Kronos Group

What does sustainable procurement in construction and allied industries entail, and how does it influence your projects?


When exploring the reasons sustainable procurement is gaining prominence in construction, it is revealed that sustainable procurement in construction and allied industries is essential for promoting environmental sustainability, social responsibility, and economic growth. 

As such, sustainable procurement is a critical aspect of modern construction practices, and organisations should strive to follow the steps for implementation of sustainable procurement practices in construction to ensure that their projects are sustainable and socially responsible.

Finally, learn more about the effects of sustainable procurement on your construction projects, including the selection of sustainable materials and suppliers, effective waste management, and integration of sustainable procurement into contracting construction projects.

Sustainable procurement in construction can not only benefit the ethical and social responsibility aspects of your projects but can also have a significant positive impact on the environment, workers, and local communities.

Sustainability is a concept that has been encompassing all sectors and aspects of the business environment over the past decade, and procurement is no exception.

In a drive to reduce the global carbon footprint, reduce emissions, and cut back on pollution to combat climate change, much emphasis has been placed on construction and its allied industries such as cement production. 

The concept of sustainable procurement has emerged as a critical aspect of aligning the construction industry towards this effort. Sustainable procurement refers to the acquisition of goods and services in a manner that minimises environmental impact, promotes social responsibility, and supports economic growth.

Read on and explore more about sustainable procurement and how it is gaining prominence in construction and allied industries. Discover what it entails and how it can influence your construction projects.

Reasons why sustainable procurement is gaining prominence in construction

Sustainable procurement has become an essential aspect of modern construction projects due to several reasons. 

Primarily, the construction industry is one of the largest consumers of natural resources and energy in the world, and it generates a significant amount of waste and greenhouse gas emissions globally. As such, the procurement of construction materials and services can have a significant impact on the environment. 

Sustainable procurement can also promote social responsibility by ensuring that the rights and welfare of workers are protected and that they are not subjected to exploitation or discrimination, while also contributing to economic growth by supporting local businesses and communities.

Steps for implementation of sustainable procurement practices in construction

Several approaches can be followed in implementing sustainable procurement in construction and allied industries, but the main steps to be outlined are as follows:

Develop a sustainable procurement policy: This will act as a roadmap as well as a set of guidelines and can outline the company’s commitment to sustainable procurement. This policy can define the key principles and provide guidance on areas of focus in implementing sustainable procurement practices.

Conduct a sustainability assessment: Through this assessment, organisations can identify the environmental, social, and economic impacts of their construction projects. This can help them develop a sustainable procurement strategy to specifically and effectively address these impacts.

Identify sustainable suppliers: Aligning the supply chain for sustainable procurement involves identifying sustainable suppliers by conducting due diligence on potential suppliers to ensure that they demonstrate a commitment to environmental sustainability and social responsibility.

Integrate sustainable procurement into contracting: Sustainable procurement can be integrated into the contracting process by including sustainability criteria in the selection of suppliers and by requiring suppliers to adhere to sustainability standards.

Monitor and evaluate performance: Deciding on measures and gauging the performance of suppliers can help to ensure that they are meeting sustainability standards and can identify areas for improvement. Regular reporting on sustainable procurement practices can also help to demonstrate an organisation’s commitment to sustainability.

Effects of sustainable procurement on your construction projects

Sustainable procurement can have a significant influence on your construction projects. Key criteria that will have the most effect include:

Material selection: Sustainable procurement requires the selection of materials that are produced in an environmentally sustainable manner. This can include materials that are recycled, biodegradable, renewable, or produced with minimal environmental impact.

Supplier selection: The selection of suppliers that demonstrate a commitment to social responsibility and environmental sustainability is a critical requirement for sustainable procurement. This can involve working with suppliers that have established sustainability policies and are committed to fair labour practices and the protection of the rights of workers.

Waste management: Effective management of waste generated during construction projects is a much-needed element of establishing sustainable procurement practices. This can involve the recycling or reuse of materials, and the use of waste-to-energy technologies to minimise the amount of waste sent to landfills.

Work with a partner specialising in procurement to drive sustainable procurement in your construction organisation

Sustainable procurement is a significant undertaking for any organisation and requires careful planning and preparation. 
By partnering with a procurement consulting company with specialist knowledge and expertise in sustainable procurement in construction and many related industries, you can set the precursor for a successful procurement transformation of your construction business.

Julie Brand

A part of Kronos Group’s team since 2018, Julie is a leader who has honed her specialisation in business transformation and utilised her expansive financial expertise to power business strategy and add value to what we do. She has amassed experience (Pfizer, Sony, AXA, SMEC, Tradelink) all over the world in strategy, project management, analysis, and supply chain.