Literature Review on Green Procurement: Concepts and Strategies

This literature review delves into the multifaceted concept of green procurement, examining its relevance to organizations and its role in fostering a sustainable approach to business operations. It begins by defining green procurement, differentiating it from related terms such as environmental procurement and green supply chain management. The review explores various strategies for implementing green procurement programs, including its impact on organizational performance and competitiveness. It further analyzes the challenges and benefits associated with adopting green procurement practices, considering the perspectives of different stakeholders. The review also examines the policy frameworks and the role of different bodies in implementing green procurement strategies. Overall, the literature review provides a comprehensive overview of green procurement, its importance, and its implications for organizations seeking to enhance their brand image, attract customers, and contribute to environmental sustainability. It also looks at the implementation of green procurement in selected environmental policy frameworks of various countries.

Literature review

Table of Contents
LITERATURE REVIEW....................................................................................................................................3
Green Procurement’s relevance with the organizations........................................................................3
Definition of Green Procurement...........................................................................................................4
Green Supply Chain Management..........................................................................................................6
Green procurement in selected environment policy framework...........................................................7
Globalization theory...............................................................................................................................9
Implementing a green procurement program......................................................................................10
Impact of the green procurement on the performance of organization..............................................11
Strategy of green procurement............................................................................................................14
Bodies who can implement green procurement strategies................................................................15
Challenges green procurement............................................................................................................15
Advantage and disadvantage of Green Procurement...........................................................................16
Benefits of from the Green Procurement.............................................................................................20

INTRODUCTION
In the present era, every firm desires to develop its different image in the market so as maximum
market share and profitability can earn. Green procurement is a kind of strategy by which
company can develop its won brand image in the market and attract the customer in large
context. Green procurement mean buying products and services that cause minimal adverse
environmental impacts. It aids in human health and environmental concern into the search for
high quality product and services at the competitive prices. The following report included a
systematic literature review along with various themes which can aid learner in gaining effective
understandings about green procurement.
LITERATURE REVIEW
Green Procurement’s relevance with the organizations
In past years the strategies for making the better purchasing is applied by the
organizations so effectively. For these organizations is being focused on the activities related
with their core operations. The non-core activities are adopted for the outsourcing of the
products. This approach is being helpful to shift the major components of the manufacturing
operations outside to the organization and then the natural environment can have the impact of
the contribution of functions which are involved in the purchasing of goods. For this
organization being familiar to the suppliers as they must maintain the environmental factors for
coordinating the chain of activities. The opportunity is provided to the organization as openly as
they can integrate the aspects which are related to the environment and such aspects are involved
into all the processes and operations of the company (Blome and et.al., 2014). The impacts from
the environment which affect the actions of business can be reduced by this process. The power
of purchasing being so broad than any other function of corporate world. The green and
environmental purchasing makes a valuable effect as it is helpful in the reduction of the source of
waste by the possible instrument. The process is so active in promoting the recycling of the
wastage and makes benefit through the environment. It also helps to integrate various
environmental aspects which leads to the decision making process of organization. According to
the green purchasing also concerned with the responsibilities of the higher authority of the
organization related to environment as they have to cooperate with it because the chain of supply

can have impact on itself. Suppose an organization has applied the green purchasing in their
system, it means the supply chain which is associated by the leading companies may have greater
effect and it makes influence on their suppliers. The whole process in which the environmental
responsibilities are increases will increase the activities related to the environment of the other
companies within their supply chain. The company’s supply chain get influenced with those
activities as they have to supply the required stuffs on the fixed time and also the quality of the
product should be matched with the market requirement. Green purchasing is being so beneficial
for the organizations and their suppliers in last few years (Testa and et.al., 2016). Due to the
effectiveness of the environmental aspects, the operations has been modified for giving better
outcome to the organization.
Definition of Green Procurement
The Green Procurement can be defined in various term as so many authors have provided
their words on the Green Procurement. In various terminology can be used in the different
perception of different authors. The example of terminology can be seen as environmental
procurement or purchasing. There is no one who have gave their deep opinion on the specified
notion of the “greenness” related to the suppliers of the organization. Under the consideration of
integrated aspects of environments into the purchasing policies, programs and various actions.
The Green purchasing or environmental purchasing consists functions of purchasing in activities
for managing the supply chain, life-cycle analysis and environment design which providing the
facility of recycling, reuse and reduction of resources(Butt and et.al., 2015). As per the
evaluation there is one more holistic definition that can be stated as Environmental purchasing
for an individual firm is the set of purchasing policies held, actions taken, and relationships
formed in response to concerns associated with the natural environment. These concern relate to
the acquisition of raw materials, including supplier selection, evaluation and development,
suppliers operation, in-bound distribution, packaging, recycling, reuse, resource reduction and
final disposal of the firm’s product.
According to the view of Dubey, Bag, Ali and Venkatesh, (2013) Green procurement is a
strategy of the organization by which it can able to develop its own brand in the market and
attract the large numbers of customer. In this strategy company is going to introduce such
effective product and services which is related to the environment friendly. Green procurement is
the best strategy to develop the best brand image in the market. In a simple word it can be said

that green procurement is a adoption of ecologically responsible practices in business activities
used to meet needs for material, good, utilities and services. On the other hand in the opinion of
() green procurement mean buying products and services that cause minimal adverse
environmental impacts. It aids in human health and environmental concern into the search for
high quality product and services at the competitive prices. In a simple word it can be said that
those products and services which have very less or none environmental negative impact that is
known as the green procurement. Every firm required to sue this strategy of green procurement
so as it can able to bring some healthy and positive message for the society. While any firm deals
with the green procurement strategy then it can able to develop its positive and effective image in
the market. In addition to this it is a medium to introduce the organization brand in the market
and attract the large number of customer attraction. As per the view of Kozik, (2015) in the green
procurement strategy, the product life cycle and its ecologic impact through production ,
operation, maintenance and disposal are all considered in green procurement. In every stage of
the product life cycle like production, operation, maintenance and disposal, company needs to
consider in the green procurement. In addition to this, in the supply chain management of the
green product and services, reexamine delivery methods, products, packaging and measurement
system has been also included.

There is one more definition which is given by the Appolloni, A. and et.al, 2014
according to which the Green procurement is as helpful as the technical issues like recycling and
LCA can be narrow down. Generally people can adopt any of these definitions for simplify their
observation but most of the chosen the Dou, Y. and et.al., 2014 definition, because it can emerge
new themes as it is expressed so simply and has less specified information. In this definition the
generalized view is shown as the basic aspects which can make impact on the operations related
to environment are covered. Green procurement has been defined as per its basic property.
Green Supply Chain Management
The supply chain management is a concept on which very few researcher have made their
opinion as the abundant literature based on green management, in which the various aspects and
facts are evaluated and the review is depended on these factors. In past few years the interest has
grown up so some of area should go for the research. The factors which are so essential for the
research on green supply chain management, can be seen such as considerations and evidences
which are related to the green procurement are not that much developed. This research is done on
the basis of various conceptual papers as the identification. There are some predicted surveys
under which so many facts are discussed about the green supply chain management. It can be
referred as the basic idea for getting the deep knowledge about such topic. The organization must
know about this concept under which the environment purchasing which can be also named as
green purchasing in which the environmental aspects can make impacts on the chain of supplier
and ultimately the quality and delivery of good will be on time. Suppliers will realize their
responsibilities related to the organization.
As per the view of Agyepong and Nhamo, (2015) in the present time, environment impact of the
product and services can be influenced in several ways. Today the most of the product and
services are designed and produced in the linear value chain rather than in a circular value chain
that could ensure reuse and recycling of resources. According to Mosgaard, M.A., 2015 the
devotion of literature review is based on the green procurement, in which the several common
themes are synthesized by which is found in the stream of literature. Also the theoretical
directions can be proposed by it for further research in future on the environmental purchasing.
The review is all based on the previous practices and conducting another review regarding the

new themes and practices that have emerged on this topic. There is another review that is based
on the sustainable supply chain management, the conceptual framework is designed to
understand the green purchasing, but there is very small brief of GP in that review. There is more
review given by a research in which the relation between the environmental, social and economic
performance with the supply chain management has been focused and the whole demonstration
is based on that concept. But on the other hand in this review there are no conversation about the
other aspects of green procurement or the environment procurement. The 9 broad organizational
theories are taken as the base for a review and those theories are related with the special
emphasis on the investigation of the adoption, diffusion and outcomes of green supply
management practices(Shen and et.al., 2017). The whole study is about the comprehensive view
of that literature in the context of green procurement. The conceptual framework in which the
research is mentioned and the major common themes also the number of research directions for
future research are also proposed in this literature review.

Green procurement in selected environment policy framework
In this phenomenon the policy of environmental purchasing is defined under the
supervision of various factors. The policy have the discussion about benefit that is environmental
or socioeconomic and the benefits comes from the purchasing of product. The policy covers 9
countries under it such as USA, Canada, Finland, Norway, Sweden, Australia, China, Brazil and
Mexico, these country’s organization can make their operations according to the green
procurement policy. The countries which are working under the green procurement policy can
work with the context of solid legal basis, in such the utilization by public organizations is
required. The public sector organizations are using the LCC for getting the benefit and costs of
green procurement policy. There is no analysis introduced by any kind of organization in which
the accompanying analysis of the impacts is done in this review. The impacts are basically seen
on the competitiveness of industry or the suppliers of that business sector. There are some
sections that as to be covered in the study of Green procurement for each country. Such as policy
framework, programs, sectors and products, the relative principles, practices of the
environmental policies, the various standards, metrics, indicators and some other data about the
organizations and the suppliers. Also the lesson and practices which are done with the best
learning strategies is so important in green procurement policy(Hu and et.al., 2015). The whole
study is containing so many section do matter for the execution of this study and through these
all sections the study will reach to its end. As per the view of Hu, Rao, Zheng and Huang,
(2015) The Green Procurement can be defined in various term as so many authors have provided
their words on the Green Procurement. In various terminology can be used in the different
perception of different authors. The example of terminology can be seen as environmental
procurement or purchasing. There is no one who have gave their deep opinion on the specified
notion of the “greenness” related to the suppliers of the organization.

The green procurement is defined as the purchase of environmentally preferable products
and services in accordance with one or more established green procurement preference
programs. The preferable products can be idolized as which can not affect the health and the
environment that means the effect should be reduced on the health of the human and the
environmental factors. The evaluation can be done on the basis of the material which is used for
the making those products and raw material acquisition, production, manufacturing of the
products, packaging of such goods which are produced in the organization, the distribution of the
packets to the retailers, the reuse or the recycling of the waste material, the maintenance of the
each and every aspect which is involved in the production department and also related with the
suppliers of the organization. The use of non-toxic products should be less according to the green
procurement policy. The products which are made in the company may be manufactured by the
material or the content that is recycled. The bio based products can be used for the
Illustration 1: Green supply chain management
Source:Mosgaard, 2015

manufacturing of such products, the products and services that reduce the waste should be
supplied by the production sector, the energy efficient products and the products that reduce the
consumption of water should be according to this policy. Basically this policy leads to the
consideration for the environment, social aspects and price, the performance of such product
socially and environmentally, the availability of the products as the market demand. The
environmental qualities are specified under product attributes, process attributes, the attributes
which are specific for manufacturing, the perspectives which are done in the life cycle of that
product. The purchasing strategies which are responsible are also written in the green
procurement policy.
There are few sectors that has to understand the sustainability policy such that planning in which
the organization has to make sure about the right people in the place at they are conducting their
market. The policy provides the layout which can be followed for make sure about the formal
procedures and the various sections and factors that has to be consider for purchasing the goods
and services. The cost savings could be demonstrated for long term if the formal and strategic
procurement policies are implemented by the companies (Ahsan and Rahman, 2017). Also the
management and internal efficiency included in this green procurement policy. The preferable
products can be idolized as which can not affect the health and the environment that means the
effect should be reduced on the health of the human and the environmental factors.
There are some steps and considerations that could suggested for a company:
Plan- The market is research is so important for make sure about the policy under which
the organization is working. The availability in the market should be identified by the
organization as such product and services that has to be purchased. After the market research the
risk management and the waste management plan should be there. The areas in which the
organization can have most impact those area should be in focus of the management of the
organization. The labour and human policies are also part of the plan. Women empowerment and
the diversity in the terms of gender and the groups those are under-represented should be
considered in this plan. It is very important stage in the program of green procurement by which
company can acknowledge about the each activity and planning about the green procurement. In
addition to this, in this stage the decision can also taken by the management. Related to the

purchasing of raw material, technology, infrastructure, process so as green procurement activity
can do by the company in an effective manner.
Implement- Once the management develop the planning and strategy for green
procurement activity then in the next stage finally strategy of green procurement will implement
by the company. The implementation of each process and each operations should be proper. The
implementation of each process and each operations should be proper. The wording can be used
for the purchasing any kind of product and then the suppliers will give the preference. The
specifications should be focused on the desires outcomes and also the communication with the
vendors should be very clear that why are you asking for those specifications.
Continuity- The impacts should be measured after a particular range of time. Because the
success of plan must be determined as the instrumental(Yan and et.al., 2016). After the each year
the organization should measure that by implementing such plan the organization had the
impacts. The make sure that these impacts are internally and externally distributed. The each
stakeholders should know about it such as potential vendors, investors and employees.
Globalization theory
According to this theory the globalization is the reason behind the environmental
performance more than the localization. The opportunities and threats both can be discovered
due to the globalization. The chances of getting more opportunities will be increases in case of
globalization. Basically the multinational companies use various factors for producing goods at
competitive price such as they are threatening local companies by investing big capitals and by
using latest technologies and also they have producing capacity of goods at competitive rates.
The environmental performance can be improved by making pressure on the most enterprises.
According to Agyepong and Nhamo, (2015) the competitiveness of host
industries, which has preparedness and deliverables, translate to strategic and operation
requirements which include cost and quality improvement that add manufacturing aspects such
as Just in time , enterprises resource planning, total quality management. The shortening time to
order and faster speed to market can be seen as the other requirements. These requirements
employs various strategies like stock keeping unit rationalization, mass customization, process
integration and the research which are coordinated globally and the development also. The
globalization theory is need to be understand to discover the influence of the ICT infrastructure

and the independent variables as the supplier participation. And its impacts on the performance
of the organization. The globalization theory is so helpful to understand the various standard and
trademark which can help to improve the environmental performance. The product’s,
manufacturing and the packaging and other sections are included in this globalization. The
multinational company makes so many efforts and applying various operations which can be
idolized for production of products and service at the price which can be in the competitive
market. Multinational companies uses the resources of local companies and provide them big
investment and also their infrastructure is quite huge so they became successful in making
quality products for the retailers(Zhang and et.al., 2010). The costs improvement can be done by
emerging the waste material as it should be utilized in recycling process and also the
manufacturing can be done with the recycled material so the cost of production would be so
cheap as the cost can be improved.