Sustainable Procurement

June 2025 edition

Exclusive to “Master Slide Decks” subscribers

​

7 Potential Uses of the Master Slide Decks

1. As a quick and easy way to build your own slide decks for presentations on sustainability-related topics. That is their main purpose, and why the ready-to-use slides are provided in .pptx format. Plagiarize like crazy. ☺
2. As micro-courses / tutorials / refreshers on key aspects of sustainability. Use the slides’ footnotes to further explore source documents of interest.
3. As learning resources. Subscribing teachers can use the slides in their presentations, upload the decks to the database of student materials, and require that students use the slides as resources in assignments. �(See the 7 Learning Prompts on the next slide for some ideas on how to do that).
4. As Coles Notes / Cliffs Notes of the key points in Bob’s six books and two whitepapers.
5. As an overview of over a dozen free, open-source tools downloadable from sustainabilityadvantage.com/
6. As a way to stay current and credible on hot topics. The “What’s New” deck in subscribers’ quarterly updates includes slide-summaries the latest articles and reports about a variety of sustainability-related topics.
7. As conversation starters with senior management. Share a subset of the slides with them with a “What do you think …?” invitation, and follow up with a meeting to discuss the relevance to the organization.

​

How to find slides on a specific topic within a Master Slide Deck

• Use the Table of Contents to find the most likely subset for your topic of interest.
• In “Normal” display mode, use PowerPoint’s “Find” function to search for a key word.
• Quickly scan thumbnails of the slides in PowerPoint’s “Slide Sorter” view.

User Tips & Reminders

1. What is the four-part definition of sustainable procurement?
2. What are the top 3 drivers of sustainable procurement?
3. What are the top 3 barriers to sustainable procurement?
4. What are the subsets of sustainable procurement?
5. What are the 4 core elements / components of both the Sustainable Procurement Toolkit and the Net-Zero & Circular Procurement Toolkit?
6. What are 3 reasons that Net-Zero & Circular Procurement is getting attention around the world, especially by governments?
7. What sustainable procurement-related coalition would be the most helpful for your organization to join?

​

7 Learning Prompts - Use the deck as a self-study micro course on this topic.

Table of Contents

What is SP? �Definitions, Terminology

“Obtaining best value for money by purchasing…

…the most sustainable goods & services…

…from the most sustainable suppliers…

…in support of the buyer’s purpose and strategic goals.”

​

Sustainable Procurement (SP): Definition

Sustainable Procurement makes sustainability matter to suppliers, �because the scores on product and supplier sustainability �are significantly weighted (10+% of the points) in bid appraisals.

SP incentivizes companies to improve their product and company scores,� so that they earn more points than their competitors and win more bids.

“Sustainable �Procurement”(SP)

“Green Procurement”

• “Net-Zero and Circular � Procurement” (NZP)

“Social Procurement”

“Decoding Sustainable Procurement and Its 4 Starter Subsets,” Sustainability Advantage blog, August 2023.

Green Procurement

Net-Zero Procurement & Circular Procurement (NZP)

Obtaining best value for money by purchasing…�…the most low-carbon and circular goods & services…�…from suppliers who are most committed to science-based� net-zero GHG reduction targets and to circularity…�…in support of the buyer’s purpose and strategic goals.

Social Procurement�Obtaining best value for money by purchasing…�…the most socially beneficial goods & services / projects…

…from the most socially responsible suppliers who protect and enhance employee and community well-being…

…in support of the buyer’s purpose and strategic sustainability goals.

Obtaining best value for money by purchasing…�…the most environmentally beneficial goods & services…�…from the most environmentally responsible suppliers…�…in support of the buyer’s purpose and strategic sustainability goals.

Obtaining best value for money by purchasing…�…the most sustainable goods & services…from the most sustainable suppliers…�…in support of the buyer’s purpose and strategic sustainability goals.

Sustainable Procurement (SP)

Green Procurement

Net-Zero Procurement

Social Procurement�

Circular Procurement

A market force enabling attainment of the SDGS

Sustainable Procurement

Sustainable Procurement Enables the SDGs

Employee & Community / Society Wellbeing

Types of Suppliers

1

Producers of Product Inputs

Producers of �Ancillary Consumables

Providers of

Outsourced Core Functions

Producers of

Manufactured Assets

1

3

2

2

3

4

4

Company�Operations

Products

1

3

2

2

3

4

4

1

Providers of Occasional Services

1

2

3

4

3

2

2

3

4

4

2

3

4

1

Providers of �Outsourced Ancillary Functions

2

3

4

“Ancillary Suppliers”

Ancillary

Operations

“Core Suppliers”

Multi-Tiered Supply Chains

Tier 1�Suppliers

Core

Operations

Supplier Descriptions

“Ancillary Suppliers”

“Core Suppliers”

SPLC Navigator

• SPLC Maturity Model and Guidance
• ISO20400
• ECPAR Procurement Barometer
• UNEP SPP Global Review
• DJSI (Supply Chain Management)
• CCSP 10-point SP Framework
• AASHE Stars 3.0 (unreleased)
• Future Fit Business
• And more!

• Comprehensive: Based on best-available SP frameworks, standards, checklists, guidance and maturity models
• Cross-sector: Appropriate for corporate, public and academic sector purchasing systems
• Maturity-based: Four maturity levels of progress
• Educational: Provides explanations and sample resources to assist with some answers
• Diagnostic: Helps identify areas for more attention, research, and support
• Benchmarking: Enables comparison of progress with similar organizations and celebration of leaders

SPLC Navigator – SP Integration Status

38 KPIs – multiple choice - applicable to all types of organizations

sustainablepurchasing.org/splc-navigator

1. Strategic Integration

1. Sustainability is embedded in our organization’s purpose, mission, and strategic goals.
2. Our SP process purpose, mission and strategic goals align with our organization’s, above
3. We have a sustainable procurement policy.
4. We actively leverage procurement-related digital platforms to implement our sustainable� procurement requirements. (e.g. Jaeger, Oracle, Salesforce)
5. We have a strategy and a staged plan to integrate SP into our procurement process.
6. We have a budget for the required cross-functional resources and training.
7. An executive sponsors our integration of SP into our procurement process.
8. We have a sufficient business case / justification for our SP integration.
9. We have assigned a respected staff leader to integrate SP into our procurement process.

continued …

1. Strategic Integration … continued

​

10. We have engaged and trained appropriate cross-functional stakeholders
11. Cross-functional staff are evaluated on SP integration targets.
12. We use various impact analyses to identify priority product categories� e.g., Spend analysis, Materiality / hotspot analysis, LCA analysis, � Disparity analysis, Procurement agreement analysis
13. We have a goal of using an SP process for 100% of our procurement.
14. We monitor and record our use progress on integrating SP into our procurement process

2. Supplier Sustainability

15. We require our suppliers to disclose their enterprise-level sustainability performance.� i.e., disclose direct and indirect impacts on the environment, employees, and � community / society / economy
16. Our Supplier Code of Conduct includes sustainability criteria
17. We give special consideration to diverse suppliers. � e.g., Women owned, LGBTQ2+ owned, BIPOC owned, veteran owned)
18. We give special consideration to certain enterprises. � e.g., Local enterprises, SMEs, B Corps, social enterprises, co-ops, NGOs)
19. We give special consideration to suppliers who track their GHGs and have � science-based GHG reduction plans.
20. We provide support to our suppliers to help them improve their organizational sustainability performance and innovate more sustainable products

3. Product Sustainability

21. We explore circular economy ways to avoid buying new products, before doing so.
22. Our category sustainability specs align with and support our sustainability goals.
23. Our Supplier Code of Conduct includes sample sustainability-related specs

We use best-available guidance on priority product categories

• Finished goods and supplies that are used or consumed in our business operations
• Finished goods, components, and supplies that are used in manufacturing operations
• Finished goods, components, and supplies that are used when we provide our services.
• Services that support our business or manufacturing operations, and/or our services
• Significant construction / infrastructure projects for which we contract. �

4. Make It Matter

Competitive bid procurement

• 10+% weight for acquisition’s alignment with our purpose, mission, goals, etc.
• 10+% weight for how well the proposed product meets sustainability specs.
• 10+% weight for supplier enterprise-level sustainability performance.
• 10+% weight for TCO calculations, if appropriate for the product.

​

Standing offer procurement

• We have periodic business reviews with our standing-offer suppliers to review ongoing sustainability performance improvements

5. External Leadership & Advocacy

34. We include our SP integration progress in our public reports.
35. We share our best practices, guidance, tools, etc. with others
36. We publicly advocate for SP as a market force for progress on sustainability issues.

Why SP?�Drivers, Barriers, Benefits

Greatest Impacts Are In Supply Chains

Based on a figure in “A Sustainable IT Purchasing Guide,” HP, January 2020.

Mutual Accountability For Value Chain Impacts

Organ-ization

Upstream Supply Chain

(End of �1^st life dispos-ition)

Total Life Cycle / Value Chain

Downstream �Customer Chain

Tier 4 Suppliers:�Raw / virgin material extraction

Tier 3 Suppliers:�Raw material refining and processing

Tier 2 Suppliers: �Parts manufacturing & subassembly

Tier 1 Suppliers: �Final assembly, manufacturing, packaging

Impacts on the environment, on employees, and on society

Customer

EU Corporate Sustainability Due Diligence Directive (CSDDD)

“Just and sustainable economy,” European Commission press release, February 2024.

• 2027: applies to companies with >5000 employees, > €1500 M revenue worldwide
• 2028: applies tp companies with >3000 employees, > €900 M revenue worldwide
• 2029: applies to companiesr with >1000 employees, > €450 M revenue worldwide
• Applies to non-EU companies with annual revenues earned in the EU above these thresholds.

Companies must integrate due diligence into policies and strategies, �identify actual or potential adverse human rights and environmental impacts, and �end or minimize actual impacts from company operations, subsidiaries and supply chains.

• Companies must implement climate transition plans aligned with the Paris Agreement (1.5˚C)
• Companies will use the Corporate Sustainability Reporting Directive (CSRD) framework to report on their sustainability effort and practices.
• Sanctions include EU member-dependent fines for non-compliance and legal action against directors.

PUMA Tier 1-4 Footprints

https://about.puma.com/en/newsroom/news/puma-and-ppr-home-announce-first-results-unprecedented-environmental-profit-loss

“Sustainable Public Procurement: 2022 Global Review, Part 1,” UN Environmental Programme, January 2022.�Based on data collected in 2021 on 314 organizations across 92 countries via a Stakeholder Survey, plus data gathered on SP activities of 45 countries in a National Government Questionnaire, plus interviews with 26 sustainable procurement experts, plus a literature review.

Top 10 Drivers to Implementing SPP

Based on a slide used in “Procurement 2025: The Journey to a New Value Proposition” webinar, Gartner, January 2025. �Based on a 2024 survey of 258 CPO respondents about procurement’s top 3 value propositions in 2025.

Top Procurement Value Propositions

​

“Return on Sustainability – The Value of Responsible,” EcoVadis, February 2025.

Top 7 Value Creation Drivers of SP

“State of Supply Chain Sustainability 2024,” MIT Center for Transportation & Logistics, 5^th annual report, October 2024.�Based on 7,000+ valid responses from buyers in 80 countries to a 45-question survey.

State of Supply Chain Sustainability

Sources of pressure on companies to make their supply chains more sustainable.

Does your company have initiatives to reduce Scope 1, Scope 2, and Scope 3 GHG emissions?

“Sustainable Procurement Barometer 2024,” EcoVadis and Accenture, February 2024. �Based on data collected from nearly 600 buyers and more than 1,000 suppliers, worldwide.

Benefits of SP

“2023 Global Chief Procurement Officer (CPO) Survey: Orchestrators of Value,” Deloitte, June 2022.�Based on responses of nearly 350 senior procurement leaders from more than 40 countries.

Top Procurement / Enterprise Priorities

ESG was ranked 7^th in 2021; now is 2^nd highest priority

“Sustainable Public Procurement: 2022 Global Review, Part 2,” UN Environmental Programme, January 2022.�Based on data collected in 2021 on 314 organizations across 92 countries via a Stakeholder Survey, plus data gathered on SP activities of 45 countries in a National Government Questionnaire, plus interviews with 26 sustainable procurement experts, plus a literature review.

Top Drivers of SP in Private Corps

• Mandatory regulations
• Leadership / top management commitment
• Alignment of sustainability with organization purpose, culture, and values
• Peer pressure within the company’s industry sector
• Stakeholder pressure (governments, consumers, investors, bankers)
• Risk management (reputational / image damage)
• Convincing business case

“Building supply chain sustainability that can drive revenues and reduce operational risks,” �EY, October 2022. Based on a survey of 525 supply chain executive across the Western hemisphere.

Top Motivators For Sustainable Supply Chains

Plus “non-financial” benefits

Based on a slide used in “Procurement 2025: The Journey to a New Value Proposition” webinar, Gartner, January 2025. �Based on a 2024 survey of 258 CPO respondents about the top 4 risks to procurement future success.

Top Risks to Procurement

Trade Policy Now On Par With Geopolitical Instability

“Economic Conditions Outlook, March 2025,” McKinsey & Company, March 2025.�Based on a worldwide survey of 988 executives, Feb. 26-Mar. 7, 2025.

“Supply Chain Risk Report 2025,” Sphera, February 2025.

Supply Chain Risks

• Supplier financial stress: Rising interest rates, global economic slowdowns
• 48 % more bankruptcy declarations
• 61% more force majeure declarations that broke contracts
• Supply chain disruptions: Climate change events; labor strikes,
• Average of 15 incidents per year per company
• Sustainability compliance challenges: Labor practices, ESG compliance
• 6% more ESG-related pressures / risks
• 29% more human rights issues
• Quality challenges: Product quality, raw materials use, facilities issues
• 22% more hazardous substance issues
• 19% more product recalls

Based on a slide used in “Procurement 2025: The Journey to a New Value Proposition” webinar, Gartner, January 2025. �Based on a 2024 survey of 104 CPO respondents about top ESG topics in sustainable procurement in 2025.

Top Sustainability Issues For Procurement

“Value of Sustainable Procurement Practices,” PwC and EcoVadis in collaboration with the INSEAD Social Innovation Centre, 2011.

Benefits of SP

Cost �reduction

Risk �reduction

Revenue�growth

Desired Benefits of SP

“Sustainable Procurement Barometer 2021: Key Findings Infographic,” EcoVadis and the Stanford Business School Value Chain Innovation Initiative, July 2021.

“Sustainable Procurement Barometer 2021: Key Findings Infographic,” �EcoVadis and the Stanford Business School Value Chain Innovation Initiative, July 2021.

Evolving Procurement Priorities

“Building supply chain sustainability that can drive revenues and reduce operational risks,” EY, July 2022.�Based on a survey of 525 supply chain executive across the Western hemisphere.

Benefits of Sustainable Supply Chains

“Sustainable Public Procurement: 2022 Global Review, Part 2,” UN Environmental Programme, January 2022.�Based on data collected in 2021 on 314 organizations across 92 countries via a Stakeholder Survey, plus data gathered on SP activities of 45 countries in a National Government Questionnaire, plus interviews with 26 sustainable procurement experts, plus a literature review.

Top Barriers to SP in Private Corps

“Sustainable Public Procurement: 2022 Global Review, Part 1,” UN Environmental Programme, January 2022.�Based on data collected in 2021 on 314 organizations across 92 countries via a Stakeholder Survey, plus data gathered on SP activities of 45 countries in a National Government Questionnaire, plus interviews with 26 sustainable procurement experts, plus a literature review.

Top 5 Barriers to SPP

“Sustainable Public Procurement: 2022 Global Review, Part 1,” UN Environmental Programme, January 2022.�Based on data collected in 2021 on 314 organizations across 92 countries via a Stakeholder Survey, plus data gathered on SP activities of 45 countries in a National Government Questionnaire, plus interviews with 26 sustainable procurement experts, plus a literature review.

Regional Comparison of Barriers to SPP (1 of 2)

“Sustainable Public Procurement: 2022 Global Review, Part 1,” UN Environmental Programme, January 2022.�Based on data collected in 2021 on 314 organizations across 92 countries via a Stakeholder Survey, plus data gathered on SP activities of 45 countries in a National Government Questionnaire, plus interviews with 26 sustainable procurement experts, plus a literature review.

Regional Comparison of Barriers to SPP (2 of 2)

Based partly on questions in “Sustainable Procurement Barometer 2023: Global Benchmark Survey with Accenture and EcoVadis”

Mitigating Supply Chain ESG “Hot Spots”

1. GHG emissions and climate change: Reducing Scope 3 emissions.
2. Labor rights and fair working conditions: Ensuring fair labor practices, non-discrimination, safe working conditions, fair wages; eliminating child / forced labor.
3. Responsible / ethical sourcing of raw materials: Ensuring traceability re human rights violations, unethical practices, and environmental damage; anti-corruption.
4. Circular economy: Minimizing waste and ensuring products / materials are reused, recycled, or repurposed throughout the supply chain.
5. Water management: Efficient water use, especially in water-scarce regions.
6. Biodiversity and deforestation: Protecting biodiversity, combating �deforestation, avoiding habitat destruction or the extinction of species.
7. Packaging and plastics: Reducing single-use plastics and adopting �more sustainable packaging solutions.

• Ensures best value for money�i.e., enabler of corporate purpose and helps attain strategic ESG targets / goals
• Costs savings�e.g., stimulates supplier efficiencies; builds on current procurement system
• Reduces reputational risk: �e.g., compliance with new SP regulations and avoiding bad publicity about hot spots
• Improves readiness for sustainable reporting regulations: (e.g., EU CSRD, ISSB)
• Low cost, non-disruptive advancement of sustainability goals
• Revenue growth - improved reputation with B2B and B2C customers who prefer sustainably sourced products/services; price premiums from differentiation
• Creates supplier partnership opportunities for innovative products and services
• Employee attraction, retention, and productivity – pride in company efforts
• Improved reputation & ranking in sustainable financial indices like DJSI, Vigeo, etc.

Benefits to Buyers of SP

Benefits to Suppliers of SP

• Competitive advantage … earn significant points for sustainability efforts.
• Creates a market for their sustainable products.
• Increases reputation and employee engagement if publicly disclose scores.
• Improves readiness for sustainable procurement regulations.
• Creates partnership opportunities for innovation with buyers.
• Yields a sustainability assessment usable with other stakeholders�(e.g., disclosures to bankers, investors, insurers)
• Validates that a sustainability-related purpose drives profits.
• Can use SP with their suppliers, to ensure best value for money.

Propose SP as a “Project”

+ Information added to traditional content

SP “Project” Cost-Benefit Analysis

Identification / quantification / monetization help

Revenue growth

Employee productivity

Expense reductions

Access to capital

Higher asset value

Risk reductions

Improve stakeholder wellbeing�Attain sustainability goals

sustainabilityadvantage.com/businesscases/�project-level-business-case/

Project Appraisal Tool

69% of respondents are taking sustainability performance into consideration when selecting new suppliers and renewing contracts – up from 51% in 2019.

SP Status

“Sustainable Procurement Barometer 2021: Key Findings Infographic,” �EcoVadis and the Stanford Business School Value Chain Innovation Initiative, July 2021.

• Only 40% of RFPs had at least one sustainability-related spec
• 52% of those had at least one environmental specification
• 27% of those had at least one social specification
• 17% of RFPs asked about reduction of GHG emissions
• 7% of RFPs asked about adaptation to climate change
• 13% of RFPs asked about nature and biodiversity
• 12% of RFPs asked about reusable, recyclable product content
• 56% of construction projects had at least one sustainability spec.

Status of SP Use by�the Quebec Government

“Responsible Government Acquisitions,” Quebec Statistical Showcase on Sustainable Development website, April 2025�Based on an analysis of 8, 643 contracts in 2023-2024..

How SP? �SP Toolkit

Sustainable Procurement (SP) Toolkit

• SP product specifications�Used to score products on sustainability-related specifications.
• SP supplier assessment tool�Used to score suppliers on their sustainability-related impacts.
• SP bid appraisal template�Makes sustainability matter by heavily weighting the product sustainability �score and the supplier sustainability score.
• SP contract terms and conditions (Ts & Cs) �Ensure winning supplier’s pledged sustainability plans and targets are met.

Expedites the integration of SP into any procurement process.

sustainabilityadvantage.com/sp/toolkit/

+ The Toolkit also includes a Total Cost of Ownership (TCO) calculator for use, if appropriate.

Pre-Procurement Checklist

“The most sustainable products �are the ones you don’t buy.”

Before purchasing new products, ask these circular economy-related questions:

• Is the product function still required? (e.g., filing cabinets 🡪 cloud storage)
• Is the current product repairable / upgradable?
• Could other in-house assets satisfy the desired function?
• Is Product-as-a-Service (PaaS) / Pay-for-use a viable option?
• Are other “access over ownership” options viable? �(e.g., managed services, leasing, renting, borrowing, sharing)�
• Could a used / refurbished product satisfy the desired function?

Based on “Circular Procurement: Strategies for Circular Criteria,” Circular Innovation Council (CIC), January 2024.

“Sustainable Public Procurement: 2022 Global Review, Part 1,” UN Environmental Programme, January 2022.�Based on data collected in 2021 on 314 organizations across 92 countries via a Stakeholder Survey, plus data gathered on SP activities of 45 countries in a National Government Questionnaire, plus interviews with 26 sustainable procurement experts, plus a literature review.

Top 10 Product Categories in SP

Sample SP Product Specs

• Netherlands MVI Criteria Tool: Guidance on the wording of sustainability-related criteria (9 themes, 3 ambition levels) for 15 product categories procured by the Dutch government.
• Ireland Green Public Procurement Criteria: Guidance on green selection criteria, technical specs, award criteria, and/or contract performance clauses for 13 categories of products procured by the government of Ireland.
• US EPA Specifications, Standards, and Ecolabels: Guidance on environmentally-preferable specifications, standards, and ecolabels on 34 categories of products and services procured by the US Government.
• EU Common Green Public Procurement Criteria. Guidance on green criteria for 13 categories of products procured by EU governments.

Sources of Product Category Sustainability Specs

Sustainable Project / Works Specs Checklist

Project socio-economic-related specs

• Subcontracting to social enterprises
• Subcontracting to local community organizations
• Subcontracting to diverse-/disadvantaged-owned enterprises
• Equitable hiring practices … training of disadvantaged workers
• Comprehensive supplier Codes of Conduct
• Safe and healthy worksites
• Provision of community or neighborhood amenities
• Neighbourhood improvements

Project environmentally-related specs

• Use of low carbon materials from sustainable sources
• Use of recycled materials or materials with recycled content
• LEED or Living Building Challenge certification, or equivalent
• Use of domestic materials
• Conservation of natural resources and biodiversity

​

These specifications are often found in Community Benefit Agreements (CBAs) associated with large infrastructure / works / construction projects.

communitybenefitsagreements.ca

US Federal Acquisition Regulation (FAR):�Sustainable Products and Services procurement rule

“Biden-⁠Harris Administration Announces Plan to Maximize Purchases of Sustainable Products and Services as Part of the President’s Investing in America Agenda,” White House press release, August 2023. �The rule is open for public comment for 60 days.

Will require Federal agencies to purchase EPA-recommended green products and services “to the maximum extent practicable”

• Must follow EPA’s Recommendations of Specifications, Standards, and Ecolabels for Federal Purchasing, which provide recommendations across 34 purchase categories for use of 40 standards and labels
• EPA also announced it will expand its Federal Purchasing Recommendations across these existing and new purchase categories: healthcare, laboratories, professional services, food service ware, and uniforms and clothing.
• Must avoid procurement of products containing perfluoroalkyl or polyfluoroalkyl (PFAS) chemicals, known as “forever chemicals.”

The US Federal Government is the world’s largest buyer: �> $630B / year by GSA, NASA and DoD.

Sustainable Procurement (SP) Toolkit

• SP product specifications�Used to score the product on sustainability-related specifications.
• SP supplier assessment tool�Used to score the supplier on its sustainability-related impacts.
• SP bid appraisal template�Makes sustainability matter by heavily weighting the product sustainability �score and the supplier sustainability score.
• SP contract terms and conditions (Ts & Cs) �Ensure winning suppliers’ pledged sustainability plans and targets are met.

Expedites the integration of SP into any procurement process.

sustainabilityadvantage.com/sp/toolkit/

+ The Toolkit also includes a Total Cost of Ownership (TCO) calculator for use, if appropriate.

Third-party supplier sustainability assessment or certification� e.g., EcoVadis rating� B Corp BIA score� CDP� Corporate Knights Global 100 ranking�

Self-assessment by supplier� e.g., Global Reporting Initiative (GRI)� Sustainable Development Goals (SDGs)

Integrated Reporting <IR>

EU Corporate Sustainability Reporting Directive (CSRD)

ISO 26000

SDG Action Manager� Basic Sustainability Assessment Tool (BSAT)

Supplier Sustainability Assessment

Walmart’s Supplier Sustainability Index

GreenBiz, “Why Walmart's better supplier scorecard is a big deal,” April 2013.

• 15 Questions about suppliers’ overall company operations.
• 4 Qs on Energy and Climate
• 4 Qs on Material efficiency / Waste
• 2 Qs on Natural resources
• 5 Qs on People and Community

​

• Launched in 2009. In 2013, added questions about products.
• Covers 100 product categories, such as apparel, electronics and toys.
• Walmart uses the index to assess suppliers
• By the end of 2017, U.S. Walmart and Sam's Club stores got 70% of their goods from global suppliers that use the Sustainability Index

Walmart’s Supplier Sustainability Index

“Supplier Index,” walmartstores.com/sustainability/, 2010.

Energy & Climate

1. Have you measured your corporate greenhouse gas emissions (GHGs)?
2. Have you opted to report your GHGs to the Carbon Disclosure Project (CDP)?
3. What is your total annual GHGs reported in the most recent year measured?
4. Have you set publicly available GHG reduction targets? What are they?  

Material Efficiency

1. What is the total amount of solid waste from facilities that produce product(s) for Walmart?
2. Have you set publicly available solid waste reduction targets? What are they? 
3. What is the total water use from facilities that produce product(s) for Walmart?
4. Have you set publicly available water use reduction targets? What are they?  

Natural Resources

1. Have you established public sustainability purchasing guidelines for your direct supplier(s)?
2. Have you obtained third party certifications for any of the products that you sell to Walmart?  

People & Community

1. Do you know the location of all the facilities that produce your product(s)?
2. Do you evaluate the quality of, and capacity for, production at all supplier facilities?
3. Process for managing social compliance at the manufacturing level?
4. Do you manage social compliance with your supply base to resolve compliance issues?
5. Do you invest in community development in markets you source from / operate within?

P&G’s Annual Supplier Citizenship Survey

Supplier Citizenship, P&G website (pgsupplier.com/supplier-citizenship#responsible-sourcing)

66

Framework �Comparisons

sustainabilityadvantage.com/frameworks/overview/

What impact topics / issues are common to all main sustainability reporting, standards, and rating frameworks?

Common Core Topics / Issues

https://sustainabilityadvantage.com/assessments/bsat/

Challenges With Most Assessment Frameworks

• Only assess doing less harm … to people and planet
• No credit for doing good … helping others? being restorative?
• No science-based goals … do not assess progress toward goals that are based on best-available environmental and social science
• Not scored … difficult to compare companies
• Unrelated to SDGs … translate scores to contributions to SDGs?
• Not SME-friendly … 100s of questions; 98% of companies are small

Most Companies Are SMEs

Stats Canada, 2022 data

+ 2.8 million non-employer firms

SMEs employ 63.8% of the total Canadian labor force.

1.3 million employer firms

• Large (> 500 employees) 0.2%
• SME (< 500 employees) 99.8%
• Medium (100-499 employees) 1.7%
• Small (< 100 employees) 98.1%
• “Smaller” (1-9 employees) 73.6%
• Micro (1-4 employees) 54.9% �

Basic Sustainability Assessment Tool (BSAT)

sustainabilityadvantage.com/assessments/bsat/

• SME-friendly … only 20 multiple-choice questions
• Comprehensive … scores on all core sustainability issues

• Generic … any size, any sector, anywhere
• Science-based goals … assesses % progress toward all of them
• Bonuses for Positive Impacts … products & services, donations

• Scores on SDGs & non-financial capitals … automatically generated

• Educational … real-time feedback on how answers affect scores
• Action oriented … pop-up guidance; dashboard; prioritization criteria
• Free, open-source Excel tool … can tailor / translate / weight scores /� change scoring / create online app

BSAT Verification / Assurance Approach

1. Officer sign-off: The Organization Profile requests the name, title and email for the organization officer / director who vouches for the integrity of the completed assessment.
2. 3^rd party assurance: The Organization Profile requests the name, title and email of the qualified 3^rd party who verified / assured the completed assessment.
3. Verification warnings: Each topic has a “Links to evidence, for verification purposes” box which requests URLs/links to publicly available evidence / information / reports that support the answers in that section.
4. Overall score deduction: The overall score is reduced by 10% if the answers are not vouched for by a company officer, and another 10% if the answers are not assured / verified for by a qualified 3^rd party. (see #1 & #2)
5. 3^rd party verification at contract time: The winning supplier’s score is verified by a qualified third party, if not already done. The contract is terminated if the verified score is >10% lower than initially submitted.

Community

Employees

Environment

Wages

Energy

Procured products

Encroachment

Wellbeing

Diversity & Inclusion

Employment terms

Water

42%

83%

80%

30%

73%

67%

63%

Governance

63%

• Community building
• Community concerns
• Customer concerns

• Ethical taxes
• Ethical lobbying
• Ethical investments

79%

GHG emissions�(Scope 1, 2, & 3)

Waste & Circularity

Non-GHG emissions

54%

66%

69%

70%

Positive Impacts

9%

OVERALL SCORE

65%

• Scores are % progress toward science-based do-no-harm goals for core sustainability issues
• Bonuses for positive impacts

Basic Sustainability �Assessment Tool (BSAT) �Sample Scores

sustainabilityadvantage.com/assessments/bsat/

Sustainable Procurement (SP) Toolkit

• SP product specifications�Used to score the product on sustainability-related specifications.
• SP supplier assessment tool�Used to score the supplier on its sustainability-related impacts.
• SP bid appraisal template�Makes sustainability matter by heavily weighting the product sustainability �score and the supplier sustainability score.
• SP contract terms and conditions (Ts & Cs) �Ensure winning suppliers’ pledged sustainability plans and targets are met.

Expedites the integration of SP into any procurement process.

sustainabilityadvantage.com/sp/toolkit/

+ The Toolkit also includes a Total Cost of Ownership (TCO) calculator for use, if appropriate.

SP Bid Appraisal Template �Weighting makes sustainability attributes matter.

Best Price

Best product quality

• Best user-desired performance

Best supplier quality

• Best user-desired attributes

Best Value

Affordability

Best TCO

Poorer product �quality…

Poorer supplier �quality…

• Best organization-desired sustainability features

• Best organization-desired sustainability performance

Best Value – Weighted Scores Methodology

Best Value – Example

($700K)

($600K)

($500K)

* Score = 100% – (% by which that supplier’s price exceeds the lowest price)

Best Value

Best Price

Best Non-Financial Value Methodology - Example

Based on a best value calculation methodology (Price ÷ Non-financial value score) developed by Buy Social Canada and Larry Berglund.

Best Value

Best Price

Sustainable Procurement (SP) Toolkit

• SP product specifications�Used to score the product on sustainability-related specifications.
• SP supplier assessment tool�Used to score the supplier on its sustainability-related impacts.
• SP bid appraisal template�Makes sustainability matter by heavily weighting the product sustainability �score and the supplier sustainability score.
• SP contract terms and conditions (Ts & Cs) �Ensure winning suppliers’ pledged sustainability plans and targets are met.

Expedites the integration of SP into any procurement process.

sustainabilityadvantage.com/sp/toolkit/

+ The Toolkit also includes a Total Cost of Ownership (TCO) calculator for use, if appropriate.

SP Contract Ts & C’s

• Financial penalties / bonuses re completion of the supplier’s short-term sustainability action plans.
• Preferential payment terms or financing rates based on sustainability disclosures and progress.
• Verification of supplier score on the sustainability questionnaire by qualified third party. Contract termination if verified score is >10% lower.
• Suppliers must publicly communicate their sustainability commitments, plans, and progress.
• Requirement that supplier require their CEO’s compensation be linked to meeting their short-term sustainability-related targets.�(In 2023, 87% of large companies globally had incentive plans that included ESG measures)
• Contract termination if specified sustainability targets are not met.

Contract terms and conditions that help ensure winning suppliers �will meet their sustainability targets. For example …

“Reaching Net-Zero: Incentives for Supply Chain Decarbonization,” WBCSD and PwC, November 2021; The Chancery Lane Project, SME’s Net-Zero Objectives clauses;�“2024 Global Trends in Stakeholder Incentives: What’s Next?” Farient Advisors, the Global Governance and Executive Compensation (GECN) Group,, March 2024.

Sustainable Procurement (SP) Toolkit

• SP product specifications�Used to score the product on sustainability-related specifications.
• SP supplier assessment tool�Used to score the supplier on its sustainability-related impacts.
• SP bid appraisal template�Makes sustainability matter by heavily weighting the product sustainability �score and the supplier sustainability score.
• SP contract terms and conditions (Ts & Cs) �Ensure winning suppliers’ pledged sustainability plans and targets are met.

Expedites the integration of SP into any procurement process.

sustainabilityadvantage.com/sp/toolkit/

+ The Toolkit also includes a Total Cost of Ownership (TCO) calculator for use, if appropriate.

Estimates all ongoing direct and indirect costs, benefits and value associated with the procurement of the goods and services.

Total Cost / Value Of Ownership (TCO)

TCO helps determine if initially paying more for the goods and services is the best long-term financial decision.

Benefits

• Reveals potential ongoing costs before they become problems.
• Provides input to user department budgeting & financial planning.
• Determines service cost / chargebacks to user departments.
• Ties to asset management factors – depreciation schedules.
• Identifies "hidden" costs of ownership.
• Helps make lease vs. buy decisions.

Based on …

“Net-Zero Procurement” ensures that buyers… �

… obtain the best value for money when� purchasing …

�… the most sustainable goods and services …

�… from the most sustainable suppliers …

�… in support of the organization’s stated purpose � and strategic goals.�

SP Toolkit Simplifies SP Integration

Bid Appraisal Template

TCO Tool (optional)

Sample Product Specs

Bid Appraisal Template

Basic Sustainability Assessment Tool (BSAT)

What is NZP�Definition, Positioning

“Sustainable �Procurement”(SP)

“Green Procurement”

• “Net-Zero and Circular � Procurement” (NZP)

“Social Procurement”

“Decoding Sustainable Procurement and Its 4 Starter Subsets,” Sustainability Advantage blog, August 2023.

“Obtaining best value for money by purchasing…

…the most low-carbon and circular goods & services…

…from suppliers who are most committed to science-based, � net-zero GHG reduction targets and to circularity, …

…in support of the buyer’s purpose and strategic goals.”

Net-Zero Procurement (NZP): Definition

Net-Zero Procurement makes GHG reductions and circularity matter to suppliers, because the scores on product and supplier low-carbon and circularity attributes are significantly weighted (10+% of the points) in their customers’ bid appraisals.

NZP incentivizes suppliers to improve their product and company scores, so that they earn more points than their competitors and win more bids.

Best Price

Best product quality

• Best user-desired features

Best supplier quality

• Best user-desired performance

Best Value

Affordability�Best TCO

Poorer product �quality…

Poorer supplier �quality…

• Best organization-desired low-carbon and circularity features

• Best organization-desired �GHG reduction and circularity performance

Why NZP?

Drivers, Benefits

Trump Anti-Climate Rollbacks

.

• 4/11/2025: Eliminates nearly all �climate research at NOAA
• 4/9/2025: Cancels funding for the �U.S. Global Change Research Program
• 4/8/2025: Attacks state climate laws as “ideologically motivated."
• 4/2/2025: Cancels popular disaster-preparation grant program
• 3/18/2025: Intelligence agencies ignore climate in annual threat assessment
• 3/17/2025: EPA plans to eliminate science staff
• 3/14/2025: Zeldin releases 31-rollback ‘hit list’, including action on 6 GHGs
• 2/21/2025: GHG Reduction Fund director put on administrative leave
• 2/12/2025: Fossil fuel lobbyists tapped for key roles
• 2/11/2025: SEC starts process to kill climate disclosure rule�

“Trump Tracker: 100 Days, 100 Harms,” Climate Action Campaign, April 2025.

Addressing the Climate Emergency

.

• Governments’ COP29 pledges / NDCs �are insufficient and unfulfilled.
• Most businesses are sitting on the sidelines �waiting for governments to fix climate change.
• Businesses account for ~80% of GHG emissions.
• Unless businesses are actively engaged in �reducing their GHGs, the climate emergency will�get worse.
• All businesses are suppliers.

The Net-Zero Procurement (NZP) Solution:

Use the buying power of the public, private, and academic sectors as a �market force to mobilize suppliers/ businesses in the race to net-zero.

“Next Generation NDCs: Accelerating climate action under the Paris Agreement,” WRI, October 2024.� “The Benefits for SMEs of Taking Climate Actions,” BDC, December 2023. �Businesses account for roughly 80% of annual GHG emissions in Canada, households 17%, and the public sector 3%.

Governments Are Not Doing Enough

“Emissions Pathways,” Climate Action Tracker website, May 2025.

California Large Suppliers’ GHG Reporting

“California Supply Chain Report,” G&A, April 2025.�Based on an analysis of GHG reporting by 136 large suppliers doing $25M+ annual business with State of California

… and these are the large suppliers in California!

NZP Is An Untapped GHG Reduction Market Force

87% of suppliers who reduce their GHGs are actively engaged by their customers / buyers. However,

• Only 40% of buyers engage with their suppliers on climate issues, and just 10% collaborate with them.
• Only 15% of buyers have set upstream Scope 3 targets.
• Only 13% of buyers include climate-related requirements in their supplier contracts

“Scope 3 Upstream: Big Challenges, Simple Remedies,” CDP & BCG, June 2024, and “Strengthening the Chain,” CDP, & HSBC, October 2024. �Based on data from over 23,000 companies that disclosed to CDP in 2023.

• Suppliers are 52% more likely to reduce their annual GHG emissions if their buyers offer financial incentives, compared to when only training is provided.
• Only 18% of buyers incentivize their suppliers to reduce their GHGs.
• NZP actively engages and financially incentivizes suppliers to reduce their GHGs.

Supply chain Scope 3 emissions are 26X buyers’ Scopes 1 and 2 GHG emissions.

5 Supply Chain Decarbonization Obstacles

“Best Practices: Supply Chain Decarbonization” Verdantix infographic, February 2025.

1. Scale and complexity of global supply chains: �Difficult to manage, let alone decarbonize.
2. Poor supplier engagement: 25% of firms cite�insufficient engagement as the top challenge �to improving any supply chain sustainability
3. Competing organizational priorities: Procurement teams traditionally focus on price and quality. Adding decarbonization complicates decision-making.
4. Evolving geopolitical and climate change landscapes: Recent geopolitical and extreme weather events have disrupted supply chains.
5. Technological barriers: Lack of technology required for meaningful decarbonization with speed and scale.

1. Reduce all GHGs 50% by 2030
2. Reduce all GHGs 100% by 2050
3. Beyond value chain mitigation
4. Neutralization of last 5-10% / residual emissions

Based on “SBTi Net-Zero Standard,” Science-Based Targets, October 2021..

SBTi Net-Zero Target

• “We are at a crossroads. The decisions we make now can secure a liveable future.”
• “Without immediate and deep emissions reductions across all sectors, limiting global warming to 1.5°C is beyond reach. We have options in all sectors to at least halve emissions by 2030.”

“Climate Change 2022: Mitigation of climate change,” Summary for Policymakers of the IPCC Working Group III report, April 2022.

IPCC – April 2022

UN Secretary General António Guterres

“The latest IPCC report is a litany of broken climate promises. Some government & business leaders are saying one thing, but doing another. They are lying. It is time to stop burning our planet.”

Most Severe Risks to Economies

“The Global Risks Report 2023,” World Economic Forum (WEF), January 2023.

Drivers Of Decarbonization

“The State of Decarbonization,” Smart Energy Decisions Research, sponsored by NRG, August 2022.

Trends in GHG Emissions Management

“Trends in Corporate Emissions Management,” Optera, Nov 2024. Based on a survey of managers in 90 NA and EU x-sector large companies, summer 2024.

Net Zero Initiative (NZI) 10 Principles

“The 10 NZI principles for an ambitious climate action,” Net Zero Initiative website, April 2023.

1. “Net zero” refers to the global balance between GHG emissions and carbon sinks.
2. For a company, having a net zero strategy means wanting to carry out the transformations needed to reach global carbon neutrality by 2050.
3. To organise their climate action, companies must distinguish three different types of action that are non-fungible: reduction, avoidance, removal.
4. The absolute priority of companies must be to reduce their emissions.
5. Companies must assess the totality of their value chain emissions.
6. The emission reduction goals must be consistent with climate science.
7. Beyond making commitments, it is urgent for companies to obtain �concrete and rapid results on reducing their emissions.
8. Companies must contribute to the decarbonization of their ecosystem �as much as possible, through the generation of avoided emissions.
9. Companies must develop carbon sinks at the fair level.
10. If companies wish to communicate on their climate strategy, it must be done with rigor and irreproachably.

Mutual Accountability For Value Chain Impacts

Organ-ization

Upstream Supply Chain

Customer

(End of �1^st life dispos-ition)

Total Life Cycle / Value Chain

Downstream �Customer Chain

Tier 4 Suppliers:�Raw / virgin material extraction

Tier 3 Suppliers:�Raw material refining and processing

Tier 2 Suppliers: �Parts manufacturing & subassembly

Tier 1 Suppliers: �Final assembly, manufacturing, packaging

Impacts on the environment / nature, on employees, and on society

Supply Chain Scope 3 GHGs Dwarf Buyers’ Scope 1 and 2 Emissions

“Scope 3 Upstream: Big Challenges, Simple Remedies,” CDP, & BCG, June 2024.

Scope 1, 2, and 3 GHG Emission Sources

Tier 4

Tier 3

Tier 2

Tier 1

Buyer / Customer

Supply Chain / Upstream Scope 3

User

End of 1st life disposition

Scope 1

Total Life Cycle / Value Chain

Downstream Scope 3

Scope 2

1

6

8

7

3

4

5

9

10

11

14

13

12

15

2

1

6

7

4

2

Carbon footprints of …

Product Carbon Footprints

Tier 4

Tier 3

Tier 2

Tier 1

Buyer / Customer

Supply Chain / Upstream Scope 3

User

End of 1st life disposition

Scope 1

Downstream Scope 3

Scope 2

6

8

7

3

4

5

9

10

11

14

13

12

15

1

6

7

4

2

Tier 4 Supplier

Tier 3 Supplier

Tier 2 Supplier

Tier 1 Supplier

1

1

1

1

2

2

2

2

3

3

3

3

Product Carbon Footprints

Tier 4 Suppliers:��Raw / virgin material extraction

Tier 3 Suppliers:��Raw material refining and processing

Tier 2 Suppliers:� �Subassembly �& parts manufacturing

Tier 1 Suppliers:�

Final assembly, manufacturing, packaging, sale

​

Buyer / Customer��

Supply Chain / Cradle-to-Gate

Carbon footprints of …

1

2

3

3

3

3

1: Supplier Scope 1 GHG emissions

2: Supplier Scope 2 GHG emissions

3: Supplier Scope 3 GHGs from transportation (Categories 4 & 9)

1

2

1

2

1

2

1

2

Circularity Lowers Carbon Footprints

Buyer / Customer

User

End of 1st life disposition

Avoids resource extraction and production of new goods, which are responsible for 45% of global GHG emissions.

Repairing and refurbishing products can cut global GHG emissions by 39%

Repair & Refurbish

Recycle

Legend

Tier 4 Supplier

Tier 3 Supplier

Tier 2 Supplier

Tier 1 Supplier

Carbon footprints of …

1

2

3

3

3

3

1

2

1

2

1

2

X

X

X

1: Supplier Scope 1 GHG emissions

2: Supplier Scope 2 GHG emissions

3: Supplier Scope 3 GHG emissions� from transportation (Category 9)

Current Drivers of GHG Reductions

Tier 4 Suppliers:��Raw / virgin material extraction

Tier 3 Suppliers:��Raw material refining and processing

Tier 2 Suppliers:� �Subassembly �& parts manufacturing

Tier 1 Suppliers:�

Final assembly, manufacturing, packaging, sale

​

Buyer / Customer��

Government regulations and incentives

Pressure from bankers, investors, employees, etc.

NZP Adds 3 More Drivers of GHG Reductions

Tier 4 Suppliers:��Raw / virgin material extraction

Tier 3 Suppliers:��Raw material refining and processing

Tier 2 Suppliers:� �Subassembly �& parts manufacturing

Tier 1 Suppliers:�

Final assembly, manufacturing, packaging, sale

​

​

Buyer / Customer��

NZP

NZP

NZP

NZP

Government regulations and incentives

Pressure from bankers, investors, employees, etc.

3. Suppliers’ other customers’, and buyers’ customers, use of NZP

2. Ripple effect of NZP through supply chains when suppliers are incentivized to use NZP with their suppliers

1. Customers’ use of NZP with their Tier 1 suppliers

Scope 3 Reduction Strategies

Screen capture from recording of Persefoni“Climate Disclosures and Supply Chain Emissions” webinar, with 3 Degrees and Persefoni.

“Corporate Value Chain (Scope 3) Accounting and Reporting Standard,” GHG Protocol, 2011.

Scope 3-Related Opportunities

“Corporate Value Chain (Scope 3) Accounting and Reporting Standard,” GHG Protocol, 2011.

Scope 3-Related Risks

NZP Increases Demand For Clean Energy

“The Oil and Gas Industry in Net Zero Transitions,” International Energy Agency (IEA), Nov 2023

Supply-side

Demand-side

Fossil Fuels

Renewables

NZP Reduces Demand For Fossil Fuels

Buy products that do not require fossil fuels

(“The Stone Age didn’t end because we ran out of stones …”)

NZCP

Incetivize reduced demand for fossil fuels

Demands for Scope 3 / Supply Chain GHG Disclosures

“Think you won’t have to report Scope 3? Think again.” GreenFin Weekly, GreenBiz, May 2023.

• European Commission’s Corporate Reporting Sustainability Directive (CSRD) now requires more than 3,000 U.S. companies to disclose their GHG emissions data, including Scope 3 emissions, to European regulators and to disclose their 1.5°C aligned transition plans.��
• The Securities and Exchange Commission (SEC) has published a proposed rule to enhance and standardize climate-related disclosure for investors, including Scope 3 emissions.

​

​

Benefits to Buyers of NZP

• Ensures best value for money … weights what matters most.
• Reduces Scope 3 GHGs … reduces products’ carbon footprints.
• Promotes decarbonized, circular economy … market force
• Reduces reputational risk … mitigates supply chain hot-spots.
• Increases employee engagement … company is making a difference.
• Creates supplier partnerships … opportunities for co-innovations.
• Improves readiness for regulations … sustainability and procurement.
• Non-disruptive integration … builds on current procurement systems.
• (Acting as a customer … vs. as a regulator, if buyer is a government.)

Benefits to Suppliers of NZP

• Competitive advantage … earn significant points for GHG efforts.
• Creates a market … for their low-carbon, circular products.
• Increases their reputation … company cares about climate crisis.
• Increases employee engagement … proud company cares and is acting.
• Creates customer partnerships … opportunities for co-innovations.
• Improves readiness for regulations … GHG, reporting, procurement.
• Yields a GHG assessment … shareable with bankers, investors, � other customers, etc.
• Can use NZP with their suppliers … ensures best value for money.

Why Net-Zero Procurement

“5 Reasons Net-Zero Procurement Can Achieve System Change,” Sustainability Advantage blog, May 2022.

https://sustainabilityadvantage.com/2022/04/05/6757/

• Takes action on the high-profile climate crisis  
• Is a Trojan Horse market force
• Expedites a market for sustainable products 
• Quick-starts sustainable business models
• Scales globally

3 Superpowers of Net-Zero Procurement

“7 Benefits to any COP government of Net-Zero Procurement” at sustainabilityadvantage.com/blog/

• Disclosure Superpower: Voluntary disclosure of net-zero progress to prequalify as a supplier
• Incentive Superpower: Suppliers doing the best on net-zero targets receive preferential treatment thru heavy weightings in bid appraisals
• Commitment Superpower: Contract stipulates penalties / bonuses re meeting short-term targets; CEO pay link; and/or public commitment

NZP Is A “Super-Leverage Point”

• Low difficulty
• Low cost
• Reasonably high probability of it gaining traction in all jurisdictions
• Large impact on deployment of clean tech, zero emission solutions

Uses the super-leverage point attributes described in ““The Breakthrough Effect: How To Trigger A Cascade Of Tipping Points To Accelerate The Net Zero Transition,” Bezos Earth Fund, SystemIQ, and University of Exeter, January 2023.

• Influences all major emitting sectors
• Positively supports the transition to a decarbonized, circular economy
• Starts the transition to a sustainable economy

NZP Implementation Plan

• Signal: (immediately, independent of tender activity)
• Buyer explains to all suppliers why are doing this.
• Buyer explains how the Tool scores will be weighted in bid appraisals.
• Buyer requests all suppliers complete the Tool now, as a diagnostic.
• Prefer /Weight: (at tender time)
• Buyer requires all suppliers complete the Tool as part of their bids.
• In the bid appraisal, buyer significantly weights (i.e., at least 10% of the points) suppliers' scores on the Tool. This incentivizes suppliers to do more to reduce their GHGs and their products' carbon footprints.
• Require / Contract: (at contract time)
• Include Ts & Cs requiring verification of the winning supplier’s Tool responses, and penalties / incentives to ensure winning suppliers follow through on their stated plans to further reduce their GHGs.

Ubiquitous Net-Zero Procurement (NZP)

NZP used by all �levels of government in Canada �… and their suppliers

NZP used by all governments and sectors, worldwide

NZP used by �the Canadian Government�… and its suppliers�

Provinces / Territories�/ Municipalities

Suppliers / Buyers

Other countries

CCPI

COP30

Suppliers / Buyers

Suppliers / Buyers

$400B

$30B

$9T

Tier�1

Tier�2

Tier�3

Tier�4

Start small …

… to go big

Align procurement systems to create global market forces �that drive the transition to the world we want, in time.

Expand Net-Zero Procurement to�Sustainable Procurement, to make more supplier and product social and environmental attributes matter.

Institutionalize a decarbonized, circular, and inclusive economy, supported by a regenerative environment.

Procure the World We Want

All countries

All suppliers / Buyers

Sustainable business models

NZP Helps Win the GHG Reduction Trifecta

1. Reduce the carbon footprints of all products to net-zero by 2050 or sooner

NZP incentivizes a buyer’s suppliers to reduce their Scope 1, Scope 2, and relevant Scope 3 GHG emissions to net-zero by 2050 or sooner. If suppliers’ GHG emissions are net-zero, their products' carbon footprints are net-zero.

2. Reduce all organizations' GHG emissions to net-zero by 2050 or sooner

All companies are in supply chains. Deploying NZP with speed and scale, globally, would unleash $trillions of buying power to incentivize a critical mass of companies to reduce their GHGs to net zero by 2050 or sooner.

3. Fix the climate emergency by 2050 or sooner

NZP can be used buyers in all sectors (public, private, academic) to incentivize their suppliers to reduce their GHG emissions. The ubiquitous use of NZP incentivizes all businesses to take action to reduce their GHGs to net-zero by 2050 or sooner, increasing the possibility that we can fix the climate crisis, in time.

How NZP? �NZP Toolkit

NZP Toolkit is a Subset of the SP Toolkit

• NZP product specifications�Used to score the product low-carbon and circularity specifications
• NZP supplier assessment tool�Scores supplier commitment to net-zero targets and to circular design.
• NZP bid appraisal template�Heavily weights the product score on low-carbon and circularity specifications, and the�supplier score on commitment to net-zero targets and to circularity.
• NZP contract Ts & Cs �Ensure winning suppliers’ pledged net-zero and circularity targets are met.

Net-Zero Procurement (NZP) Toolkit

Sustainable Procurement (SP) Toolkit

• SP product specifications�Used to score the product on sustainability-related specifications.
• SP supplier assessment tool�Scores the supplier on its sustainability-related impacts.
• SP bid appraisal template�Heavily weights the product sustainability �score and the supplier sustainability score.��
• SP contract Ts & Cs �Ensure winning suppliers’ pledged sustainability targets are met.

Net-Zero Procurement (NZP) Toolkit

• NZP product specifications�Used to score the product on low-carbon and circularity specifications.
• NZP supplier assessment tool�Scores suppliers’ commitment to net-zero targets and to circular design.
• NZP bid appraisal template�Makes GHG reductions and circular design matter by heavily weighting the product score on low-carbon and circularity specifications, and the�supplier score on commitment to net-zero targets and to circularity.
• NZP contract Ts & Cs �Ensure winning suppliers’ pledged net-zero and circularity targets are met.

Expedites the integration of NZP into any procurement process.

+ The Toolkit also includes a Total Cost of Ownership (TCO) calculator for use, if appropriate.

https://sustainabilityadvantage.com/sp/net-zero/

Pre-Purchase Checklist for NZP

“The most low-carbon and circular products �are the ones you don’t buy.”

Before purchasing new products, ask these questions:

• Do we still need the product’s function? (e.g., filing cabinets 🡪 cloud storage)
• Is the current product repairable / upgradable? (e.g., IT upgrades)
• Could other in-house assets satisfy the desired function? (e.g., share internally)
• Are other “access over ownership” / Product-as-a-Service (PaaS) options viable? �(e.g., managed services, leasing, renting, borrowing, pay-for-use, sharing)
• Could a used / refurbished product satisfy the desired function?
• If we procure this product, could we share it internally or externally and avoid other purchases? If so, might other parties share the cost?

Based on “Circular Procurement: Strategies for Circular Criteria,” Circular Innovation Council (CIC), September 2023.

Sample NZP Product Specs

Based on “Circular Procurement: Strategies for Circular Criteria,” Circular Innovation Council (CIC), September 2023.

NZP Project / Works Specs Checklist

Project socio-economic-related specs

• Subcontracting to local / diverse / equity-seeking community organizations and social enterprises
• Training for disadvantaged workers in trades�

Project low-carbon / circularity specs

• Use of low-carbon materials from sustainable sources
• Use of recycled materials or materials with recycled content
• LEED or Living Building Challenge certification, or equivalent
• Use of domestic materials
• Conservation of natural resources and biodiversity

These specifications are often found in Community Benefit Agreements (CBAs) associated with large infrastructure / works / construction projects.

communitybenefitsagreements.ca

Net-Zero Procurement (NZP) Toolkit

• NZP product specifications�Used to score the product on low-carbon and circularity specifications.
• NZP supplier assessment tool�Scores suppliers’ commitment to net-zero targets and to circular design.
• NZP bid appraisal template�Makes GHG reductions and circular design matter by heavily weighting the product score on low-carbon and circularity specifications, and the�supplier score on commitment to net-zero targets and to circularity.
• NZP contract Ts & Cs �Ensure winning suppliers’ pledged net-zero and circularity targets are met.

Expedites the integration of NZP into any procurement process.

+ The Toolkit also includes a Total Cost of Ownership (TCO) calculator for use, if appropriate.

https://sustainabilityadvantage.com/sp/net-zero/

Excel-based supplier questionnaire

• Sustainability Advantage: Net-Zero Ambition Assessment Tool (NZAAT)

Online supplier questionnaire platforms

• CDP: CDP Supply Chain Membership
• Cority: Supply Chain Sustainability Software
• EcoVadis: Carbon Action Manager (CAM)
• Persefoni: Persefoni Pro
• Salesforce: Supplier Data Model
• Sphera: Supply Chain Sustainability (was SupplyShift)

Supplier GHG Assessment Tools

Online Supplier GHG Assessment Tool Criteria

• Credentials: Experienced, proven, global Provider and Tool
• Question topics: Tailorable Qs? Add, weight, wordsmith Qs?
• Scope 1, 2, some 3: Track? Baseline yr? SBTs? Progress? Plans?
• Renewable energy: Percentage used?
• Governance: Strategic plan? Policies? Exec compensation?
• Supplier resiliency: Back-up, alternate arrangement if disruptions?
• Circularity: Lease options? Refurbished offerings? Recycled content?
• Positive impacts: Credit for helping others reduce their GHGs?
• Use NZP with their suppliers: Create ripple effect in supply chain?
• Support for Suppliers: Education modules? Capacity building? Shareable?
• SME friendly: Length, wording, dynamic configuring, calculation help?
• Supplier scorecard: Dashboard? Benchmarking? Portability? Improvement plan?
• Support for Buyers: Bulk implementation? Tracking of responses? Supplier support?
• Implementation support: Bulk upload of suppliers? Tracking of responses? �Buyer dashboard: Customized? Graphic summaries? Historic tracking?
• Verification / Audit support: Upload of backup/evidence?
• Pricing: Pricing scheme? Free for suppliers? Ballpark $ for unlimited suppliers?

Need to Engage SMEs in the Race to Net-Zero …

“The Benefits for SMEs of Taking Climate Actions,” BDC, December 2023.

Comparison of Online Supplier GHG Assessments