Sustainable Procurement in Procurement Law

Sustainable procurement: taking environmental, social and economic aspects into account including life cycle costs. Art. 67 Directive 2014/24/EU, § 97(3) GWB.

Definition: Sustainable procurement refers to the systematic inclusion of environmental, social and economic sustainability aspects in all phases of the tender procedure, from needs assessment via specifications through to award decision and contract performance.

Last updated: January 2026 · Legal basis: Art. 67, 70 Directive 2014/24/EU, § 97(3) GWB, § 20 BVergG 2018

What is sustainable procurement?

Sustainable procurement integrates the three dimensions of sustainability – economic efficiency, environmental protection, and social responsibility – into public procurement, so that public procurement can be deployed as a strategic instrument for societal goals. Public contracting authorities in the EU award contracts worth around two trillion euros every year; through sustainability criteria, this purchasing power can be directed towards environmental protection, fair working conditions, and economic development.

Sustainable procurement is not an optional add-on but is increasingly anchored in law and, in some areas, mandatory. It encompasses ecolabels, life cycle costs, ILO core labour standards, and the promotion of social enterprises and small and medium-sized enterprises.

Significance and function

Sustainable procurement acts as a lever for societal transformation, since public contracting authorities, through their market power, can set standards that affect entire supply chains. Environmental certifications, energy efficiency requirements, and fair wage conditions in public contracts create incentives for companies to design their production and supply chain processes sustainably.

Concrete instruments of sustainable procurement include:

Environmental award criteria: Energy consumption, CO₂ emissions, recyclability
Life cycle costs (Art. 68 Directive 2014/24/EU): Consideration of acquisition, operating and disposal costs
Quality marks and ecolabels: EU Ecolabel, Austrian Ecolabel, Blue Angel (DE)
Social criteria: ILO core labour standards, minimum wage clauses, accessibility
Performance conditions (Art. 70 Directive 2014/24/EU): Sustainable contract conditions

Legal basis

The legal anchoring of sustainable procurement takes place at EU level through Directive 2014/24/EU and through national transposition laws, which increasingly stipulate concrete sustainability duties.

Art. 67 Directive 2014/24/EU – Award criteria, explicit permissibility of sustainability criteria
Art. 68 Directive 2014/24/EU – Life cycle costs
Art. 70 Directive 2014/24/EU – Performance conditions (social, environmental)
Art. 43 Directive 2014/24/EU – Quality marks
§ 97(3) GWB – Social, environmental and innovative aspects (Germany)
§ 20 BVergG 2018 – Consideration of environmental and social aspects (Austria)
Bundesbeschaffung GmbH (BBG) – Austrian central procurement agency with sustainability strategy
EU Action Plan for Sustainable Public Procurement – European Commission's strategic framework

ILO core labour standards

The eight ILO core labour standards – including the prohibition of child and forced labour and the right to freedom of association – can be included as a minimum standard in tender procedures. Contracting authorities can require compliance with these standards as a suitability criterion or performance condition, particularly for contracts with international supply chains.

Related terms

FAQ

Must sustainability criteria be linked to the subject matter of the contract? Yes. According to settled case law and Art. 67 Directive 2014/24/EU, all award criteria – including sustainability criteria – must be linked to the subject matter of the contract. Abstract corporate policy without a link to the specific performance cannot be used as an award criterion.

Can life cycle costs be evaluated instead of the bid price? Yes. Art. 68 Directive 2014/24/EU allows life cycle costs to be taken into account as an award criterion. This includes acquisition costs, operating costs (energy, maintenance), disposal costs and, where appropriate, environmental externalities.

Are sustainability requirements binding for all public contracting authorities? In some areas there are statutory duties (e.g. energy efficiency for certain product groups under the Energy Efficiency Directive). Beyond this, contracting authorities are free to include sustainability criteria in their tenders. Many public bodies have adopted their own sustainability guidelines.

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