- Operational Services Division
In its capacity as the purchasing agent for the Commonwealth, the Operational Services Division (OSD) plays a critical role in advancing climate responsible procurement and purchasing that support the Commonwealth’s climate innovation, mitigation, adaptation, and resilience policies. Underscoring that commitment, OSD established the Climate and Sustainability Unit in 2023, a team focused on supporting the Healey/Driscoll Administration’s goal to reduce greenhouse gas emissions and create a more sustainable and resilient future for the Commonwealth. For the last 25 years, the Operational Services Division’s Environmentally Preferable Products (EPP) Procurement Program has sourced and promoted the use of products and services that reduce government’s impact on the environment. The Climate and Sustainability Unit expands the scope of the EPP Program to include broader climate related initiatives. While the EPP Program primarily has focused on product and services selection, the Climate and Sustainability Unit takes a more holistic approach to address a wider range of environmental and climate related challenges through their work within OSD and with external stakeholders.
Recommendations of the Climate Chief
October 25, 2023
“(11) Update procurement practices to require
disclosure of emissions and climate risk.
... Public procurement informed by climate goals
will drive further emissions reductions and create
markets for lower-carbon and fossil-fuel-free goods
and services. Requiring disclosure should be the
initial step with the goal, by 2026, of considering
such information as a material factor in procurement
decisions.”
The Climate and Sustainability Unit seeks opportunities to stay in step with the Commonwealth’s emissions and sustainability goals and with those of our customers. Executive Order 594 (EO594), which set targets for greenhouse gas (GHG) emission reductions through 2050, has the agency squarely focused on supporting efforts to reduce transportation sector emissions, support more sustainable buildings, secure cleaner energy sources, while continuing to offer a widening array of products and services that are healthier for people and the planet.
Working with Statewide Contract Vendors
One of the first projects undertaken by the Climate and Sustainability Unit last fall was working with OSD’s Sourcing Unit to develop an Environmental Practices Climate Questionnaire for Statewide Contractors. The survey was designed to better understand Statewide Contract Vendors’ sustainability practices, policies, and initiatives – information that will be used to build more robust sustainability requirements into future Statewide Contract procurement practices. The Questionnaire, which was sent to approximately 1,400 Statewide Contact Vendors, revealed vendor interest in environmental responsibility, but highlighted a lack of specific carbon reduction goals and measures. Moving forward, OSD intends to work with Statewide Contract Vendors to establish carbon reduction targets and reporting mechanisms. Our engagements with vendors will increasingly prioritize sustainability practices and carbon footprint reduction efforts.
Building A Climate Focus Climate
preferable practices include the greening of infrastructure and facilities, sustainable supply chain management, and the promotion of carbon reduction practices in a measurable form. Built into OSD’s bid evaluation process is our Environmental Practices Form which requires vendors to detail areas within their business processes that help to mitigate their carbon footprints. Among the areas explored are waste policies, use of facilities with LEED or other green building standards, and use of electric or hybrid-electric vehicles, among many others. Going forward, businesses interested in working with the state will see climate and sustainability language and requirements integrated into the state’s Request for Response (RFR) documents. These obligations are intended to prompt vendors to provide environmental impact assessments for more than their products and services, now encompassing facilities and practices, and to take steps to mitigate negative impacts of carbon intensive practices, and focusing on environmental justice communities.
Our engagements with contractors increasingly will prioritize sustainability practices and carbon footprint reduction efforts, reinforcing the Commonwealth’s commitment to environmental stewardship and rewarding businesses that support more sustainable practices within their business operations.
Climate and Sustainability Trends
Climate change already is transforming how business is conducted. In September 2023, California passed legislation requiring vendors doing business with the state to report audited Scope 1, 2, and 3 greenhouse gas emissions. The U.S. Securities and Exchange Commission recently adopted rules that “enhance and standardize climate-related disclosures by public companies and in public offerings.” These actions signal a clear shift in government expectations for businesses toward greater environmental responsibility, particularly regarding climate change mitigation and resilience. By requiring vendors to disclose emissions data and adhere to sustainability practices, governments are setting a precedent for corporate accountability and transparency in environmental impact.
In the future, businesses may expect heightened scrutiny of their carbon footprint and environmental practices, with a focus on measurable reduction targets and reporting mechanisms – a future where sustainable business practices are not just encouraged, but mandated, with procurement decisions increasingly influenced by vendors’ commitment to reducing environmental impact. Furthermore, these actions reflect a broader trend toward collaboration between government, businesses, and buyers in addressing climate change. By working together, we may drive innovation, foster the adoption of cleaner technologies, expand existing markets for climate and environmentally preferable goods and services, and prioritize environmental responsibility and sustainability as essential components of purchasing and doing business. Learn more about OSD’s Climate and Sustainability Unit on our website.
