What are the challenges to sustainable procurement in commercial semi-state bodies in ireland?
| Published date | 01 March 2014 |
| Date | 01 March 2014 |
| Pages | 395-445 |
| DOI | https://doi.org/10.1108/JOPP-14-03-2014-B004 |
| Author | Joey Gormly |
| Subject Matter | Public policy & environmental management,Politics,Public adminstration & management,Government,Economics,Public Finance/economics,Texation/public revenue |
JOURNAL OF PUBLIC PROCUREMENT, VOLUME 14, ISSUE 3, 395-445 FALL 2014
WHAT ARE THE CHALLENGES TO SUSTAINABLE PROCUREMENT IN
COMMERCIAL SEMI-STATE BODIES IN IRELAND?
Joey Gormly*
ABSTRACT. It is unclear as to what extent sustainable procurement is being
practised in Ireland and what barriers there are to implementing it in
organisations. This study provides the first complete insight into the use of
sustainable procurement in Irish commercial semi-state bodies. It explores
the extent and type of use of sustainable procurement plus identifies and
examines the challenges to its use. A deductive approach is utilised to
determine the barriers. Eleven participants, nine from the commercial semi-
state bodies and two experts with knowledge of this subject, are interviewed
using semi-structured questions. The research findings show that
sustainable procurement is being practised in the majority of the commercial
semi-state bodies. Definition of sustainable procurement, the absence of
mandatory guidelines, cost, time and a dearth of sustainable procurement
knowledge by suppliers are some of the main barriers put forward by
participants.
INTRODUCTION
The United Nation’s commissioned report in 1987 entitled “Our
Common Future” chaired by the Norwegian Prime Minister, Gro
Harlem Brundtland advocated that long term strategies must be put
in place to protect the environment and allow for sustainable
development. This report, the third independent world commission of
its kind, also highlighted the importance of food security, the danger
of increasing population and the threat to species and our eco-
systems (World Commission on Environment and Development,
1987). Over two decades later, in March 2010, the European
Commission issued its 10 year strategy entitled Europe 2020, with
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* Joey Gormly, MSc in Strategic Procurement, is a Procurement Executive
for Dublin Bus a public transport provider in Dublin, Ireland.
Copyright © 2014 by PrAcademics Press
396 GORMLY
five targets; employment, research and development, climate change
and sustainability, education and fighting poverty and social
exclusion. There are common themes between the UN and EU
reports.
Public Procurement, by way of Sustainable Procurement (SP) or
Green Procurement (GP), has been identified by the EU as one
conduit which can greatly assist in attaining these targets
(http://ec.europa.eu/europe2020). This is due to the influence that
public procurers can have over the market as a result of the annual
public expenditure of over two trillion Euros. The use of sustainable
and green procurement criteria, in the procurement of goods,
services and works, can assist in attaining these goals. Therefore the
EU has decreed that SP should be utilised to achieve these targets
(Buying Green 2011). Member states have reacted differently to the
Europe2020 objective so in order to stimulate action in this area
each member state has been encouraged by the EU to “adopt
National Action Plans (NAPs) for greening their public procurement,
outlining the priority objectives at national level and setting out the
environmental criteria for some priority product categories” (Tarantini,
Loprieno & Porta 2011, p.2473) in order to align its strategy with
Europe 2020 targets.
It has been demonstrated that the rates of adoption of NAPs by
EU member states vary however. According to a report entitled The
Uptake of Green Public Procurement (GPP) published in 2012 the
EU27 this rate of adoption may account for the high rate of uptake in
GPP in some countries (e.g. Denmark over 80% uptake – NAP
introduced in 1994 and revised in 2008) and the low rate of uptake
in others (e.g. Ireland less than 20% uptake – though there was no
NAP in place at the time of study).
The Irish Government’s own NAP, entitled “Green Tenders,” was
launched in January 2012. It is apparent from this publication that
there is a national agenda to utilise SP however it is still without real
legislative obligation. As a result it is unclear as to whether it is
actually being implemented by public and semi-state bodies and
what, if any, barriers exist in preventing its use. Little research has
been conducted in the use of SP in an Irish context, particularly from
a commercial semi-state perspective. In light of this, a first qualitative
insight into how SP is being practised in Irish commercial semi-state
bodies will be conducted by exploring its use in these organisations.
CHALLENGES TO SUSTAINABLE PROCUREMENT IN COMMERCIAL SEMI-STATE BODIES IN IRELAND 397
Secondly the research will attempt to ascertain what the barriers are
to using SP and will then examine these barriers.
LITERATURE REVIEW
It is widely acknowledged that public procurement is a key actor
in stimulating economic activity throughout the EU. The role of
procurement in organisations has increased in recent years
particularly in public authorities as a result of the worldwide economic
recession and the resultant decrease in funds for government
expenditure. A greater emphasis, especially in Ireland, has been
placed on the need for the reduction of costs and obtaining better
value for money. By procurement it is understood that it includes; all
activities required in order to get the product from the supplier to its
final destination…based on total cost of ownership (TCO), rather than
price. (Van Weele 2010, p.407)
Procurement according to McCrudden (2004) can assist in
delivering government objectives like encouraging innovation in
domestic supply markets, through the use of public money in
supporting social and environmental aims. It is also noted by Thai
(2001) as one of the key economic activities of government.
Sustainability and sustainable development has also gained more
importance of late. The use of the term sustainable development,
“development which meets the needs of the present without
compromising the ability of future generations to meet their own
needs” (World Commission on Environment and Development 1987)
was propagated by the Bruntland Report. Sustainability, as
Shrivastava (1995, p. 955) puts it, can be viewed as “the potential for
reducing long-term risks associated with resource depletion,
fluctuations in energy costs, product liabilities, and pollution and
waste management.”
There is an abundance of definitions of sustainable development
and sustainability but it is generally accepted that it refers to the
consideration of the social, economic and environmental aspects of
an organisation’s business and its interaction with these elements.
However Carter and Rogers (2008) argue that a review of existing
literature demonstrates that sustainability has not been defined and
applied consistently in research. Elkington (1998, 2004)
conceptualises it as the “triple bottom line;” the balancing of
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