How the Big Buyers Working Together project advances Sustainable and Socially Responsible Public Procurement

Sandra Simões, Member of the Board of Directors of the Institute of Public Markets, Real Estate and Construction (IMPIC), the institute that regulates the construction, real estate and public procurement sector in Portugal.

Public procurement is responsible for 14% of the EU GDP and the EU increasingly sees it as a key strategic tool that can contribute to social, innovative and sustainable policy goals. How does the Big Buyers Working Together (BBWT) project advance the EU’s work in this context?

This project was created to support the collaboration between public buyers with strong purchasing power and promote a wider use of strategic public procurement for innovative and sustainable solutions. It allows for public buyers from the various member states to reflect together, share challenges and obstacles, as well as good practices and experiences, and work together to  have a real impact on markets and the economy, improve competitiveness, focus on practices and actions that reduce negative impacts on the environment, respect workers' rights and promote social welfare, stimulate innovation and favour sustainable development.

How can BBWT contribute to a more resilient, competitive and social EU single market?

BBWT can contribute to these objectives through the use of public buyers' combined purchasing power; the pooling and sharing of resources and information that can help identify and mitigate risks in global supply chains, reducing vulnerabilities to disruptions; the setting of high standards and the demand for creative solutions that can drive technological advancements and foster an innovative culture among suppliers; the incorporation of social and environmental considerations into procurement decisions, ensuring fair labor practices and decent working conditions; the facilitation of the exchange of best practices, market intelligence, and technical expertise, the development of common standards and specifications to simplify procurement processes and cut costs; the cooperation of suppliers to enhance their capabilities and support sustainable business practices; and the support of local SMEs, contributing to job creation and economic development in regional communities. In addition to ensuring a coordinated response to crises by procuring necessary goods and services, joint procurement can generate economies of scale, which can result in reduced prices and better efficiency; it can also encourage local sourcing, which can enhance regional economies and lessen dependency on distant suppliers.

A united approach to procurement may make the EU single market more robust, competitive, and socially conscious, which will benefit both individuals and public authorities.

In this new iteration of BBWT, new Communities of Practice were introduced, including one on the topic of socially responsible public procurement (SRPP). From your point of view, why do you think this inclusion is necessary and how can the community of practice support the uptake of SRPP?

By adapting to the challenges of the 21st century and always aiming for better management of public funds by promoting new practices, public procurement can serve as a lever for a more competitive market, but also for a fairer society, contributing not only to the achievement of the SDGs set out in the 2030 Agenda, but also to stimulating innovation and the modernisation of the national economy. Based on the reality in Portugal, but also on my perception of what happens in most of the member states with whom I have had contact, the three dimensions of strategic public procurement (environmental, social and innovation) have very asymmetrical maturities. There is a long tradition of green procurement initiatives and measures, in the case of contracts for innovation, there is already a commitment and some developments. However, in the case of socially responsible procurement, the initiatives are scattered, ad hoc and lack a strategic and well-founded vision.

This Community of Practice (CoP) has enabled discussion and reflection on issues relating to socially responsible public procurement, the search for commonly accepted definitions and concepts, the sharing of experiences and good practices,the mapping of the national legal framework of each Member State joining this CoP, the search for knowledge and dialogue with various stakeholders, especially in the field of social dialogue, and participation in conferences and seminars. 

What do you seek to achieve with the Community of Practice on Social Procurement and what are the activities that will be carried out?

The lack of clear guidelines on the correct application of social criteria and considerations in the award process and contract execution conditions, the difficulty in knowing how to monitor and calculate social effects and life cycle costs, as well as little experience and practical cases in these matters, encourages this group to draw up collections of good practices in socially responsible public procurement, develop detailed guides for the inclusion and monitoring of social criteria in public procurement, as well as ways to encourage sustainable and responsible business behaviour in companies' activities and in their global value chains. This Community of Practice is mainly focusing on labour rights in the supply chain, with special focus on the procurement procedures of constructions and services in general. By sharing insights and experiences on the theme, it can help members navigate complex regulatory landscapes and identify opportunities for collaboration. Working together to ensure compliance can strengthen relationships and foster a culture of sustainability. 

How can the Community of Practice on Social Procurement benefit from the latest and upcoming regulations?

New regulations often introduce updated standards and compliance requirements, providing the Community of Practice (CoP) on Social Procurement with an opportunity to advance socially responsible practices. The CoP can leverage these changes by strengthening labour rights and working conditions. Regulations focusing on labour rights offer a framework to improve monitoring and enforcement mechanisms within procurement. In this way, the CoP can promote and help to ensure gender equality, fair wages, and safe working environments across their supply chains. We can also implement better tools for auditing/monitoring suppliers and verifying adherence to labour standards.

Upcoming regulations may emphasize the inclusion of underrepresented groups, such as people with disabilities or those from vulnerable backgrounds. The CoP can align procurement strategies to create employment opportunities for these groups, fostering inclusive economic growth. Regulations that promote sustainability can also help the CoP develop procurement strategies that prioritize environmentally friendly and socially responsible suppliers. This can lead to more sustainable supply chains and reduced environmental impact.

The CoP can benefit from regulations that encourage market dialogues and expert meetings. These interactions can provide valuable insights and help the CoP adapt their procurement criteria to align with national and international standards. By actively engaging with these regulations, the Community of Practice on Social Procurement can enhance its impact and contribute to broader social policy goals and demonstrate leadership in advancing social value and fostering responsible procurement ecosystems.

For more information about the project, please visit BBWT website.