What we buy today can build or destroy tomorrow’s world. While unsustainable choices strengthen industries that have negative environmental and social impacts, sustainable sourcing strengthens industries that commit to better practices, fostering a healthier planet and more just communities. The global public procurement market is estimated to be worth $12-13 trillion in 2022. Now imagine a world where all spending is driven by climate and social considerations.
“A core principle of sustainable procurement is to harness the power of global public spending to encourage institutions and organizations to adopt and sustain environmentally and socially sustainable practices,” said Ed Mountfield, World Bank Vice President for Operations Policy and Country Services (OPCS). “The goal is to create a positive cumulative impact for both people and the planet.”
Success stories of bank loan projects
World Bank-supported projects using sustainable procurement approaches have delivered significant benefits, including supporting small and minority-owned businesses, reducing emissions through innovative technologies, and fostering green industries.
South African battery energy storage system. When funding a battery energy storage system to support South Africa’s renewable energy transition, it was essential to develop local capacity to operate and maintain the project over a 20-year period. The assessment criteria were developed for historically disadvantaged groups. As a result, approximately one-fifth ($47.4 million) of the $237 million contract value for the program’s first six sites was awarded to these groups of small and medium-sized businesses. This project is ongoing and we are monitoring skills development, the number of trainees, the types of skills acquired and the number of jobs created.
Dakar Bus Rapid Transit Project. The project required bidders to comply with strict international emissions standards, and many bidders proposed electric buses. This transition away from diesel buses is expected to prevent 1.2 million tons of GHG emissions over 30 years.
Sewage treatment facility in Vietnam. In Vietnam, the World Bank financed the construction of a wastewater treatment facility, and the government was responsible for financing its operation and maintenance. This arrangement has led the government to consider life cycle costs, quality and service life alongside initial construction costs during the bidding process. Bidders were encouraged to propose environmentally friendly and energy efficient technological solutions. It was also required that the design and construction of the treatment plant consider the effects of climate change and reduce carbon emissions.
Tools and resources for sustainable sourcing
“Countries around the world are increasingly recognizing the importance of sustainable public procurement,” said Hiba Taboob, World Bank Chief Procurement Officer. “To support this change, the World Bank has developed a range of resources to help countries strengthen their procurement skills and achieve their sustainability goals through effective practices.”
Our clients are keen to strengthen their sustainable sourcing practices and we have been proactive in responding to this demand. For example, a recent five-day training program in West Africa equipped participants with valuable knowledge and skills. These resources will help countries implement sustainable procurement in bank financing projects, thereby increasing their understanding and capacity.
The tools and resources we offer include:
Guidance documents: Four detailed guidance documents provide options for identifying and mitigating environmental and social risks through procurement. They provide practical advice on implementing sustainable procurement within development projects. This guidance will help countries achieve their economic goals, such as creating jobs and supporting minority- and women-owned businesses, while meeting high environmental and social standards.
Interactive e-learning modules: The first module provides a non-technical introduction to sustainable sourcing, while the second module provides more in-depth operationally focused content.
Risk mitigation tools: Provide step-by-step guidance on procurement activities to address five environmental and social risk areas: forced labor, child labor, sexual exploitation, occupational health, and environmental impact at each stage of the project cycle.
Optional contract clauses: Borrowers can incorporate these clauses into their national bid documents to reduce environmental and social risks where appropriate.
These resources demonstrate the Bank’s commitment to helping countries leverage investments to achieve sustainability goals, prevent social and environmental harm, and support broader development goals. The World Bank strives to foster lasting positive impact through sustainable procurement practices by providing practical guidance to countries.
