The Network for Sustainable Development in Public Procurement (NSDPP), a coalition of social and environmental NGOs, trade unions and social economy organisations, has welcomed the adoption of the European Parliament’s own-initiative report on public procurement (2024/2103(INI) on September 8.
Although the report does not deliver on all the coalition’s demands and relies predominantly on a voluntary approach to integrate social and green procurement considerations, the NSDPP considers it a step in the right direction for more robust, sustainable public procurement in the EU.
The report points to persistent barriers, notably the widespread use of lowest price only criteria, and stresses the need to train contracting authorities in the best price–quality ratio, by applying the MEAT criteria. This means tenders should be assessed not only regarding cost but also on additional factors such as quality and continuity of supply for complex and essential services. The report further stresses that non-price considerations must carry substantial weight in the overall evaluation and final award decision. In addition, the NSDPP particularly welcomes the call for the Commission to assess a Sustainability Criteria Toolbox to provide legal certainty for public buyers.
Furthermore, the report positively recognises that public procurement should be more accessible for SMEs and for social economy organisations. This includes calling reserved contracts a good practice to support the social economy’s inclusive employment. The alliance stresses how this is also important for all disadvantaged people, in addition to persons with disabilities highlighted by the report. The report is acknowledging that “due to legal ambiguities and weak enforcement, multiple layers of subcontracting may dilute accountability, increase risks of labour law violations and hinder effective enforcement; multiple layers of subcontracting may dilute accountability, increase risks of labour law violations and hinder effective enforcement".
Furthermore, the report supports the Horizontal Social Clause, stressing that the social and environmental obligations it contains are “a cardinal value with which the Member States must ensure compliance.” This approach underscores the intention to anchor procurement practices in respect for labour rights and sustainability, even if the operationalisation of collective bargaining as an explicit award criterion remains too weak.
The text further recognises the crucial role of public contracts in strengthening resilience and ensuring best value for taxpayers’ money. It underlines the importance of trustworthy sustainability labels and acknowledges that procurement can create lead markets for innovative and sustainable products when high environmental and social standards are maintained. The report kept a strong line for in-house provision and public-public cooperation away from any promotion of competitive tendering.
Finally, the NSDPP notes the inclusion of the Buy European element in the report, and it will carefully assess its implications as the inclusion of this criterion, as its presence does not inherently guarantee greater sustainability.
In conclusion, the coalition hopes that the provisions outlined in the report will serve as a foundation for the forthcoming EU Commission proposal, paving the way for a transition from voluntary social and environmental criteria to a more binding and ambitious framework for sustainable public procurement across the EU. This is crucial to ensure that public procurement actively supports quality jobs, high social and environmental standards, which are key pillars ultimately safeguarding the EU’s competitiveness and societal wellbeing.
About the NSDPP:
The Network for Sustainable Development in Public Procurement (NSDPP) is a group of social and environmental NGOs and trade union organisations (individual, confederal and EU federal) united by their joint aim to achieve progress in sustainable development through enabling EU public procurement legislation and policies.
