Low-carbon and Circular Procurement

What is Low-carbon and Circular Procurement (LCP)?

Here is the the four-part definition:

“Low-carbon and Circular Procurement (LCP)” ensures that buyers…

…obtain best value for money by purchasing…

…the best and most low-carbon and circular goods & services…

…from the best and most low-carbon and circular suppliers, …

…in support of the buyer’s purpose and strategic goals.”

LCP can be used to quick-start sustainable procurement by focusing first on climate-related and circularity-related aspects of suppliers’ sustainability performance, rather than the supplier’s overall sustainability performance.

Context for why LCP is so strategic

(Note: The blogs were written before the “Net-Zero Procurement (NZP)” name was changed to “Low-carbon and Circular Procurement (LCP).” Same thing, new name.)

  • “Use LCP to Win the GHG Reduction Trifecta.” This blog explains how deploying LCP with speed and scale will 1) reduce product carbon footprints to net- zero; 2) reduce  businesses GHG emissions to net-zero; and 3) mitigate the global climate crisis, in time.
  • “How LCP Could Be the Lynchpin for a Wellbeing Economy.” A brief overview the what, why, how, and so-what of LCP in this recording of a WEAll webinar by Bob. The first 20 minutes are the presentation; the rest is Q&A with WEAll attendees.
  • 7 Ways LCP use by governments is a Super-Leverage Point
    “Super-leverage points” are opportunities that have relatively low cost, low difficulty, and a relatively high chance of catalyzing a tipping cascade.  This blog explains how LCP qualifies as a super leverage point.
  • 7 Benefits to Any COP Government of LCP
    This blog outlines seven benefits of  governments including a commitment to implement LCP in the agreement signed at the end of the next annual Conference of the Parties (COP).
  • 3 Superpowers of LCP
    This blog describes how LCP is an untapped super market force that could save the day for humankind, or at least fix climate change.
  • 5 Reasons LCP Can Achieve System Change
    We’ve been unsuccessfully inching our way toward system change for years, mostly on the margins. This blog proposes five reasons that LCP is a force for system change that can succeed.

Briefing Note

You may have occasion to propose that your local, provincial / state / territory, or federal government use Low-carbon and Circular Procurement (LCP). They may prefer that you frame your proposal as a 2-page briefing note. For example, this briefing note is designed for use with the Government of Canada. It succinctly provides the rationale for LCP through all levels of government in Canada, and how it is the most effective way for the public sector to mobilize the business community in the race to net-zero. It is provided in Word format for use as a template for a Briefing Note appropriate for your situation.

A companion infographic is available here.

LCP Toolkit

The free, open-source Low-Carbon and Circular Procurement (LCP) Toolkit  contains templates and tools that enable the rapid and smooth integration of a core net-zero and circular procurement elements into any existing procurement system. The Toolkit contains four core elements:

  • LCP Product Specifications:  This is a checklist of sample low-carbon / circular generic and product category-specific specifications that can be used in RFPs to ensure goods and services are low-carbon and circularly designed. These specifications are in addition to the normal quality and performance specifications required by the user.
  • LCP Supplier Disclosure Tool: The free, open-source, Excel-based Low-carbon and Circularity Assessment Tool (LCAT)  enables a supplier to assess its commitment to science-based net-zero greenhouse gas (GHG) targets and to circularity. The toolkit includes guidance on how to use Excel’s  Power Query to consolidate LCAT results from many suppliers. Then Excel’s Pivot Table function or Power BI could be used to analyze the consolidated results, and generate reports and dashboard charts.
    If an online, digitized version of LCAT is required, there is a side-by-side comparison of how six online supplier GHG questionnaires provided by CDP, Cority, EcoVadis, Persefoni, Salesforce, and Sphera meet 24 desired criteria. They are compared with an online version of LCAT on the Qualtrics platform. The comparison facilitates assessing which of the  offerings is the best fit for a particular buyer’s needs.
  • LCP Bid Appraisal Template: This template heavily weights (i.e., at least 10% of the points) 1)  supplier commitment to GHG reduction targets and to circularity and 2) product low-carbon / circular features. The weightings in the appraisal makes supplier and product net-zero and circularity attributes matter. This is the signature feature of a LCP system.
  • LCP Sample Terms & Conditions (Ts & Cs): Contracts with winning suppliers stipulate an appropriate combination of incentives, penalties and conditions that reinforce supplier commitment to net-zero targets and circularity.
  • Bonus: Total Cost of Ownership (TCO) Tool: This tool monetizes all ongoing direct and indirect costs, benefits and value associated with an acquisition. That is, it helps determine if initially paying more for the goods and services is the best long-term financial decision. It is used when appraising bids for large capital goods / assets. It can be used with any purchase, not just sustainability-related or climate-related acquisitions. It is also helpful when comparing lease vs. purchase options.
  • Bonus: Scope 1 & 2 Action Planning Worksheet: This worksheet can be used to prioritize actions to improve performance on reducing Scope 1 and 2 GHGs.

Click here to download the LCP Toolkit.

Feedback: The toolkit is being continuously improved. Your suggestions are welcome. Please send your ideas to bobwillard@sustainabilityadvantage.com. Thanks.

Sustainable procurement slides 

The Master – Sustainable Procurement slide deck is one of the six slide decks available to Master Slide Decks subscribers. It includes:

  • What, why and how of Sustainable Procurement (SP)
  • What, why and how of Low-carbon and Circularity Procurement (LCP)
  • Status of LCP
  • Support organizations