Net-Zero Procurement
What is Net-Zero Procurement (NZP)?
Here is the the four-part definition:
“Net-Zero Procurement” 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.”
See “Decoding Sustainable Procurement and Its 4 Starter Subsets” blog for an explanation of how Net-Zero Procurement and Circular Procurement are subsets of Sustainable Procurement. They 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 NZP is so strategic
- “Use Net-Zero Procurement to Win the GHG Reduction Trifecta.” This blog explains how deploying NZP 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.
Click here to download a companion 6-panel handout. - “How Net-Zero Procurement Could Be the Lynchpin for a Wellbeing Economy.” A brief overview the what, why, how, and so-what of Net-Zero Procurement is 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 Net-Zero Public Procurement 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 Net-Zero Public Procurement qualifies as a super leverage point. - 7 Benefits to Any COP Government of Net-Zero Procurement
This blog outlines seven benefits of governments including a commitment to implement Net-Zero Procurement in the agreement signed at the end of the next annual Conference of the Parties (COP). - 3 Superpowers of Net-Zero Procurement
This blog describes how Net-Zero Procurement is an untapped super market force that could save the day for humankind, or at least fix climate change. - 5 Reasons Net-Zero Procurement 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 Net-Zero Procurement is a force for system change that can succeed.
Net-Zero Procurement Toolkit
The free, open-source Net-Zero Procurement (NCP) 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:
- NZP 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.
- NZP Supplier Disclosure Tool: The free, open-source, Excel-based Net-Zero Ambition Assessment Tool (NZAAT) 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 NZAAT 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 NZAAT 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. The comparison facilitates assessing which of the six offerings is the best fit for a particular buyer’s needs. - NZP Bid Appraisal Template: This template heavily weights (i.e., at least 10% of the points) 1) supplier commitment to net zero 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 NZCP system.
- NZP 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.
Click here to download the NZP Toolkit.
Click here to download a handout that provides an overview of how the NZP Toolkit can be used to incentivize suppliers to reduce their GHG emissions.
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 Net-Zero Procurement (NZP)
- Status of NZP
- Support organizations
