Europe’s public authorities are major consumers of goods and services via the public procurement process. By using their purchasing power to choose environmentally friendly goods, services and works, they can make an important contribution to sustainable consumption and production - what is called Green Public Procurement (GPP) or green purchasing. GPP is a voluntary instrument, not a legal standard, but has a key role to play in the EU’s efforts to become a more resource-efficient economy. To be effective, GPP requires the inclusion of clear and verifiable environmental criteria for products and services in the public procurement process. In Equinox we aim to support GPP by integrating the de-facto standard data models and ontologies of the TED platform into sustainable portfolio workflows.
The implementation of the methodology within Equinox follows the principles articulated in the White Paper Economic Networks as Property Graphs 1) which emphasizes the proper capture of dependencies between the different economic actors and stakeholders involved in all economic exchanges. In this use case this translates into the following data models:
- Buyers (Purchasing Authorities) as special class of Portfolio Managers
- Buyer Objectives (The procurement of supplies, works or services) is a Project which can be mapped to the GHG Protocol
- Procurement Contracts as a special class of bilateral contracts (Distinct from Loans and financial contracts)
- Contractors are a special class of Counterparty (shared also with the Project Finance workflow)
Portfolio Managers and Portfolios
All procurement contracts are grouped as part of a procurement portfolio linked to a purchasing entity. This aggregation allows the systematic analysis of both historical and current activities of all entities.
All procurements pursued by a purchasing entity (when formalized as a TED notice) are modelled as a Project. Whether works, supplies of services, procurements have a defined environmental / social impact. (Current focus in Equinox is portfolio-wide management of GHG emissions profiles.) The type of code is captured via its CPV (Common Procurement Vocabulary).
NOTE: A Procurement Project need not be an awarded contract. In the cases where the procurement procedure was successful, it will lead to one or more Procurement Contracts with one or more Contractors. Otherwise it remains as a historical data point.
Procurement Project Activities, Ex-ante and Ex-post Analysis
In the simplest case each Procurement Project corresponds to one Procurement Project Activity. When the procurement contract involves several components (Lots or other subdivisions) each one corresponds to a distinct Project Activity. In principle each Activity can be (ex-ante) analysed following the GHG Protocol principles, including its primary and secondary effects.
For historical (ex-post) analysis, the mapping of procurement activities to sectoral environmental profiles leads to a historical and statistical analysis of how public procurement contributes to sustainability.
For existing procurements the collection of actual Contractors allows a diverse range of portfolio management activities, including the computation of various indicators of diversity / concentration risk (See Connecting the Dots: Concentration, diversity, inequality and sparsity in economic networks 2)
Procurement Emissions Reports
Utilizing the CPV code of a contract and a mapping of products and services to NACE sectors one can leverage EEIO databases and attribute GHG emissions to select components of the procurement portfolio (subject to a number of data and conceptual uncertainties!)