What is Green Procurement?

What is Green Procurement? A Smarter Approach to Responsible Sourcing

Businesses today face increasing pressure to reduce environmental impact and operate responsibly. In response, many organizations have adopted green procurement, a sustainable approach to purchasing that considers the entire environmental footprint of products and services.

So, what is green procurement exactly? It involves purchasing products and services in ways that reduce environmental harm and support eco-conscious, long-term practices. This includes buying recycled materials, using low-energy equipment, and choosing suppliers with eco-friendly practices.

Why Green Procurement Matters Research shows that global demand for raw materials has surged significantly over the last five decades, placing increased pressure on ecosystems and natural resources. The result? Greater environmental degradation, pollution, and resource scarcity.

Implementing green procurement strategies helps to:

Reduce greenhouse gas emissions
Lower energy and water consumption
Minimize waste and landfill impact
Promote ethical sourcing and social responsibility

For example, switching to LED lighting reduces energy use by up to 80% compared to traditional bulbs, saving both money and carbon emissions.

Audit your last five major purchases—did you consider recyclability, energy efficiency, or supplier ethics?:

Key Principles of Green Procurement

Green procurement focuses on three core aspects:

Product Lifecycle

Supplier Responsibility

Regulatory Compliance

Create a checklist with sustainability criteria for all future vendor selections.

Examples of Green Procurement in Action

Businesses across sectors are adopting green procurement with measurable results:

Unilever sources 67% of its agricultural raw materials sustainably, cutting emissions and boosting supply chain transparency.
IKEA has pledged to use only renewable or recycled materials in its products by 2030.
The Indian Railways uses solar panels on trains and stations, saving millions in energy costs annually.

These organizations prove that eco-conscious sourcing isn't just good for the planet; it also makes economic sense.

How to Implement Green Procurement

Start with small, meaningful steps:

Replace single-use plastics with biodegradable alternatives

Use recycled paper or go paperless

Purchase energy-efficient appliances (look for Energy Star or BEE ratings)

Partner with eco-certified suppliers (e.g., ISO 14001, FSC, Cradle to Cradle)

Encourage digital invoicing and documentation

Identify three commonly used materials in your business and find greener alternatives this week.

Green Procurement vs. Sustainable Procurement

These two terms are commonly confused, but they carry distinct meanings:

Green procurement focuses mainly on environmental impact.
Sustainable procurement adds economic and social dimensions, such as fair trade and ethical labor.

Still, both approaches aim to build resilient, future-ready supply chains.

Final Thoughts

What is green procurement? It’s a powerful strategy that aligns business operations with environmental responsibility. By considering more than just cost, companies can make smarter purchasing decisions that protect the planet, improve brand value, and reduce long-term risks.

Whether you're a small business or a large enterprise, adopting green procurement practices can lead to real impact, both environmentally and financially.

Start a green procurement policy for your team. Begin with office supplies, energy usage, and vendor choices.

What is Green Procurement?