Sustainability in Procurement Law

Definition: Sustainability in public procurement refers to the consideration of economic, environmental and social aspects in the planning and conduct of tender procedures, in line with the triple bottom line principle, so that public funds are used responsibly and with a long-term outlook.

Last updated: January 2026 · Legal basis: Art. 18(2), Art. 67 Directive 2014/24/EU, § 97(3) GWB, § 20 BVergG 2018

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What is sustainability in procurement law?

Sustainability in the procurement-law context means that public contracting authorities do not decide solely on the basis of the lowest price when procuring goods, works and services, but take economic, environmental and social aspects into account on an equal footing. This concept, known as the "triple bottom line", views sustainability as the interplay of three dimensions: economic efficiency, environmental compatibility, and social responsibility.

Public contracting authorities in the EU, Austria and Germany are increasingly required by law, or at least expressly authorised, to include sustainability criteria in their tender procedures. Strategic procurement harnesses the considerable purchasing power of the public sector as a driver of societal change.

Relevance in the tender procedure

Sustainability can be embedded in every phase of the tender procedure – from needs assessment via specifications and award criteria through to performance conditions. The EU Green Deal has expressly highlighted sustainable public procurement as a strategic instrument: by steering public procurement, the transition to a climate-neutral, circular economy is to be accelerated.

Environmental sustainability criteria include energy efficiency, CO₂ footprint, recyclability, use of renewable energies and environmentally friendly production methods. They can be used as suitability criteria, award criteria or performance conditions.

Social sustainability criteria concern fair working conditions, compliance with ILO core labour standards, accessibility, equality, and the inclusion of people with disabilities. Art. 18(2) Directive 2014/24/EU requires Member States to ensure that contractors comply with applicable social and labour-law obligations.

Economic sustainability manifests itself in the consideration of life-cycle costs (Art. 68 Directive 2014/24/EU): instead of looking only at the acquisition price, operating, maintenance and disposal costs over the entire useful life are taken into account.

Legal basis

The principle of sustainability is expressly anchored in Directive 2014/24/EU and is concretely fleshed out in the national procurement laws of Austria and Germany.

• Art. 18(2) Directive 2014/24/EU – Obligation to take social and labour-law requirements into account
• Art. 67 Directive 2014/24/EU – Permissibility of environmental and social award criteria
• Art. 68 Directive 2014/24/EU – Life-cycle costs
• Art. 70 Directive 2014/24/EU – Sustainable performance conditions
• § 97(3) GWB – Consideration of social, environmental and innovative aspects (Germany)
• § 20(5) BVergG 2018 – Environmental protection and social standards (Austria)
• EU Green Deal – Strategic framework for sustainable public procurement
• Bundesbeschaffung GmbH (BBG) – Austrian central procurement agency with sustainability strategy

Related terms

• Sustainable procurement
• Procurement law
• Specifications
• Tender
• Contracting authority
• Framework agreement
• Dynamic purchasing system
• Electronic procurement

FAQ

What concrete sustainability criteria can contracting authorities include in tenders? Permissible criteria include energy consumption classes, CO₂ emission limits, quality marks such as the EU Ecolabel or the Blue Angel, requirements concerning fair working conditions in the supply chain, and minimum-wage clauses as performance conditions.

Must sustainability criteria necessarily be linked to the subject matter of the contract? Yes. All award criteria – including sustainability criteria – must, according to the case law of the CJEU and Art. 67 Directive 2014/24/EU, have a substantive link to the subject matter of the contract. Sweeping corporate sustainability reports unconnected to the contract are not permissible as an award criterion.

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Last updated: January 2026 All information without guarantee. For legally binding advice, please contact a law firm specialising in procurement law.