Procurement category: Furniture
Environmental and social impacts targeted: circular economy, hazardous substance reduction, human rights and fair labour practices.
Relevant EU legislation/policy/guidance: EU GPP criteria on Furniture (2017) and the Technical background report.
Background
In September 2024, the City of Helsinki launched a tender for office and public space furniture intending to ensure high environmental and social standards. The framework agreement was designed to promote circular economy principles, minimise environmental impacts, and uphold human rights and fair labour practices.
The procurement fulfils the objectives of the city of Helsinki's procurement strategy 2020 and action plan for the circular and sharing economy. In particular, it contributes to the goal of achieving a carbon-neutral circular economy by 2035, in which the city's purchases are based on the economical use of natural resources, including minimising the use of virgin materials and preventing waste generation.
Procurement objectives
The procurement was led by the Procurement and Tendering Unit of the City Executive Office, which is responsible for centralised procurement services. The call for tenders aimed to conclude supply contracts for a comprehensive range of office and public space furniture for the use of the City of Helsinki's various divisions, business units and Helsinki Konsernihankinta Oy's shareholders Kaupunkiliikenne Oy (City Transport Ltd), Kaupunkitilat Oy (Urban Spaces Ltd), Urheiluhallit Oy (Sports Halls Ltd), and Helen Oy (Helsinki Energy Ltd).
The tenderer was required to have the ability to supply a comprehensive range of both office and public furniture. Public furniture means, for example, seating, reception desks, and tables suitable for a building lobby.
Market consultation included an invitation to companies for one-on-one dialogues and a request for comments on draft criteria. The Procurement and Tendering Unit received comments from six companies and had market dialogues with five of them.
Tender requirements
The Procurement and Tendering Unit carried out the procurement process for office and public space furniture under a four-year framework agreement, which included a three-year base contract and a one-year option. The maximum procurement value was EUR 40 million.
Up to ten suppliers could be admitted to the framework agreement and ranked by their lowest reference price. For contracts up to EUR 60,000, awards could be made on a first-come, first-served basis or through mini-competitions, with exceptions allowed if a preferred supplier could not meet requirements. Contracts exceeding EUR 60,000 were awarded via mini-competitions, where specific conditions could be applied, and evaluation criteria varied from 40% to 70% for price and the remainder for quality.
Additionally, a reverse auction tendering model could be used for mini-competitions, promoting flexibility and encouraging cost reductions among suppliers. In this case, suppliers would be invited to compete under predefined conditions and bid dynamically against each other, encouraging cost reductions.
Selection Criteria
Environmental compliance:
- The provider complies with the requirements of legislation and guidelines issued by the authorities in their field of activity, including environmental protection and waste management legislation and regulations. Compliance was demonstrated through relevant certifications, declarations, or other evidence, such as third-party verifications, environmental management system certifications (e.g., ISO 14001), or self-declarations subject to verification.
- The provider complies with strict limits on harmful substances in furniture materials to protect human health and the environment. It bans and restricts substances of very high concern (SVHCs), carcinogenic dyes, and certain chemicals in surface treatments while restricting formaldehyde emissions, PVC plastics, and solvent-based adhesives.
Circular economy & waste reduction:
- During the tendering process, providers must demonstrate the ability to offer a defined range of used furniture that meets the specified quality and usability criteria.
- The provider must operate an online store or an equivalent electronic ordering system that allows buyers to view the available used furniture.
Ethical supply chains & social responsibility:
- The provider complies with a Code of Conduct, which outlines suppliers' sustainability and accountability commitments, ensuring compliance with human rights, fair labour conditions, and environmental protection in line with ILO Conventions and the UN Convention on the Rights of the Child. Suppliers must guarantee ethical supply chains, maintain transparency through annual sustainability reports, and ensure compliance through contract monitoring and audits.
Technical Specifications
- At least 20% by weight of the metal in the products is recycled metal. The manufacturer or foundry of the furniture supplied shall be able to provide a declaration of the use of recycled metal.
- All plastic parts of the furniture offered for sale, weighing at least 100 grams, must bear a plastic recycling label. Plastic parts shall be marked according to ISO 11469 or equivalent, depending on the year of manufacture of the plastic part.
- Labelling is not required if labelling would adversely affect the performance or functionality of the plastic part or if it is not technically feasible to label the part. Labelling can weaken structural integrity, interfere with coatings, or degrade under heat and chemicals. It may also disrupt precision parts, obstruct transparency, or be unfeasible in small components, justifying exemptions.
- However, if requested by the contracting entity, the tenderer shall be able to demonstrate recyclability through manufacturer declarations, third-party certifications, material data sheets, or industry databases.
- The fabrics used in furniture must meet the Ökotex 100, the EU Ecolabel, or other equivalent standards.
- New fabrics used in furniture must have a minimum wear life of 100,000 Martindale. All new fabrics used in furniture shall have a minimum pilling resistance of 4 and a minimum colour fastness of 5.
- All products meet the requirements of EN standards or equivalent standards for wear resistance, structural strength, safety and sturdiness, as required by their intended use.
- A user manual in Finnish is available for the products, which includes instructions for cleaning and maintenance. The care instructions for the furniture in the ranges and the standard fabrics used in the furniture shall be available on the supplier's website.
- New products are guaranteed for at least 5 years. Used furniture has a minimum warranty of 12 months.
- Furniture must have available and obtainable spare parts (e.g. removable legs or shelves) and fasteners (e.g. fittings and screws) for at least the duration of the warranty. It must be possible to dismantle the furniture for repairs and replace worn or broken parts (e.g. floor protectors for table and chair legs must be replaceable).
- At least 80% of the wood material for new furniture must come from forests that are managed in accordance with proven sustainable forest management principles and activities (PEFC or equivalent certified wood content).
- The packaging materials used by the supplier are recyclable, suitable for energy recovery (i.e., incineration with energy recovery) and are aluminium-free.
Award Criteria
The primary criterion for awarding contracts is the lowest price. However, quality and sustainability factors can carry a weighting of 30-60% in mini-competitions. Suppliers have the option to reduce prices or increase discounts for additional competitiveness. Mini-competitions may consider best value for money, where environmental and social criteria can be prioritised.
Contract Clauses
Environmental & social compliance monitoring:
- During the contract period, the contracting entity will define five (5) products to be checked annually for hazardous substances. The provider must be prepared to submit a report on fulfilling the requirement once a year if requested.
- Suppliers must submit two reports annually detailing procurement data, including purchases by site and product category.
- Suppliers must comply with limits on harmful substances in furniture materials throughout the contract period, with annual product testing and documentation reviews ensuring ongoing compliance.
Sustainable transport & logistics:
- At the contract's start, the transport equipment used for deliveries must have an emission level of at least EURO 6.
- At the latest, after the first 2 years of the contract, 100% of the vehicles used to provide the service must be powered solely by renewable HVO diesel, electricity, biogas, or fossil-free hydrogen.
- Suppliers must use efficient route planning to minimise fuel consumption and CO₂ emissions, contributing to overall sustainability goals. The provider is responsible for the route planning related to the service, which must have the appropriate software available.
Results
Including used furniture as a mandatory requirement and tightening criteria on hazardous substances had a significant impact on the tendering process, necessitating a market dialogue to assess feasibility. The key challenge was determining which sustainability criteria could be applied to used furniture, as traceability issues made enforcing standards related to hazardous substances difficult. The contractual clauses for annual compliance monitoring regarding hazardous substance checks on five selected products, along with product testing and documentation reviews, facilitate the verification and adherence to harmful substance limits.
Despite these complexities, 13 suppliers submitted bids. To be admitted to the framework, suppliers were required to meet the defined criteria, though not all could be fully verified at the tender stage, relying instead on assurances from bidders. Ten operators were admitted to the framework. Certain criteria, particularly those related to sustainability, will be monitored throughout the contract period. The framework agreement ensures the procurement of furniture that aligns with stricter environmental standards while ensuring competition and value for money.
Environmental impacts
While it is too early to assess the framework's impact, the procurement addressed key environmental issues by seeking to reduce waste, eliminate harmful substances, and lower emissions. Around 10 million tonnes of furniture are discarded annually in the EU. Requirements for second-hand furniture, recycled materials, and sustainable packaging can minimise landfill waste and resource consumption. Reusing furniture helps reduce the extraction of raw materials, lowers greenhouse gas emissions from manufacturing, and minimises overall environmental impacts. By incorporating second-hand furniture and recycled materials into this procurement, the initiative extends product lifecycles, diverts waste from landfills, and contributes to a more circular economy. While exact data is not yet available, similar projects have demonstrated significant reductions in resource consumption and emissions, reinforcing the environmental benefits of prioritising reuse.
Socially, the procurement enforced fair labour conditions, human rights protections, and transparency in supply chains. Compliance with ILO conventions and Helsinki’s Code of Conduct ensured ethical sourcing, fair wages, and safe working environments. These measures set a precedent for responsible public procurement, encouraging market-wide adoption of sustainable practices.
Lessons learned
- Do engage the market early – market dialogue was instrumental in understanding the feasibility of sustainability criteria, particularly for used furniture. This step helps align expectations between buyers and suppliers.
- Do not assume full traceability for used products – the procurement process highlighted that some sustainability criteria, especially those related to hazardous substances, are challenging to apply to second-hand furniture due to traceability limitations. Future tenders should acknowledge these constraints.
- Establish a robust monitoring system – given that not all criteria can be fully verified at the tendering stage, the ongoing checks and reporting requirements will be crucial in ensuring compliance.
More information
Contact person: Leona Silberstein, Environmental expert