The impact of “procurement with impact”: measuring the short-term effects of sustainable public procurement policy on the environmental friendliness of tenders

Abstract

Purpose This paper aims to study the short-term effects of a new procurement policy document on the inclusion of environmental requirements and green award criteria in tenders. The policy document is named “Procurement with Impact” and was released by the Dutch central government to further stimulate Sustainable Public Procurement (SPP). Design/methodology/approach Central government tenders were quantitatively analyzed in the six months prior and after the release of the new policy on their inclusion of environmental concerns. This judgment was made based on the role of environmental concerns in the requirements and the award criteria. As a control group, the same was done on a municipal level, for which the new policy document does not apply. Each of the four samples contained 60 tenders. Data was acquired via the European public procurement database TED. In the analysis, a chi-square test was used to measure whether a significant difference exists between the two periods for each group. Findings Results show that central government has procured in a more environmentally concerned way after the release of “Procurement with Impact.” Within a year, the number of green tenders conducted by central government significantly increased from 30% to 55%. No significant difference was found on a municipal level. Social implications SPP has received increasing attention over the past few decades but has not led to implementation of its principles in most public tenders. As SPP can have a major impact on a more sustainable and social society, it is important to understand how policy can influence the sustainability of tenders. The findings of our study show that “Procurement with impact” had a significant positive short-term effect on the inclusion of green award criteria and requirements in public tenders. Implementing similar SPP policies in other government sectors and other countries could have a substantial effect on the worldwide uptake of SPP. Originality/value “Procurement with Impact” contains a clear sustainable vision embracing the principles of SPP. This government policy takes into account several SPP barriers and drivers and satisfies several policy theory conditions. The authors show in the paper that this policy is an effective instrument for increasing the inclusion of environmental concerns in tenders. As the difference is already significant within a year, this could also reflect the readiness of tenderers to turn to SPP once there is a clear organization wide policy.