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The View on EPD and Circular Procurement
The use of quantified data for climate impact through Environmental Product Declarations (EPD) is currently limited within public procurement in Sweden. There is now a broad mapping of perspectives on these tools.
Fossil-free and circular procurement are relatively new concepts in public procurement, especially concerning their practical application. As part of the project, a comprehensive survey has been conducted to highlight how procurers and suppliers understand and use these concepts, as well as their views on future development opportunities. Specific issues investigated include:
- Use of EPD in procurement
- Application of circular aspects within the framework of EPD
- Development of EPD to better include circular aspects
Use of EPD in Procurement
The use of EPD is currently limited within public procurement. However, there are examples where EPD is beginning to gain attention, primarily as contract conditions during the contract period. In the construction and furniture industries, EPD-like climate calculations based on life cycle analyses (LCA) have been used for a longer time. Sometimes contractors are required to report their overall climate impact with specific requirements. The act on climate declarations for buildings (Lag (2021:787) om klimatdeklaration för byggnader), does not involve EPD but rather LCA calculations for selected parts of a product's life cycle.
To the extent that EPD is used, the public sector primarily focuses on whether the supplier has an EPD or not, rather than the product's actual climate impact. Several reasons contribute to this: Sometimes it is justified by the fact that too few suppliers have EPD, that suppliers have not adapted their data collection to start developing EPD, and a fear among contracting authorities of appeals and legal consequences if suppliers feel unfairly assessed compared to other bidders.
However, procurers see many advantages in EPD:
- In early market dialogues
- As verification of requirements
- In evaluation of tenders
- In monitoring work of procuring organizations
- When additional information is needed about chemical content or about service and repairs
- As guidance for buyers on which products should be prioritized
- As documentation that consolidates sustainability-related information
In the private sector, stricter requirements are generally imposed than in the public sector. A likely explanation is that companies do not need to follow LOU (Public Procurement Act) and usually have established contacts with many of their subcontractors.
Application of Circular Aspects within the Framework of EPD
Where circular aspects can be included in public procurement, this is preferably done through climate calculations that encompass a product’s entire life cycle, as applied by the Swedish Transport Administration (Trafikverket), for example. Another example is the use of commonly applied construction-related standards such as EN 15804 A2, specifically in the modules that describe later stages in the product life cycle (e.g., Module D). A possible future application could be within the framework of the Climate Declarations for Buildings Act and expanding the underlying generic database.
Examples of important circular aspects that should be considered for use in public procurements include:
- Usage requirements in relation to user needs
- Emphasizing the benefits created in other systems
- Greater requirements for specific data
- Description of the organization’s circular strategy
- Description of goals and plans for reducing climate emissions
- Instructions for resource-efficient consumption for both customer/user
- Visible and ambitious strategies for recycling materials and products
During the interviews, several observations emerged relevant to increased use of circular aspects in procurement. Of particular interest are:
- Interest in circular information will increase as procurers see a significant need to obtain more circular data. Various uses and potential users of circular data integrated into future EPDs are envisioned, even though not all procurers are familiar with EPD and its possibilities and limitations.
- Not all circular information fits well into an EPD. This is particularly true for information from initial needs and market analyses. Much of the market dialogue is just that – a dialogue – and it may be difficult and perhaps undesirable to replace it with an EPD, but an EPD can advance the dialogue. Procurers and suppliers want to find ways forward and align requirements together. For example, in relation to reuse, the supply is constantly changing, leading to significant dialogue between supplier and purchaser regarding what is available and what can be done.
In procurements involving reuse, EPD is not used because climate impact is disregarded, which does not justify the development of EPD. New purchases and reuse are separated in procurements. Reuse is seen as “evidently better,” so few procurers see the point in making a detailed comparison with conventional products.
Development of EPD – For Increased Inclusion of Circular Aspects
There are both obstacles and needs for further development to better include circular aspects in public procurement. One observation from the interviews was a clear desire to account for circular aspects so that the difference in climate impact between linear and circular product-related solutions is evident directly in calculations and EPD results. Steps in this direction could include both organizational improvements within procuring authorities and development of effective procurement criteria that favor new market concepts for products with good circular properties.
Within the EPD concept, there are opportunities to describe what is called "other environmental information," which can cover various potential areas. However, the prerequisite is that there should be a clear connection to environmental aspects, a clear and scientifically grounded method description, and that the information should be verifiable. A future possibility for broadening the EPD concept has proven particularly interesting for questions regarding circular economy. In practice, this would involve complementing a PCR document with an annex describing all necessary information. Work on this is currently ongoing in the revision of the basic standard for EPD – ISO 14025.
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