Policy on Green Procurement

The Policy on Green Procurement is a federal directive requiring Canadian government departments and agencies to integrate environmental considerations into their buying decisions. Introduced in April 2006 and updated in 2018, with further revisions in 2022, it pushes you to think beyond just price and evaluate the environmental footprint of what you're purchasing. This isn't optional—deputy heads must set green procurement targets and demonstrate they're buying environmentally preferable goods when value for money can be shown.

How It Works

When you're defining procurement requirements, Section 2.20 of the Supply Manual provides the framework for incorporating green procurement principles. Contracting officers work with their clients to identify opportunities that support departmental environmental targets right from the start. The policy operates within the context of achieving value for money—meaning you can't sacrifice fiscal responsibility, but you need to actively weigh environmental impacts alongside cost and performance.

Here's the thing: the 2022 revision added a significant transparency component. For major procurements, suppliers are now expected to disclose greenhouse gas emissions associated with their products or services through PSPC's tracking portal. This shifts green procurement from a general principle to something measurable. You're not just asking if a supplier considers sustainability—you're asking them to quantify their carbon footprint.

In practice, this means integrating life cycle costing into your evaluation process. You look at total environmental impact from production through disposal, not just the upfront purchase price. The Treasury Board's policy explicitly connects this to climate change adaptation, positioning procurement as a tool for reducing the environmental impacts of government operations overall.

Key Considerations

• Target-setting is mandatory. Deputy heads can't opt out of establishing green procurement targets for their departments. If you're supporting procurement planning, you need to understand what targets your organization has committed to.

• Documentation matters for GHG disclosures. The 2022 revisions mean tracking and reporting emissions data isn't just good practice—it's becoming standard for larger contracts. Make sure you know which procurements trigger this requirement.

• Environmental stewardship doesn't override procurement fundamentals. You still need to follow the Code of Conduct for Procurement and demonstrate value for money. Green considerations inform your decision but don't replace due diligence on price, quality, and supplier capability.

• This affects requirement definition, not just evaluation. Section 2.20 emphasizes working with clients early to identify green opportunities. Wait until the RFP stage? You've already missed the chance to structure requirements that enable environmental performance.

Related Terms

Life Cycle Costing, Total Cost of Ownership, Value for Money, Code of Conduct for Procurement, Socio-Economic Procurement

Sources

• Supply Manual - Section 2.20: Green procurement and defining the requirement

• Policy on Green Procurement - Treasury Board of Canada Secretariat

• Applying the Policy on Green Procurement (canada.ca)

If you're evaluating bids and environmental factors weren't built into your requirement definition or evaluation criteria from the start, you've likely missed the policy's intent. Green procurement works best when it shapes what you're asking for, not just how you score it.