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See discussions, stats, and author profiles for this publication at: Sustainable procurement: The power of public and private consumption for aninclusive green economyBook · January 2015DOI: 10.13140/RG.2.1.2259.9767CITATIONSREADS22007 authors, including:Luciana Stocco BetiolThiago Hector Kanashiro UeharaEscola de Administração de Empresas de São Paulo da Fundação Getulio VargasImperial College London27 PUBLICATIONS 32 CITATIONS30 PUBLICATIONS 30 CITATIONSSEE PROFILESEE PROFILESergio AdeodatoLígia RamosValor EconômicoFundação Getulio Vargas6 PUBLICATIONS 18 CITATIONS10 PUBLICATIONS 10 CITATIONSSEE PROFILESome of the authors of this publication are also working on these related projects:Business Initiatives View projectThe End of Prosperity for Family Farmers? View projectAll content following this page was uploaded by Thiago Hector Kanashiro Uehara on 05 January 2016.The user has requested enhancement of the downloaded file.SEE PROFILE

SustainableProcurementThe Power of Public and Private Consumptionfor an Inclusive Green Economy

SustainableProcurementThe Power of Public and Private Consumptionfor an Inclusive Green EconomySao PauloProgram for Public Administration and Citizenship2015

An initiative ofCenter for Sustainability Studies (GVces) of Sao Paulo Business Administration School at GetulioVargas Foundation (FGV-EAESP)PartnershipICLEI – International Council for Local Environmental Initiatives / South America Secretariat(SAMS)Edition: Sérgio AdeodatoAuthorsLuciana Stocco BetiolThiago Hector Kanashiro UeharaFlorence Karine LaloëGabriela Alem AppuglieseSérgio AdeodatoLígia RamosMario Prestes Monzoni NetoTechnical Collaboration: Ana Coelho, Paulo Branco, Renato Orsato, Renato Armelin, BeatrizKiss, Ute Thiermann, Livia Tiemi Bastos, Ricardo Dinato, Giovanna Sanches and Iago Rodrigues(GVces); Mark Hidson (ICLEI European Secretariat).Communication and Administrative Collaboration: Fábio Storino, Maria Piza, Luiza Xavier, Renata Celete, Bel Brunharo, Daniela Sanches, Ana Bezerra (GVces); Bruna Cerqueira and Laura Santos(ICLEI SAMS), José Francisco da Silva Neto (research).Graphic Design and Art Direction: Walkyria GarottiInfographics: Sandro FalsettiPrinting: Ville Artes GráficasFinancing for Printing: ICLEI BrazilOur acknowledgment to: the technical staff, managers and experts interviewed who receivedus throughout the country and to those who replied our online survey; to ICLEI Brazil Boardof Directors and to ICLEI international staff for their continuous support; to Belo HorizonteMunicipal Government and SEBRAE MG, which made the workshop to support this workpossible, during ICLEI World Congress 2012; and to GesRio for their partnership during Rio 20.Luciana Stocco BetiolThiago Hector Kanashiro UeharaFlorence Karine LaloëGabriela Alem AppuglieseSérgio AdeodatoLígia RamosMario Prestes Monzoni NetoSustainableProcurementSustainable Procurement: The Power of Public and Private Consumption for an Inclusive Green Economy /Luciana Stocco Betiol, Thiago Hector Kanashiro Uehara, Florence Karine Laloë, Gabriela Alem Appugliese,Sérgio Adeodato, Lígia Ramos, Mario Prestes Monzoni Neto. –Sao Paulo: Public Administration and Citizenship Program, 2015.144p.ISBN 978-85-87426-31-4 978-85-87426-20-81. Sustainable Development. 2. Environmental Politics. 3. Environmental Economics. 4. Consumption(Economics) – Environmental Aspects. 5. Consumption (Economics) – Social Aspects. 6. Businesses –Environmental Aspects.I. Betiol, Luciana Stocco. II. Uehara, Thiago Hector Kanashiro. III. Laloë, Florence Karine. IV. Appugliese,Gabriela Alem. V. Adeodato, Sérgio. VI. Ramos, Lígia. VII. Monzoni Neto, Mario Prestes. VIII. Title.CDU 658.89Cataloguing data elaborated by Karl A. Boedecker Library, at Getulio Vargas Foundation – SP.First print runWe authorize total or partial reproduction and distribution of this work, through any conventional or electronicmedia, for study and research purposes, as long as thesource is informed. We would appreciate receiving a copyof any publication that refers to this source document. Itis prohibited to make any kind of use of this publicationfor resale or commercial purposes, without previous written consent of ICLEI Brazil and GVces.This work expresses the opinion of the authors, not necessarily FGV's and ICLEI's opinions. In case readers arewilling to contact us, they can visit our websites:www.fgv.br/ces - www.iclei.org/lacs/portugues - www.sustainable-procurement.orgThe Power of Public and Private Consumptionfor an Inclusive Green EconomyFirst EditionSao PauloProgram for Public Administration and Citizenship2015

ForewordBy Paulo D. Branco*The dimension and severity of economic, social and environmentalchallenges we face make it pretty clear we must apply scale and speedto the adoption of business strategies and practices aligned with sustainabledevelopment. When it comes to speed, I have this feeling we will not haveenough advancements besides the ones already achieved in the last tenyears, based on current regulation and self-regulation drivers and voluntaryinitiatives that have already been adopted by the companies. As for scale, itseems more and more of an illusion to believe individual actions, no matterhow much innovation and good intentions they show, coming from businesses,governments or organizations in the civil society, will be able to tackle thechallenges that currently pose a true crisis to our civilization.Therefore, finding a response for this scenario - in which scale and speed areassumptions - is the core challenge posed to organizations committed to a newdevelopment model, aiming at the well-being of the population as a whole and,at the same time, respecting the planet carrying capacity. And, by acknowledgingFGV-EASP Center for Sustainability Studies (GVces) as one of those organizations,I enthusiastically celebrate the publishing of this book, which fills a gap inknowledge production in Brazil about sustainable procurement and makesit clear how relevant this topic is to broaden and accelerate the adoption ofbusiness practices that incorporate sustainability attributes.Besides the consistency of arguments regarding public and businessconsumption for an inclusive green economy, the book goes beyond and bringsanswers to practical questions that distress many leaders and managers whoI have worked with in the companies. Feeling the pressure for short-termresults and the social and environmental risks that are becoming more andmore concrete and subject to joint liability, professionals from different areas,particularly the ones who work with supplies and sustainability, will find in thiswork valuable arguments and recommendations to enhance their managementand relationship policies and practices with their organization suppliers.And this is not limited either to private or public institutions, since the authorsanalyze both and clearly show us there are more similarities than differencesin the challenges faced by buyers of these two types of organization, whentrying to incorporate sustainability to their decisions.And maybe this finding, that there are more similarities than differences,is the great window of opportunity that the book provides us. I believe thata number of possibilities for cooperation may emerge between businesses,governments and civil society organizations, so we can effectively use theinfluence and power of institutional procurement in the consolidationof a production and consumption model capable of meeting globalsustainability challenges.(*) Paulo D. Branco is Coordinator of the Innovation in Value Creation Program at the Centerfor Sustainability Studies (GVces) at FGV-EAESP, and founding partner of Ekobe, a corporatesustainability consulting firm. In the past 12 years, he has contributed to integrate sustainabledevelopment principles and practices into the strategy of various national and multinationalcompanies, as well as into the value chain of different sectors.

ForewordSBy Pedro Roberto Jacobi*ustainable Procurement is a topic that calls for reflection on how much thesociety in our planet needs to strengthen sustainable practices, and amongthose practices we include changes in the rationale used for public tenderingas a tool to change the modus operandi of the production chain in differentsectors of the economy. The challenge to promote socially and environmentallyresponsible practices extends to all segments of society, but remarkably tochiefs of government and business people, since they play a strategic role todetermine innovative strategies to transform production models and ways topromote lifestyles and behaviors.Currently, moving towards a sustainable society poses a variety of obstacles,since there is limited awareness of the society regarding the implicationsof the current development model. The multiplication of risks - particularlyenvironmental and technological risks that bring along severe consequences- is a critical factor to understand the characteristics, the limits and thetransformations our modern society has been going through. It is pretty clearhow complex this transformation process is in a society that is increasinglynot only threatened, but also directly affected by social and environmentalrisks and harms.The 21st century has started during a social and environmental emergency,which is likely to worsen should current degradation trends persist; it is aproblem deep-rooted in the culture, ways of thinking, values, epistemologicalassumptions and knowledge, which are the base of the political, economicand social system we have.We must reflect on the culture, beliefs, values and knowledge on whichour daily behavior is based, as well as on the anthropological-social paradigmpresent in our actions.Emphasizing practices that encourage inter-sector and mainstreamapproaches shows an important potential to leave commonplace behind,promoting changes in behavior and an increase in social responsibility andenvironmental ethics.The path towards a sustainable society gets more robust when publicpolicies and productive activities are developed focusing on production andsustainable consumption, and society plays its role, strengthening social control.This makes us think about the need to qualify professionals capable ofmaking reflections in order to develop practices connected to the environmentunder the sustainability perspective. Thus, it would represent a chance toencourage and involve people to transform different professional practicesinto potential factors to make society more dynamic and extend social andenvironmental responsibility.There are two paths society has been using as reference to handle the issueof transforming some rationale capable of influencing changes in consumption;efficiency dimensions and end use. As for efficiency, producers have startedto adopt goods and services that use less natural resources and energy, orreuse. However, as the efficiency dimension by itself would not be enough todramatically reduce the use of natural resources, the approach based on theend use is critical, since it emphasizes the provision of people's individual needsusing the least amount of natural resources possible. Those two approachesare substantially different. Whereas the focus on efficiency means to makecurrent models of production and consumption more efficient, the focus onthe end use encourages a change in production and consumption structures,in such a way that people's needs can be met taking up the least amount ofresources possible, prioritizing the green economy.The great challenge here is to change how public policies operate. This willenable us to build development concepts and strategies that foster effectivereduction in practices that produce waste. Also, we will be able to overcome theparadigm that makes pressure on us regarding our planet carrying capacity, andto what extent society is able to find the balance between what it considersecologically necessary, socially desirable and politically feasible or possible.It is worth noting the significant role civil society institutions should playto raise awareness on the importance of having an increasingly sustainableconsumption, based on a joint liability rationale, adopting practices thatguide to a continuous increase of information flow to consumer citizens, andstrengthening certification systems towards an inclusive green economy.Here lays the relevant goal of this publication, which is to offer a broaderaudience a chance for reflection and deepening the knowledge on a topic thatmay increasingly mobilize companies and government bodies - public andcorporate consumption for an inclusive green economy.(*) Pedro Roberto Jacobi is the President of ICLEI Brazil, Head Professor at the Education Collegeand at the Post-Graduation Program in Environmental Science – University of Sao Paulo (USP)

IntroductionThe book entitled ‘Sustainable Procurement: The Power of Public and PrivateConsumption for an Inclusive Green Economy’, produced by the Center forSustainability Studies (GVces) at Getulio Vargas Foundation, in partnershipwith ICLEI – International Council for Local Environmental Initiatives/SouthAmerica Secretariat (SAMS), is the result of combining the knowledgeand consolidating the experiences from both institutions on sustainableinstitutional procurement.The background for this work are the Public Sustainable ProcurementGuide ('Guia de Compras Públicas Sustentáveis') editions, which present manyICLEI experiences with the Procura campaign, an international landmarkon 'sustainable public procurement', and the methodology that fosteredadvancements and reflections about the role of public authorities as a largeconsumer and sustainability driver. Also, GVces experiences with supplymanagement in large corporations and the willingness to better understandsynergies between the public and the business sector when it comes tosustainable procurement.Under the umbrella of the concept of inclusive green economy, a newdevelopment model was proposed, then renewed in 2012 during the UnitedNations Conference known as Rio 20. GVces and ICLEI teams, along withjournalist Sergio Adeodato, elaborated this work, aimed at institutions C-levelmanagement, their corresponding managers and buyers, as well as researchersin the area. Written in a journalistic language, still preserving the academicrigor, the text is lighthearted and inspiring, and its greatest goal emerges:to guide policies and foster sustainable institutional procurement practices.“It's a fight against time." That is how the book begins, presenting a historicalbackground of how the topic of sustainable production and consumption wasincluded in the global agenda. It is clear in the work who and what the potentialactors and instruments that interact for that purpose are. In a fun way, thematicinfographics show the impact from consumption and production, inspired byLife Cycle Assessment (LCA).In Chapters 2 and 3, readers will find inspiring examples of institutionalprocurement collected through exclusive interviews, news articles, corporatereports and scientific articles describing successful experiences in the publicand private sectors, highlighting which institutions broke the resistanceand became protagonists in the use of transformation potential throughsustainable consumption and production.In Chapter 4, under a guidance perspective, two tools are recommended forcontinuously improving management of public and business procurement - theformer was developed by ICLEI, for the Procura campaign, and the latter by theUN Global Compact. Also, propositions are presented in order to incorporatesustainability attributes in the procurement and supply management systems.Based on our experiences with consultancies and projects in partnership withgovernments, business platforms and academic researches, a survey wasconducted with about 50 institutions, among public bodies and businesses,organizing lessons learnt and calling attention for facilitators and barriers ofinstitutional consumption aimed at sustainability. Among the institutions wesurveyed, we picked up the examples described in this work.Finally, in Chapter 5, under an integrated perspective of sectors and actors,including individual consumers, we made a critical analysis of the advancementsand challenges faced in the past years, and point to guidelines for the future ofthe so-wanted 'inclusive green economy', considering institutional procurementas an essential tool to (re)build a global scenario that is more favorable tosustainable development.Enjoy!Luciana Stocco BetiolCoordinator of the Sustainable Consumption Program, Center forSustainability Studies at Getulio Vargas FoundationSao Paulo Business Administration SchoolFlorence Karine LaloëExecutive Secretary/CEO of ICLEI – International Council for LocalEnvironmental Initiatives, South America Secretariat (SAMS)

Table of Contents1The Consumption Dilemma25 Years of Sustainable Development. What's next?2The Role of the Public SectorFrom Sustainable Biddings to New Government Policies345Business EngagementThe Impact of Procurement Criteria in Production ChainsBeyond Prices, Deadlines and QualityNew Models Guide Public and Private ManagersA More Balanced PlanetAssessing Economic, Environmental and Social Gains***Glossary of TermsIndexBibliographical References123270100122134136138

The Consumption DilemmaFABIO RODRIGUES-POZZEBOM/ABR/ EBCISTOCKPHOTO1Procurement and social andenvironmental challenges after 25years of sustainable development.What's next?It's a fight against time. A silent and continuous search for sustainablelife standards that ensure well-being for future generations. Be it inbig cities, in the Amazon or in the Sahara, it is a battle that involves us all,rich and poor, and it aims at breaking the inertia, breaking the resistanceand creating new habits of production and consumption. Mission: revertthe current social and environmental degradation process and overcomethe financial crisis that threatens the fight against poverty, peace and (eco)system conservation. It is a complex goal, but still possible, and importantsteps were taken in the last decades to achieve it. We're all in the trenches,each one with their own level of responsibility, from business people toeducators, from professionals to chiefs of government and public managers.Our main weapon: our power to make choices and decisions.1213

The clock spins fast. The world population is already consuming over aand miraculous solutions, but rather initiatives that are already at our reachquarter above what the planet can naturally replace . Nothing less than 15and depend on decision-making. The idea of unlimited material growthout of the 24 vital services offered by nature, such as water, climate balancebased on limited natural resources is actually unsustainable.1and soils for food production are clearly declining, according to the UnitedAs an alert warning, UNEP's report is emphatic upon proposing elimi-Nations (UN) . Without new production models, we are being conductednating harmful public subsidies, such as the current US 1 trillion targetedto a global warming above security limits, as estimated by the Intergovern-every year to the energy sector, based on dirty sources, like charcoal and oil6.mental Panel on Climate Change. If the current pace is kept, experts say, byIt is a dark scenario when it comes to the planet impoverishment, but it2100 the Earth may be between 3 and 5 degrees Centigrade warmer thancould still be reverted to ensure resources to afford future generations. It isa century ago, being threatened by natural disasters, lack of raw material,a complex path, as it requires changes in the daily routines of households,increase of social inequality, and adverse impacts on life conditions .businesses and governments. What is at stake here is the challenge to give23What could have been taken in the

Sustainable procu rement: The power of public and private consu mption for an inclusive green economy Book · Januar y 2015 DOI: 10.13140/RG.2.1.2259.9767 CITATIONS 2 READS 200 7 authors , including: Some o f the authors of this public ation are also w orking on these r elated projects: Business Initiativ es Vie w project

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