Easy Steps of Green Procurement for Enhancing Your ESG Performance

In a world where sustainability is at the forefront of public consciousness and policymaking for governments worldwide, it is crucial for businesses to adopt green procurement practices to not only protect the environment but also enhance corporate image, lower costs and ensure compliance with existing and future regulations.

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What is green procurement?

Green procurement means purchasing products and services that cause minimal adverse environmental and human health impacts. It encourages buyers to go for items that:

 

• are more recyclable, more durable and with less packing;

• come with higher energy and water efficiency;

• use clean technology or clean fuels; and 

• emit fewer irritating or toxic substances.

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Why green procurement?

Regions across the world, including Hong Kong, are aspiring to move towards a circular economy, which aims at reducing waste by using resources continually through reuse and recycling. That is a departure from the traditional linear economy in which people buy a product, use it and throw it away.

Green procurement plays a big part in such transformation, which will help to curb climate change and reduce reliance on raw materials which are scarce in supply. It also benefits businesses by lowering production costs, encouraging innovation, protecting staff health, and improving their Environmental, Social and Corporate Governance (ESG) performance – which both enhances their branding and helps attract investors.

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How to practise green procurement?

The Hong Kong government has been taking the lead in adopting green procurement. It has compiled a green procurement list with specifications for 183 common products and service items in 24 categories, which is adopted by bureaux and departments but also serves as an example for the private sector to follow. Among the specifications, procurers are encouraged to buy printing paper which contains recycled fibre and to consider electric or hybrid cars instead of traditional options. 

 

Easy tips for making small amount purchases (HK$50,000 or lower) are also available for 109 items. For example, when purchasing LED lamps, one can look for those with a Grade 1 Energy Label under the Energy Efficiency Labelling Scheme of the Electrical and Mechanical Services Department or an Energy Star Label. 

The above information can be found in an online portal set up by the Environment and Ecology Bureau for promoting green procurement, called “Step-by-step Tips for Business and Public”. A user-friendly search engine is provided to assist users in identifying appropriate green specifications.