing to fully decarbonize at no additional cost. There is ample opportunity for suppliers to contribute more to reaching Canada’s GHG reduction plans. Look no further than the U.K.’s approach, where all government suppliers for deals over five million pounds must disclose their carbon footprint and set a reduction goal in line with the Paris Agreement. Or a simple requirement for all goods that contain plastics to first disclose the percentage of post-consumer recycled content in the product as well as the supplier’s goals and transparency. At the level of Canada’s federal government, sustainable procurement practices are widely encouraged by central agency policies and directives. We are not, however, seeing robust sustainable procurement requirements within bids and their evaluations. Given the urgency of the climate crisis, consideration must be given to moving from encouraging these practices to requiring them. We need an all-hands-on-deck approach, starting with a commitment to leverage government buying power to purchase the future we want. Some organizations resist adding sustainability criteria to their procurement contracts because they are uncertain of what the market can supply and are wary of potentially limiting themselves to a small number of suppliers. Demand plays a role in this dynamic, but in the current linear economy, where buyers prioritize the lowest price on goods and services, vendors have few incentives to incorporate sustainability criteria into their bids. Competing on price alone encourages suppliers to offer products that are less repairable or recyclable, made with less sustainable materials, and have shorter lifespans. Requiring that sustainability criteria be included in the procurement process will help create the incentive suppliers need to strengthen the marketplace. Vendor engagement is also important to get everyone on the same page for standards and criteria. Third-party sustainability certifications, or eco labels such as EPEAT, provide a good starting place. By incorporating these standards into sustainability criteria as minimums, agencies give vendors the necessary framework to establish a common baseline. They can also award points for exceeding these baselines to drive continuous improvement. These proposed changes to government procurement practices do more than simply encourage government agencies to be more sustainable. By helping develop a larger network of more sustainable vendors, these efforts will create opportunities for organizations in other industries to improve their own sustainability, amplifying the results outward. Leading by example in the procurement space gives government agencies the chance to accelerate Canada’s transition to a more sustainable economy and meet our sustainability targets. Mary Ann Yule is president and CEO of HP Canada. The Hill Times

Making Canada greener, one contract at a time

Requiring that sustainability criteria be included in the federal procurement process will help create the incentive suppliers need to strengthen the marketplace.

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Making Canada greener, one contract at a time

Requiring that sustainability criteria be included in the federal procurement process will help create the incentive suppliers need to strengthen the marketplace.

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