UNIVERSITY OF SOUTH AFRICA
College of Economic and Management Sciences
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
MNO3603: Operations Management
Assignment 2 — Semester 1, 2026
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
MNO3603
Module Code:
Operations Management
Module Name:
Green Procurement and Sustainable Devel-
Essay Topic:
opment
Assignment 2
Assignment Number:
15 April 2026
Due Date:
Submitted in partial fulfilment of the requirements for MNO3603 — UNISA 2026
,UNISA | MNO3603 Green Procurement & Sustainable Development
Question 1: Green Procurement and Sustainable Development in the Public Sector
Green public procurement (GPP) is a policy mechanism through which government entities
direct their purchasing power toward goods, services, and infrastructure that carry lower
environmental burdens over their entire life cycle. China’s experience since 2005 illustrates
this well. Starting with the Energy Conservation and Environmental Labelling Product List,
the country used its massive procurement budget to shift supplier behaviour at scale (Dion
et al., 2015). What makes GPP interesting is not just the environmental angle. It sits at the
intersection of economic policy, social welfare, and ecological governance, which is why it
has become a serious tool for sustainable development.
1.1 How Green Procurement Supports Sustainable Development
Sustainable development, as framed by the Brundtland Commission (1987), requires meeting
current needs without compromising future generations’ ability to meet theirs. GPP supports
this in practical ways. At the macro level, it facilitates resource recycling, fosters the growth
of sustainable markets, and contributes to circular economy formation (Ortega Carrasco et
al., 2024). At the firm level, it drives green innovation, reduces pollutant emissions, and shifts
consumer expectations toward greener products.
In China, GPP became part of the national 12th Five-Year Action Plan (2011–2015), and by
2024 the government had integrated carbon footprint management directly into procurement
requirements. This is a concrete example of public procurement driving systemic change, not
just symbolic purchasing (Liu et al., 2025).
For the public sector, the logic is straightforward: governments are among the largest buyers
in any economy. When they insist on environmental criteria, suppliers respond. This creates
a long-term guaranteed demand signal that makes green investment rational for businesses,
not just admirable.
Implementation Insight
South African Context: South Africa’s Green Public Procurement Policy Framework,
developed through the National Treasury, mirrors China’s approach by linking envi-
ronmental criteria to existing bid evaluation criteria. This is particularly relevant for
energy-intensive purchases by state-owned enterprises such as Eskom and Transnet.
Page 2 of 21
, UNISA | MNO3603 Green Procurement & Sustainable Development
1.2 Government Purchasing Power and Supplier Behaviour
Governments do not simply buy things. They set market conditions. When a government sig-
nals long-term, high-volume demand for energy-efficient products, it reduces the investment
risk for manufacturers. This is the demand-side logic of GPP (Lenferna, 2018). The purchas-
ing power of government effectively funds supplier innovation by guaranteeing a customer
before a green product even reaches commercial scale.
Research by Ortega Carrasco et al. (2024) confirms this: GPP plays a fundamental role in
stimulating enterprise green innovation, reducing corporate pollutant emissions, and driv-
ing sustainable consumption patterns. Suppliers that get on procurement lists benefit from
preferential access to a very large, stable buyer. This gives them both the incentive and the
financial runway to invest in cleaner production methods.
1.3 Environmental Effects Across the Product Life Cycle
Products purchased by the public sector carry environmental impacts from the moment
raw materials are extracted to the moment the product is discarded. These impacts include
greenhouse gas emissions during manufacturing, sulphur dioxide and nitrous oxide from pro-
duction processes, soil degradation from mining and agricultural inputs, loss of biodiversity
from land clearing, and pollution of waterways during disposal (Dion et al., 2015). The con-
cept of a product’s life cycle, from cradle to grave, means that a procurement decision today
has environmental consequences decades into the future.
China’s 2024 integration of carbon footprint management into its procurement requirements
directly addresses this. By requiring that suppliers demonstrate their products’ life-cycle
emissions, the government pushes environmental accountability backward into the supply
chain (Liu et al., 2025).
Raw Material End of Life
Manufacturing Distribution Use Phase
Extraction / Disposal
GHG, mining waste SO2 , NOx, particulates Fuel emissions Energy consumption Landfill, leachate
Figure 1: Environmental Impacts Across the Product Life Cycle
Page 3 of 21
College of Economic and Management Sciences
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
MNO3603: Operations Management
Assignment 2 — Semester 1, 2026
⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄ ⋄⋄
MNO3603
Module Code:
Operations Management
Module Name:
Green Procurement and Sustainable Devel-
Essay Topic:
opment
Assignment 2
Assignment Number:
15 April 2026
Due Date:
Submitted in partial fulfilment of the requirements for MNO3603 — UNISA 2026
,UNISA | MNO3603 Green Procurement & Sustainable Development
Question 1: Green Procurement and Sustainable Development in the Public Sector
Green public procurement (GPP) is a policy mechanism through which government entities
direct their purchasing power toward goods, services, and infrastructure that carry lower
environmental burdens over their entire life cycle. China’s experience since 2005 illustrates
this well. Starting with the Energy Conservation and Environmental Labelling Product List,
the country used its massive procurement budget to shift supplier behaviour at scale (Dion
et al., 2015). What makes GPP interesting is not just the environmental angle. It sits at the
intersection of economic policy, social welfare, and ecological governance, which is why it
has become a serious tool for sustainable development.
1.1 How Green Procurement Supports Sustainable Development
Sustainable development, as framed by the Brundtland Commission (1987), requires meeting
current needs without compromising future generations’ ability to meet theirs. GPP supports
this in practical ways. At the macro level, it facilitates resource recycling, fosters the growth
of sustainable markets, and contributes to circular economy formation (Ortega Carrasco et
al., 2024). At the firm level, it drives green innovation, reduces pollutant emissions, and shifts
consumer expectations toward greener products.
In China, GPP became part of the national 12th Five-Year Action Plan (2011–2015), and by
2024 the government had integrated carbon footprint management directly into procurement
requirements. This is a concrete example of public procurement driving systemic change, not
just symbolic purchasing (Liu et al., 2025).
For the public sector, the logic is straightforward: governments are among the largest buyers
in any economy. When they insist on environmental criteria, suppliers respond. This creates
a long-term guaranteed demand signal that makes green investment rational for businesses,
not just admirable.
Implementation Insight
South African Context: South Africa’s Green Public Procurement Policy Framework,
developed through the National Treasury, mirrors China’s approach by linking envi-
ronmental criteria to existing bid evaluation criteria. This is particularly relevant for
energy-intensive purchases by state-owned enterprises such as Eskom and Transnet.
Page 2 of 21
, UNISA | MNO3603 Green Procurement & Sustainable Development
1.2 Government Purchasing Power and Supplier Behaviour
Governments do not simply buy things. They set market conditions. When a government sig-
nals long-term, high-volume demand for energy-efficient products, it reduces the investment
risk for manufacturers. This is the demand-side logic of GPP (Lenferna, 2018). The purchas-
ing power of government effectively funds supplier innovation by guaranteeing a customer
before a green product even reaches commercial scale.
Research by Ortega Carrasco et al. (2024) confirms this: GPP plays a fundamental role in
stimulating enterprise green innovation, reducing corporate pollutant emissions, and driv-
ing sustainable consumption patterns. Suppliers that get on procurement lists benefit from
preferential access to a very large, stable buyer. This gives them both the incentive and the
financial runway to invest in cleaner production methods.
1.3 Environmental Effects Across the Product Life Cycle
Products purchased by the public sector carry environmental impacts from the moment
raw materials are extracted to the moment the product is discarded. These impacts include
greenhouse gas emissions during manufacturing, sulphur dioxide and nitrous oxide from pro-
duction processes, soil degradation from mining and agricultural inputs, loss of biodiversity
from land clearing, and pollution of waterways during disposal (Dion et al., 2015). The con-
cept of a product’s life cycle, from cradle to grave, means that a procurement decision today
has environmental consequences decades into the future.
China’s 2024 integration of carbon footprint management into its procurement requirements
directly addresses this. By requiring that suppliers demonstrate their products’ life-cycle
emissions, the government pushes environmental accountability backward into the supply
chain (Liu et al., 2025).
Raw Material End of Life
Manufacturing Distribution Use Phase
Extraction / Disposal
GHG, mining waste SO2 , NOx, particulates Fuel emissions Energy consumption Landfill, leachate
Figure 1: Environmental Impacts Across the Product Life Cycle
Page 3 of 21
