Li, 2023.

Sustainable procurement drives real ESG improvements.

Li, 2023

This article investigates whether sustainable public procurement can influence how companies work with environmental, social, and governance (ESG) issues. While many governments use procurement as a tool to promote sustainability, there has been limited empirical evidence on whether these requirements actually change supplier behaviour. Li's study addresses this gap by analysing large-scale data on public tenders and supplier ESG ratings, aiming to understand the real impact of sustainable procurement policies.

Research Summary

This study examines how sustainable public procurement influences suppliers' environmental, social, and governance (ESG) performance. The findings show a clear, positive effect: when public organizations set clear sustainability requirements, suppliers respond by improving their own ESG practices — particularly within environmental management, transparency, and labor standards. The research highlights procurement as a powerful market lever, capable of driving corporate sustainability far beyond the boundaries of the public sector itself.

Our Perspective

At WMB Konsult, we take a humble and collaborative approach to sustainable procurement. We see how well-designed requirements and clear follow-up processes can support suppliers in strengthening their ESG work — without adding unnecessary administrative burden. Our role is to help organizations translate sustainability goals into practical procurement tools that create real, long-term value for both buyers and suppliers.