ITPEC FE Morning October 2018 Question 67

Preferring low-environmental-impact products from environmentally active suppliers — green procurement adds environmental criteria to quality and price.

Green procurement is a purchasing policy. When buying goods or services, the organization considers not only quality and price but also the environmental burden of the product and whether the supplier is working to reduce its environmental impact, and gives preference to those that do.

Answer (a)

Why not others:

• •(b) — a tradable certificate for power generated from sunlight, biomass, wind or geothermal heat is a green power certificate
• •(c) — international standards for third-party-certified environmental labels such as eco marks are eco-label standards (ISO 14020 series)
• •(d) — publicizing environmental activities and raising money from investors for them is environmental communication and green finance, not purchasing

Key rule: Procurement is about how an organization buys; the green version adds environmental impact of the product and the supplier to the selection criteria.

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