Global Government Procurement Creates 15% Carbon Emissions

Global Government Procurement Creates 15% Carbon Emissions

February 1, 2022
Procurement

A recent report by the global business strategists Boston Consulting Group and the World Economic Forum has found global government procurement is responsible for 15% of all greenhouse gas emissions. Their study reported that governments spend $11trillion(USD) annually-or 15% of global GDP, on procurement every year. Our own prior study, tracked the value of global procurement at $13 Trillion(USD) per year, suggesting that the greenhouse gas emissions could be even higher than the BCG findings.

The BCG study also found that approx 70% of the annual 7.5 billion tonnes of worldwide carbon emissions associated with public procurement were concentrated in just six sectors, primarily defence and security, largely through their manufacturing using heavy materials. Waste management, transport, and construction were the next highest polluters followed by industrial products and utilities.

Public procurement has only recently been considered by governments as a legitimate path to achieving net zero, but it is now certainly in the spotlight with recent initiatives from both the US Governments  and UK Governments.

The BCG report concluded that approximately 40% of all emissions related to government procurement could be mitigated by just $15 (USD) per ton of Co2 emissions. They forecast that greener public procurement policies and processes should increase costs to governments by no more than 3% to 6%.

Measuring carbon in public procurement is something we have been working on here at Spend Network for a while. We are pleased to release our first cut carbon dashboard, focusing just on the UK at the moment. We set out to generate a Co2 value for every contract in the UK. By using our state-of-the-art machine learning tools, plus a lot of data cleaning. This is our first visualisation and our plans are to enhance and broaden the scope. You can review the dashboard here, and you’re welcome to feedback on your thoughts here.

June 30, 2022

Open Data & Measuring Progress

We believe all public procurement should be sustainable and open. Recently, with our partners Open Contracting and Public, we launched a new...
June 28, 2022

Blacklisting Needs Kid Gloves

In the UK’s House of Lords debate on procurement reform, there was some forthright questioning within the government on whether Bain and...
June 22, 2022

Bain’s Woes in RSA Raises Questions in Parliament

Last week in a Lords Chamber debate, Lord Peter Hain asked why Bain & Company were still able to bid for multi-million-pound...
June 22, 2022

Procurement and impact

Governments spend over 13tn USD a year with their suppliers, or around 15% of global GDP. We’ve started analysing the carbon intensity...
June 16, 2022

Australian Pandemic PPE Contracts Cause Concern.

Much of the last two years have seen governments all over the world in a purchasing panic due to the pandemic. Understandably...
June 16, 2022

Goodbye KPIs, Hello Data Quality

There’s a truth to Tom Peter’s famous quote “what gets measured, gets done”. Peters was a writer and thinker on management practice...
June 9, 2022

National Capital Authority Under Procurement Scrutiny

The National Capital Authority (NCA) was established in 1989 under the Australian Capital Territory (Planning and Land Management) Act 1988 (PALM Act) following the...
June 7, 2022

Indo-Pacific Economic Framework for Prosperity Begins

A group of Indo-Pacific nations has banded together to begin the process of developing an Indo-Pacific Economic Framework for Prosperity. This framework...
May 31, 2022

Stormy Times For Meteorological Procurement

The UK government faces trial in the High Court over its award of an £854 million contract for a new Meteorological Office...
May 25, 2022

UK Left Waiting On Transparency

The UK’s latest procurement bill promises much, but many of the technical details remain to be defined. The drafting of the procurement...
May 24, 2022

Empty Fishing Lakes.

We’ve written before about frameworks, but some improved analysis from our brilliant data team made us think it was time to revisit...
May 11, 2022

Collaborative Procurement For The Construction Industry

The Centre for Built Britain has released a white paper on Procurement Strategies for incentivising collaborative delivery, which explores how a collaborative...
May 12, 2022

MoD £2 Billion in Nuclear Contracts.

Britain's Ministry of Defence announced this week that over £2 billion worth of defence contracts have been awarded to start the third...
May 10, 2022

New Support For Canadian SME Traders.

The Government of Canada recently released its 2022 Federal Budget. Within it was an announcement of an intention to establish a Trade...
April 29, 2022

Progressive Procurement Yields Results

Last year, we shared the results of the landmark Aboriginal Procurement policy (APP), first introduced by Western Australia’s Premier, Mark MacGowan in...

Newsletter

Compelling research, insights and data directly into your inbox.

Recent media stories

The Times
May 30, 2022
CIPFA
August 3, 2021

Search

Scroll to Top