The role of project consultants in implementing sustainable procurement
Sustainable approaches to procurement can drive efficiencies across a project lifecycle, increase innovation in the supply chain and create long-term value. But how can project consultants support in embedding sustainable procurement practices to foster long-term value for businesses while mitigating additional costs?
In September 2023, we published the findings of our Middle East sustainability survey. From the survey, we identified four clear focus areas that demand attention as the Middle East’s construction industry sets its sights on a more sustainable future. These centre around sustainable procurement, regulation, project lifecycles and net-zero goals.
With over 80 percent of carbon emissions in the construction sector currently attributed to supply chains, there is a critical link between procurement practices, environmental impact and business continuity.
COP28 saw the United Arab Emirates (UAE) commit to sustainable outcomes for the built environment, including the Green Procurement Pledge, Cement and Concrete Breakthrough and the UAE Climate Agreement.
These commitments signal a strategic move from the Middle East towards sustainability, generating hope of increased awareness locally, market transformation and regulatory change that will amplify sustainability and net-zero project ambitions.
While, traditionally, the Middle East’s procurement practices focused on driving value through cost and time, many industry professionals now understand the benefits of a more sustainable approach, which is helping the industry play its part in driving change and meeting sustainability goals.
Regional sustainability goals intensify as Middle East construction grows
The UAE continues to grow and develop with the aim of reaching the maturity of Western markets. This year, its construction industry is set to have a compound annual growth rate (CAGR) of 3.5 percent.
As the Middle East market matures, we could see regional sustainability goals pressure procurement teams as they are pushed to prioritise Environmental, Social and Governance principles when selecting suppliers. This will include evaluating and prioritising sustainable and local sourcing. Adopting such procurement practices fosters long-term sustainability for businesses and suppliers, and enables project owners to mitigate against additional costs and delays. It also facilitates job creation, contributing to sustainable economic growth.
Here, we identify the need and opportunities for project consultants to support clients in embedding sustainable procurement across the project life cycle.
Implementing sustainable procurement throughout the project's life cycle
Embedding sustainable procurement across the project lifecycle involves integrating sustainable considerations into every stage of the project, from initial planning to operational activities. For effective implementation, collaboration and communication are needed across all departments, supported by clear policies, guidelines and incentives.
Georgina Bonney, Senior Sustainability Consultant, Middle East comments:
Embedding a sustainable procurement approach can support in bridging the gap between net-zero optimism and operational reality by facilitating greater understanding and transparency about current performance and opportunity areas for growth.
In the design phase, this could mean:
- Embracing a holistic approach to sustainability by integrating environmental, social and economic considerations into design decisions.
- Collaborating closely with clients and project teams to establish sustainability goals and performance targets, guiding material selection and specification.
- Advocating for designers to use sustainable building materials and technologies, considering lifecycle impacts and performance criteria.
Capturing customer needs within the design to ensure the usability of the space.
Case study: We worked with a leading global nutrition client on an office fit-out where they placed heavy focus on green procurement, sourcing low-carbon materials, minimising waste to landfill and reducing the carbon footprint of the project.
In the procurement phase, this could mean:
- Prioritising supplier engagement and transparency, communicating expectations around sustainability and fostering partnerships with like-minded suppliers.
- Embracing sustainable sourcing practices by prioritising materials with lower environmental footprints and sourcing locally, limiting the environmental and social impacts while benefitting in-country suppliers.
- Conducting robust supplier assessments to evaluate environmental and social performance, ensuring alignment with project sustainability goals.
Case study: A government defence client required a comprehensive supply chain mapping tools and competencies for all equipment suppliers. As part of this we developed methodologies to help analyse and interpret multiple risk metrics and the corresponding mitigating actions. This work contributed to building internal and external capacity understanding of supply chain impacts building to address the complexities associated with carbon reduction across value chains.
In the construction phase, this could mean:
- Monitoring and enforcing sustainability requirements throughout the construction process, providing oversight and guidance to contractors and subcontractors.
- Implementing waste reduction strategies and promoting onsite recycling and reuse of materials to minimise any adverse environmental repercussions.
- Advocating for ethical labour practices and safe working conditions, prioritising the wellbeing of workers and local communities.
Case study: We helped a transportation client conduct materiality assessments so it could better understand direction of travel, views on supplier capability and overarching maturity. We also helped with product sourcing, working to a defined sustainability criterion. Our ongoing supplier relationship management ensures a ‘green thread’ from client requirements through to delivery.
In the operation and maintenance phase, this could mean:
- Supporting clients in implementing sustainable operations and maintenance practices, optimising energy and water efficiency and promoting occupant engagement.
- Facilitating ongoing monitoring and performance evaluation to track sustainability metrics and identify opportunities for improvement.
- Providing training to empower clients and facility managers to effectively manage sustainable building operations.
Case study: We supported a global real estate company to produce a carbon baseline, assess carbon reduction pathways and develop a roadmap along with associated actions plans. These action plans served to prioritise and assess 130,000 suppliers with an accompanying supply chain engagement cost model to drive their supply chain decarbonisation strategy.
Redefining supply chains for a greener future
The impact supply chains have on the pillars of sustainability highlights the pressing need to address emissions across the supply chain, while also integrating sustainability principles into everyday operations.
As the UAE continues to evolve, sustainability must be ingrained in project and business practices, addressing environmental, social and economic considerations. Sustainable procurement can support in reducing these impacts across the supply chain, through collaboration, transparency and innovation through all stages of the project life cycle.
Our approach to sustainable procurement enables our clients to develop a deeper understanding of their changing operating environment, and implications of their supply chain.