What was once just a buzzword has become a core priority for public agencies aiming to reduce environmental impact while maintaining compliance and cost efficiency. But procurement teams face significant hurdles when trying to integrate sustainability into their purchasing strategies. Regulatory requirements, budget constraints, limited supplier availability, and tracking issues can slow progress and prevent agencies from meeting their sustainability goals.
There is some good news, though. With the right strategies and tools, agencies can streamline sustainable procurement and overcome these common challenges. Let’s explore the key obstacles and how procurement teams can successfully navigate them.
Our latest white paper explores key sustainability challenges in public procurement, actionable solutions for implementing green procurement strategies, data supporting the importance of sustainability, and case studies from public agencies who have successfully integrated sustainability into their procurement.
Many procurement regulations don’t explicitly mandate sustainability, making it difficult for agencies to prioritize environmentally friendly purchases. Even when green procurement programs exist, inconsistencies between state and local policies create confusion and slow adoption.
Solution: Agencies can address this by developing clear sustainability policies and incorporating environmental criteria into bid evaluations. Resources like the Environmental Protection Agency’s (EPA) Framework for the Assessment of Environmental Standards and the United Nations' Sustainable Development Goals can help establish guidelines that align with best practices.
Many times, agencies assume sustainable products will cost more than their traditional counterparts, often deterring procurement teams from making eco-friendly choices. Agencies operating under tight budgets may struggle to justify the upfront investment, even when sustainable options lead to long-term savings.
Solution: Shifting the focus from initial cost to total cost of ownership (TCO) can help agencies see the long-term financial benefits of sustainability. By considering factors like energy efficiency, maintenance, and waste reduction, agencies can make cost-effective, eco-friendly choices that pay off over time.
Finding vendors who meet sustainability standards, especially small and disadvantaged businesses, can be difficult. Many suppliers lack the resources to comply with sustainability requirements, limiting the pool of qualified vendors.
Solution: Procurement teams can support suppliers through training programs and simplified compliance tracking. Digital procurement platforms like PlanetBids allow agencies to streamline vendor management, ensuring that suppliers meet sustainability criteria while making it easier for small businesses to participate.
Sustainability efforts can only be effective when properly tracked and reported on. Many agencies lack the tools to monitor their environmental impact, making it difficult to measure progress, ensure compliance, and improve sustainability initiatives.
Solution: Digital procurement software can automate sustainability tracking, making it easier for agencies to collect vendor sustainability certifications, monitor carbon footprint reductions, and generate automated compliance reports
Software like PlanetBids’ end-to-end procurement platform help agencies centralize procurement activities while increasing transparency and efficiency in sustainable purchasing decisions.
As part of a major infrastructure expansion, San Diego International Airport implemented sustainable procurement strategies while increasing contract awards to small and diverse businesses. With automated bid evaluation and vendor transparency tools, the airport reduced its carbon footprint by 30%, demonstrating how digital procurement solutions can drive measurable sustainability results.
Sustainable procurement is a journey, but the right policies, tools, and strategies can help agencies overcome common challenges. By developing clear policies, using TCO analysis, supporting vendors, and leveraging digital procurement solutions, public agencies can drive long-term sustainability success while improving efficiency and compliance.
Ready to take your agency’s procurement strategy to the next level? Learn more about how PlanetBids can help streamline sustainable procurement.
Want more information on addressing sustainability challenges? Download our latest white paper, Sustainable Procurement in the Public Sector: Challenges, Solutions, and Success Stories.