Climate change is being treated seriously by many governments, including the UK government. I fact, the government is taking environmental responsibility and sustainable practices very seriously indeed, for example, incorporating sustainable products and Corporate Social Responsibility (CSR) into local and central government department goals. It also committed the country to reach net zero goals by 2050.
Public procurement is one of the largest sectors in the UK economy and is expected to play a large role in the drive for sustainable development and sustainable living to reach net zero. As one of the biggest sectors in the supply chain of the country, it has plenty of opportunities to leverage environmental and social responsibility initiatives that contribute to the fight against climate change.
So, what is sustainability in public procurement and how does it affect sustainable marketing strategies? This two-part post deeply delves into sustainable marketing practices, public sector procurement sustainability, and how you can make sustainable marketing campaigns meet government contract sustainability requirements.
Sustainable Public Procurement (SSP)
Public sector bodies are legally required to consider environmental issues and social value in their tendering process. This includes social, eco-friendly, and economic programmes, projects, and initiatives that have a positive impact on local communities.
They are also required to use the principles of transparency in all procurement. Transparency is especially important in the public sector because it works with taxpayers’ money and taxpayers want to know that their money is well spent.
Contracting authorities must be able to account for every penny to avoid allegations of fraud, favouritism, and embezzlement. It’s also important to track ‘lost’ or ‘misplaced’ funds, whether accidental or intentional.
Sustainability isn’t just the government’s responsibility. Suppliers need to play ball by launching or joining existing charitable and upliftment sustainability initiatives that align with their business practices, mission, and values. Suppliers can also do things like use renewable energy, reduce water waste, and use recycled materials.
This puts them a step ahead when government tenders are published, because they already have eco credentials.
Sustainability Assessments
Some might think that sustainable and environmentally friendly business practices in the B2G market aren’t quantifiable. They’re wrong.
It’s just a matter of choosing the right KPIs and the most suitable impact assessment method.
That doesn’t clear it up though, does it?
So let’s look at the three priorities – social, social and environmental responsibility and, economic – and see how they can be measured.
Environmental Impact Assessment
This is the impact that suppliers have on the environment. It can be their business, innovative marketing practices, processes, energy use, waste generated, and their social value initiative.
Let’s say you’re working on energy use.
First, you need to set your KPIs, for example, energy consumption per unit of production or energy usage intensity. Then you need to establish a baseline; your current energy use. The best way to determine your current energy use is to get a professional energy auditor to determine your energy consumption. Now you have your baseline and your KPIs, so you know what you’re aiming for.
You can use an Energy Management System to collect data and monitor your energy use. It locates areas of high energy use and times when use is at its highest. It monitors your goals or KPIs and tracks progress so you know if you need to catch up or if you’re right on track.
You can install smart meters which integrate with your EMS, so you get accurate real-time data regarding your energy consumption. This helps to identify opportunities for improvement and optimisation, as well as patterns that you can analyse to make sustainable choices that have a greater environmental impact and push you closer to your goals.
Another assessment tool is a Building Management System. It lets you control energy consumption from your computer, for example, lighting and heating systems. It also provides detailed data on your energy use, which keeps track of your progress and enables you to make informed decisions that will keep you on track to meet your goals.
Social Impact Assessment
This is the impact that suppliers have on their employees’ lives and local communities for the duration of the contract and beyond. This type of social responsibility includes employee health and safety, staff diversity, and community engagement.
Social value is very subjective and not easy to quantify. The government recognises this and created the Social Value Portal to standardise the measurement of customer value and sustainable initiatives in the public sector. It also created the National Social Value Measurement Framework and the National Themes, Outcomes, and Measures (National TOMs).
Social impact assessment tools enable you to measure:
- Employee welfare
- Inclusion and diversity
- Ethical practices
- Community engagement
- The long-term value of sustainable living
Economic Impact Assessment
This is the impact that suppliers have on the local economy; did they boost the economy or drain its resources? For example, did they use local companies for services and delivery? Did they employ locals to work on the contract or create employment opportunities elsewhere, like green marketing or raising awareness of the social value programme to educate consumers about renewable materials?
Finally, will the economic impact have long-term value or will it end when the contract ends?
This is not recommended. Not unless you want a reputation for loving and leaving.
There are three aspects to economic impact assessments.
- Direct: Positive impact on employment and income generated as a direct result of the project, for example, using local labour.
- Indirect: Positive impact generated by secondary sources, for example, you buy a service from Company B. Company B buys reenwable materials to deliver the service from Company C. Company C is an indirect economic beneficiary.
- Induced: Income is generated from the combined effects of direct and indirect impacts. For example, newly employed locals have more disposable income to spend on restaurant dinners and at local supermarkets.
Economic impact measurement tools include the Social Return on Investment (SROI), which monetises outcomes and impacts. The Impact Management Project (IMP) is a global network of impact assessment experts that provides best practices for measuring and managing sustainable impact.
Incorporate Sustainability Into Your Marketing Strategy
Sustainability in marketing is just as important as sustainability efforts in product and service delivery. We’re going to take a quick look at how you can make some examples of sustainable marketing practices part and parcel of your marketing strategy.
The first step is an audit to get a baseline for your current sustainable materials and practices. Once you’ve got that you can identify areas for improvement. Recycling is an easy fix for instant sustainability kudos.
The next step is to set realistic goals. Perhaps you want to increase renewable energy consumption by 20% or decrease reliance on fossil fuels by 25% over the next two years. You could start with one electric company car or power all your admin tasks with solar energy. Include your commitment to a sustainable future on your website and your digital marketing brochures and catalogues. Make it obvious but DON’T SHOUT ABOUT IT.
It’s a good idea to partner with like-minded environmental organisations, especially charitable organisations because that ticks all sorts of environmental and social concerns and value boxes. You get closer to your goals and they get closer to theirs. It’s a win-win situation.
9 Quick-fire tips to integrate sustainability marketing into your overall strategy.
- Leverage your sustainability efforts to enhance your reputation as a socially responsible eco-friendly brand.
- Embrace transparency and share your sustainable practices with the world.
- Content marketing in blog posts, videos, infographics, and social media engagement provides additional information about your sustainability solutions (renewable energy).
- Become an influencer or thought leader. It’s a great way to attract positive attention from public sector bodies.
- Use recycled materials, like recycled and recyclable packaging and eco-friendly office products, like vegetable-based printer ink and recycled printer paper – although it’s a better idea to aim for a paperless office.
- Offer incentives to employees for making eco-friendly, sustainable choices, like using reusable bags instead of plastic bags when they buy groceries.
- Get feedback from customers, employees, and local public members to measure the awareness and effectiveness of your sustainability efforts. Use the feedback to increase the positive impact of your sustainability marketing strategy.
- Ensure your employees understand your company’s sustainable marketing principles and know the importance of their role in your strategy’s success.
- Continually monitor and measure your sustainable marketing strategy and track your progress toward your end goal.
That concludes part one of the post on sustainability marketing strategies. Join us for part two where we look at sustainability certifications, sustainability and societal marketing, procurement regulations, and how to future-proof your sustainable marketing strategy.
In the meantime. Satisfy your curiosity about sustainability in marketing and contact Cadence Marketing to answer all your questions.
