What is Sustainable Procurement?
Sustainable procurement (nachhaltige Beschaffung) refers to the integration of environmental, social, and economic sustainability criteria into public procurement processes. In the German and EU context, sustainable procurement has evolved from a voluntary best practice to an increasingly mandatory element of public purchasing. The 2014 EU Procurement Directives and their German implementation significantly expanded the scope for including sustainability considerations at every stage of the procurement cycle.
Sustainability criteria can be incorporated at multiple points in the procurement process. In the specification phase, contracting authorities can require environmental labels, set minimum energy efficiency standards, or specify the use of recycled materials. In the suitability assessment, they can require environmental management system certifications or evidence of compliance with social standards in the supply chain. In the award evaluation, sustainability-related criteria can be included as award criteria alongside price and quality, such as lifecycle costs, CO2 emissions during production and use, or social value creation.
Germany's federal government has committed to making its procurement more sustainable through the Programme for Sustainability (Massnahmenprogramm Nachhaltigkeit) and the establishment of the Competence Centre for Sustainable Procurement (Kompetenzstelle fuer nachhaltige Beschaffung, KNB). Many German states and municipalities have adopted their own sustainable procurement guidelines, creating a growing but still fragmented landscape of sustainability requirements across different levels of government.
Why It Matters for Bidders
Sustainable procurement creates both opportunities and challenges for bidders. Companies that have invested in sustainable practices, certifications, and green products are increasingly well-positioned to win public contracts where sustainability is valued as an award criterion. Conversely, companies that have not addressed sustainability may find themselves at a competitive disadvantage or even excluded from tenders that set minimum environmental or social standards.
Bidders should proactively develop their sustainability credentials, including obtaining relevant environmental certifications (such as ISO 14001 or EMAS), documenting the sustainability characteristics of their products and services, and preparing for lifecycle cost calculations that demonstrate long-term value beyond the initial purchase price.
Legal Framework
The legal basis for sustainable procurement in Germany is found in Section 97 (3) GWB, which recognizes sustainability aspects in procurement. Section 31 (3) VgV allows environmental labels as a means of proof. Sections 58 and 59 VgV address award criteria including lifecycle costs. EU Directive 2014/24/EU Articles 42, 62, 67, and 68 provide the European framework for incorporating environmental and social considerations. The German Circular Economy Act (Kreislaufwirtschaftsgesetz) further mandates consideration of environmental criteria in public procurement of certain product categories.