Applying the Policy on Green procurement
With over $29 billion in annual purchasing, the Government of Canada plays an important role in influencing the demand for environmentally preferable goods, services and technologies. Explore tips, tools and recommendations to assist contracting authorities, client departments and suppliers to follow the Policy on Green Procurement.
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About green procurement
Green procurement means purchasing environmentally preferable goods or services which have a lesser or reduced impact on the environment over the life-cycle when compared with competing goods or services serving the same purpose.
In April 2006, the Government of Canada introduced the Policy on Green Procurement (updated in 2018). The policy requires that procurement of goods and services actively promote environmental stewardship. It impacts everyone involved in the procurement process including:
- contracting authorities (responsible for managing a procurement contract)
- client departments (Government of Canada departments and agencies)
- suppliers (businesses interested in selling goods or services to the federal government)
Contracting authorities
All contracting authorities must:
- ensure the specific standards issued under the Policy on Green Procurement are followed
- include general environmental considerations across:
- procurement planning, identification and definition of requirements
- acquisition, operation and maintenance of assets
- disposal of goods or closure activities of services
Public Services and Procurement Canada (PSPC)’s contracting authorities have the additional responsibility of providing client departments with environmentally preferable options in the procurement services offered.
Tips and tools for buyers
Buyers or contracting authorities are encouraged to:
- research what environmental elements were included in previous procurements, if any
- consult with the client department to define the requirement including updated green criteria
- collaborate with PSPC’s green and clean technology procurement team
Research what environmental elements were included in previous procurements as a starting point
Before developing new environmental considerations:
- identify any existing procurement instruments for the category that include environmentally preferable considerations
- take note of any green requirements or criteria during your review of:
- previous procurement instruments
- solicitation documents
- processes for the given procurement category
Keep in mind that these criteria may be out of date.
Consult with representatives from the client department to update environmental elements
In addition to the buyers’ responsibilities (as in the Policy on Green Procurement and section 2.20 of the Supply Manual), there are additional responsibilities:
Section 2.20 of the Supply Manual: Green procurement and defining the requirement
It explains how contracting officers should assist the client in defining the procurement requirement and identifying potential opportunities that support obligations and departmental targets related to green procurement.
This means that contracting authorities should present environmentally preferable options to clients. To identify potential options, contracting authorities should:
- identify any new requirements under the Policy on Green Procurement, example: mandatory standards and apply them
- apply relevant Policy Notifications related to green procurement, example: environmentally preferable packaging for goods
- consider the biggest environmental impacts from the procurement according to the life-cycle and include criteria, technical standards or requirements that address the impacts
- consult the green and clean technology procurement team if further guidance is required
Collaborate with Public Services and Procurement Canada’s green and clean technology procurement team
The green and clean technology procurement team supports the development of environmental considerations, criteria, and/or requirements for the good/service category. Our team supports the application of mandatory requirements PSPC-wide, and researches and examines:
- environmental impact “hotspots” according to the life-cycle of a good, service or technology
- global and regional best practices
- market readiness
Consult our team for specific content related to your procurement.
Client departments
Client departments play a key role in advancing the government's environmental agenda by:
- implementing and reporting on the standards under the policy
- requesting and buying environmentally preferable goods and services in the context of best value
The policy requires client departments (federal departments and agencies) to:
- comply with specific standards issued under the policy and report on compliance annually
- buy environmentally preferable goods and services where value for money or best value, is demonstrated
Tips and tools for federal departments and agencies
We encourage federal departments and agencies to:
- determine if there is a real need to buy a new good or service
- understand key environmental issues associated with the good or service being procured
- request an environmentally preferable good or service
Determine if there is a real need to buy a new good or service
The greenest option is often to not procure anything new at all. With the help of the contracting authority and PSPC’s green and clean technology procurement team, identify if there are opportunities to fill the department’s needs with existing materials. This may include goods or services available:
- within the department or government
- through programs like GCSurplus and GCTransfer that include recycled content
Look into whether you can repair/repurpose existing goods or share/borrow from colleagues in similar programs. Before you buy, it is important to consider what will happen to the goods once they are no longer needed and identify a plan for their disposal.
Understand key environmental issues associated with the good or service being procured
The main environmental impacts associated with products or services may differ across commodity categories such as: greenhouse gas emissions, plastic waste and others. It is good practice to understand the key environmental issue(s) associated with the good or service. This will help you determine the environmental considerations and criteria the contracting authority can include in the procurement.
Request an environmentally preferable good or service
Excluding the application of mandatory standards, the decision whether or not to buy an environmentally preferable good or service ultimately resides with the client department. Departments and agencies are responsible for selecting the environmentally preferable option provided by the contracting authority or request that the contracting authority do so. This ensures that green procurement is achieved and implemented.
Suppliers
Suppliers play a key role in providing environmentally preferable goods and services to federal departments and agencies. As outlined in the Code of Conduct for Procurement, vendors and their sub-contractors are expected to familiarize themselves with the Policy on Green Procurement. This policy uses a holistic, life-cycle based approach that considers multiple environmental impacts. Suppliers are encouraged to use third-party certifications to highlight (in their bids) mitigation actions that address the:
- life-cycle impacts of their goods and/or services
- environmental footprints of their organizations
- relative environmental benefits associated with their offerings such as clean technologies
Tips and tools for suppliers doing business with the Government of Canada
To meet the expectations of the Policy on Green Procurement and to promote environmental stewardship, suppliers are expected to:
- understand key environmental issues associated with goods and services from a life-cycle perspective
- demonstrate key environmental features of goods and services and include relevant third party certifications
- share information on corporate environmental policies and practices
- ensure that environmental specifications and evaluation criteria that are in the solicitation documents are included in bid submissions
Understand key environmental issues associated with your goods and services
Assess all aspects of the product’s lifecycle.
Demonstrate the environmental features of your goods and services
All goods and services involve environmental impacts. If your goods and services are environmentally preferable compared to others on the market, highlight:
- that you understand the life-cycle impacts of your goods and services
- the features of your goods and services that address the most relevant environmental impacts from a life-cycle perspective
- applicable third-party certifications or environmental product declarations based on a life-cycle assessment that correspond to a product category rule
Share information on your corporate environmental policies and practices
When preparing to bid, be ready to provide information on any of your corporate-level environmental programs, even if it’s not mandatory. Environmental practices within your daily operations may centre on:
- efficient manufacturing processes
- material substitution
- waste programs
- carbon-neutral programs
Ongoing analysis of supplier submissions may influence future environmental evaluation criteria or specifications.
Include environmental specifications and evaluation criteria from the solicitation documents in your bid submission
Government of Canada bid solicitations are increasingly more inclusive of environmental considerations such as:
- evaluation criteria (either mandatory or point-rated)
- contractual requirements related to the environment
Successful bids should demonstrate compliance with all environmental criteria and specifications.
Related links
- Contacts for suppliers (on buy and sell)
- Policy on Green Procurement
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