Detailed description
Distinction between sustainable and circular procurement
Sustainable procurement is a broader concept that is based on the three pillars of sustainability and focuses on the environmental, social, and economic impact throughout the life cycle of purchased products and services. It aims to minimise environmental impact, promote social responsibility and foster a sustainable economy by choosing environmentally friendly and ethically sourced products and services.
Circular procurement, which applies the principles of circular economy, aims to use resources or raw materials optimally and maintain their value in order to maximise their use while preserving their initial properties and qualities for as long as possible.
Through reuse, repair, reconditioning and recycling, this model extends the lifespan of products and materials, creating closed-loop cycles in which resources are continually recovered, thus eliminating the notion of waste.
This model encourages upstream thinking, for example by designing products that are easily disassembled to facilitate the recovery and reuse of components and therefore helps reduce dependence on the extraction of new raw materials and minimise environmental impact.
Further information: For more details on the features and benefits, please read the article Sustainable and circular procurement in businesses
Definition of requirements
1. Engaging internal participants within the company and gaining their support
Engage key internal participants, including company employees, to ensure support for sustainable procurement initiatives. Obtaining this internal support is crucial for the successful implementation of the policy. Ensure you have the commitment and support of management and leaders to drive sustainable procurement initiatives.
2. Analysis of the current situation
This first step consists in drawing up a detailed inventory of the requirements and purchases made by your company as well as examining your potential procurement procedures, your code of conduct for suppliers or your current general purchasing terms and conditions. To do this, group goods and services into purchasing families and identify strategic suppliers. This inventory makes it possible to assess the environmental impacts associated with each purchasing family and to measure the environmental performance of your suppliers. Typical questions to consider when assessing products and suppliers are provided in the section below.
Implementation of specific measures
1. Development and deployment of a sustainable and circular procurement strategy
Based on this inventory, you can identify areas for improvement and define your objectives, aligned with the values and sustainability goals of your company. To do this, consider the following guiding questions:
- Necessity: Is this purchase essential? Are the estimated quantities appropriate?
- Need: Is the product or service needed in this specific form? Could it be replaced with a lower-impact alternative?
- Sustainability: Which materials make up the product? What is the carbon footprint of the product? Can it be reused, repaired, or recycled? Is it certified?
- Suppliers: Do suppliers have corporate social responsibility (CSR) or circular economy policies? Do they operate in regions with questionable environmental or social practices? What are the social and environmental conditions of their production? Do they have a corporate carbon footprint? Do they provide a life cycle analysis and/or carbon footprint for their product?
Define clear selection criteria for products and suppliers, as well as what is expected of them. Involve internal parties (management, purchasing department, sustainability) in developing this strategy and clearly communicate the objectives and expectations to all participants.
When evaluating purchases, consider not only the upfront cost, but also indirect expenses such as maintenance, operational costs, and end-of-life management.
2. Training and awareness
Raise awareness and train purchasing teams and other in-house participants on the principles of sustainable and circular procurement and their benefits.
Free training is available through:
- Chambre des Métiers (Chamber of Trade): a new catalogue of further education courses focused on the different pillars of sustainable development, combined with a “Climate Competence” bonus, three of which are totally focused on responsible purchasing: Sustainable and responsible procurement, Supply Chain and Human Rights, Supply Chain and decarbonisation
- House of Sustainability: numerous events and a workshop on the same topics are also available
In addition, the National Institute for Sustainable Development and Corporate Responsibility (INDR) can support companies in their sustainable procurement approach as part of CSR certification
For further information: Cluster Initiatives have been set up to develop solutions/products in cooperation with other companies, research centres, etc. On topics such as materials and manufacturing processes, or wood.
Further information: Seek the expertise of an approved engineering office or consultant
Have an analysis conducted by an approved engineering office or consultant, while benefiting from the state subsidies below. They will be able to challenge the company on its current practices and help implement a procurement policy, general terms and conditions, supplier codes of conduct, etc.
State subsidy application
State subsidies
Attention: incentive effect to be complied with when applying for subsidies (state or otherwise) and subject to meeting the eligibility conditions.
To ensure that the ‘incentive effect’ is respected, no binding commitment (signing a quotation; paying an advance) may be made BEFORE submitting the application file or receiving the agreement in principle from the State or the electricity and natural gas supplier following an application for aid.
Under the Fit 4 Sustainability programme, it is possible to co-finance an environmental audit + action plan, including on product circularity (product life cycle assessment).
Subsidy of up to 50%, 60% and 70% of the fees for carrying out an environmental study (energy audit and/or carbon footprint) + detailed, costed action plan to reduce one’s consumption/GHGs (greenhouse gases) (medium- and long-term investment, ROI, etc.) – open to SMEs and large companies (except those required to carry out a statutory audit).
- Subsidy for small and medium-sized companies, covering up to 70% of eligible costs for carrying out a project aimed at reducing their environmental impact. The total project cost must be between €3.000 and €25.000 excluding VAT.
- Points of contact:
- Verification of company eligibility and costs: General Directorate for Industry, new Technology and Research
- Support in drawing up the aid application file prior to submission to the Ministry of the Economy
- Flat-rate subsidy of €5,000 for SMEs to reimburse the RSE Starter Kit programme: including access to the “Toolbox RSE” digital platform to carry out an inventory of the company as well as a 3.5-day consultation by an expert approved by the INDR to identify missing elements or areas for improvements and formulate recommendations for a RSE policy tailored to the company.
- For questions and to apply:
- For more information on the CSR Toolbox:
- INDR: National Institute for Sustainable Development and Corporate Social Responsibility
- The certification fees are matched to the size of the company and state subsidy of 50% of the investments linked to a first ESR certification (including the costs of the label, verification and consulting services by an approved expert).
- For questions: INDR
- For more information: INDR
N.B. State subsidies cannot be combined for the same project.
Monitoring and certifications
Monitoring and evaluation
Set up performance indicators to measure progress towards sustainable procurement targets and conduct regular audits and assessments to ensure compliance with sustainability criteria and identify opportunities for improvement. Communicate transparently and regularly about sustainable procurement initiatives and achievements to all parties involved.
Certifications and labels
EMAS
CSR label
SDK label
Cradle to Cradle
ISO 20400
B Corp
FairTrade
PEFC
FSC
European Ecolabel
Rainforest Alliance
Global Organic Textile Standard
Administration
Agriculture, viticulture
Aid and care sector
Commerce
Craft Industry
Manufacturing
Transport
