ITPEC FE Morning April 2023 Question 65

Preferential purchase of products and services with a lower environmental burden — green procurement adds environmental impact to the criteria for buying.

When an organisation buys goods or services, green procurement has it weigh not only quality, price and delivery but also the environmental load over the product's life cycle (energy use, recyclability, hazardous substances), and prefer the option that is lighter on the environment, often from suppliers active in environmental management. Public bodies and companies adopt it as part of their procurement policy and CSR.

Answer (c)

Why not others:

• •(a) — a tradable certificate for electricity from renewable sources is a green power certificate (renewable energy certificate)
• •(b) — publicising environmental protection and raising investor money for it is environmental campaigning and green finance, not a purchasing policy
• •(d) — labels certifying that a product helps the environment are environmental labels (eco-labels, the ISO 14020 series); green procurement may rely on them as evidence, but it is the buying policy itself

Key rule: A procurement term describes how an organisation buys; green procurement makes environmental burden one of the selection criteria.

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