Open Risk Academy

Adopting Open Data and Open Source tools can be a catalyst in the sustainability transition and Green Public Procurement (GPP) is a particularly opportune domain to explore this potential. In the first paper in this series we outlined key information flows and tasks that are relevant in this context. Here we dive deeper into how one can leverage a particularly promising source of economic and environmental impact information: Environmentally Extended Input-Output (EEIO) databases. We will discuss some of the challenges that must be addressed to effectively use EEIO tools in GPP, especially in European context. The use cases in focus are: how to produce an overall inventory of direct and indirect emissions for different procurement categories, and how to differentiate between green and non-green products. Some practical problems that must be tackled are: the consistent linkage of procurement data sets to EEIO databases, and the disaggregation of EEIO sectors to more granular of green / non-green products. We discuss potential approaches and their pros and cons. We analyze the specific challenge of creating a CPV-NACE mapping that would link demand driven procurement product taxonomies with supply driven economic activity classifications. We outline a methodology for disaggregating EEIO business sectors to constituent product categories with differentiated environmental impact while preserving the accounting constraints satisfied by the aggregate databases.

There are currently several important global initiatives that compile and make available statistical economic input-output data (IO). This is done typically on a multi-regional basis (covering many countries and regions, hence MRIO) reflecting the fact that international trade is (still) very much a reality. Environmentally extended input-output (EEIO) databases that are in turn based on economic activity IO data, are increasingly used to examine environmental footprints of economic activities and play an important role in the attribution and screening of regional and sectoral contributions to environmental stresses.

Yet there is a lot of diversity and complexity in the organization of these typically large datasets. This complicates the adoption and use of EEIO, as it requires the dedication of time and effort to acquire and process data, both initially and potentially with any updates. Motivated by this context, we discuss a simple, generic and portable format for disseminating Input-Output data. The format is inspired from the Graph representation of Input-Output matrices. It allows a unified and very extensible description which can be serialized into standard csv files but also inside a minimal portable sqlite database file.

In a new and free online game we introduce some aspects of Green Public Procurement in a simplified, fun setting that helps highlight some of the considerations involved.

In the game the player assumes the role of a public procurement manager working for a large city. The gameplay imagines our intrepid public servant (namely, you!) inheriting a challenging procurement portfolio that has a substantial environmental footprint (in terms of excess Greenhouse gas emissions). The general objective is to use the next procurement season to reduce the city’s environmental impact by making optimal choices when various procurement tenders materialize.

More background about the game (more extended instructions and glossaries) are provided in a new Open Risk Academy course.

Enjoy!

Sustainable Public Procurement involves significant complexity and implementation barriers as it involves diverse categories of products and services, each with their own specific sustainability and knowledge requirements. It also requires augmented organizational capacities to handle expanded information flows that provide more holistic views on market capabilities and supply chain inter-dependencies.

In this post we want to review and discuss potential applications of Kraljic methodologies specifically in the context of Green Public Procurement, and even more specifically addressing the GHG emissions footprint of public procurement activities.

Europe's updated economic activity classification scheme (NACE Rev 2.1 - 2025) is now documented at the Open Risk Manual, with the myriad inclusions / exclusions accessible via hyperlinks.

The old classification continues to be accessible as it will be relevant for some time during the transition period. The entries of the new classification include references to the old one (which sometimes is not 1:1).