FAQ

Sustainable procurement is deploying procurement power in a way that maximises the positive ecological, social and economic impact throughout the lifespan of products, services and work (ISO 20400:2017).

Circular procurement is an extension of sustainable procurement. It seeks to actively contribute to closed energy and material loops throughout supply chains, whilst minimising, and in the best case avoiding, negative environmental impacts and waste creation across the whole life-cycle. Circular procurement responds to the changing functional needs of users within an organisation. It stimulates maximum cooperation and co-creation with all those involved who are able to help close the loop.

Circular procurement aims to retain the value of the products, components and materials to be purchased as much as possible.

Circular procurement is an important tool for promoting a circular economy. Circular choices in the procurement process stimulate the market for circular products and services. The spending volume of an organisation can therefore be exploited to generate a positive impact for people and the environment.

Circular procurement can also provide economic benefits. A total cost of ownership analysis (TCO) for the various scenarios gives a total overview of the cost over the entire useful life of a product or service, such as the energy consumption, maintenance costs or residual value at the end of life. This often leads to different decisions being taken than when only purchase prices are compared..

What circular objectives does your organisation want to pursue? As a procurer, what strategies can you adopt to achieve these objectives? The ambition chart gives you an overview of possible circular objectives and procurement strategies. A useful starting point to get started: which actions is your organisation undertaking? Which ones are achievable in the short term? Which ones require a long-term ambition?

AMBITION CHART

The Flemish SPP Criteria Tool (only available in Dutch) allows you to quickly collect the latest SPP criteria for your tender documents. You can select criteria related to selection and exclusion, technical specifications (requirements), award criteria and performance conditions. You can choose from three levels of ambition and see the relevant sustainability themes to which the criterion relates. You can then download your selection. After checking and making any adjustments and additions, you can use these texts in your contract documents.

SPP-CRITERIATOOL

Green Public Procurement (GPP) sets clear, verifiable environmental standards for public procurement, based on life-cycle analyses and scientific evidence. The European Commission and EU member states have developed national GPP criteria using scientific data, ecolabel standards and stakeholder input. GPP criteria include core criteria, which address key environmental impacts with minimal verification, and comprehensive criteria, which target the best environmental products with more effort and cost. GPP focuses on key life-cycle aspects using published ecolabel and life-cycle information.

GPP-criteria

When you first get started with circular procurement, it is important to carefully consider which pilot project you choose. A successful pilot can help convince others. But even if something goes wrong, you can learn from it for your next circular procurement project. Our quick scan helps you estimate the success rate of your concrete circular procurement project. We ask you targeted six questions, after which we determine a success rate. You will immediately receive advice on how to increase that success rate.

Quickscan

In the learning hub, you will find a range of circular strategies and inspiring example cases per product group. We also provide references to criteria tools, clauses and framework contracts (MVI, GPP, Flemish government) that you can use as inspiration and as a basis for drafting your own circular ambitions.

LEARNING HUB

Definition of biobased products: Biobased products are manufactured from biobased raw materials, in whole or in part. These biobased raw materials can be directly applied, such as wood in building applications, used in new chemical processes, such as starch from potatoes converted into plant-based plastics, or partially replace fossil raw materials in existing processes, such as the refining of natural oil into plastics. Biobased products can be identical to existing (fossil-based) products, e.g. biobased polyethylene. In addition, some biobased products have specific and unique properties, such as biodegradability or compostability.

Biocommodities: Bio-commodities include all natural material on earth that is or has ever been alive, excluding fossil resources. This includes the biodegradable fraction of products, wastes, residues from agriculture, forestry, fisheries, aquaculture, and related sectors. Fossil raw materials are excluded from this definition because, although they were formed over millions of years from plant residues, they cannot be renewed quickly enough for practical use.

Renewable raw materials: Renewable raw materials are inexhaustible, grow again and can be extracted repeatedly. Examples include wood, cotton and wool. Biobased plastics are made from renewable raw materials such as sugar and starch.

Biobased material groups:

Below is an overview of various biobased material groups, with some examples of products composed of these materials:

• Wood: Obtained from forests and individual trees. Some shrubs and plants such as bamboo are also considered wood. Wood contains sugars (cellulose) and fibers (lignin). Material applications of wood are well-known in practice. Think of the built environment where wood is used in the form of floors, beams, roofs, but also as interior wall finishes. Innovations make it possible to use the cellulose and lignin from wood in chemical applications such as biofuel, bitumen, and biopolymers. Many win-win opportunities are possible for biobased and circular by using wood high-quality. Especially achieving a low MKI score and long-term sequestration of biogenic CO2 so that it does not enter the atmosphere.
• Natural Fibers: Material applications of natural fibers offer a lot of functionality. Fiber structures such as cotton, wool, and hemp fiber, applied in the construction and textile sector, with growing applications such as shoes and clothing. There are already shoes and clothes based on lyocell (wood) fibers, insulation material from roadside mowing, and paper with fibers from grass or aquatic plants. Here, there is often a win-win possible with residual flows from agriculture or the management and maintenance of greenery (in the broadest sense of the word) that can be valuable.
• Biobased Chemicals: Some components of bio-based raw materials can be used to make synthetic plastics, the basic raw material of which is derived from biomass. When plastics (polymers) are made with building blocks (monomers), a limited number of biobased plastics can be chemically identical to the fossil version (e.g., Bio-PET or bio-PE). Natural rubbers consist of an organic polymer derived from the rubber tree, a possible alternative to rubber made from fossil oil in various products. Other components in rubber, such as the filler, can also be replaced by a biobased version.[1]
• Natural Oils and Fats: Various oils and fats are natural raw materials for biobased chemicals, biofuels, lubricants, biocomposites, with examples such as oils from orange peels and coffee grounds.
• Bioenergy: Certain residues, such as organic waste, can be converted into green gas or burned for energy generation. Within the added value valorization of bio-based raw materials, there remains a part that can ultimately be converted into green gas or burned for energy generation.
• Biocomposites: Mixtures of natural fibers in resin, used in construction, automotive industry, and electronics. Because the material is strong and long-lasting, it can have a significant impact on environmental savings compared to products made from traditional fiber-reinforced plastic. The disadvantage is that it is difficult to recycle into its individual components.

These various biobased material groups offer a wide range of applications, with the choice of biobased materials contributing to a sustainable and circular economy.

Flemish policy for biomass:

The bio-economy has been a priority for the economic development of Flanders for some time. The Department of Economy, Science, and Innovation (EWI) organized a significant bio-economy conference in 2010 during the Belgian presidency of the EU. In 2011, under the leadership of EWI, along with the Department of Agriculture and Fisheries, a civil servant network was established. This initiative was later expanded into an interdepartmental working group with the aim of developing a coherent policy for the bio-economy in Flanders.

Policy note of our Minister of Environment 2019-2024: "Circular economy offers particular opportunities for our prosperity and economy if we can reduce the use of primary raw materials and materials and increase their reuse without compromising our comfort or prosperity. We support the development of business models where a service is offered instead of a product and products are shared. Products must be designed smarter so that they last longer and are easier to repair, reuse, and recycle. We promote the repair of products and the reuse of parts; recycling is the keystone to maximize the recovery of all raw materials."

On December 18, 2020, the Flemish Government approved the Bio-economy Policy Plan. This plan supports and stimulates new initiatives in the broad bio-economy, focusing on (i) innovative biomass production, (ii) synthetic biology and biological prospecting, (iii) technological and chemical transformation of biomass and residual streams, and (iv) supporting technology for biobased value chains. More information can be found in the Circular Food Loss and Biomass (Residue) Streams Action Plan 2021-2025 of the Flemish government.

The Bio-economy Strategic Agenda, under Circular Flanders, focuses specifically on the great economic potential for bio-economic activities outside the food and water sectors. The focus is on initiatives for new non-food products and the sustainable valorization of organic residual and by-products. The bio-economy work agenda focuses on concrete actions for and with companies to build clear bio-economic projects. In collaboration with the government and companies, six major ambitions have been formulated that define the main developments for the future bio-economy in Flanders.

For more information about the bio-economy in Flanders, see the webpage of EWI Flanders and the LinkedIn group "Bio-economy in Flanders - Bioeconomy in Flanders." This group aims to create a network of (Flemish) research institutions, companies, civil society organizations, and civil servants who are active and/or interested in the bio-economy.

Benefits of Biobased Procurement:

There are several reasons to support the purchase of biobased products, such as aligning with government policy priorities or expecting specific benefits. When promoting biobased products in procurement processes for goods, services, and/or projects, various approaches are possible. One can focus on criteria related to the origin of the product (direct stimulus) or on the properties of the product to be purchased (indirect stimulus). When biobased products have significant functional advantages and the tender is also focused on functional requirements, it quickly becomes attractive for bidders to offer biobased products.

Voordelen:

1. Reduced Use and Dependence on Fossil Raw Materials: By using bio-based raw materials, there is no reliance on fossil raw materials, which prevents the depletion of fossil reserves and reduces negative environmental impacts.
2. Lower CO2-Footprint: Biobased products have an advantage if they can demonstrate a lower CO2 emissions compared to products based on fossil raw materials.
3. Higher-quality Use of Residuals: Biobased production often uses residual streams and waste materials, contributing to more efficient use of resources. Bio-based raw materials are often locally sourced, unlike fossil raw materials.
4. Contribution to Circular Economy: When bio-based raw materials are used to produce biomaterials eligible for material recycling, they contribute to the realization of the circular economy.
5. Driver for Innovation: The demand for biobased products stimulates innovation, which can lead to improved products, new markets, and economic growth.
6. Contribution to Organizational Goals and Policies: Sustainable procurement of biobased products supports organizational goals and policy objectives, such as rural development and promotion of employment.
7. Total Cost of Ownership (TCO): Despite a potentially higher purchase price, biobased products often have lower life cycle costs, especially due to specific properties.
8. Product Properties: Biobased products can have improved properties, such as lightness, strength, flexibility, and applicability, compared to non-biobased alternatives.

More information is available through the factsheets of InnProBio, a European platform for biobased innovations in public procurement. The following factsheets have been published in English.

• Factsheet 1: What are biobased products? This factsheet describes when a product is called 'biobased' and from which raw materials and materials products are made.
• Factsheet 2: Sustainability of biobased products. This factsheet addresses environmental aspects of raw materials for biobased products and the life cycle of biobased products and how to ensure this through life cycle analysis (LCA), certificates, and labels.
• Factsheet 3: Myths and facts about biodegradability. This factsheet discusses when and which products are biodegradable and what this means in practice.
• Factsheet 4: Biobased products and services in the circular economy.
• Factsheet 5: Total Cost of Ownership (TCO) and Life Cycle Analysis (LCA).

In the circular economy, biobased raw materials are used in a high-quality manner. When new raw materials are needed, fossil, critical (scarce), and unsustainably produced raw materials are replaced by sustainably produced, renewable, and widely available raw materials. This not only makes the economy more resilient for the future but also less dependent on fossil sources. The biobased economy plays a crucial role in realizing these circular ambitions.

Within the circular economy, technical and biological cycles can be distinguished. To be circular, biobased products must be reusable, recyclable, or biodegradable in the end-of-life phase. Setting conscious requirements regarding circularity in the design phase lays the foundation for this circular approach. Biodegradable biobased products are incorporated into the biological cycle after use, while sometimes they can also enter the technical cycle (for example, wood recycling or paper recycling or textiles). Non-biodegradable products become part of the technical cycle and are reused or recycled as high as possible.

In essence, the integration of biobased and circular principles offers a sustainable path to a resilient, less wasteful economy.

What ground rules should governments monitor if they want to procure circularly? And how can suppliers best respond to this? Alexander Lemmens, lawyer at the Flemish government's Agency for Facility Management, explains in a webinar (only available in Dutch).

> Link to the webinar: Starten met CA module 4 - Circulaire kansen in de nieuwe wet overheidsopdrachten

There is a good chance that your organization or company is facing a lot of questions about sustainability. Like many other companies, your company might soon have to comply with various European sustainability regulations, and as a procurer, it's best to be aware of these in advance. If you are an SME that does not yet fall under all these new regulations but have many larger B2B customers, you will notice that they will increasingly request data about the supply chain from you. Or if you are a procurer in the public sector, it is also useful to know which legal sustainability requirements many companies will soon have to meet. We have listed the most important upcoming sustainability legislation for you.

Many new laws that will increasingly impact businesses in the coming years are part of the European Green Deal. This is a package of policy initiatives designed to help the European Union make a sustainable transition, encompassing economic, social, and environmental aspects. The EU countries have committed to becoming climate-neutral by 2050 at the latest and keeping the global temperature rise below 1.5 degrees Celsius, as agreed in the Paris Climate Agreement. The Green Deal is the strategy by which the EU aims to achieve its 2050 goal and consists of various components, initiatives, and laws. You could also describe it as carrots and sticks.

The carrots are all the initiatives through which the EU aims to assist and support its citizens, businesses, and governments in making the green transition possible, with the goal of a healthier living environment, cheaper energy, new jobs, and a better quality of life. The carrots involve subsidies and financing programs, while the sticks are the new laws and regulations that will affect businesses.

• The Corporate Sustainability Reporting Directive (CSRD)
• The Corporate Sustainability Due Diligence Directive (CSDDD)
• Ecodesign for Sustainable Product Responsibility (ESPR)
• The Digital Product Passport (DPP)
• Green Claims Directive

The Corporate Sustainability Reporting Directive (CSRD)

Specifically? One of the most important new directives is the Corporate Sustainability Reporting Directive (CSRD), which requires large companies to transparently report on matters such as their CO2 emissions and social capital, as well as their impact on biodiversity and human rights within their supply chain. Companies must collect all this data in a uniform manner, according to the established European Sustainability Reporting Standards (ESRS), and report it in a centralized way, similar to their financial reporting. Your sustainability report will therefore be as important as your financial annual report. The law does not obligate companies to achieve specific targets, except in one area: CO2 neutrality by 2050.

Additionally, the CSRD requires organizations to map out the impact of their entire value chain. This means that companies must report not only on their own sustainability performance but also on that of their customers and suppliers.

Micro-enterprises and non-listed SMEs that are currently relieved because the CSRD does not apply to small businesses are, unfortunately, not entirely correct. While small companies are not required to submit this annual report, many will still feel its effects. For example, if you are an SME supplying a large company that does fall under the new directive, that large company will ask you to make your environmental data or social parameters more transparent. Some possible questions you might receive include:

• Provide a detailed calculation of your CO2 emissions across your entire value chain.
• Prove that your supplier in Bangladesh does not use child labor in their production processes.
• Prove that you do not use harmful or prohibited substances in your products entering the European market.

Large companies will need this type of information to communicate transparently about their entire product chain. Therefore, smaller companies wanting to work with 'big players' should voluntarily and within their capacity, investigate their impact on people and the environment.

Who does this law apply to? The CSRD has been applicable since January 2024 for listed companies, which must present their first integrated report in 2025. From 2026, large non-listed companies and later certain non-European companies (that have a certain turnover in Europe) will also have to comply with the CSRD. For your information, a company is considered 'large' if it meets two of these three criteria: more than 250 employees; more than 50 million euros in annual revenue; more than 20 million euros in net assets on the balance sheet.

The Corporate Sustainability Due Diligence Directive (CSDDD)

Specifically? The CSDDD is a directive that will impose 'supply chain due diligence obligations' on a large group of companies regarding their production chains. Companies will be required to investigate the negative sustainability impacts caused by themselves and other parties in their supply chains. They must then attempt to prevent, mitigate, minimize, and/or eliminate these potential negative impacts.

Who does this law apply to? This directive applies to European and non-European companies with more than one thousand employees and a turnover of more than three hundred million euros. Companies with more than five thousand employees will have three years from the final vote in Parliament (April 2024) to establish their due diligence practices. Companies with three thousand employees must comply within four years, and companies with one thousand employees must have their supply chain due diligence approach in order within five years. Similar to the CSRD, the effects of this law will also be felt by SMEs and micro-enterprises.

For those wondering about the link between the CSDDD and the CSRD—two similar acronyms—the CSDDD can be seen as the directive that requires you to take necessary actions to investigate, mitigate, and monitor risks in your supply chain. The CSRD mandates you to report on this policy, the underlying processes, and actions.

Ecodesign for Sustainable Product Responsibility (ESPR)

The ESPR directive is a package of requirements concerning the sustainability and circularity of products placed on the European market.

Specifically? The new legislation requires that nearly all consumer products become more sustainable, reliable, reusable, repairable, easier to maintain, recyclable, and more efficient in terms of energy and resource use. This new legislation goes much further than the current directives, which mainly focus on the energy consumption of products. This means that producers must engage in 'ecodesign' and consider how to design a product as ecologically as possible right from the design process. This includes, for example, providing software updates, parts, and accessories so that products age more slowly or ensuring that products are easier to repair and providing guidelines for consumers on how to do so. Importantly, the ESPR must also ensure that the burning and destruction of unsold products, such as textiles and electrical equipment, will be prohibited. It is about transitioning to a circular economy.

Who does this law apply to? It is not yet known when this law will come into effect, but it is expected that the new legislation will eventually apply to almost all consumer-oriented products and sectors. Sectors that consume a lot of resources will need to implement it more quickly. This includes all companies that distribute the following products on the European market: packaging, textiles, tires, electronic equipment, chemicals, furniture, construction materials, and steel.

The Digital Product Passport (DPP)

The DPP includes regulations that align with the aforementioned directive on ecodesign and the circular economy.

Specifically? European regulations will require all businesses in the coming years to provide their products with a digital passport. This will provide consumers and waste processors with answers to questions such as: What is in this product? Where do the materials come from? How was it produced? Where do I dispose of it after use? All information about the raw materials, processes, and components used in a product should ultimately make it easier to reuse the product or recycle its materials as effectively as possible. This information is crucial as all waste streams will soon need to remain within Europe, and discarded textiles or plastics will no longer be allowed to be shipped to countries outside Europe, as is currently the case.

Who does this law apply to? For virtually all businesses, products in the categories of batteries, textiles, and electronics will need to prioritize implementing the digital passport first.

Green Claims Directive

This directive is currently in the design phase but will determine how brands and companies can communicate about sustainability in the future.

Specifically? The law will ensure that greenwashing is prohibited and penalized. According to research by the European Commission, 53 percent of the "green claims" made by companies are either too vague, misleading, or not independently substantiated. Brands that claim in the future to produce products from environmentally friendlier materials, such as recycled PET bottles or organic cotton, will need to be able to prove these claims. This new legislation is therefore relevant not only for the marketing department but also for you as a procurer, who must be able to demonstrate and substantiate the sustainability of purchased materials. Europe aims to curb the proliferation of sustainability labels and provide consumers with better information.

Who does this law apply to? For all companies operating in the EU consumer market.