Five years ago, cities across Canada stood united in declaring a Climate Emergency, signaling their commitment to aggressive climate action. At the heart of these pledges was the integration of Scope 3 emissions—indirect emissions stemming from suppliers and third parties—into municipal procurement strategies. Yet, half a decade later, these bold promises have largely fallen flat. This article explores where things went wrong, the consequences of inaction, and what it means for the future of our cities' environmental strategies.
1. Promises Made: High Hopes for Procurement Reform
When Canadian cities declared their Climate Emergencies, there was hope that procurement processes would evolve to reflect deeper environmental values. Integrating Scope 3 emissions into Requests for Proposals (RFPs) was seen as a critical step in reducing carbon footprints across municipal supply chains.
The objective was clear: cities would prioritize more sustainable, low-carbon solutions by factoring Scope 3 emissions into procurement decisions. However, despite these aspirations, movement has been minimal. For example, in Toronto, 75% of the city's emissions come from Scope 3 sources, including the production and transport of goods and services consumed by residents6. Yet, procurement policies have failed to align with this reality, revealing a significant gap between ambition and action.
2. Reality Check: The Persistence of Price-First Procurement
Despite bold promises, most cities have been slow to adopt sustainable procurement practices. Cities like Saskatoon and Edmonton still predominantly focus on price, often sidelining carbon emissions in procurement decisions. The cost-first approach undermines any real progress in reducing carbon footprints across city operations.
In Edmonton, the primary consideration in municipal procurement remains low-cost bids, with sustainability often taking a backseat. This approach contradicts evidence showing that approximately 80% of emissions in a city’s supply chain come from Scope 37. The disconnect between cost-saving priorities and environmental commitments means missed opportunities to drive real change.
3. Consequences of Inaction: A Path Toward Greater Risk
Failing to address Scope 3 emissions in procurement processes has far-reaching consequences. Unchecked emissions contribute to worsening air quality, exacerbate climate impacts such as heat waves and flooding, and will likely increase the long-term costs of climate adaptation. The inaction of cities today translates into heightened risks and increased costs tomorrow.
Moreover, by not integrating sustainable procurement, cities miss out on long-term economic benefits. Research shows that adopting sustainable procurement practices can reduce energy and material costs, minimize environmental risks, and improve resilience to future climate challenges. These economic benefits extend beyond the environment, helping cities save money while building more sustainable supply chains12.
4. Resistance to Change: A Tale of Missed Opportunities
Even when cities like Toronto are presented with innovative, cost-effective solutions that promise lower carbon outputs, adoption rates remain dishearteningly low25. This inertia within procurement departments is troubling, as it reveals a deep resistance to changing established practices, even when presented with better, more sustainable alternatives.
This reluctance represents a missed opportunity. Leading private organizations have shown that addressing Scope 3 emissions is possible by improving transparency in data and working closely with suppliers22. These practices could be replicated in cities, but the failure to adopt them highlights a lack of urgency.
5. The Role of Climate Change Departments: Are They Making an Impact?
Many cities established Climate Change Departments to lead environmental initiatives and integrate sustainability across all areas of governance, including procurement. However, the influence of these departments remains limited. There is a growing disconnect between the aspirations of these departments and the practical realities of procurement processes.
For instance, despite Toronto’s efforts to reduce emissions from construction and maintenance activities, the city continues to struggle with integrating Scope 3 emissions into its procurement strategies25. This gap in policy implementation raises important questions about the effectiveness and influence of Climate Change Departments in achieving tangible progress28.
6. Learning from Success Stories: The Vancouver Model
One way to strengthen municipal procurement is to look at cities that have successfully integrated Scope 3 emissions into their processes. Vancouver, for example, has been recognized for its progressive procurement strategies, focusing on sustainability and environmental impact alongside cost. Vancouver's approach shows that it is possible to implement sustainable procurement without sacrificing financial considerations9.
By studying success stories like Vancouver’s, Canadian cities can see that the failure to address Scope 3 emissions is not inevitable. It’s a choice—and one that can be reversed with the right commitment.
7. Conclusion: A Call for Accountability and Action
The failure to integrate Scope 3 emissions into procurement processes represents more than a missed checkbox on climate action plans—it is a significant setback in the fight against climate change. As cities continue to grow, sustainable procurement has never been more urgent. Municipal leaders must not only revisit their commitments but also face public accountability for their inaction. Transparency in emissions reporting and procurement reform is critical for progress.
Final Thoughts
Moving forward, cities need a radical rethink of how procurement is handled. There is a need for a clear, actionable plan that prioritizes Scope 3 emissions alongside price considerations. By developing supplier scorecards, improving emissions data quality, and setting clear baselines for Scope 3 emissions, cities can chart a path toward true sustainability. It requires courage, innovation, and a genuine commitment to environmental stewardship.
Only through a comprehensive and transparent approach can cities reduce their carbon footprints and create a sustainable future.
References:
6: Addressing Consumption-Based Emissions 7: How Scope 3 Gets Handled (or Not) in the Supply Chain 12: Sustainable Procurement 22: Key to Scope 3 Emissions: SBTi Framework for Procurement 25: City of Toronto Releases Two Reports Detailing Progress on Ambitious TransformTO Net Zero Climate Action Strategy 28: The Crucial Role Cities Play in Tackling the Climate Crisis 9: BC Procurement Plan 2024
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