Saturday, December 28, 2024

Democratizing Sustainable Procurement Knowledge


There are few events in history that have profoundly reshaped both individual perspectives and societal norms. The COVID-19 pandemic was undoubtedly one such transformative event, leaving an indelible mark on the human psyche. Personally, it was a period of profound impact for me. When the Indian government imposed a strict lockdown in March 2020 after a few thousand COVID-positive cases were reported, I found myself stranded in a guest house in Mumbai with no prior warning whatsoever. My only connection to the outside world was through my phone and internet. Initially, I spent days engrossed in understanding the unfolding pandemic while marvelling at glimpses of cleaner air, quieter cities, and reduced carbon emissions. But soon, I redirected my attention to a commitment I had made just before the pandemic struck: writing a book for Springer Nature.

The suspension of passenger train services, though a source of hardship for millions, became a unique advantage for me. With fewer official responsibilities demanding my time, I could delve deeper into research and writing. Being a novice to writing a book, I made a habit of  jotting down even the smallest, seemingly random thoughts related to sustainable procurement. I would celebrate each day I managed to write a single page, typically 400–500 words. Many of these ideas were eventually discarded, but the practice helped refine my thoughts. This routine persisted long after the lockdown ended and offices reopened, extending into 2022.

 

By March 2022, my manuscript had swelled to over 500 pages, replete with repetitions and redundancies. Over the next few months, with the invaluable help of my family, I streamlined the content, organizing chapters and trimming the text to under 400 pages. The reviewers' positive feedback validated the effort, and by June 2022, I received the book cover (http://bit.ly/3VZPGL9). On October 7, 2022, the book, Understanding Sustainable Public Procurement: Reflections from India and the World (https://link.springer.com/book/10.1007/978-3-031-08258-0), was officially released. While the online version became available immediately, the physical release took place during the 16th Asia-Pacific Roundtable for Sustainable Consumption and Production (APRSCP) conference in Bangkok on November 21, 2022 (https://bit.ly/4iRJmzf).

 

Initially, I was apprehensive. Would the book resonate with the niche audience of practitioners, academics, and policymakers in this field? I was also concerned about its price—around USD 100—in a world where 44% of the population lives on less than $6.85 a day. I was confident the book would find readers in Europe and North America, if for nothing else but for diversity of views. But I hoped this book to be read by policymakers in poor and developing economies because the principles of sustainable procurement is universal in addressing the horizontal objectives such as employment generation, development of local economy, supports for SMEs, empowering women owned business, etc. My aim was clear: to encourage policymakers in developing nations to craft sustainable procurement policies aligned with their unique development priorities, rather than merely replicating models from developed countries.

 

Surprisingly, my concerns proved unfounded. The book surpassed 1,000 copies sold within a year, crossed 2,000 by March 2024 (https://bit.ly/40bNnHp), and exceeded 3,000 by November 2024 (https://bit.ly/3PgEZ32). Analytics from Springer indicate that the book consistently outperformed the global average for similar titles, a remarkable feat given its specialized audience. Interestingly, while downloads in developed countries were expected, the significant interest from the Global South was both surprising and heartening.

 

For me, each download represents someone who is ready to drive meaningful, positive change through procurement. It symbolizes a growing movement of individuals and organizations recognizing the transformative potential of public procurement as more than just a transactional activity. Each download reflects a commitment to leveraging procurement as a strategic tool to build sustainable, inclusive, and resilient communities. It signals a shift in perspective, where procurement is seen as a powerful mechanism for fostering economic resilience, promoting environmental stewardship, and advancing social progress. Together, these downloads mark a collective effort to redefine procurement as a force for good, shaping a future where public spending aligns with the broader goals of sustainability and equity.

 

This global reach disrupts conventional narratives about where sustainability thrives, proving that the commitment to sustainable procurement transcends borders and economic divides. It underscores a shared determination to embrace innovative procurement practices in diverse contexts—be it Egypt's strategic adaptation, South Africa's resilience, Colombia's ambitious reforms, or Vietnam's forward-thinking integration. This dynamic spread raises a profound question: Have I, in some small way, contributed to the democratization of sustainable procurement knowledge? Is the world embracing a more equitable exchange of ideas and strategies, where every nation, regardless of its starting point, contributes to and benefits from a global shift towards sustainability? This map is more than just a visual—it is a testament to the universal recognition of procurement's power to drive meaningful change and a challenge to continue breaking down barriers to knowledge, innovation, and progress.

 

While this journey has been deeply fulfilling, I recognize that it’s no excuse for the long hiatus from this platform. Over 20,000 curious readers visit here for updates on sustainable procurement worldwide, and I promise to be more regular in sharing insights. Wishing you all a very Happy New Year 2025!

 


Tuesday, August 27, 2019

The Role of National Action Plan in Sustainable Procurement Implementation

(An abridged version of this blog was published in Business Standards, Mumbai, India on 30.06.2019 under the title "Five ways to implement sustainable procurement.")

In March 2018, the Government of India notified a Task Force (TF) on Sustainable Public Procurement (SPP) with the aim to transform its procurement policies in the light of climate change and SDGs. A year on, SPP stakeholders are eagerly waiting for a public announcement of some sort.

A similar SPP journey, via task force route, was started by the UK in 2005. In 2006, its task force report - “Procuring the Future” – paved the way for the country’s SPP implementation, aiming for the UK to emerge as an SPP leader in EU by 2010. Today, the UK is one of the leading countries in this field not only in Europe but also in the world. In 2002, Japan took the route of legislation and enacted a law on the Promotion of Procurement of Eco-friendly Goods and Services by public agencies. Since 2006, the Republic of Korea has a dedicated SPP policy, with clear targets for SPP in its Third Action Plan for the Promotion of Purchase of Green Products (2016-20). Similarly, Brazil too has its SPP policy embedded in its Action Plan for Sustainable Consumption and Production: Guidelines for its Implementation (2016-20). Closer home, China, Malaysia, Thailand, Indonesia, Sri Lanka, etc. all have policies and action plans for implementing SPP. 

The key learning here is that having a policy is only the beginning; the ultimate push for transforming these policies into actual practices will come from a national action plan with a clear mandate, dedicated resources, delegated roles and responsibility, clear-cut set timelines and monitoring mechanisms. United Nations Environment Programme Guidelines on SPP Implementation published in 2012 also advocates the critical role of action plan in SPP implementation.  

India took its first serious step in this direction in 2017 via the executive route and came up with new General Financial Rules (GFR) 2017 and Manual for Procurement of Goods 2017. While these directives facilitate the procurement of sustainable products by public authorities, there is no significant progress. Therefore, setting up a task force to develop a National Action Plan (NAP) on SPP Implementation shows government’s commitment to the issue and is in consonance with international experiences in SPP implementation. 

The Task Force has created a positive buzz in the region with countries keenly observing what shape India’s NAP will take. Considering India’s stake in the region, this plan has the potential to transform business rules and usher in a new era of regional collaboration to meet SDGs. Regional countries already having an SPP policy stand to gain via sustainable supply chain linkages with a regional power; those yet to formulate a policy, can take guidance regarding best practices.

International experiences on action plan show that countries have taken different routes to ensure implementation. However, what is common is that all action plans reflect the prevailing ground realities of the respective countries. India’s NAP must also address her context-specific needs and provide clear direction on the following five elements for successful SPP implementation. 

Definition of Sustainable: Understanding relevant impacts of a product on the environment, society and human health besides economic impact, and taking responsibility for these impacts is fundamental to begin SPP journey. How does one say that a product is sustainable? Individual responses would vary depending on their interpretation of balancing organizational and national priorities with larger objectives of climate change and sustainable development. The NAP must come out clear on these priorities so that sustainability conveys the same meaning to all stakeholders involved in the procurement process. 
SPP Policy Framework: A clear and concise SPP policy framework legitimizes procurement of sustainable goods by public procurers without fear of retribution in the future by oversight bodies. The NAP should further clearly specify national and international obligations that apply to public bodies in the context of public procurement and internalize them in SPP policy. 
List of Prioritised Products: In order to maximize outcome, it is important to prioritize product categories based on national context, spend analysis, risks mitigation opportunities, market readiness, degree of market influence, etc. Having prioritized them, the NAP should specify product criteria for sending unambiguous signal to the market and channelizing investment in design, development, and manufacturing of those products. Such a top-down approach will further ensure that resources are aligned to those initiatives which are most likely to generate maximum sustainability outcome. 
Institutional Governance Mechanism: Creation of a separate institute/cell, provided with adequate teeth and resources - both financial & human - and mandate to assign, govern and review, would go a long way in fast-tracking implementation of SPP. This Cell would drive SPP implementation, coordinate various activities with ministries for identification, development, and review of product(s) criteria, and design and impart appropriate training modules for different stakeholders. It would further take upon itself to adopt an appropriate communication strategy for disseminating guidance on SPP to market and other stakeholders to support effective implementation of SPP policy. 
Training & Capacity Building: Most of the procurers do not know how to apply existing policy into actual practices. Identifying training needs of different stakeholders, designing appropriate training modules and delivering them in a time-bound manner are prerequisites for launching SPP. Without this, any attempt to move forward on SPP would at best give tardy progress on the ground. Designating training institutes, possibly as a joint operation with the proposed Cell, as centers of excellence on SPP would pay good dividends in the long run. 
Finally, one must remember that the plan would need revision and updating as India gains experiences on SPP implementation. NAP, thus, must provide for feedback from stakeholders to flow in on a regular basis so that the latest developments/ solutions may be incorporated. This would ensure that NAP remains relevant in emerging scenarios and continues to spearhead India’s SPP movement. 

Monday, December 31, 2018

Sustainable Procurement Task Force: India is in the Game


Finally, it happened in 2018! Engagement with the Ministry of Finance over the last couple of years paid off and we now have a Sustainable Procurement Task Force. My engagement in the process began some two years back when my suggestions on making enabling provisions for integrating sustainability in procurement process were accepted and was incorporated in the Manual for Procurement of Goods 2017. It picked up momentum when I was requested to make a presentation before Secretary/Expenditure, Ministry of Finance, Government of India, on 22nd February 2018. Sensing the huge opportunity for scaling up sustainable procurement policy in India, and barely able to contain my excitement, I immediately began fine-tuning my slides. It was almost done when I was informed that my presentation has been rescheduled to 28th Feb, 2018. This was hardly a surprise, in fact, I was almost anticipating it; but it still managed to bring my enthusiasm down several notches. With the second postponement, this time to 7th March, a distinct sense of déjà vu was creeping up on me. It was important for me to continue feeling positive, so keeping my belief firm in ‘whatever happens, happens for the best”, I utilized the time to crystalize my thoughts and review my slides. I also got them reviewed by colleagues and friends, which not only led to some new insights but also endorsed those that I was proposing.


Come 7th March, I was well on time in Fresco Hall, Ministry of Finance, waiting for the Secretary to arrive. The focus of my presentation was building up a business case for embedding sustainable procurement policy in India. I underscored the fact that enabling provisions brought out by the Ministry in the General Financial Rules 2017 and the Manual for Procurement of Goods 2017 would remain on the shelf unless we create an enabling ecosystem for implementing provisions on the ground. In my concluding slide, I presented a Sustainable Procurement Implementation Framework and recommended to constitute a Sustainable Procurement Task Force, which would be the first building block for pan-India SPP implementation.

My 30 minutes presentation was followed by a brief discussion of about the same duration, and was chaired by the Secretary/Expenditure and attended by a few officials from the Ministry of Finance (MoF) and Ministry of Environment Forest and Climate Change (MoEFCC), and Head, UN Environment India. During the discussion, the Secretary agreed with my recommendation to form a Sustainable Procurement Task Force and suggested the formation of a lean and agile Task Force. To say that I was thrilled by his assurance would be an understatement! It was for the first time, after years of advocacy, that such an assurance was forthcoming and that too from an official of such high stature. Thanks to his commitment and support by ministry officials, the notification regarding constitution of the Task Force was issued on 19th March, 2018.


This was a significant leap forward in the history of implementation of sustainable procurement policy in India in many aspects. To begin with, it was the first time that the Ministry of Finance, the custodian of public procurement policy in India, had come forward to take the onus for implementation of sustainable procurement policy in India. Secondly, the whole process had top management support, as the Secretary himself chaired the meeting and gave the green signal for constitution of the Sustainable Procurement Task Force. Thirdly, the decision to move forward on sustainable procurement itself has a wider repercussion for policy making in India considering the cross cutting nature of public procurement. Most significantly, it is probably the first time that discussion around integrating sustainability in public policy has moved outside the MoEFCC and is being championed by the MoF. Successful implementation of sustainable procurement policy in India has wider ramifications for South Asian countries. It would encourage other countries in the region to embrace sustainability in procurement decisions.  

Since the constitution of the Task Force, it has met five times. The Task Force, during its meetings, has invited industry chambers, private sectors, experts from specific fields, and others to solicit their views and opinions on resolving challenges for adaptation by practitioners. Serving a dual purpose, the interaction also acts as a sounding board for industries to look out for things to come in the future.

The path ahead is of course very challenging. The biggest challenge before the Task Force is to come up with a National Action Plan that can serve as a core strategy to coordinate and align activities of different stakeholders, as well as provide a legal framework for action. Another major challenge is to understand risks and opportunities associated with different spend categories, prioritize product categories and then focus efforts and resources on these categories to maximize sustainability outcome. The Task Force is fully geared to address all these challenges in a systematic manner. It has been trying to tie up with different institutions to carry out these activities and work out financing mechanism for supporting implementation strategy. Hope we will hear some official communique in the New Year.

2018 has undoubtedly been a momentous year for SPP community, in general, and Sustainable Procurement in India, in particular. Not only do we have a Task Force, we have a functioning Task Force, which believes in the power of procurement to transform the market for a greener and equitable world. I have huge hopes for 2019. Watch this space for more good news in the coming months. On this positive note, I wish you all a very Happy New Year 2019!