GPA/W/341  
 
30 May 2017  
(17-2892) Page: 1/27 
Committee on Government Procurement   
 
KEY TAKE -AWAYS FROM THE COMMI TTEE'S SYMPOSIUM   
ON SUSTAINABLE PROCU REMENT  
HELD IN THE CENTRE WILLIAM RAPPA RD (WTO HEADQUARTERS ), GENEVA, ROOM W,  
22 FEBRUARY 2017  
Report by the Secretariat  
The Symposium was organised by the Secretariat at the Committee's r equest, for the benefit of 
GPA Parties and Observers, in furtherance of the Committee's agreed Work Programme on 
Sustainable Procurement (see GPA/113, Annex E of Appendix 2, p.  444). It featured contributions 
from diverse non -governmental experts in additi on to national experts and representatives of 
other international organizations.1 
 
In the course of its meeting subsequent to the Symposium (on 23 February), the Committee 
requested that the Secretariat prepare a report on "Key Take -aways " from the Symposi um (see 
Summary of the Informal Discussion on the Committee's agreed Work Programmes , to be 
circulated) . This comprises the requested report.  
 
As was made clear also at the Symposium,  all views expressed during the proceedings 
and/or in this report are the  personal responsibility of the individual speakers  to whom 
they are attributed  and are strictly without prejudice to the views, interests or positions 
of WTO Members and Observers  on related issues . 
 
Any questions may be addressed to the Secretariat (r obert.anderson@wto.org ; 
philippe.pelletier@wto.org ; and/or nadezhda.sporysheva@wto.org ). 
 
 
_______________  
 
 
                                                
1 The programme, presentations and bios of the speakers of the Symposium on Sustainable 
Procurement  are available at:  https://www.wto.org/english/tratop_e/gproc_e/gp_symp_22feb17_e.htm . GPA/W/341  
 
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  TABLE OF CONTENTS  
DEPUTY DIRECTOR -GENERAL, MR XIAOZHUN  YI, OPENING REMARKS  .............................  3 
1   SESSION 1: WHAT IS S USTAINABLE PROCUREME NT AND WHAT ARE ITS 
MAIN OBJECTIVES?  ................................ ................................ ................................ ..........  4 
1.1   Mark Hidson, Deputy Regional Director, International Council for Local 
Environmental Initiatives (ICLEI) Europe and Global Director, ICLEI's Sustainable 
Procurement Centre - "Approaches to sustainable procurement: objectives, illustrative 
practices and emerging trends – a European perspective"  ................................ ........................  4 
1.2   Farid Yaker, Programme Officer, United Nations Environment (UNEP) - "Sustainable 
public procurement (SPP): objectives, illustrative practices and emerging trends, drawing 
on the SPP work of UNEP and  on the 2016 Global SPP Review"  ................................ .................  6 
1.3   Christopher Browne, Chief Procurement Officer, World Bank - "SPP in the work of 
the World Bank: objectives and emerging perspectives"  ................................ ..........................  8 
1.4   Questions and Answers/Comments Session  ................................ ................................ ...10 
2   SESSION 2: WHAT ARE THE KEY PRACTICES OF  SUSTAINABLE PROCUREM ENT 
AND HOW CAN SUSTAINA BILITY BE INCORPORATED INTO  THE DIFFERENT 
STAGES OF PROCUREMEN T? ................................ ................................ ...........................  11 
2.1   Paul Eggimann, Head of the Specialist Group on Sustainable Construction in the 
Coordination Group for Construction and Proper ty Services (KBOB), Switzerland - "Key 
sustainable procurement practices at the domestic level – a practitioner's view"  ........................ 11 
2.2   Jason Pearson, Executive Director, US Sustainable Purchasing Le adership Council 
(SPLC) - "Key sustainable procurement practices at the domestic level – case studies 
from the United States"  ................................ ................................ ................................ ......12 
2.3   Sandra Hamilton, Social Procurement Advisor & Canada's Fi rst Social MBA - 
"Procurement strategy: the importance of people in a people, planet, profit approach to 
sustainable government procurement"  ................................ ................................ .................. 14 
2.4   János Bertok, Head of Division, Public Sec tor Integrity, Public Governance and 
Territorial Development Directorate, Organisation for Economic Cooperation and 
Development (OECD) Secretariat - "OECD work relating to sustainable procurement 
practices"  ................................ ................................ ................................ .......................... 17 
2.5   Questions and Answers/Comments Session  ................................ ................................ ...19 
3   SESSION 3: HOW ARE S USTAINABILITY MEASUR ES IN PROCUREMENT 
PROCESSES PRACTICED IN A MANNER CONSISTE NT WITH BOTH THE PRI NCIP LE 
OF "BEST -VALUE FOR MONEY" AND  INTERNATIONAL TRADE OBLIGATIONS?  ................  21 
3.1   Judge Marc Steiner, Swiss Federal Administrative Court - "SPP, best -value for 
money and international trade obligatio ns: the GPA as a model Agreement"  ............................. 21 
3.2   Lidia Capparelli, Consip (the central purchasing body of Italy) - "SPP practices – 
consistency with the principle of "best -value for money": national  
perspectives/experiences"  ................................ ................................ ................................ ...22 
3.3   David LePage, Principal, Accelerating Social Impact (ASI CCC) - "Canada SPP 
practices – consistency with the Parties' international trade obligations: a per spective 
from Canada"  ................................ ................................ ................................ .................... 23 
3.4   Questions and Answers/Comments Session  ................................ ................................ ...24 
4   CONCLUSION OF THE SY MPOSIUM AND SUMMARY OF POSSIBLE  TAKE -
AWAYS  ................................ ................................ ................................ ...........................  26 
 GPA/W/341  
 
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  DEPUTY DIRECTOR -GENERAL, MR XIAOZHUN  YI, OPENING REMARKS  
Distinguished participants, ladies and gentlemen,  
 
Good morning. It is my pleasure to welcome you to the World Trade Organization ( WTO) for 
today's Sy mposium on Sustainability in Government Procurement. I know that some of the 
speakers and others present travelled a long way to be here. I certainly appreciate the efforts that 
have been made in organizing this event.  
 
The importance of today's topic will , I expect, be obvious to all participants: sustainability is, by 
definition, vital to protect the Earth on which we live and breathe and which nourishes us in 
countless ways . It is, therefore, also essential to the health and well -being of our human socie ties. 
Conversely, government procurement is a key sector and policy area in which WTO Members can 
and, increasingly, do seek to promote sustainability, including in its environmental and, for many 
countries, its social dimensions. It is, therefore, logical  and important to examine the ways in 
which sustainability and government procurement activities can support and reinforce each other. 
Equally important is that this be done in ways that are consistent with international trade 
obligations and with the prin ciple of value for money in public procurement.  
 
I have looked carefully at the programme and the list of speakers is extremely interesting. The 
discussion is organized around three sets of questions  that have been identified by the Parties 
to the Agreemen t on Government Procurement  (GPA) . These are:  
 
 What is sustainable procurement and what are its main objectives?  
 What are the key practices of sustainable procurement and how can sustainability be 
incorporated into the different stages of procurement?  
 How are sustainability measures in procurement processes practiced in a manner 
consistent with both the principle of "best -value for money" and with international trade 
obligations?  
These questions seem to be precisely the right ones on which to focus in light  of the Committee's 
Decision regarding the content of its Work Programme on Sustainable Procurement. By making 
possible a full and thoughtful exploration of these questions with the input of outside experts, the 
Symposium will provide an essential contribu tion to the Committee's Work Programme on this 
topic. 
 
Just so that there is no misunderstanding, I would like to clarify the nature of the activity today.  
This is not a formal or even an informal meeting of the Committee on Government Procurement. 
That wi ll occur tomorrow, when the GPA Parties themselves will meet and will no doubt want to 
reflect on the discussions today and on next steps in the Committee's work in this and other areas. 
Today is a day for direct input to the Committee's work from outside experts and, most of all, for 
free discussion between the experts, Committee delegates, and other persons present. To facilitate 
this, it must be clearly understood that all views expressed during the proceedings are the 
personal responsibility of the indi vidual speakers, and are strictly without prejudice to the views, 
interests or positions of WTO Members and Observers  on any related topics . 
 
Before closing, I would like to mention another reason why the discussion at the Symposium today 
is important and useful. Today, there are many misconceptions about the nature and objectives of 
the international trading system. There are some who feel that it exists only to support export 
promotion  and is or should be indifferent to other public policy  objectives.  If one looks, though, at 
the Preamble to the Marrakesh Agreement Establishing the World Trade Organization, one sees 
clearly a reference to " the optimal use of the world's resources in accordance with the 
objective of sustainable development ", as an over -arching goal of the system. The discussions 
today will, I hope, be approached in this spirit.  
 
Thanks to all of you for your interest and commitment. I am sure that the day's discussions will be 
worth your while.   GPA/W/341  
 
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  1  SESSION 1: WHAT IS S USTAINABLE PROCUREME NT AND  WHAT ARE ITS MAIN 
OBJECTIVES?  
 
 
1.1  Mark Hidson , Deputy Regional Director , International Council for Local 
Environmental Initiatives ( ICLEI ) Europe and Global Director , ICLEI 's Sustainable 
Procurement Centre  - "Approaches to sustainable procurement: objecti ves, illustrative 
practices and emerging trend s – a European perspective " 
Mr Hidson began his presentation by highlighting that the importance of sustainable procurement 
(previously sometimes referenced as  "eco-procurement ") in achieving sustainable development 
has been recognized for many years . His own organization, the International Council for Local 
Environmental Initiatives (ICLEI )2 was established in 1996 .  
 
He emphasized that  sustainable public procurement ( SPP) or green public procurement  (GPP)3 can 
play an important role in achieving diverse  policy objectives , including : 
 
 contributi ng to environmental and sustainability  goals;   
 achieving social goals , e.g.  by improving working conditions;  
 improving financial efficiency by decreasing costs;  
 driving innovation by bringing to market new products,  which meet environmental 
requirements (as public procurement is a demand side policy);  
 boosting supply chain competi tiveness through the establishment of market dialogue;  
and 
 demonstrat ing political commitment  by taking sustainability issues seriously.  
He noted that  the legal framework  for GPP in the EU is voluntary  in many respects . The Public 
Procurement Directive  adopted in 2014 (transposed in 2016) includes important elements relating 
to SPP .4 In particular , the Directive allows for environmental, soci al and innovative considerations, 
including on production processes, life -cycle costing5, environmental and social labels, and social 
requirements.  
                                                
2 ICLEI is a local government membership organization with around 1 ,500 partners worldwide (see 
http://www.iclei.org/ ). 
3 At least 10 terms  to explain similar sustainability goals exist.  In Europe , the main terms used are : 
green public procurement (GPP) and sustainable public procurement (SPP).  GPP was introduced by the 
European Commission in 2008  and set the target of  50% of tendering procedures to be green by 2010 ; and 
SPP emerged from the UK SPP task force in 2006.  Both terms focus  on the social, environmental and economic 
impacts arising from public procurement . The former focuses more on the env ironmental aspects and the latter 
on environmental, social and economic aspects.  
4 Available at: http://eur -lex.europa.eu/legal -content/EN/TXT/?uri=celex:32014L0024 . 
5 Life-cycle costing looks not only at the  purchase price but also at usage and disposal costs, as each of 
these  contribute to the total cost of ownership . For example, g reen products can be  cheaper in the long -run 
because of their life -cycle cost.  In his view,  the application of the life-cycle approach remains  challenging due Sustainable Public Procurement  (SPP) is gain ing momentum globally. This Session examines 
relevant issues including the role of life-cycle  costing, moving from acquisition cost to total (global) 
costs; and opportunities for ac hieving social, environmental and economic objectives, including 
through best practices at the domestic level where public procurement is ultimately implemented. 
It includes several  recommendation s that are worth pondering,  for example, regarding the setti ng 
of mandatory targets, minimum green criteria and the importance  of good policy and legislative 
framework s.  
 
Nadine Nickner, Session Chair  and Deputy Director,  
Government Procurement, Trade and Environment Division, Global Affairs Canada  GPA/W/341  
 
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  Important mandatory  elements of the EU framework on SPP , according to Mr Hidson,  include:  
 
 The Energy Star Regulation (Regulation No . 106/2008)6, which  requires central 
governments to purchase IT equipment which  meets minimum energy requirements;  
 The Clean Vehicles Directive (2009/33/EC)7, which  requires considering  the operation of 
energy and the environment al impact of procured vehicles ;  
 The Energy Performance of Buildings Di rective (2010/31/EU)8, which  requires EU 
member States to set national goals to improve energy efficiency; and 
 Energy Efficiency Directive (2012/27/EU)9, which  sets mandatory requirements  for the 
renovation of public buildings; and renting of new buildings.  
According to Mr Hidson,  approximately  twenty EU member States have GPP National Action Plans  
and at least four more are currently developing their plans.  Some of them, such as Austria, the 
Netherlands  and the UK have gone further by setting  mandatory GPP requirements for the 
procurement of certain goods and services.  
 
A number of "soft measures " are also relevant : 
 
 The Buying Green handbook by the EU Commission and the ICLEI, which expl ains the 
existing framework for SPP implementation and gives operational guidance10; 
 The ICLEI Procura+ Manual11, which gives : (i) detailed guidance on how to set up a 
programme within a local governmental public authority;  and (ii) an outline of the 
relevan t parts of the EU Directive  on public procurement ; 
 The EU 20+ criteria establishes criteria ranging from cleaning products to waste water 
infrastructures12; 
 The Sustainable Procurement Platform13, which has around 800 resources on criteria, 
guidance, strateg ies, case studies, and news related to the SPP;  and 
 The ICLEI Procura+ Network , which  provides support for public authorities and creates a 
platform for collaboration.  
In Mr H idson's view, c ities like Barcelona, Rome  and Venelles  (France) show that the est ablished 
framework and legislation work. For example, Barcelona has invested i n greening certain public 
services; and has adopted mandatory sustainability criteria for the procurement of vehicles, 
electricity, food and catering.  He said that s ome local gov ernments go further and transition  their 
public procurement process es from a linear approach14 to a circular approach . Contrary to the 
linear approach, where procuring entities assess efficiency of only the purchase, usage and 
disposition stages ; in the cir cular approach, procuring entities assess costs and benefits over the 
whole government procurement life-cycle, taking into consideration environmental factors . The 
                                                                                                                                                  
to its complexity. As foreseen in the 2014 Public Procurement Directive, it is expected that new tools providing 
guidance on this topic will be developed  in the next 10 years.  
6 Available at: "http://eur -
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2008:039:0001:0007:EN:PDF ".  
7 Available at: http://eur -lex.europa.eu/legal -content/EN/ALL/?uri=CELEX%3A32009L0033 .  
8 Available at: http://eur -lex.europa.eu/legal -content/en/ TXT/?uri=CELEX:32010L0031 .  
9 Available at: "http://eur -
lex.europa.eu/LexUriServ/LexUriServ.do?uri=OJ:L:2012:315:0001:0056:en:PDF ".  
10 Available at: http://ec.europa.eu/environment/gpp/pdf/Buying -Green -Handbook -3rd-Edition.pdf .  
11 Available at: 
http://www.procuraplus.org/fileadmin/user_upload/Manual/Procuraplus_Manual_Third_Edition.pdf . 
12 These criteria can be core or comprehensive. Core criteria  are established for products that prevail on 
the market and can be easily included into the procurement process. Comprehensive criteria are more 
advanced.  
13 Available at: http://www.sustainable -procurement.org/ .  
14 In the linear approach the sustainability cr iteria could be set in all of the stages of the product life -
cycle: purchase (purchase price), usage (usage costs) and disposal (disposal costs).  GPA/W/341  
 
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  circular approach includes the following r elevant stages: (i) design and manuf acture (raw 
materials, material  processing); (ii) supplier (delivery); (iii) public authority (use, maintenance); 
(iv) repair and reuse;  and (v) material recovery (energy recovery, landfill).  
 
Mr Hidson noted the following additional points  concerning SPP implementation : 
 
 E-procurement can be a very useful tool as it can help to facilitate  and track the use of  
SPP15; 
 Professionalization of the procuring staff is vital. Public procurement should not be seen 
merely as  an administrative function; rather, it is a challenging and multi -faceted 
responsibility , that requires training and human  development to enable better  use of 
pre-procurement; m arket dialogue skills16; and better contract management ; 
 Joint procurement can be useful in maximi zing the purchasing power  of relevant 
entities17; and 
 Verification  is essential  to assess whether the procuring entity gets an energy efficient 
and/or sustainable product.  
In concluding , Mr Hidson made the following  observations :  
 
 In his view, the EU has an effective framework for SPP , which has already shown many 
significant results;  
 Some EU Member states /local governments are moving further and set ting mandatory 
SPP requirements or  implement a circular approach for SPP; and 
 Soft measures are helpful, but mandatory measures are vital  to the e ffective 
implementation of SPP. 
1.2  Farid Yaker , Programme Officer, United Nations Environment (UNEP)  - "Sustainable 
public procurement (SPP): objectives, illustrative practices and emerging trends, 
drawing on the SPP work of UNEP and on the 2016 Global SPP Re view " 
Mr Yaker , in his presentation , shared the UNEP's experience in promoting sustainable public 
procurement at both the national and international  levels . At the national level , the UNEP assists 
16 developing and emerging economies to establish and imple ment SPP policies. The highest 
demand is from Latin American countries, which are followed by a number of Asian, Eastern 
European and African countries.  
 
The Guidelines of the UN Environment SPP Approach18 are implemented thro ugh the following 
steps: (i ) launch of the proj ect and governance structure; (ii ) status assessment, legal review, 
prioriti zation, and market analysis; (iii ) SPP Policy and Action Plan; and (iv) SPP implementation.  
This approach incorporates the lessons drawn from the testing of the Ma rrakesh Task Force 
Approach to SPP that UN Environment rolled out in seven pilot countries from 2009 to 2012.  
 
UN Environment also acts in the global framework of the 10YFP19 Sustainable Public Procurement 
Programme adopted at the Rio+20 Conference . The pro gramme  promotes international 
cooperation aimed at shifting towards sustainable consumption and production (SCP) patterns in 
                                                
15 For example, by identifying  contracts with SPP elements ; choos ing from relevant criteria and contract 
terms ; evaluat ing performance against chosen criteria ; apply ing life-cycle costing ; generat ing reports on 
specific criteria or objectives . 
16 The dialogue between local governments and businesses  is highly important for the successful 
implementation of the circul ar approach.  
17 Joint procurement is mentioned in the EU Directive. It has already been implemented at the regional 
level in the EU . In his view,  cross b order joint procurement , particularly of innovative green products , is very 
important.  
18 Available at:  http://www.scpclearinghouse.org/sites/default/files/10yfp -spp-guidelines.pdf .  
19 10YFP is the 10 -year framework of programmes on sustainable consumption and produc tion patterns 
aimed at  enhanc ing international cooperation to accelerate the shift towards sustainable consumption and 
production (SCP) in both developed and developing countries.  GPA/W/341  
 
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  both developed and developing countries.20 The 10YFP  SPP Programme sets the following 
objectives:  
 
 Improv ing knowledge on SPP and it s effectiveness as a tool to promote greener 
economies and sustainable development;  and 
 Support ing the implementation of SPP on the ground in order to provide better access to 
capacity building resources and improved coordination between SPP stakeholders.  
Different working groups are established to develop recommendations in relation to SPP. The 
Revised 10YFP SPP Programme for 2016-2017 work plan  includes:  
 
 Implement ation of SPP on the ground , including SPP tender implementation and impact 
monitoring ; 
 Asses sment of  implementation  and impacts , including : (i) targeting m easurement of 
target 12.7 of the Sustainable Development Goals (SDG)21; and (ii) promoting SPP best 
practices;  
 Identifying o bstacles  and promoting innovative solutions , including SMEs participat ion in 
SPP; and 
 Collaborating with the private sector , including promotion of  supply chains ' 
sustainability . 
The 10YFP SPP Programme has a number of o utputs  for measuring/communicating SPP benefits, 
and m onitoring SPP implementation , including : (i) using Product Service System (PSS) to enhance 
SPP – technical report ( 2015); (ii) SPP Principles ( 2015); (iii) pre-study on the sustainability of 
supply chains (2014); and (iv) SPP: A Global review 2013 -2016 (a snapshot of SPP 
implementation).22 
 
Continuing, Mr Ya ker said that SPP can promote sustainable development  across different 
dimensions , including : (1) the environmental  dimension (e.g. climate adaptation  and resource 
optimization ); (2) the social dimension (e.g. human rights , occupational health and safety ); and 
(3) the economic  dimension (e.g. innovation research/ investment , value for money and open 
competition ). SPP can  also be a driving force to e nsure sustainable consumption and production 
patterns  (SDG 12) and facilitate progress in the development agend a. However, there remain 
many challenges to be addressed, including the perception that SPP is more expensive , that there 
is a lack of information, knowledge and technical capacities , etc.  
 
Strong drivers and enabling factors for SPP implementation includ e, inter alia, policy 
commitment/goals/action plans; strong political leadership; and mandatory SPP legislation.  In 
brief,  a strong and enabling political and legal framework  is a key factor allowing  the use of public 
procurement as a strategic instrument .  
 
                                                
20 As of February 2017 , the Programme has 102 partner organizations and 10 in dividual experts, wh o 
have broad geographical distribution and institutional diversity ( e.g. it includes governments; NGOs; experts , 
etc.).  Additional information can be found at: "http://www.unep.org/10yfp/programmes/sustainable -public -
procurement ".  
21 SDG 12 "Responsible consumption and production" : Ensure sustainable cons umption and production 
patterns; Target 12.7: Promote public procurement practices that are sustainab le in accordance with national 
policies and priorities ; Indicator 12.7.1 Number of countries implementing sustainable public procurement 
policies and action plans . For additional information of the SDGs, see 
http://www.un.org/sustainabledevelopment/sustainable -development -goals/ .  
22 Additional information on the publications from the 10YFP Programme is available at: 
http://www.unep.org/10yfp/knowledge -resources/publications .  GPA/W/341  
 
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  Current challenges for  SPP 
 
Mr Yaker mentioned the following as key priorities for further policy development and advocacy:  
 
 Promoting life-cycle costing : (a) to consider the real value of externalities over the entire 
life-cycle23; (b) to reduce prices  for more sustainable goods compared to conventional 
items . Life-cycle costs are planned to be included in the guidance document of ISO  
2040024;  
 Greening the whole supply chain: to work only on the  government level is not enough; 
and 
 Coordination of public and private organizations (institutional purchasing) as they are in 
a position to demand transparency  into the upstream and downstream impacts of goods 
and services , and incorporate  sustainability criteria into purchasing decisions at a scale 
that can shif t markets.  
Summary observations  
 
Concluding, Mr Yaker made the following points:  
 SPP needs a strong political framework : governments should  move towards a strategic 
use of public procurement as an instrument to achieve policy goals ; 
 SPP needs an enabling legal framework : both international regulatory instruments (such 
as the Paris Agreement  on Climate Change  and Montreal Protocol  on Substances that 
Deplete the Ozone Layer) and national/regional instruments facilitate the process. 
National policies need to provide a coherent policy framework to promote and allow the 
inclusion of sustainability issues in government procurement (not only establishing a SPP 
Plan);  
 SPP can be much more effective when  used simultaneously with other non -procurement 
tools and inst ruments, including ecolabelling schemes; education to sustainable 
consumption , etc.; 
 When the framework is established , training and provision of information is necessary to 
build expertise;  
 Peer collaboration and coordination with the market are important  components  to 
maximi ze efficiency ; and 
 Monitoring of the  different tested  and implemented  strategies is important.   
1.3  Christopher  Browne, Chief Procurement Officer, World Bank  - "SPP in the work of 
the World Bank: objectives and emerging perspectives"25 
Mr Browne discussed the role of SPP in the Wo rld Bank's related work, highlighting objectives and 
emerging perspectives.  He also noted the increasing convergence and scope for synergies in the 
work of the World Bank and the WTO on public procurement issues.  
 
The World Bank works  with 172 countries delivering 1800 projects with a value around 
USD 80 billion. Seventy -five per cent of its projects are large infrastructure works in the transport, 
                                                
23 To move  from the "acquisition cost " to "total cost of ownership " and then  to the "global cost ". Factors 
in costs incurred by society as a whole , including negative externa lities throughout the value chain (CO2 and 
ODS emissions, impacts on health, labour conditions), or positive externalities (increased know how, 
technologies , etc.) over the entire life-cycle. 
24 Subsequent to the Symposium,  the ISO 20400 ( the first internat ional standard for sustainable 
procurement) was launched at the end of April 2017 by the International Standards Organization. Available at: 
https://www.iso.org/standard/63026.html . See also https://www.iso.org/news/Ref2178.html . 
25 Mr Browne could not be physically present for the Symposium ; however, he provided a stimulating 
video presentation which is available at: https://www.youtube.com/watch?v=ZJeYd -81IFA&feature=youtu.be . GPA/W/341  
 
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  water and energy sectors. In July 2016,  the Bank launched a new procu rement framework 
developed with business, civil society and governments. The inclusion of SPP was one of the most 
controversial issues during the development process. The views among stakeholders were very 
diverg ent on how far the World Bank  should go to s upport additional sustainable factors as it has 
already set a very high standard in the application of sustainable development to project selection, 
design and implementation.  
 
The Bank's approach to sustainability encompasses both social and environmental  aspects. Each 
project that it undertakes is assessed in relation to both sets of criteria . Minimum requirement s are 
set in terms of project design, management, specifications and the protections necessary for 
people and environment, including health and s afety, human rights, access to healthcare, HIV 
prevention, energy efficiency,  and recruitment of local labour. In addition to these project specific 
factors , the World Bank  has a standard procurement document for works , which at minimum 
already mandates ma ny sustainability factors  (e.g. work recommendations  (e.g. relating to 
working hours and pay) , unionization rights, and quality ).  
 
In the course of recent consultations, some World Bank  stakeholders raised the concern that 
inclusion of sustainability crit eria in  Bank-promoted  procurement process es might favour 
developed countries as they have more experience working with SPP – for example , regarding 
environmental cer tifications. Developed country  stakeholders , on the contrary , believe that SPP is 
inherent to the World Bank 's acti vities and critical to any development projects. In particular , the 
application of life-cycle procurement in the final decision -making process was considered very 
important.  
 
After a long debate , it was agreed that additional SPP c riteria during procurement process es are 
permitted, but on a non-mandatory basis. Therefore, in the World Bank  procurement system , the 
application of  SPP allows governments to include  further economic, social and environmental 
criteria in pre -qualification , specification, evaluation or as part of a post-award key performance 
indicator requirement.  
 
To promote  understanding, the World Bank  has published SPP guidance26 on how to identify  risks 
and opportunities , and  how these issues may be turned into measura ble criteria . As part of the 
programme to build procurement capacity , the World Bank  also includes SPP analysis and 
application within its wider  appraisal of procurement systems . When needed,  the World Bank  
provides support to implement  SPP practices.  
 
The World Bank  works with other develo pment banks and  international organi zations, including the 
WTO Secretariat,  to ensure , as far as possible,  that consistent policy advice  is given  on what good 
procurement is and on the measuring of value for money (life -cycle cost). Mr Browne believes that 
if considerations in all countries were based on the life-cycle cost  approach;  this would be a huge 
step forward in the application of  SPP decision -making.  
 
With respect to the Agreement on Government Procurement (GPA), he said that the Agreement  
sets a useful and appropriate standard of good public procurement  practices  worldwide . A key 
innovation in the World Bank's new Procurement Framework is that there is now  more likelihood 
that the Bank will permit a country to app ly its own procurement rules for Bank project s, if the 
country implementing the project is a GPA Party. In those circumstances, the Bank has less of a  
need to assess the legal framework  for government procurement , the policy,  and the compliance 
system s at the country level for GPA Parties , as it trusts the GPA accession process.  
 
The World Bank  focuses on how the rules are applied at the project level and the capability of the 
organization to deliver financed project s. As part of the appraisal of the imple menting agency , this 
also includes the application and treatment of SPP.  
 
In concluding, Mr Browne  said that  the World Bank  welcome s, very much, the GPA Parties' interest 
in sustainable  public  procurement , in addition to the entry into force of the revise d GPA . He and 
his colleagues would be interested to  see further consideration by the Committee on how  SPP 
could be implemented in public  procurement process es as governed by the GPA  (even if on a non-
mandatory  basis).  
                                                
26 Available at : "http://pubdocs.worl dbank.org/en/788731479395390605/Sustainable -Procurement -
Guidance -FINAL.pdf ".  GPA/W/341  
 
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  1.4  Questions  and Answers/Comments Sessio n 
1. A question  was posed  regarding  the scope for value -enhancing trade in relation to  
sustainable (including green) products. Some  countries, especially developing countries , 
have nascent industries that are developing sustainable products ; may therefore be  
hesitant  to open their markets to foreign competition in the short term. Such opening 
could, however, help to drive innovation domestically  and encourage the growth of local 
suppliers providing sustainable  products . How might  the WTO/relevant countries work 
with developing countries to encourage the potential adoption of international 
sustainable technologies , services  and goods , for mutual benefit ?  
In response:  
 
 Mr Yaker referred to the specific case of Morocco, which first implemented a prioritization 
programme for the products that could be provided domestically. In this context, locally 
produced organic products that could be  supplied to canteens, schools and hospitals 
were prioriti zed. A similar approach had been  implemented in Colombia, where domestic  
organic coffee was prioritized. Such an approach  could help local suppliers and have 
environmental benefits. In his view, domestic producers generally have natural 
advantages ; and c ommercial opportunities should be created in a manner that does not 
distor t trade . Continuing, he said that this should be seen as  a global problem that is  
broader than the  public procurement field. In this context, he  called for global measures  
address ing this issue  more generally and link ed it to the necessary transfer of 
technologies by using, e.g. the Paris Agreement . 
 Mr Hidson , based on his experience in South America and Africa,  suggested that 
investors could work initially with domestic suppliers to assess how they can work 
together in relevant  markets . Such collaboration could bring mutually beneficial 
outcomes ( e.g. foreign investor s can bring technolog ies and local supplier s can have a  
better  knowledge of the  domestic market environment).  
2. Another question was posed regarding the meaning of the expression  "social 
public p rocurement ". The environmental dimension of sustainable public procurement 
(also known as "green public procurement") is generally well understood.  It would be 
useful to understand better what is implied by the "social" dimension.  
In response:  
 
 Mr Hidson stressed that delineating the concept of "social public procurement " is one of 
the biggest issues at the moment, also within the EU . In his view , it can be looked at on  
two different  levels: within the EU and outside the EU. At the EU level, it comprises 
issues like: (i)  including disadvantage d groups at the national and r egional level s; 
(ii) encouraging social enterprises; and (iii) paying attention to the working and living 
conditions within the EU . The EU Commission has addressed the issue in its "Buying  
Social Handbook", published around five years ago (the publication is in the process of 
being updated).27 At the international level, it relates to "fair trade" issues – e.g., issues 
concerning the role of child labour in the production of different produc ts or services like 
clothing.  
 Mr Yaker  said that social public procurement is a concern for both  developing and 
developed countries. For example, the US was, in a way, one of the first jurisdictions to 
promote social public procurement, with its Small Bus iness Act, by supporting or 
allowing certain disadvantage groups to access public procurement. Another example 
relates to South Africa, where social public procurement is implemented to promote  
black business empowerment. More generally, implementation of relevant ILO 
Conventions in public procurement processes represents an important contribution to 
social procurement  by helping to ensure that suppliers pay fair wages and give benefits 
to the workers. Audit and verification of labour and production conditi ons are important, 
                                                
27 Available at: 
http://ec.europa.eu/social/main.jsp?catId=738&langId=en&pubId=6 06&furtherPubs=yes .  GPA/W/341  
 
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  and should be conducted on a broad basis, not only on the level of the individual 
enterprises.  
3. In the course of the first session, it was observed  that mandatory SPP measures 
were  important . At which level(s) should such mandatory SPP ru les/requirements be 
implemented? Should it be a top -down or a bottom -up approach?  
In response:  
 
 Mr Hidson stressed that this was  a difficult  question  and it depends on the various 
contextual factors . For example, in the EU, recent progress was achieved on ly when 
mandatory SPP requirements were implemented. Initially, the  general regulatory 
framework  was sufficient for relevant initiatives . However, further progress had require d 
mandatory measures with respect to specific products and services groups.  In his view, 
SPP initiatives should follow a top -down approach, even if they are not perfect. Most 
public authorities and individuals will not implement it,  unless there is some  legislation.  
4. Pursuing a point made by Mr  Hidson , a question was posed as to the me asures 
needed to achieve  professionalization of procurement workforces . In the questioner's 
view, greater attention to  resources for human and institutional capacity building was 
critical to improving procurement systems globally.   
In response:  
 
 Mr Hidson  suggested that public procurement should be more widely covered in Master's  
courses  and in organization s like the Chartered Institute of Procurement and Supply  
(CIPS) . His organization,  ICLEI , worked with Germany to develop a dedicated one -year 
programme. Professionalization  should be seen as a "generational goal ", as t ime is 
required before the desired effects  can be seen . The ICLEI contributes to addressing this 
problem by providing training. He stressed that it is not only about education, and it 
include s elements like  marketing research at the pre -procurement phase. In his view, it 
is equally important to develop a sustainable public procurement framework at t he 
central government level and/ or at the local government levels (including for hospitals 
and s chools).  
 Mr Yaker added that the following elements could be useful in implementing SPP: (i) the 
use of e-procurement; (ii) framework agreement s; (iii) and peer-to-peer learning. He 
agreed that public procurement is no longer just an administrative functi on, but also a 
strategic tool to achieve policy objectives  which requires effective training and support . 
2  SESSION  2: WHAT ARE THE KEY PRACTICES OF SUSTAIN ABLE PROCUREMENT AND  
HOW CAN SUSTAINABILI TY BE INCORPORATED I NTO THE DIFFERENT ST AGES OF 
PROCUREMENT?  
Sustainability in government procurement needs to be understood  not merely at a conceptual or 
macro level but also with respect to specific steps and modalities in individual procurement s. 
Accordingly, t his Session looks at two particular issues: the key p ractices of sustainable 
procurement, and how sustainability can be incorporated into the different stages of procurement 
at both the dom estic and international levels.  
 
John Newham, Session Chair , Deputy Permanent Representative (Ireland)  and  
Chairman  of the WTO Committee on Government Procurement  
 
 
2.1  Paul Eggimann, Head of the Specialist Group on Sustainable Construction in the 
Coordination Group for Construction and Proper ty Services (KBOB), Switzerland - "Key 
sustainable procurement practices at the dome stic level – a practitioner's view"  
Mr Eggimann , in his presentation , explained  how SPP is implemented in Swi tzerland and , in 
particular , by the specialized group on Sustainable Construction , within the Coordination Group for 
Construction and Property Ser vices (KBOB). In his view, there are three main conditions for GPA/W/341  
 
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  successful SPP implementation: willingness; know ledge; and monitoring/reporting . With respect to 
each of these, he mentioned the following aspects  regarding  Switzerland 's experience :  
 
Willingn ess 
 
Switzerland 's Sustainable Development Strategy 2016-2019 established an obligation for public 
procurement to be sustainable.  Public p rocurement in Switzerland is conducted at different levels: 
federal, cantonal, cities/towns and municipal levels. All levels are coordinated by the KBOB, which 
provides applicable recommendations. For example, the KBOB  has provided the following 
recommendations:  
 
 Recommendation on sustainable procurement of wood, which requires the identification 
of wood in accordance wit h a specially established standard or with the Forest 
Stewardship Council  certification (FSC) and Programme for the Endorsement of Forest 
Certification (PEFC); and 
 Recommendation on concrete to be made from recycled granulates (s ustainability in 
contracts for building planners and for building services ).  
The KBOB also provides e cobalance data on materials which will be used  in construction  and 
provides life -cycle assessment data in construction  by looking at quality.  
 
Knowledge - Communication with labels  
 
Labels are a simple way to communicate the different standards that they embody . If all the labels 
were put together, it would  be possible to make a s tandard for sustainable construction . Different 
criteria (related to society, environment and economy ) are put together and create a performance 
code (in the scale between 1 and 6). A procuring entity  can request construction building s to meet 
the requested grade. Procurers can also ask for compliance with the EU Regulations regarding  
energy labelling of ligh ting products and eco -design requirements for lighting products.  
 
In the case of centrali zed procurement in Switzerland, ecobalance for different types of papers  is 
used. Distinction between the four different types of papers is based on price, greenhouse  gas 
emission, and environmental  impact s.  
 
Monitoring and Reporting  
 
This is aimed at checking whether the KBOB recommendations are used in submissions. A 
submission is considered "sustainable " if the KBOB recommendations are followed.  
The KBOB attache s clear importan ce to all three aspects as tools for the promotion of sustainable 
procurement.  
 
2.2  Jason Pearson, Executive Director, US Sustainable Purchasing Leadership Council  
(SPLC) - "Key sustainable procurement practices at the domestic level – case studi es 
from the United States"28 
Mr Pearson 's presentation was based  on the experience of the US Sustainable Purchasing 
Leadership Council (SPLC).29 The Council was founded in 2013 with more than 30 public and 
private organi zations from different sectors, academ ics and civil society. Today it is a broad 
coalition with 165 members  (including some companies from the Global 500, e.g. Lockheed Martin 
and Microsoft, and some large government buyers, e.g. US General Services Administration and 
the State of California ). The purchasing organizations, both in the private and public sectors,  
represent over USD 200 billion in spend ing. These organi zations share recognition  of the 
environmental, social and economic consequences of purchasing. Members also recogni ze that it is  
an opportunity to use economic influence to advance the environmental, social and market values. 
It is a USD 10 trillion (spent annually in the US ) signal to be sent to global supply chains to 
                                                
28 Mr Pearson could not join personally during the Symposium, however, he provided an audio 
presentation which is available at: https://www.youtube.com/watch? v=1_ -cN97cdyg&feature=youtu.be . 
29 More information is available at: https://www.sustainablepurchasing.org/ .  GPA/W/341  
 
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  express the will to have goods and services which are socially , environmentally and economically 
sustainable.  
 
However, there  is a collective challenge to realize this opportunity. A shared approach to 
sustainable purchasing is missing and it creates market inefficiency. Purchasers lack access to 
shared resources  to act strategically and avoid duplication of effort. As a result, suppliers face 
conflicting market signals as they seek to differentiate their offerings.  In his view, the solution to 
this challenge includes a shared program to provide a framework for leade rship action and align 
market innovation.  
 
SPLC supports collective action and market innovation. For example, SPLC has a case  study library  
which collects more than 80 examples of sustainable purchasing initiatives from a variety of 
organizations. In addi tion, t he organi zation annually conducts a Leadership Award Event, which 
analyses case  studies submitted both from members and non -members.  
 
Mr Pearson highlight ed the following trends  relevant to strategic sustainable purchasing:  
 
1 - Convergence  
 
Purcha sing decisions may positively or negatively influence natural, social and economic systems  
in various ways . Currently, a  number of organizations of all sizes are embracing  the inclusive view 
of sustainable purchasing. They recogni ze that a sustainable purc hasing strategy should include all 
of the environmental, social and economic priorities and be coordinated in a holistic way. One of 
the reasons why convergence is happening is the increasing recognition by the investor -
communit y that for many companies th eir great social, environmental and ethical  risks are in their 
supply chains.  
 
2 - Strategic Prioritiz ation 
 
In the SPLC 's 2014 Guidance for Leaders hip and Sustainable Purchasing30, prioriti zation is 
emphasized as a key to leadership. The SPLC encourage s its members to establish as a foundation 
for their sustainable purchasing strategy priorities that offer the greatest opportunity to improve 
their overall sustainability . Typically, the following two parallel and related line s of inquiry will be 
relevant:  "What do we buy, and why  does it matter?" and "From whom do we buy, and why  does 
it matter ?".  
 
3 - Structured Strategic Processes  to Achieve Breakthrough Performance  
  
In the 2014 Guidance , SPLC introduced the concept of a strategy cycle for the types of s tructured 
strategic processes which organi zations are using to achieve breakthrough performance. Many 
organi zations are choosing to undertake these structured strategic processes because they 
stimulate  dialogue within the organization on the broade st range  of solutions and strategies for 
achieving sustainable purchasing goals . They include, for instance,  demand reduction strategies  
like efficiency process change , behaviour change, and standardi zation, as well as supplier oriented 
strategies  like supplier en gagement, supplier accountability, outsourcing, insourcing, and 
servicing , etc. Performance breakthroughs are maximized  when some of the strategies are put 
together as an integrated cross -functional process.  
 
4 - Supplier Engagement  
 
Some  of the SPLC 's members have strong commitments to use SMEs as suppliers. As an example , 
Lockheed  Martin worked with its payments departments to take payments down to 14 days for  
SMEs  (initially  from 60 or 90 days) . There are also initiatives establishing supplier engagemen t 
programmes, which include : (i) sustainability assessment s; (ii) workshops ; (iii) subsidi zed training 
program mes; and (iv) an awards programme where  a company acts as a mentor to its suppliers.  
In addition, SPLC hosts a Supplier Development Working G roup through which members work 
together to share best practices and resources, which can be used in enhancing their suppliers' 
sustainability capacity.  
 
                                                
30 Available at: https://ww w.sustainablepurchasing.org/guidance/ .  GPA/W/341  
 
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  5 - Supplier A ssessment  
 
SPLC supports  this theme through the  Supplier Assessment Working G roup (S AWG) , which is 
charged with helping SPLC members identify the best resources for guiding and assist ing their 
suppliers' sustainability performance. For example, at the product level, the SAWG can help 
purchasing organizations to identify relevant ecolabels or stan dards. SPLC can also help monitor 
the sustainability performance of a supplier as a whole  by developing a number of resources . It 
may include the application of the ESG (environmental, social and government)  rating products to 
sustainable procurement , and a report from the Committee on Supplier Rating.  
 
6 - Radical Transparency  
 
Increasingly radical supply chain transparency is promoted  by advocacy organi zations to expose 
abuses of environmental and human rights in supply chains , connect ing the relevant pr actices to 
individual suppliers and purchasers.   
 
7 - Collective Action  
 
There is a growing  trend toward s collective action of purchasers across public and private sectors 
and in collaboration with civil society. SPLC is one example of this. Others includ e the 
Sustainability Consortium, the Consumer Goods Forums, the RE 100 Initiative  (which brings 
together the most influential companies committed to 100% renewable power ), Practice 
GreenH ealth, and the newly formed Renewable Energy Buyers Alliance , etc.  
 
Mr Pearson  said that t he Sustainable Development Goals  provide  an important framework for 
collective /global  action.31 Importantly, many of these organi zations use the SDGs to communicat e 
and link their work with that  of other organi zations.  
 
In concluding, Mr Pearson said that t hese seven trends represent a fundamental shift in the 
thinking of public and private sector organi zations  to influence the supply chain and  seize the  
opportunit ies that SPP can offer .  
 
2.3  Sandra Hamilton, Social Procurement Advisor & C anada's First Social MBA  - 
"Procurement strategy: the importance of people in a people, planet, profit approach to 
sustainable government procurement"  
In her presentation , Ms Hamilton  talked about SPP and the complementary, yet different , roles 
that govern ments and business es play in society. She said that public procurement should reflect 
the way society lives and breathes its values. The GPA sets  the bar and positively influences  
government procurement chapters in f ree trade agreements . In her view, SPP includes economic 
and social values , in addition to environmental values.   
 
Continuing, s he shared her experience working with many procurement projects, including t he 
2010 Vanco uver Olympic  Games, which were the first Olympics  in history to include social criteria 
in the sustainability strategy. For example, t he floral contract s used in connection with  the games 
not only required  a competitive price and floral capability but also required t hat the vendor 
provide d tangible community benefit s (e.g. to train m arginaliz ed women to become florists) .  
 
She posited that , of the  biggest threats to world trade , prosperity and well -being , a key one  is 
inequality.  Together with precarious work and i ncome instability , inequality  leads to an increase in 
family stress and  poverty , adding an unacceptable burden of increased social and  health costs to 
the taxpayer. She noted that  Canada and Europe are working together to advance CETA, but with 
a cautionary messa ge that t o succeed , wider social benefits must be achieved from the economy.  
 
Social public procurement offers a responsive and proactive tool whereby governments can signal 
to the market  the type of supply chain partnerships that will be en couraged and rewarded in 
public -sector contracts.  It has been described as a "Golden thread " capable of pulling to gether 
many diverse interests.  SPP is achieved by shifting demand and bro adening the definition of value; 
and by breaking down silos and rewarding socially responsible behaviour . 
                                                
31 See above note 21. GPA/W/341  
 
- 15 - 
 
  She observed that Canada has the second  largest non -profit sector in the world  (after  the 
Netherlands). One in ten peopl e work in the non -profit sector, which accounts for 8% of GDP . 
While b usiness is becoming more social and the non -profit secto r is becoming more businesslike  – 
building linkages  and br eaking down the barriers between these sectors make s good social and 
economic sense.  Social public procurement is the tool that can make this happen.  
 
Meaning of Social Public Procurement  
 
Identifying different dimensions of social public procureme nt, she said that it encompasses:  
 
 Our responsibility to one a nother . In particular: protecting people and improving lives; 
promoting social inclusion, equality, community benefit; and stimulating inclusive 
economic development ; 
 A more strategic  and proactive approach , which requires policy makers and procuring 
entities to stop and think;  
 Asking new questions , such as: i s this a high o r low social value opportunity? What are 
the potential positive and negative social impacts of this procure ment? How can thi s 
contract improve lives and enhance society?  
 Inspiring  new conversations among diverse actors ; and 
 Paying special attention to the pre -procurement (i.e., the advance planning) stage . She 
said, further, that pre-procurement is where "the magic happens " – i.e. the most 
transformative steps are planned/taken . 
Continuing , Ms Hamilton  said that:   
 
 Sustainability may be incorporated  into the different stages of public procurement by , for 
example:  
 reviewing  and aligning with existing poli cies and goals . SPP can  be used as a tool to 
support and amplify existing strategies and policies (e.g. economic development, 
social services, healt h, and infrastructure planning) ;  
 reviewing annual procurement plan s;  
 focusing on the highest social v alue opportunities ;  
 identif ying and engaging knowledgeable i ntermediaries;  
 design ing procurement strategy; and  
 consider ing procurement  mechanisms  to achieve sustainable outcomes .  
 The most common goals being pursued by the public -sector  surround employment, with 
the aims of reduci ng poverty, providing skills training and work opportunities for people 
facing barriers to employment.  To achieve these goals, a combination of mechanisms is 
used. They include: (i) social audits ; (ii) social pre -qualifications ; (iii)  project specific 
comm itments ; and (iv)  award criteria ( developing rewards that target  hiring or 
diversification of supply chain partnerships – such as the inclusion of social enterprises) . 
 When working with communities, business groups and governments, Sandra has  
developed a matrix to help identify a match between individual procurement s and 
relevant social value objective s. The matrix  also helps people understand the difference 
of working  above and below  thresholds . Not every procurement is a match for each 
social value outcom e; therefore p rocurement strategies must be developed on a case -
by-case basis . Three words  matter in this regard:  Are we Rewarding , Re-Scoping  or 
Restructuring  to achieve the desired objective s?  GPA/W/341  
 
- 16 - 
 
  Highlighting C ritical Success Factors for Sustainability  
 
She said that the SPP success factors  include:  (i) a supportive regulatory framework ; (ii) engaged 
leadership ; (iii) alignment of strategic objectives and existing policies ; (iv) p eer to peer 
communities of practice ; (v) building a culture of continuous improvement ; and 
(vi) communication and collaboration  between internal departments and external markets . 
 
Key Lessons learned : 
 
Based on her experience of working with SPP  issues , Ms Hamilton highlighted the following lessons 
learned : 
 
 Build the strategy for sustainability into  the public  procurement process  at an early 
stage ; 
 Identify knowledgeable intermediaries: employment organizations and social value 
advisory panels (industry supported pilot collaborations ); 
 Set targets and measures ; 
 Run an open, transpar ent, and competitive process , consistent with relevant legal 
standards ; and 
 Adopt and apply t angible, non-discriminatory evaluation criteria .  
International agreements can promote, rather than impede, sustainable outcomes. Currently , 
Ms Hamilton is engaged  in developing a CETA-compliant Social Value Infrastructure Pilot  that can 
be used as a template for governments to achieve more social value throu gh infrastructure 
contracts.  In her view, CETA provides Canada and the EU  with an excellent opportunity to ed ucate 
relevant public sector buyers on socially sustainable public procurement  and how to better 
leverage tax payer funded contracts to achieve key public policy goals. These goals should be  
focused specifically on designing a process that creates work oppo rtunities and skills training for 
people facing barriers to employment. The development  of a standardi zed process could 
significantly simplify SPP implementation by public sector buyers, and ensure a certain degree of 
harmonization of SPP processes across different regions.  
 
SPP Myths and Ten sions 
 
Ms Hamilton  also referenced several  myths , as she sees them,  in relation to sustainability. For 
example, she said that it is wrong to suggest that SPP: (i) is a  code for local protectionism; (ii) is 
illegal - the regulations have to change first; (iii)  can only happen under threshold s; and/or (iv) is 
only a support system for social enterprise.  
 
She acknowledged, nonetheless, a number of tensions /outstanding questions  – for example :  
 
 Should SPP be prescriptive, descriptive or have a menu of options?;  
 Should  local, ownership type or social impact  be rewarded ?;  
 Should set asides and offsets  be used?;  
 Should  a standardized national approach  be used? If so, does  it remain responsive to the 
needs of the different  communit ies? At the same time,  we should bear in mind that 
evaluation without some standardization is difficult ; and  
 Should there be a way to reward performance and  inter-government, financial transfers 
for positive social outcomes ? Should  a compensatio n model be considered if local 
governments start to create solutions and cost  savings for different levels of national 
governments?  GPA/W/341  
 
- 17 - 
 
  Recommendations  
 
In terms of recommendations  for further evolution of the GPA  and/or related guidance , she 
referenced  language  that: 
 
 Supports governments se tting a leadership example , by encouraging  governments to 
move from being price takers to market influencers and market movers;  
 Encourages  public  procurement strate gy that align s and support s the UN Sustainable 
Development Goals; ILO Decent Work Initiative; and ISO Sustainable Procurement 
Leadership Principles ; 
 Clearly grants permission to members by providing examples of how to better leverage 
public procurement to achieve key public policy goals ; and 
 Moves beyond the princip le of "Do No Harm " to proactively "Doing Some Good ". 
In concluding, s he said that, if the GPA Parties manage to implement the above -mentioned 
recommendations , they will be recognized as global leaders setting the gold s tandard for public 
procurement that acknowledges and promotes people/social values.  
 
2.4  János Bertok, Head of Division, Public Sector Integrity, Public Governance and 
Territorial Development Directorate, Organisat ion for Economic Cooperation and 
Development (O ECD) Secretariat  - "OECD work relati ng to sustainable procurement 
practices"  
Mr Bertok began his presentation by noting that t he Organisation for Economic Co -operation and 
Development (OECD)  works with around 35 developed country members and a number of key 
developing partners. The OECD supports evidence -based dialogue in the area of government 
procurement through an extensive  database.  
 
He suggested  that public procurement matters , a great deal,  for sustainability. Among the OECD 
members, government procurement represents around 12 -13% of G DP and carries a huge 
potential for social and economic transformation.  He referenced the  2015 OECD Recommendation s 
on Public Procurement32, which are in line with the revised GPA rules and the UNCITRAL Model 
Law. It has 12 integrated principles  designed to  ensure  the strategic and holistic use of public 
procurement . The principles include, for example: transparency, integrity, access, balance, 
participation, efficiency, e -procurement, capacity, evaluation, risk management, accountability and 
integration.  The recommendations also provide relevant guidance  for their application . 
 
As previously mentioned by other speakers, Mr Bertok  also considers that one of the biggest 
challenges in the area of government procurement concerns  capacity -building  and 
professiona lization. The OECD tries to help in meeting related challenges through activities aimed, 
inter alia , at: 
 
 Establishing k ey performance indicators  to support, where appropriate, standardization 
and best practices ; 
 Supporting strategic use of government proc urement (e.g. g reen, SME, innovation );  
 Publishing report s on innovation, which identify  trends  and major constraints faced by  
countries , and provide a framework  to stimulate  innovation through public 
procurement33; 
 Facilitating involvement of SMEs  (this is  a priority for the  next two years ); 
 Publishing the Government at a Glance Report34 every two years , which  provides data on 
different instruments, including e -procurement;  and 
                                                
32 Available at: http://www.oecd.org/gov/ethics/OECD -Recommendation -on-Public -Procurement.pdf .  
33 See, for example, Embracing Innovation in Government – Global Trends, February 2017, available at: 
https://www. oecd.org/gov/innovative -government/embracing -innovation -in-government.pdf .  GPA/W/341  
 
- 18 - 
 
   Establishing a ssessment tools, such as the Methodology for Assessing Procurement 
Systems (MAPS ). 
Good Practices E ncouraged by the OECD : 
 
The three main dimensions of the OECD's work in the SPP field are: (i) s ustainability and strategic 
public procurement ; (ii) s ustainability and diagnostics - the Methodology for Assessing 
Procurement Systems ( MAPS ); and (iii) s ustainability and infrastructure investment . 
 
Good Practice 1 - Sustainability  and Strategic Public Procurement  
 
In the last four years , OECD members have  increasingly use d government procurement to achieve 
broader policy objecti ves, such as green public procurement, support to SMEs and the 
procurement of  innovative goods and services.  This trend is also accelerating.  
 
As stated in the principle V of the 2015 OECD Recommendation on Public Procurement  "Secondary 
policy objectives (e.g. Sustainability) should be balanced against the primary procurement 
objective ". In this regard, the good practice s emerging from the procurement community include : 
(i) an evaluation of whether public procurement is the best option to pursue sustainabi lity; (ii) the 
development of a st rategy; and (iii) and assessment of the impact of the resulting actions.  
 
Good Practice 2 – Sustainability and Diagnostics - the Methodology for Assessing Procurement 
Systems (MAPS)  
 
Evidence shows that OECD members  use public procurement  to pursue secondary policy 
objectives.35 It is important to measure results of such strategic use public procurement. The 
OECD Methodology for Assessing Procurement Systems (MAPS)36 could be a useful tool in this 
regard.  From being merely a development finance tool, MAPS is now becoming a universal reform 
tool. MAPS is used by more than 90 countries and international financial institutions , and is l inked 
to new international standards, e.g. the 2015 OECD Public Procurement Recommendation . MAPS is 
also linked to  the Sustainable Development Goals . In particular,  
 MAPS Indicator 3(a)  refers to SDG Target  12.7: "Promote public procurement practices 
that are sustainable , in accordance with national policies and priorities ".37  
 MAPS Indicators 5, 6,  8, 12, 13  refer to SDG Target  16.6: "Develop effective, 
accountable and transparent  institutions  at all levels ".  
Good Practice 3 - Sustainability and Infrastructure  
 
In concluding, Mr Bertok discussed two concrete examples of SPP in infrastructure and s aid that 
there are two main visions for building sustainable infrastructure  (i.e. requirements -based and 
competition -based  approaches). To illustrate the requirements -based approach, he referred to the 
construction of a new airport for Mexico City, which m ainstreamed sustainability. In this specific 
case, Mexico opted for  sustainable financial instruments – i.e. by using  "green bonds" 
(USD  2 billion) to finance construction that has to follow specific environmental performance 
criteria . The other approach ( i.e. competition -based) was illustrated with the construction of a new 
Highway A6 in Almere, Netherlands. In that case, the Netherlands have used technical 
specifications , MEAT, CO2 performance ladder and  Life-cycle Cost Analysis tool s with 
Environmental C ost Indicator (ECI) to choose the greenest offer . 
 
                                                                                                                                                  
34 Available at: http://www.oecd.org/gov/govataglance.htm .  
35 For instance:  (i) to boost  green objectives (69% of the OECD  members); (ii) to stimulate innovative 
goods and services (42% of the OECD members); and (iii) to help SMEs  (19% of the OECD members).  
36 Available at: "http://www.oecd.org/gov/ethics/benchmarking -assessment -methodology -public -
procurement -systems.htm ". 
37 See above note 21. GPA/W/341  
 
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  2.5  Questions and Answers/Comments Session  
1. The following question was posed:  at which stage is it most challenging to 
integrate sustainability criteria and what can be done to address these challenges ? 
In resp onse:  
 
 Ms Hamilton  stressed that to be effective, integration of SPP elements needs to be 
considered as early as possible in the public procurement process. The later in the 
process i t is considered, the more difficult it will be to achieve related goals .  
 Mr Hidson added that many sustainability objectives might be included in technical 
specifications in relation to simple products such as paper.  
 Mr Bertok  echoed the previous speakers  and said that SPP should  start with a strategy. 
The OECD contributed to  this by encouraging the transformatio n of government 
procurement from an administrative process to a strategic tool.   
2. More information  was requested  on the OECD 's data collect ion on green public 
procurement.  
Responding, Mr Bertok commented that not only t he OECD, but all countries are facing difficulties 
to get  data. The OECD has two  criteria: what is relevant and what is credible. This is still work in 
progress and is certainly becoming more feasible with e -procurement.  
3. Pursuing the discussion, i t was no ted that achieving best -value for money might 
be treated as  the primary objective of government procurement and,  in that context , 
secondary objectives might be considered. For example, in the case of green public 
procurement, it could be promoted through a life-cycle cost approach and the procured 
products could be both environmentally friendly and cheap. In some other cases, 
however, such as the promotion of SMEs, it may not be that easy to demonstrate how 
the primary and secondary objectives can be reconc iled. The following question was 
posed: how Parties can ensure that the achievement of the secondary objectives (e.g. 
promotion of SMEs or other types of businesses) is compatible with the principles of 
non-discrimination and open trade that are defended u nder the GPA?  
In response:  
 
 Mr Bertok explained that the OECD is a community which brings together various 
perspectives , including from the Competition Committee and the Economic Policy 
Committee. Recently there has been a discussion about the revision of product market 
regulation, a very specific regulation, which has a huge impact. It was discussed how 
public procurement might be mainstreamed in this regard . This discussion suggested  
that the competition perspective is still dominant.  
 Mr Eggimann mention ed that  the key is to develop an evaluation system , at the 
implementation stage (with a good set of indicators) that takes into account all relevant  
aspects/issues.   
 Ms Hamilton emphasized  that when she designs project s, she makes sure that no trade 
agreem ents are contravened. A decision tree is one of the transparent ways of doing 
that. It is important to identify whether the project  in question  is of high or low social 
value opportunity. Some projects  such as  some civil infrastructure projects are very 
mechanical  and the social value opportunity is low. In other cases with high social value 
opportunity , collaboration with intermediary agencies, which are often non -profit 
organi zations, is possible. If social aspects are included in the evaluation criteria,  they 
should provide equal opportunit ies for all participants.  GPA/W/341  
 
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  4. A question was posed regarding the following hypothetical situation. Bids for a 
construction project  come from different suppliers and different countries and all of 
them include a social comp onent . Instead of committing to social advancement in the 
country where the project take s place , they commit to do the same in their own market. 
How would this be  evaluate d? Additionally, assu me that some of the countries  have  
indicated the ability for pro curing entities to target low employed or unemployed 
groups. How would it be evaluate d if you have foreign suppliers indicating 
underemployment? Every party has different views on what is disadvantaged.  
In response : 
 
 Ms Hamilton stated that if a specific procurement has high social value potential , 
disadvantaged people would be attracted. In her view , disadvantaged means anyone 
who is facing a barrier or is currently unemployed. If we want to have more inclusive 
econom ies (e.g. not only hiring people who lo ok like you), it is important to start 
breaking down some of the barriers. The criteria specifying such inclusiveness should be 
irrespective to the geographical location.  If it is a low social value opportunity , then 
ethical practices and the hiring divers ity within the company should be looked at. A 
social audit process can be used to make sure that  government  procurement is not 
driving parts of the population  into poverty and that the taxpayer funding system is not 
used to create more problems.  
Regarding  a common definition of "disadvantaged ", Ms Hamilton said that she has spent 
much time trying to find an exact  definition  without succeeding . In her view , the spirit of 
the language in trade agreements suggests  that we are trying to give opportunities to 
people facing  economic barriers and living  in poverty , e.g. to immigrants, women,  and 
people with language barriers , etc.  What can be done to reach out to such  people ? It is 
important to ensure that companies working in our supply chain s are helping to buil d the 
society we want to live in.  
 Mr Eggimann  added that , in his view,  WTO standards encourage  free flow of goods, 
money and people. In this context, it should not matter if an unemployed person is from 
another country. In his experience, these  standards are applied to all companies 
irrespective of their origins. Companies working in Switzerland are subject to some social 
standards. For example, it includes standards aiming at integrating a certain percent of 
disadvantage people (such standards are not spe cially connected to bid submissions).   
 Mr Bertok said that one approach is to focus on relevant constraints. For example, SMEs 
are facing capacity and administrative barriers/problems related to e.g. cash flows or the 
use of e -procurement. Addressing these  issues is not necessarily about the so -called 
positive  discrimination and SME preferences; rather, it is about understanding the nature 
of the constraints and how to address them in relation to SMEs. In his view, these are all 
level-playing field issues.  
 Mr Hidson added that there are various ways to measure and prove inclusion of social 
component s. For example , the prohibition of breaching environmental or social law might 
be included in the selection criteria , and the following components might  be asses sed: 
(i) evidence of human and technical resources; (ii) experience and references; 
(iii) education and professional qualifications of staff;  and (iv)  supply chain tracking 
systems.  
5. It was observed that, in his presentation, Mr Bertok of the OECD Secretar iat did 
not specifically refer to  the social  dimension  of SPP.  Does it mean that the OECD 
members are not interested in this aspect of SPP or it is something to be done in the 
future?  
 In response, Mr Bertok said that t he OECD has plan ned to discuss public procurement at 
the Global Forum  on Responsible Business Conduct  to be held in June 2017 . It is planned 
that one of the sessions will be dedicated to the relationship between public and private 
suppliers , with the aim of mainstreaming the social dimension of public procurement . GPA/W/341  
 
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  3  SESSION 3: HOW ARE S USTAINABILITY MEASUR ES IN PROCUREMENT PR OCESSES 
PRACTICED IN A MANNE R CONSISTENT WITH BO TH THE PRINCIPLE OF "BEST -VALUE 
FOR MONEY" AND INTER NATIONAL TRADE OBLIG ATIONS?  
The revised GPA  explicitly reflects , in its su bstantive provisions, the values of environmental 
conservation and the protection of  natural resources. Moreover , as WTO DDG Yi reminded us in his 
opening remarks, sustainable development is incorporated , as an overarching goal,  in the Preamble 
to the Marr akesh Agreement Establishing the WTO . In this context, the present session is intended 
to further clarify and explore the relationship between the GPA's principles and sustainability 
objectives and concerns.  
 
Robert Anderson, Session Chair  and Team Leader for  
Government Procurement and Competition Policy in the WTO Secretariat  
 
 
3.1  Judge Marc Steiner, Swi ss Federal Administrative Court - "SPP, best -value for 
money and international trade o bligations: the GPA as a model A greement"  
Judge  Steiner , in his presen tation , discussed the nature of the revised GPA, including in relation to 
sustainability issues, and its difference s vis-à-vis the 1994 GPA, also highlight ing related 
developments regarding EU legislation.  He made the following observations:  
 
 The 2012 revi sed GPA is a completely different mindset compared to the 1994 GPA as it 
is a part of the coherent legal order and part of the global international public law 
framework.  
 The 1994 GPA was conceived principally  as a market access tool. The approach of the 
legal analysis of the 1994 GPA doctrine suggests  that public procurement regulation 
should not be used for political aims because it distorts markets  and competition , 
destroys the pure logic of market access, economy and pricing.  
 The 2012 GPA, on the contra ry, established a different framework, which addresses 
explicitly issues such as good governance and corruption.  It aims to balance the 
traditional goals of public procurement with the new public purposes pursued. Green 
public procurement is now explicitly  endorsed in provisions related to technical 
specifications and award criteria.  There is still "constructive ambiguity " concerning social 
aspects . However, if social aspects are not mentioned, it does not mean that they are 
forbidden  so long as they are im plemented consistently with the Agreement's 
fundamental principles . 
Relevance of the  2014 EU Public Procurement Reform  
 
 Judge Steiner suggested that  the WTO and the EU views regarding the nature of public 
procurement changed in parallel. In the 1990s , the EU followed th e approach  established 
in the 1994 GPA.  However, r ecently, the EU has framed public procurement in a new 
way. The 2014 EU Directive aims at a strategic use of public procurement to pursue 
societal goals.38 The European Court of Justice  (CJEU) gave an interpretation that  public 
procurement is not only about money, it is also about quality; and emissions can also  be 
a part of the quality. For example, in the Max Havelaar  case the CJEU allowed social 
award criteria.39 There is a general understandi ng that it is also in line with the revised 
GPA. 
 The CJEU stated that if there is an obligation in EU law to orient ourselves towards 
sustainable development, public procurement regulation cannot be interpreted as not 
allowing pursuing these goals and purp oses. This was a breakthrough both for 
                                                
38 Public procurement plays a key role in the Europe 2020 strategy […] for sma rt, sustai nable and 
inclusive growth ( "Europe 2020 "), as one of the market -based instruments to be used to achieve smart, 
sustainable and inclusive growth while ensuring the most efficient use of public funds (Recital 2 of the Directive 
2014/24/EU) , availa ble at: http://eur -lex.europa.eu/legal -content/EN/TXT/?uri=celex:32014L0024 .  
39 See Commission v Netherlands (C -368/10 of 10 May 2012) (The "Dutch Coffee" case). Available  at: 
http://curia.europa.eu/juris/liste.jsf?num=C -368/10 ; http://ec.europa.eu/environment/gpp/case_law_en.htm .  GPA/W/341  
 
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  environmental and social values. For instance, the CJEU mentioned that "Coffee which 
has been unfairly marketed  leaves a sour taste ." 
 The EU established that application of the Directive should be in conformity with t he 
GPA.40 Therefore, framing and applying  EU law  in relation to sustainability issues  are in a 
sense  interpreting the GPA . 
 Currently , Switzerland is experienc ing the same change. It is reform ing Swiss public 
procurement law  by including the purpose , inter a lia, to ensure that public resources are 
sustainably used from the economic,  environmental and social perspective s. 
Regulatory density of the GPA as a key argument regarding its interpretation  
 
 Continuing, Judge Steiner observed that t he revised GPA has low regulatory density; it is 
more flexible and open -minded compared to the full -fledged national legislation 
implementing the clear -cut policy view on the understanding of legal and economic 
concepts of public procurement (such as the EU).  
 He noted that t here is not much doctrine on the revised GPA; some lawyers still follow 
the 1994 GPA logic, failing to consider that the revised GPA brought paradigmatic 
change in the interpretation of public procurement objectives and those of the GPA.  
 Sustainability is n o longer only two -fold, including economy and green  procurement;  it is 
three -fold as social aspects represent a further significant objective. Even traditional 
economic considerations recognize the importance and validity of life -cycle costing.  
The GPA is not about regulating private consumer choice, but about the  public consumer choice 
itself 
 
 Concluding, Judge Steiner suggested that, c ompared to classical WTO law , the GPA 
formula provides  more policy space; it constitutes  a lex specialis  compared to the 
ordinary  treatment of  PPMs (processes and production methods) as the GPA does not 
deal with measures such as an import ban or a trade sanction in the general WTO 
context. The GPA is not about regulating  private consumer choice but it is about public  
consume r choice itself. 
3.2  Lidia Capparelli, Consip (the ce ntral purchasing body of Italy) - "SPP practices – 
consistency with the principle of " best-value  for money": national 
perspectives/experiences"   
Ms Capparelli , in her presentation , shared the experience of I taly in relation with the 
implementation of green  public  procurement and the challenges the Italian purchasing body faced.  
Following  the entering into force of the  EU Directive , green public procurement became mandatory 
in Italy. In 2017 , Italy is expected  to spend around EUR 20 billion on green public procurement.  
 
Ms Capparelli noted  that public  procurement is often approached  from a life -cycle perspective  in 
Italy. In this context, public p rocurement plans should be updated on a regular basis  and technic al 
specifications and award criteria should be designed based on feedback  from the market. Means of 
proof, such as labelling  requirements , are important  elements to take into account during the 
procurement process , as they  help to  lower risks.  
 
                                                
40 Recital 7 of Directive  2004/18/E C, available at "http://eur -lex.europa.eu/legal -
content/en/ALL/?uri=CELEX:32004L0018 ".  GPA/W/341  
 
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  In her presentation,  Ms Capparelli  provided three  specific examples  of market analysis in which  
life-cycle c onsiderations figured importantly : 
 Lighting illumination:High Pressure Sodium  (HPS) versus Light Emitting Diode  
(LED ) 
Ms Capparelli suggested that a ssessing on ly technical parameters of alternative lighting 
technologies might not adequately reflect and distinguish all  life cycle cost s and, 
consequently , might  limit the scope of products during the public procurement process. She 
suggested that, to be tec hnologic ally neutral , technical parameters on the whole service 
should be assessed : (i) the ratio between the whole efficiency of the luminaire and the 
reference efficiency ; and (ii) the ratio between the power density of the installation and the 
reference power d ensity . 
 
 Printing Techn ologies : Laser Versus Ink Jet 
Laser and Ink jet printers have different levels of emissions. To assess these levels  of 
emissions,  technical criteria were selected from ecolabel s.  
 
 Food Services: Organic Versus Conventional  
The fo od supply chain is very complex and includes: production; processing; distribution; 
access and consumption. Production is the most important phase as it involves economic 
(food procurement, labo ur and other costs), environmental ( about 30% of the global 
greenhouse gases ) and health aspects.  
 
At the moment , quality/price ratio is used as a green award criterion to balance different 
elements in the production cycle.  Instead of quality/price ratio , life-cycle costing  could be 
used. However, it is not possible t o implement the complex life -cycle costing methodology 
as there is no mechanism to moneti ze both environmental and health damages.  
 
Concluding her presentation, Ms Capparelli  emphasized her agreement with the importance of 
professionalizing the procuremen t function, given the importance of social choices involved .  
 
3.3  David LePage, Principal, Accelerating Social Impact (ASI CCC)  - "Canada SPP 
practices – consistency with the Parties' international trade obligations: a perspective 
from Canada"  
Mr LePage , in his presentation , shared his personal experience working with SPP  in a variety of 
contexts . He highlighted the extent of challenges and opportunities under the current regime and 
addressed the issue o f how social policies that are implemented and consistent  with international 
trade obligations  can generate the best outcomes for all concerned . 
 
To begin with, he addressed the question of  why we look at SPP within trade agreements, 
including the GPA. To answer this question, it is i mportant to go back to a bas ic point of building 
healthy communities. H ealthy communities have multiple capitals , including : social, human, 
physical, economic and cultural. In his view, to establish a healthy community, it is important to 
create a market place that includes social pu rchasing  and social enterprise suppliers .41 This can be 
achieved with both trade  agreements and public policies  that encourage and support  the creation 
of healthy communities.   
 
Continuing, he noted that the issues need to be addressed on both the supply an d the demand 
sides of markets . Social enterp rises represent the supply side; s ustainable purchasing represents 
the demand side . The role of t rade agreements is to act as a regulatory and influencing  factor in 
that supply chain relationship . Currently, on t he supply side, social enterprise s increas e their 
capacity and potential  impact s; and on the d emand side, sustainable purchasing  is rising globally .  
 
                                                
41 Canada 's Ministry of Innovation, Science and Economic Development established the following 
definition for s ocial enterprise: an enterprise that seeks to achieve social, cultural or environmental aims 
through the sale of goods and services. The social enterprise can be for -profit or not -for-profit but the maj ority 
of net profits must be directed to a social objective with limited distribution to shareholders and owners.  GPA/W/341  
 
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  A key challenge: ensuring effective coordina tion of the demand and supply sides  
 
Mr LePage noted that : 
 
 The current market  place was built 20 years ago  on the basis of the traditional  economic 
model.  The trade  agreements of that era reflect ed the framework and behavio ur of an 
old economic and purchasi ng paradigm, rather than the current focus on " best-value  for 
money ". The financial value was still separate d from social value . The older agreements 
still include d many exemptions that could  be used in favour of SPP (thresholds, purchase 
from non -profits), but they were not often  used.  
 Ambiguity and lack of unde rstanding of trade agreements can result  in a "chilling effect" 
on social purchasing and community benefit development . 
Emerging opportunities  
 
Carrying forward his theme, Mr LePage suggested that:  
 
 The social enterprise sector is an emerging and high grow th area. There is a shift in 
defining SMEs: the focus is  not only on their size, but on their contribution to the 
community: job growth, and local economic development.  
 In Canada, s upportive public policy for social enterprise is emerging at the federal, 
provincial and municipal levels. Still , it is only a reflection of what is happening 
internationally, but such public policy motivates and influ ences the development of 
social -purpose businesses. In the emerging purchasing model , purchasers with social 
value supply chain s create a community value, therefore creating a shift from merely 
economic to community output.  
 If SPP represents an opportunity to provide more value to the organization, then t he 
next generation of trade agreements will have to recognize , encourage and facilitate 
social enterprise opportunities along with sustainable purchasing outcomes . This will 
create a social value market place which will then result  in healthy communities.  The 
draft of ISO 20400  is aimed to contribute to these opport unities.42 
3.4  Questions and Answers /Comments Session  
1. It was noted that the revised GPA included, in its Article XXII:7, a mandate for 
eventual  future negotiations to improve the Agreement, reduce existing discriminatory 
measures and further extend coverage . In that context, the question was posed as to 
whether the current GPA is permissive enough to enhance SPP or are further 
amendments warranted? What else might be done ? 
In response:  
 
 Judge Steiner recalled  that the revised GPA provides explicit authority for  green 
procurement, but is mainly silent in relation to social public procurement (effectively 
creating, in his view, a situation of constructive ambiguity ). There are different possible 
options. First, to provide legal certainty and interpretation of the r evised GPA, the EU 
approach for interpretation of fair trade (for instance, in the Max Havelaar  case) might 
be relevant . Second, if the WTO and/or the international legal community are reluctant 
to accept  the first option, then it is more likely that anoth er revision of the GPA, which 
would  provide for legal certainty, is needed. Third, it might  also be possible to establish 
a Committee  interpretative document without launching another  revision of the GPA.  
 Mr LePage pointed out that there are risks involve d in letting the courts make public 
policy. Responding, Judge  Steiner stressed that it is inevitable that courts /domestic 
authorities/dispute settlement panels  will make  policy choices, especially considering the 
limited regulatory density of the GPA.  
                                                
42 See above note 24. GPA/W/341  
 
- 25 - 
 
   Mr LePage recalled that the revised GPA of 2012 had included explicit authority for  green  
public procurement ; the same approach might be taken  for social public procurement , in 
a future negotiation . Social public procurement  is a developing concept, emerging from 
the combination of relevant court 's decisions and some very progressive policies. He 
stressed that courts may play a role, but if there is no political leadership, change will 
not happen.  
 Mr Hidson  said that, at this stage , guidance could  help as it i s one of the  steps in the 
process of changing relevant national  legislation . For instance, the clarification of some 
issues provided by the EU in 2004 was a step in the right direction as people became 
more open when  the Directive  was revised in 2014.  
 Ms Capparelli added that while developing new guidelines on SPP, it is important to 
consider whole  life-cycle methodology  or, if this is not possible, to use at the minimum 
the total cost of ownership . 
2. A clarification was sought from Mr Steiner regarding the o ption of an  interpretative 
declaration  relating to sustainability issues vis -à-vis the GPA. Would it follow the EU 
approach? Or would it be more like an explanatory tool on what the provisions in the 
GPA are and what ki nd of flexibility they provide?  
In response:  
 
 Judge  Steiner highlighted that the whole life -cycle approach to public procurement could 
not be fully specified at the GPA level; more detailed  legislation at the level of individual 
Parties would be  needed. However, some interpretative guidance  to explicitly endorse 
social aspects might be useful. The fact that nothing is written in the revised GPA does 
not mean that social procurement is  impossible; it means that a balance must be struck 
between the primary goals of public procurement (such as ma rket access, transparency, 
fostering competition, equal treatment of bidders) and the social issues. Different social 
aspects might be subject to an assessment of their contradiction with the classical 
rationale of the GPA.  
 Continuing , Mr Steiner stressed  that one of the most important developments in EU 
public procurement regulation involved  moving from the lowest price to best -price-
quality ratio. This perfectly illustrates the limited regulatory density and large degree of 
policy space provided by the  GPA as the Agreement itself makes clear  that it is up to the 
GPA Parties to decide on whether to apply the best price -quality ratio or the lowest price. 
In the new framework, it is easier to defend quality advantages compared to price 
advantages because thi s is the logic of the new system.  
3. Pursuing a question from the first session43, views were requested as to how 
sustainable  public procurement might  potential ly be used  to show  the benefits of the 
GPA in developing countries.  
In response:  
 
 Judge Steiner pointed out that the present Symposium had itself effectively highlighted 
the significant advantages of the revised GPA and the scope for implementing 
sustainability -sensitive public choices under the Agreement . In his view, what would not 
be effective would  be the mindset of the 1990s (i.e., the old focus on  about trade , 
competition and money and nothing else ). However, the revised GPA is a minimum set 
of rules, which are open to different concepts of economic policies. An advertisement 
campaign based on thi s approach would have credibility.  
 Mr LePage suggested looking  at the trade agreements, including the GPA, as impacting 
principally on the demand side  of the market . When the demand side intends to create 
social value, the supply side responds as the deman d side drives the benefits. The GPA 
has the potential to give guidance in terms of how the demand side (the existing 
                                                
43 See above question 1 of session 1.4.  GPA/W/341  
 
- 26 - 
 
  spending  of government) can be used to create that impact in developing countries and 
to meet the social challenges in their own countr ies. Mr Steiner added that this 
corresponds very much to the new World Bank approach , as presented by Mr Browne in 
session 1.3 .  
 Mr Hidson commented on the  demand side  issue and said that i n the EU, this work has 
been ongoing for 20 years and it was expected t hat the demand side would push the 
market. However, this  did not happen as quickly as initially expected . The demand side 
has a role, but in Europe , SPP really started to happen when it became mandatory. Mr 
LePage clarified that, in his view, the demand si de includes both the legislative  and 
public policy helping to drive private sector to look at solutions that include social values.  
 Ms Capparelli pointed out that it is important to enhance understand ing of  what SPP is 
by e.g.  defining guidelines, giving some practical instruments , and promoting  a scientific 
analysis based on a life-cycle costs approach . This could already make a big difference.  
4  CONCLUSION OF THE SY MPOSIUM  AND SUMMARY OF POSSI BLE TAKE -AWAYS  
In concluding the Symposium, several delegations in addition to the Secretariat and other Session 
Chairs expressed their warm thanks to the speakers for their stimulating and informative 
presentations and responses to the questions posed. While reiterating that it would be for the 
Committee, in its regul ar sessions, to determine next steps and/or future initiatives, certainly, the 
discussion had identified interesting possibilities and provided very significant food for thought.  
 
Possible take -aways:  
 
When requesting the preparation of this report, the Co mmittee asked specifically that the 
Secretariat identify possible take -aways from the discussion . Responding to this request, and 
subject to Parties' views, the following points are noted for consideration:   
 
 The concept of sustainability has different dim ensions, and can have different meanings 
in different jurisdictions. For a number of the speakers, it encompasses, at a minimum: 
(i) protection of the environment; ( ii) social dimensions (e.g. human rights and/or 
working conditions and proactive measures t o support the participation of particular 
social groups); and ( iii) economic opportunities (e.g. innovation research/investment, 
open competition, supply chain competitiveness and the promotion of small businesses);  
 Sustainability objectives are already re flected, at least in particular respects, in the 
procurement systems of most if not all GPA Parties. Moreover, in the view of several of 
the speakers, important sustainability objectives can already be implemented in full 
compliance with the core GPA princ iples of non -discrimination, transparency and 
procedural fairness;  
 In the view of several of the speakers, already, the revised GPA adopted in 2012 and 
now in force provides significant scope for appropriate reflection of sustainability 
considerations in p rocurements covered by the Agreement. This is particularly clear with 
respect to environmental or "green" policy objectives. It is, certainly , less explicit in 
regard to the "social" aspects of sustainability though these are implicitly covered, in the 
view of some speakers;  
 In acknowledging (at least in some respects) the importance and validity of sustainability 
objectives in relation to public procurement policy, the GPA is embracing a shared 
perspective with other important multilateral instruments, inc luding the UN Sustainable 
Development Goals (SDGs)  and the new World Bank Procurement Framework. Of 
course, the objective of sustainable development is also highlighted in the Preamble to 
the Marrakesh Agreement Establishing the WTO;  
 Sustaina ble public pro curement (SPP) is considered by several of the speakers to be a 
strategic tool, regarding which prioriti zation and assessment are important at every 
stage of a procurement process. Life -cycle costing is an obvious step that is already GPA/W/341  
 
- 27 - 
 
  being implemented by many countries. Decisions taken early in the process will have the 
most impact;  
 All speakers considered that advancing sustainability through public procurement policy 
requires action at multiple levels (i.e., the GPA is only a part of the story and a grea t 
deal will depend on actions taken (or not) at the national and/or local levels) .  
 In the event that Parties wish to proceed with a further elaboration and/or endorsement 
of the importance and legitimacy of sustainability objectives within the GPA framewo rk, 
several options were identified , including the following : 
i. Working, in their capacities as individual Parties, to implement sustainability 
objectives using the policy space already provided in the 2012 Agreement;  
ii. At the level of the Committee, issuing a  decision, statement or interpretive tool 
clarifying the scope for implementation of sustainability objectives under the 
Agreement; and/or  
iii. If agreeable, t aking up the possibility of a further amendment or amendments to the 
Agreement to more explicitly refl ect, in the Agreement, the social in addition to  the 
environmental dimensions of sustainability.  
__________