ITPEC FE Morning April 2019 Question 65

Green procurement — when buying, the company prefers products and services recognised as addressing environmental concerns.

Green procurement adds environmental impact to the purchase criteria next to quality, price and delivery: the company chooses goods with a lower environmental burden, such as recycled or energy-saving products, and suppliers that are themselves active on the environment. It is a way of carrying out environmental responsibility through purchasing.

Answer (c)

Why not others:

• •(a) CSR — corporate social responsibility, the whole range of a company's duties to society and its stakeholders; green procurement can be part of it, but CSR does not name the purchasing practice
• •(b) Environmental assessment — evaluating in advance the environmental impact of a project, such as a large development, before it is carried out
• •(d) Macro environment analysis — studying external factors the company cannot control, such as politics, economy, society and technology (PEST); a strategy tool, not a purchasing policy

Key rule: Green procurement concerns what a company buys and from whom; environmental assessment concerns the impact of what it is about to build.

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