The Good Economist January 2016 | Page 13

Procurement has a key role in sustainability. In recent years, public procurement practices, or the purchase of goods and services, have evolved from being merely transactional to strategic and value-driven. Now employed as an innovative method to address complex and long-standing community, economic, and environmental issues, the procurement process is used as an instrument to achieving public policy goals and objectives. It is for these reasons the City of Philadelphia should institute a sustainable procurement program. A sustainable procurement policy is a strategic step towards healthier and more sustainable communities in Philadelphia and should be an integral component of a comprehensive environmental and sustainability policy program.

Sustainable procurement differs from traditional procurement in that it would allow the City to consider environmental and social concerns, not simply the lowest bid. Sustainable procurement looks beyond the initial cost and probes deeper into the long-term costs across the entire lifecycle, including operational and waste disposal costs. Taking into consideration the complete lifecycle cost of products and services, Philadelphia would increase the financial, environmental, and social productivity of taxpayer dollars.

Economic growth, environmental stewardship, and social equity reflect the three primary principals of the triple bottom line. A sustainable procurement policy, in being specifically focused on enhancing the triple bottom line, would ensure that the City invests in goods and services that bring long-term financial, environmental, and social benefits to Philadelphians. Procurement represents the City’s primary interaction with the marketplace, and, with over $800 million awarded in contracts annually, the City is one of the region’s largest market participants. Leveraging this substantial purchasing power, sustainable procurement would encourage the growth and development of environmentally friendly and socially responsible businesses in the region by facilitating the market expansion of environmentally-preferred products and services. In addition to creating momentum for sustainable products, sustainable procurement provides a foundation of support for local, sustainable businesses through an effective preference for commerce with local businesses, providing more money and more jobs for Philadelphians.

Why the City of Philadelphia Needs a Sustainable Procurement

Program

13