Do you know how the printer in your office was purchased or the materials used to build the road you take home?
For 2022-23, the combined spending of Canadian federal, provincial, territorial and local governments was $24,225 per capita, according to Statistics Canada. Do average citizens know how much of that $950 billion was spent in line with their values, whether it was on children’s education, health care, roadwork or something else?
Our modern industrial economy has traditionally focused procurement practices on the “tyranny of the lowest price” and, in Canada, these practices rarely include sustainability criteria. In cases where they are considered, these criteria are generally weak and do not enter into the evaluation of the offer, or are much less important than other considerations.
This sends a clear signal to suppliers that the sustainability performance of the supplier and the services or goods provided is not important. It is time to prioritize responsible sourcing, and quickly.
Canada is falling far behind its international commitment to meet its 2030 emissions reduction targets1. Large multinational organizations have also failed to respond to the urgent need to integrate sustainability mandates into their day-to-day procurement activities.
Responsible sourcing could have a major impact on climate change mitigation and adaptation, and remains the most straightforward lever for all levels of government and leading companies to implement.
Here’s how we can achieve this:
Prioritizing local communities
The focus on low prices has led to the outsourcing of supplies, even for basic goods. Energy, cement, steel, plastics and chemicals can often be produced cheaply overseas, but producing them locally can help revitalise communities and build national expertise and pride.
Small steps are as important as big ones
Starting smart, by formulating clear, specific and comprehensive procurement mandates that progressively increase sustainable consumption, starting today and ending in 2030, creates essential market signals to stimulate mobilisation towards a circular economy, just as has been the case for renewable energy and biofuels.
Finding sustainable technologies
Flexible sourcing standards that enable adoption at small volumes can help young companies build sustainable business cases for large-scale adoption.
Sourcing can be innovative
World-changing technological solutions can be found anywhere, from a garage to a remote research lab, and the people who innovate are rightly celebrated for their ingenuity. We need to have a similar perspective on creative and innovative sourcing, and champion it as a vital step towards sustainability.
Going beyond price
Require procurement departments to consider many important factors, such as sustainable infrastructure, innovation and long-term consequences, including best value for money, before considering the initial price.
Procurement has too often been a race to the bottom. Price is certainly important, but it should not be the first (and only) thing that matters.
A mandate to adopt new technologies in low-risk areas to accelerate the energy transition with 5% of the budget would be both financially and practically feasible.
Our values shape who we are. If we want to achieve carbon neutrality in the future, we need to think about what is important to us and how we value it.
1. Read “Climate change: Ottawa still on track to miss its target”