The transformative role of sustainable procurement in decarbonizing the construction industry

doi:10.21203/rs.3.rs-3921616/v1

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The transformative role of sustainable procurement in decarbonizing the construction industry

https://doi.org/10.21203/rs.3.rs-3921616/v1

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Our study delves into the imperative need for decarbonization within the construction industry. Specifically, we investigate the procurement function's role in steering this transition towards a more sustainable industry. Employing a two-fold methodology, we conducted a bibliometric analysis to examine the existing academic discourse on sustainable procurement. Subsequently, we conducted semi-structured interviews with procurement professionals from three prominent construction companies. Through this combined approach, we aim to understand how procurement practices are adapting to integrate corporate social responsibility (CSR) principles and achieve low-carbon objectives. Our findings underscore the significant transformation underway within the procurement function, positioning buyers as pivotal figures in the decarbonization agenda. They grapple with the challenge of balancing economic gains with environmental performance, a task facilitated by enhanced integration of sustainability objectives within their decision-making processes. Despite these advancements, obstacles such as sectoral disparities in sustainability maturity and the necessity for substantial investments in greener alternatives persist, warranting further exploration and strategic interventions.

Sustainable procurement

circular economy

recycling

life cycle assessments

wasterials

In recent years, decarbonizing the industrial sector has emerged as a critical imperative, driven by its significant environmental footprint in France and Europe and the imperative to mitigate climate change (Blazquez et al., 2021; Crespo del Granado et al., 2020). Globally, the industry and construction sector collectively contribute 18% of global CO2 emissions, with France accounting for 13% of this total. Consequently, this study aims to elucidate the integration of Corporate Social Responsibility (CSR) into the strategic frameworks of major industry players, propelled by European and French initiatives aimed at embedding sustainable development objectives into industrial operations by 2050.

The procurement function stands poised to catalyze the realization of these objectives by vetting suppliers committed to sustainable practices and negotiating contracts incentivizing greenhouse gas emission reductions. This redefined role of procurement, aligning with corporate strategy as a competitive advantage and performance driver (Carter et al., 2000), necessitates meticulous planning, coordination, and a mature procurement service (Lena Schneider and Carl Marcus Wallenburg, 2012).

A critical inquiry arises concerning the adaptations within procurement practices to address CSR imperatives and achieve low-carbon objectives. To tackle this question, we delve into the concept of sustainable procurement, defined as the pursuit of sustainable development goals through procurement processes (Walker and Brammer, 2009). This concept, subject to extensive theoretical scrutiny over the past decade, necessitates a deeper exploration to understand its implications, methods, and tools, emphasizing the pivotal role of procurement in achieving corporate decarbonization targets. While existing theories provide foundational insights, gaps persist, necessitating the development of targeted theories and conceptual frameworks drawing from sustainable procurement practices (Walker et al., 2012).

This analysis illuminates emerging trends within procurement and underscores the imperative of its integration within the supply chain and overarching corporate strategy. Our research endeavors to elucidate the challenges and opportunities entailed in integrating procurement functions into corporate decarbonization strategies, evaluating diverse approaches and their respective benefits and constraints. Furthermore, empirical studies showcasing procurement's substantive contributions to corporate decarbonization will be presented, alongside tangible examples of tools and training programs facilitating procurement maturity and quantifying the benefits of sustainable procurement.

Methodologically, we commence with a bibliometric analysis to comprehend the evolution of this research field over the years. Subsequently, we leverage insights from the construction and public works sector to evaluate the integration of sustainability objectives within procurement roles. Embracing principles of the circular economy and waste valorization, we adopt a holistic perspective to analyze the ramifications of sustainable procurement across various procurement categories. This comprehensive approach entails engaging diverse stakeholders and transcending traditional procurement boundaries to furnish robust research outcomes.

This article aims to address the following research question: How have procurement practices in the building industry adjusted to integrate corporate social responsibility (CSR) principles and achieve low-carbon objectives?

To do so, a literature review is presented focusing on environmental impacts in procurement function, as well as challenges and strategies for decarbonizing the industry. Following this, the methodology is outlined, drawing from both bibliometric analysis and qualitative empirical approaches. The results are then presented, initially through bibliometric analysis to summarize existing literature, and subsequently through the findings of interviews conducted. We also propose to compare these two sets of results. Finally, the discussion contextualizes the findings, followed by a conclusion.

1.1. Reducing environmental impacts through sustainable procurement

Sustainable procurement practices have emerged as pivotal strategies in advancing sustainability goals within industries. Despite widespread acknowledgment of environmental and social imperatives, economic considerations often dominate supplier selection and procurement decisions (Sarkis & Talluri, 2002; Walker et al., 2012). Empirical studies underscore the prevalence of economic criteria such as price, quality, reliability, and supplier capacity in supplier selection processes, relegating environmental and social criteria to secondary importance or neglect (Sarkis & Talluri, 2002).

Humphreys et al. (2003) propose a comprehensive approach to green supplier selection, integrating qualitative criteria such as environmental certifications and CSR policies with quantitative metrics including energy consumption and greenhouse gas emissions. Such approaches enable buyers to strike a balance between economic and environmental considerations.

Carter and Easton (2011) advocate for rigorous environmental assessments to evaluate supplier performance, emphasizing compliance with environmental regulations, adoption of environmental management systems, and commitment to reducing environmental impact. These assessments not only mitigate supply chain environmental risks but also incentivize suppliers to enhance sustainability practices.

Schneider and Wallenburg (2012) highlight the importance of integrating non-economic criteria into procurement policies and sourcing strategies to meet stakeholder sustainability expectations. Engaging stakeholders, evaluating supplier performance against non-economic criteria, and fostering supplier communication are essential for sustainable procurement practices and long-term business viability.

1.2. Decarbonization of industry: challenges and strategies

Industry-wide decarbonization requires transformative shifts in energy consumption, production processes, and supply chain dynamics. Vertical integration, prevalent in sectors like manufacturing, exposes firms to reputational risks associated with unethical environmental and social practices among suppliers (Ali et al, 2023; Orsdemir et al, 2019). Challenges to decarbonization include fossil fuel dependency, inefficient production methods, resistance to change and hazardous substances from the construction industry (Ali et al, 2023; Orsdemir et al, 2019; Ojo et al, 2021). Nevertheless, industries confront mounting pressure to embrace sustainability, driven by consumer demands, regulatory mandates, and stakeholder activism. Moreover, as governmental incentives and penalties become more effective, contractors are increasingly motivated to participate in the efficient utilization of construction and demolition waste resources (Cheng et al., 2022).

Successful decarbonization strategies involve technological innovation, policy support, and stakeholder engagement. Key avenues for reducing carbon emissions and enhancing environmental sustainability include energy efficiency improvements, renewable energy adoption (Kreiss et al.,2021), and circular economy principles (Elkington, 1999). South Korea exemplifies the imperative for renewable energy transition to mitigate greenhouse gas emissions and promote sustainable development (Lee & Lim, 2018). Modeling studies demonstrate the potential of renewable energy sources to curtail emissions, stimulate employment, and drive economic growth. However, achieving this transition requires cohesive stakeholder coordination, involving electricity producers, regulators, and consumers (Lee & Lim, 2018; Mendoza et al., 2022).

Procurement functions play a pivotal role in industrial decarbonization and can facilitate the adoption of carbon capture, utilization, and storage (CCUS) technologies among suppliers (Hasan et al., 2022). Despite promising prospects, challenges like efficient carbon capture mechanisms and economic viability persist. Solutions entail material and process optimizations, cost reduction strategies, and supportive policies to expedite CCUS deployment (Hasan et al., 2022).

Sustainable procurement extends to purchasing products with lower carbon footprints, guided by life cycle assessment (LCA) methodologies. LCA enables the assessment of environmental impacts across a product's lifecycle, facilitating informed decisions for sustainability. For instance, LCA applications in the construction sector evaluate the environmental footprint of concrete materials, identifying areas for improvement (Svoboda, 1999; Humphreys et al., 2003). However, comprehensive sustainability evaluations necessitate consideration of social, economic, and technical feasibility factors alongside LCA (Feraille et al., 2022).

For the methodology, we opted to initially assess the breadth of research on the given topic by conducting a bibliometric analysis. Subsequently, we chose to undertake an empirical qualitative study through interviews with purchasers in the construction industry sector. This dual approach enables us, first and foremost, to draw conclusions from the more quantitative bibliometric study and then to compare these findings with those from the qualitative study.

2.1. Bibliometric methodology

Bibliometrics entails both the comprehensive indexing of materials accessible in a scientific library and a quantitative method for managing library resources (Courtial, 1990; Kumar et al., 2019). It involves the systematic examination and quantitative assessment of numerous scientific publications within a specific domain to gain insights into the domain's structure and associated topics (Barbosa-Póvoa et al., 2018; Feng et al., 2017; Li and Azan, 2023). Consequently, it becomes feasible to comprehend the organization of a research domain while pinpointing emerging trends and advancements in the field (Dohale et al., 2020). The examination delineated in this paper adheres to a robust framework and methodology, common in other studies within Management and Business Sciences (Kazemi et al., 2019; Marty, 2022; Tosi, 2022).

Data aggregation was carried out utilizing the Web of Science database (Asgari et al., 2017; Chawla & Goyal, 2022; Fahimnia et al., 2015; Paulino et al., 2023). The search parameters entered into the database followed this query format: (("Decarbonization Construction" OR "industry Building sector" OR "Green building" OR "Sustainable construction" OR "Low-carbon construction" OR "Zero-emission buildings" OR "Green infrastructure" OR "Net-zero construction")AND "purchas*" OR "procurment"). To scrutinize all documents, we conducted searches for these keywords in titles and abstracts, suppressing duplicates, with a result of 157 publications. Subsequently, filters pertaining to language of publication and academic articles were applied, resulting in 144 academic articles written in English for analysis.

For data analysis, initial quantitative and descriptive analyses were conducted using Bibliometrix, a renowned bibliometric tool, to juxtapose and deliberate on results (Aria and Cuccurullo, 2017). By querying occurrences, primary authors, journals, keywords, etc., were identified, facilitating statistical analysis (Perera et al., 2019). These aspects enable the exploration of the research frontier, indicating the prevailing focus on specific themes. Consequently, we examined the trajectory of publications within the field over time and delineated the field of study.

In the subsequent phase, the incorporation of the Biblioshiny module facilitated the visualization and correlation mapping of articles, authors, and references (Mahadevan and Joshi, 2022). This process aligned with the prescribed procedures outlined in the bibliometric analysis framework (Cobo et al., 2011). By leveraging Bibliometrix's compatibility with the Web of Science database, we assimilated our dataset into the platform, marking the culmination of our study. Similar to other bibliometric tools, Bibliometrix provides functionalities for scrutinizing sources, authors, documents, as well as conceptual, intellectual, and social structures (Moral-Muñoz et al., 2020).

Bibliometrix, being an open-source R package, enjoys widespread usage in bibliometric research owing to its capability for thorough data analysis (Aria and Cuccurullo, 2017; Guleria and Kaur, 2021). Through the utilization of Bibliometrix features, we delved into research trends, connections between key concepts, and reciprocal interactions within the field studied.

Consequently, we undertook an examination of our article database structure by generating a thematic map. This mapping facilitated the classification of themes based on their core attributes, driving forces, niche specificity, as well as instances of emergence or decline. Following this, we juxtaposed these findings with insights from the qualitative analysis, empowering us to formulate pertinent conclusions and suggest avenues for future research.

2.2. Qualitative methodology

A qualitative research methodology is used by developing an interview guide to inquire about responsible purchasing practices among buyers in French industry and construction companies (Duggan et al., 2024; Fossey et al., 2002; Glesne, 2016; Patton, 2005; Tavallaei & Talib, 2010; Yin, 2015). Conducting qualitative interviews with an interview guide is pertinent for several reasons. A qualitative approach allows for an in-depth exploration of opinions, experiences, and perspectives of various stakeholders involved in procurement, including industry and construction buyers, circular economy actors, suppliers, and those working on low-carbon initiatives. These interviews will yield diverse and contextualized insights into participants' perceptions, current practices, company objectives, challenges, and suggestions for improving procurement performance in a decarbonizing industry context. A structured interview guide will target key questions while allowing flexibility to explore emerging ideas. Qualitative interviews offer the opportunity to delve deeper into participant responses, pose follow-up questions, and gain nuanced insights. Moreover, the diversity of procurement categories represented will highlight similarities, differences, and potential challenges specific to certain types of purchases or products. Table 1 presents the list of interviewees.

Table 1

List of participants in the empirical study
Participant	Function	Purchasing Category	Experience
Participant 1	Raw Materials Buyer	Chemical & Mineral Raw Materials	0–5 years
Participant 2	Purchasing Manager for Raw Materials	Raw Materials	+ 10 years
Participant 3	Purchasing Manager for Steel	Steel Raw Materials	+ 10 years
Participant 4	CAPEX Buyer	CAPEX	+ 10 years
Participant 5	Packaging Buyer	Packaging	0–5 years
Participant 6	Responsible Purchasing Officer	N/A	+ 10 years
Participant 7	LCA Expert	N/A	0–5 years

3.1. Bibliometric analysis

3.1.1. Evolution of the publications

There has been a notable increase in research activity concerning this topic over the years, beginning in the early 2000s and surpassing 20 articles published on the subject in 2022. The first peak occurred in 2010, with nearly 15 articles on the subject. From 2011 to 2018, the topic remained relatively underexplored, with fewer than 10 articles on this theme per year. However, since 2018, there has been a significant growth in interest regarding this subject. The most prominent journals in the database include the Journal of Green Building, featuring 22 articles on the subject, followed by Sustainability with 6 articles and Sustainable Cities and Society with 4 articles. Regarding the most cited sources, they predominantly originate from the Journal of Cleaner Production with 194 cited occurrences, followed by Building and Environment with 87 occurrences, Sustainability with 72 occurrences, and Energy Buildings with 70 occurrences. Figure 1 highlights the most locally cited sources.

3.1.2. Scientific community

The analysis of primary authors contributing to our database reveals a prevalent pattern where the majority have authored 2, 3, or 4 articles each, showcasing the diverse spectrum of contributors. Notably, Zhang X, affiliated with The University of Hong Kong in China, has co-wrote 4 articles within the database. Examples include "Will green building development take off? An exploratory study of barriers to green building in Vietnam" (Nguyen et al., 2017) and "A comparative analysis of waste management requirements between five green building rating systems for new residential buildings" (Wu et al., 2016). Similarly, Durdyev S, associated with Ara Institute of Canterbury in New Zealand, has contributed articles such as "Sustainable construction industry in Cambodia: Awareness, drivers and barriers" (Durdyev et al., 2018) and "Barriers inhibiting the transition to sustainability within the Australian construction industry: An investigation of technical and social interactions"(Martek et al., 2019). In terms of national representation, the United States leads with approximately forty articles, followed by China with thirty-five and Malaysia with ten. France ranks 3rd, alongside Canada, India, and England, with 5 articles each, indicating the relatively nascent exploration of the subject despite France's presence. Among the most cited articles in the database, Bare J's 2011 publication "TRACI 2.0: the tool for the reduction and assessment of chemical and other environmental impacts 2.0" (Bare, 2011) stands out with over 474 citations, emphasizing a tool developed for sustainability metrics, life cycle impact assessment, and process design impact assessment. Additionally, Zhao H's 2014 article "Selecting green supplier of thermal power equipment by using a hybrid MCDM method for sustainability" (Zhao & Guo, 2014) with 93 citations links sustainable procurement with the sector under study. Figure 2 visualizes Countries' Scientific Production.

3.1.3. Key words, Co-occurrence network and Thematic Map network

Regarding the main keywords, the analysis reveals that terms such as performance, construction, impact, willingness-to-pay, planned behavior, behavior, consumption, sustainable construction, barriers, and buildings appear among the top 10 keywords in that order. Sustainability appears in the 8th position, indicating that the central focus remains predominantly on performance. Figure 3 illustrates the word cloud, incorporating additional keywords such as green infrastructure, purchase intention, and environmental concerns.

Turning to the analysis of co-occurrences, utilizing Biblioshiny enables the identification of several clusters discussed in co-citations. Eight main clusters emerge, with the primary one in blue (see Fig. 4) addressing performance, alongside the orange cluster focusing on barriers, including willingness to pay. The green cluster centers on drivers, encompassing consumption and procurement, while the violet cluster delves into models and consumer behavior. The brown cluster addresses projects and systems within the building industry. The red cluster, meanwhile, concentrates on green infrastructures and ecosystem services. The pink cluster, on the other hand, deals with consumers and environmental concerns. Here, we also observe that the sustainability-themed red and pink clusters and the intention-to-purchase cluster (green) are relatively underrepresented compared to other clusters.

3.2. Qualitative analysis

3.2.1. Sustainable procurement practices

Participants emphasized the pivotal role of the procurement function in driving sustainable procurement practices within their organizations. By redefining objectives, procurement professionals aim to strike a balance between economic and environmental considerations. This strategic shift involves integrating non-economic criteria into procurement decisions, such as environmental impact assessments and social responsibility metrics.

A central theme among participants was the recognition that sustainable procurement practices not only benefit the environment but also yield economic advantages for the organization. By investing in sustainable solutions, such as energy-efficient equipment and recycled materials, companies can achieve long-term cost savings while reducing their ecological footprint.

Three interviewees acknowledge that the main dilemma they face lies in the divergence of economic and non-economic objectives associated with the procurement function. Indeed, these interviews demonstrate that balancing economic considerations with environmental objectives in the industry today is challenging. However, Participant 3 points out that it is the buyer's role to integrate these two dimensions into their supplier selection process and specifies that they manage to juggle between these two objectives in their daily routine. Participants 1 and 2 address this dilemma more decisively. In the current context of economic crises since 2019, priority is given to economic gain, which is vital for the company's survival. Participant 2 cites the example of purchasing bitumen for industrial purposes, which emits a lot of CO2, and emphasizes that an investment to switch to another material would be profitable but is delayed due to time and financial resource constraints.

Participants highlighted the importance of utilizing tools for evaluating the sustainability of procurement decisions. Methods such as Life Cycle Assessment (LCA) and Total Cost of Ownership (TCO) analysis enable procurement professionals to assess the environmental and economic impacts of various purchasing options. These tools facilitate informed decision-making and help prioritize sustainable alternatives.

Despite growing awareness and commitment to sustainable procurement, participants identified several barriers to implementation. Resistance to change within existing processes, coupled with concerns over cost implications, pose significant challenges.

According to Participant 5, the main challenges related to the implementation of sustainable procurement include resistance to changing existing facilities due to complexity, cost, and time required, as well as a lack of openness to innovation within certain industrial sites. The divergence of objectives between procurement and factories, particularly regarding the reduction of CO2 emissions, is also a significant obstacle and may, in his opinion, explain this notion of resistance to change. Furthermore, the integration of new suppliers can be hindered by a lack of trust between the two functions. To overcome these obstacles, the CAPEX buyer emphasizes the importance of communication and persuasion to convince stakeholders of the significance of sustainable procurement.

Moreover, integrating sustainable procurement practices into packaging procurement and setting emission reduction targets require overcoming internal resistance and fostering stakeholder alignment.

Participants underscored the importance of integrating sustainable procurement principles into packaging procurement practices. Objectives focused on minimizing carbon footprint, increasing recyclability, and reducing plastic usage reflect a broader commitment to sustainability across procurement categories.

Companies are setting ambitious emission reduction targets in alignment with global sustainability initiatives. Embracing circular economy principles, such as waste reduction and materials reuse, underscores a holistic approach to sustainable procurement. By embedding circularity in procurement practices, organizations aim to minimize environmental impact and foster resource efficiency.

Participant 5 indicates that the company has implemented circular economy practices, such as reusing buckets, recovering and recycling plastic and paper waste, and reusing pallets. These practices demonstrate that the circular economy can be effectively integrated into procurement practices, thereby contributing to a significant reduction in carbon footprint. Participant 4 also mentions the concept of synergy that can exist between different activities, citing the example of waste or dust that can be valorized as raw materials in other activities. This use of "wasterials" echoes the responses of Participant 1 and reflects the industry's willingness to reconsider its sources of raw materials by turning towards secondary sources from the circular economy.

The adoption of Life Cycle Assessment (LCA) methodology enables organizations to quantify the environmental impacts associated with procurement activities. By conducting rigorous assessments and accessing reliable data sources, companies gain insights into their carbon footprint and identify areas for improvement.

According to Participant 7, the generalization of Life Cycle Assessment (LCA) allows for comparing companies and measuring their progress towards carbon neutrality. However, only a limited number of individuals have access to this data, as only LCA experts can assess its reliability. Participant 7 expressed optimism regarding the decarbonization of the industry, emphasizing that their company had already succeeded in establishing action plans with their major suppliers to decarbonize their purchases.

Participants emphasized the need to incorporate social considerations into procurement decisions. By engaging suppliers on ethical practices and labor standards, companies strive to uphold human rights and promote fair labor practices throughout the supply chain.

3.2.2. Collaboration with stakeholders

Participants highlighted the importance of fostering strong relationships and collaboration with suppliers. Building trust and promoting innovation among suppliers are essential for driving sustainable procurement practices.

Trust in supplier relationships is a theme discussed by Participants 1, 2, and 3 concerning raw materials. This notion is considered a crucial factor in fostering innovation in reducing CO2 emissions. However, Participants 2 and 3 emphasize the importance of validating the data shared by suppliers through an internal sustainable development service, highlighting the difficulty their suppliers face in establishing this data. Regarding the chemical and mineral raw materials purchased by Participant 1, he underscores the importance of close and balanced collaboration between the buyer and their supplier. He mentions the concept of co-construction, indicating that knowledge and innovation can be mutual: suppliers can provide insights into their products, and the buyer can help suppliers grow and develop their structures. This concept is particularly significant when working with new materials or technologies, as exemplified by the participant's mention of the development of a new bio-sourced material. This scenario illustrates that trust is essential for overcoming challenges such as the valorization of a new material and the establishment of a price.

Long-term perspectives and open communication channels facilitate collaboration towards shared sustainability goals. Adopting a long-term perspective is critical for advancing sustainable procurement initiatives. Participants emphasized the need for top management support and ongoing stakeholder engagement to sustain momentum and drive meaningful change. Top management involvement is essential for championing sustainable procurement initiatives and allocating resources towards sustainability goals.

Participant 5 perceives a certain disconnect between top management and what he refers to as "the reality on the ground." While leaders set goals for sustainable procurement, the buyer feels they do not provide enough tangible tools to implement these objectives. He also senses reluctance from executives to invest heavily in reducing CO2 emissions, which could hinder progress toward more sustainable procurement given the colossal investment most projects represent.

Education and awareness-raising initiatives play a vital role in fostering a culture of sustainability within the organization. Effective sensitization and integration of environmental criteria into procurement practices require robust data and access to reliable information sources.

Participants 1, 2, and 3 concur on the importance of education and awareness for both consumers and suppliers regarding the reduction of CO2 emissions. They also agree that it is the role of the procurement function, as buyers are directly linked to suppliers. Regarding consumer education, Participant 1 explains that offering ranges of decarbonized products will influence the market. Participant 2 is more critical on this point and draws an analogy with the electric car market, noting that consumer education largely depends on state involvement, in the form of taxes or subsidies to offset the additional costs associated with these new markets.

Participants underscored the importance of data reliability and accessibility in facilitating informed decision-making and driving continuous improvement in sustainable procurement practices.

Participant 7 mentioned using private databases such as Ecoinvent or GaBi to obtain CO2 emission factors. These databases are fed by research efforts and contain real data, which lends credibility to LCA results. Furthermore, since these data are used by all companies, they enable comparisons and assessments of companies' engagement levels in reducing their carbon footprint.

Thes elements provides a comprehensive overview of sustainable procurement practices and stakeholder collaboration within industrial settings. By integrating environmental considerations, embracing circular economy principles, and fostering collaboration with stakeholders, organizations can drive positive environmental and social impact while achieving long-term sustainability objectives. Continued efforts to overcome barriers and promote stakeholder engagement are essential for advancing sustainable procurement practices and fostering a culture of sustainability across organizations.

3.3. Comparison of bibliometric analysis and qualitative analysis

The thematic clusters identified through bibliometric analysis provide insight into the predominant research themes and areas of interest within the field of sustainable procurement in the industry and construction sectors.

For instance, the primary blue cluster, focusing on performance, likely corresponds to discussions among respondents regarding the distinction between economic and environmental aspects. As several participants emphasized, despite the increasing prominence of sustainable procurement, economic performance remains paramount, especially during times of crisis.

Similarly, the orange cluster, which addresses barriers such as willingness to pay, resonates with challenges highlighted by participants concerning budget constraints and the perceived higher costs associated with sustainable procurement practices or top management issues. This alignment underscores the real-world obstacles organizations encounter when endeavoring to adopt environmentally and socially sustainable procurement approaches.

The green cluster, centering on drivers such as consumption and procurement, may align with discussions among respondents regarding the rising consumer demand for sustainable products and the role of procurement in meeting these expectations. Participants have underscored the importance of packaging, circular economy practices, and life cycle assessment (LCA).

Moreover, the violet cluster, exploring models and consumer behavior, may intersect with discussions concerning the integration of sustainability criteria into supplier selection processes and the influence of consumer behavior on procurement decisions. Insights shared by participants regarding the necessity for sustainable procurement models and the impact of consumer and supplier awareness on organizational practices may resonate with the themes encapsulated in this cluster. Additionally, the concepts of innovation and collaboration, also accounting for social aspects, are relevant considerations.

The pink and red clusters on sustainability are central to the approach observed by the participants. Indeed, environmental concerns, as well as the green infrastructure and the benefits derived from this approach through sustainable procurement, are addressed by the participants through elements such as innovation, life cycle assessment (LCA), long-term perspectives, among others.

Based on our literature review and the bibliometric analysis, we identified that transitioning to more sustainable procurement practices is a crucial pillar for decarbonizing the industry. By interviewing key buyers in the industry and construction sectors, focusing on raw material procurement, packaging, and CAPEX procurement, we sought to understand how these theoretical concepts are put into practice within large enterprises and what challenges are inherent in this transformation. These interviews allowed us to grasp the real dynamics surrounding sustainable procurement initiatives and how they are shaped by the economic, organizational, and human realities of businesses.

4.1. Enhanced buyer maturity regarding sustainable procurement

The majority of large companies in the construction industry we consulted have established clear roadmaps with milestones aiming for carbon neutrality by 2050. This demonstrates an awareness of the importance of sustainable procurement in transitioning to a decarbonized industry. Indeed, all interviewees communicated the objectives set by their companies, either through well-defined main axes or through action plans with milestones set for 2030 and 2050. It is noteworthy that these objectives trickle down to the procurement function, signifying that sustainable procurement is fully integrated into the evolution of this function within companies.

Procurement professionals now have specific objectives related to sustainable procurement, such as the requirement to have suppliers sign charters and the assessment of suppliers based on CSR criteria. Others mention the necessity for their suppliers to have an Ecovadis certification, which emerges as the reference organization for sustainable procurement and CSR risk mapping. However, they emphasize that it is not always the motivation of top management that drives them to act on projects to reduce CO2 emissions or pursue more sustainable procurement practices, but rather a personal awareness of their responsibility towards the environment and society, in line with their personal values.

Several buyers emphasize the decisive role of the procurement function in achieving their company's low-carbon objectives, as it is a transversal function and they are often the driving force behind CSR issues. They collaborate with their suppliers to capture innovation and explore new developments but also liaise with R&D for technical support. However, buyers generally note a certain immaturity among their suppliers and technical teams, more or less pronounced depending on the industry sectors. Many sectors are still under development, and the interviewed buyers agree that we are still at the very beginning.

Buyers can rely on the development of specific services such as sustainable development services or sustainable procurement services. These internal structures facilitate collaboration and the implementation of sustainable practices within the procurement department. It is notably observed that buyers genuinely need support to quantify scope 3 emissions (CO2 emissions from their suppliers) as it is a complex issue requiring specific technical skills. It appears that raw material buyers work more with this service than CAPEX buyers, for example. It is also noted that collaboration between the two departments of the company can be greatly facilitated by the proximity of colleagues and the ease of exchange it implies. It is also noted that in large groups, significant efforts are made in sustainable procurement to better communicate with procurement and thus disseminate information.

Buyers benefit from training to enhance their skills in sustainable procurement and now have tools to evaluate the CSR performance of their suppliers. Databases, dashboards, and external evaluations such as Ecovadis are made available to assist them in their purchasing process, particularly when selecting suppliers during tenders. No tools were mentioned to allow them to intervene earlier in the sourcing phase. Some buyers mentioned avenues for reflection such as the development of monitoring tools on sustainable procurement issues, developments, and innovations or common platforms where they would have all the preliminary information available to consult other suppliers who would be of interest in terms of CO2 emission reduction.

However, the level of maturity in sustainable procurement still varies considerably from one country to another, from one sector to another, and especially from one purchasing category to another. Large companies tend to focus primarily on raw materials or products with a strong environmental impact, while smaller or peripheral aspects are often less worked on. There is a great disparity in terms of subjects, and once again, different levels of maturity from one company to another are felt.

4.2. Integration of non-economic criteria in buyers' decision-making processes

The analysis of our interviews demonstrates a growing integration of non-economic criteria into procurement processes. For instance, the packaging buyer specifically mentions the importance of CSR certification when selecting suppliers. This indicates that beyond direct costs, buyers also assess the supplier's commitment to corporate social responsibility. This trend is also evident in examples provided by the CAPEX buyer, who, despite encountering challenges, has integrated CO2 emissions reduction into their tenders, even converting energy values into euros to better understand the environmental impact of their choices. Raw material buyers stand out for their willingness to establish concrete action plans, highlighting a positive evolution in the maturity of construction companies regarding sustainable procurement.

Buyers indicate a shift beyond cost objectives to incorporate environmental, social, and governance criteria into their procurement strategies, reflecting a deeper transformation of their roles and responsibilities within the company. These perspectives show that deeper engagement with suppliers, better product knowledge, and a long-term sustainability vision can facilitate the integration of non-economic criteria into procurement. However, this requires a mindset shift and commitment in terms of resources and time.

During meetings with suppliers, buyers may address various subjects to integrate these non-economic criteria into their procurement processes, ranging from market outlooks to future French or European regulatory frameworks, and common goals for emissions reduction. Buyers can also develop methodologies for innovation and set clear objectives and expectations for each party. In a spirit of collaboration and partnership, buyers may propose that suppliers offer new products, prototypes, and samples, embark on exclusive projects, all while ensuring confidentiality and protecting innovations.

Regarding quantitative criteria, Life Cycle Assessment (LCA) is increasingly integrated into non-economic criteria for supplier selection by buyers. LCA evaluates the environmental impacts of a product or service throughout its lifecycle, providing a comprehensive view of its carbon footprint. The role of the buyer is twofold: to query suppliers about their CO2 reduction strategies and collect necessary data to evaluate the carbon footprint of purchased products or services, often requiring support from LCA experts within the company.

The Total Cost of Ownership (TCO) is another financial indicator used by buyers to assess all costs related to the purchase and use of a product or service over its lifecycle. Integration of these criteria significantly broadens the spectrum of analysis for buyers, who must consider elements such as equipment energy efficiency, material durability, or environmental impact of production processes. The application of TCO promotes sustainable procurement by highlighting not only economic benefits but also environmental benefits of different options. This approach encourages decisions aligned with the company's sustainability goals, promoting long-term value creation.

The trade-off between economic and environmental gains lies at the heart of the procurement strategy, encouraging buyers to prioritize sustainable options, even if they entail higher initial costs, as they reduce long-term costs and minimize environmental impact. In summary, a TCO-focused approach encourages buyers to prioritize long-term vision and addresses the dilemma faced by most buyers: choosing greener or cheaper options?

4.3. Circular economy, wasterials, and recycling

The concept of wasterials, referring to waste transformed into raw materials, is gaining prominence as a crucial element in the transition toward carbon neutrality. Adopting circular economy practices, including effective recycling systems and reusing waste as raw materials, not only reduces waste production but also limits the need for extracting new resources, which is often energy-intensive and emits CO2. Buyers play a pivotal role in exploring the potential of wasterials, especially as they represent a critical aspect for large companies aiming for carbon neutrality. This approach aligns with a circular economy framework favoring the use of existing resources over extracting new ones, offering both ecological and economic benefits. Anticipating increased demand for wasterials in the coming years, companies should secure these supply chains through strategic partnerships, investment in recycling technologies, or collaboration with other firms to mutualize needs and offerings. Securing wasterial supply chains can enhance companies' resilience to market fluctuations and geopolitical tensions, contributing to stabilized procurement costs and potentially providing competitive advantages.

However, challenges persist, notably the lack of technical knowledge regarding wasterials. Integrating these new raw materials into existing industrial processes poses significant challenges due to their variable characteristics and limited practical applications. Despite these hurdles, the potential of wasterials remains undeniable, requiring support for research, development, knowledge sharing, and tailored training programs to overcome technical barriers. As France increasingly embraces a circular economy, integrating wasterials into industrial processes is poised to become a valuable skill in the future.

Creating synergies across different business segments within a company can significantly contribute to developing internal recycling chains, enhancing carbon emission reduction and operational efficiency. Companies operating in diverse sectors can establish closed material loops internally, utilizing waste from one sector as raw materials for another. This not only reduces waste disposal costs and the need for new raw materials but also diminishes carbon emissions associated with extracting new resources and waste production. Close cooperation among different segments is vital for the success of internal recycling, with buyers facilitating communication, identifying opportunities, assessing feasibility, and implementing necessary changes.

Moreover, the crucial role of buyers in promoting the circular economy within construction companies is highlighted. Buyers shape supplier selection criteria, directing procurement practices toward environmentally friendly products and services. They can drive the establishment of recycling chains by choosing suppliers with recycling practices and encouraging others to follow suit. By demanding recycling standards from suppliers and favoring those using recycled materials, buyers stimulate the adoption of recycled materials throughout the value chain. Additionally, buyers act as advocates for the circular economy within their companies, influencing decisions at the intersection of environmental and economic goals. Adequate support from companies, including training and tools for environmental performance evaluation, is essential for buyers to fulfill this role effectively. Recognizing the value of these efforts and integrating them into performance evaluation criteria or objectives further enhances their impact.

4.4. Transformation of the procurement function

The procurement function is undergoing significant transformation, gradually embracing new objectives and paradigms related to corporate social and environmental responsibility. Buyers are evolving from mere price negotiators to key players in the company's strategy, driving projects aimed at promoting sustainable practices and achieving carbon neutrality. In this context, the buyer's role can evolve into that of a project manager, leading initiatives to reduce CO2 emissions, both on industrial sites and externally, managing supplier relationships, and developing innovative products or services. Collaboration with suppliers becomes crucial to stimulate innovation and support their transition towards more environmentally friendly practices, especially in sectors that have not fully integrated the decarbonization concept. Through robust partnerships, buyers can help mature these sectors while ensuring the economic and environmental performance of their companies.

Moreover, the procurement function plays an increasingly important role in internal and external communication. It aims to demonstrate the value it brings not only in terms of costs but also in terms of sustainability, innovation, and risk management. By highlighting the successes and benefits of sustainable procurement, the procurement function can positively influence top management's strategic decisions, thus guiding the company toward a decarbonized industry. This shift in perception and role of the procurement function is essential for fostering the transition to a circular economy and a decarbonized industry.

In conclusion, this study delved into the pivotal question of how procurement practices within the building industry have adapted to integrate corporate social responsibility (CSR) principles and attain low-carbon objectives. Through a comprehensive exploration, the research sought to shed light on the evolving landscape of procurement in the face of sustainability imperatives.

Methodologically, we embarked on a two-fold approach, commencing with a thorough review of literature encompassing environmental impacts in procurement and strategies for industry decarbonization. Subsequently, we employed a mixed-methods approach, combining bibliometric analysis with qualitative empirical insights gathered through interviews.

The findings revealed a multifaceted narrative: procurement functions are increasingly acknowledging the significance of CSR and low-carbon imperatives, yet the translation of theory into practice remains a complex endeavor. While literature underscores the importance of sustainable procurement, empirical evidence elucidated the nuanced challenges and varying degrees of implementation across different organizational contexts.

Key findings revealed the increasing prominence of CSR within procurement decision-making processes, accompanied by a heightened recognition of the imperative for low-carbon strategies. Nonetheless, a notable dissonance between theoretical ideals and practical implementation surfaced, underscoring prevalent organizational inertia and resource limitations as primary impediments. By juxtaposing the thematic insights extracted from the bibliometric analysis with the nuanced perspectives gleaned from qualitative interviews, a comprehensive understanding of sustainable procurement discourse and its practical ramifications within organizational milieus emerges. This integrated approach equips practitioners with actionable insights, facilitating informed decision-making that navigates the intricate intersection of theoretical paradigms and real-world procurement exigencies.

Regarding the contributions, this study enriches the theoretical landscape by illuminating the evolving role of corporate social responsibility (CSR) and low-carbon objectives within the domain of procurement practices in the building industry. By elucidating the discrepancies between theoretical constructs and practical implementation, it advances scholarly discourse surrounding sustainable procurement, offering nuanced insights into the complexities inherent in operationalizing CSR principles and achieving low-carbon objectives.

Methodologically, this research introduces a blended approach, seamlessly integrating bibliometric analysis with qualitative empirical inquiry. This innovative methodological framework enhances the comprehensiveness of the study, allowing for a multifaceted exploration of sustainable procurement practices. By synthesizing quantitative trends with qualitative narratives, it provides a holistic understanding of the contextual factors shaping procurement decisions in the building industry, thereby offering a nuanced perspective on the interplay between theory and practice.

From a managerial standpoint, this research offers actionable insights that hold significant implications for organizational procurement strategies. By delineating the gap between theoretical ideals and practical realities, it prompts organizational stakeholders to reevaluate their procurement frameworks and realign them with sustainable principles. Moreover, the comparative analysis enables practitioners to identify synergies and gaps within their procurement processes, fostering the development of evidence-based strategies that integrate theoretical frameworks with pragmatic imperatives. Ultimately, this research empowers organizations to navigate the complexities of sustainable procurement, facilitating the adoption of practices that not only enhance environmental stewardship but also drive long-term value creation and competitive advantage.

However, it is essential to recognize certain inherent limitations in this study. The sample size of interviews may limit the generalizability of findings, warranting caution in extrapolating conclusions. Furthermore, the dynamic nature of sustainability challenges necessitates ongoing research to capture evolving trends and best practices.

Looking ahead, several avenues for future research emerge. Firstly, exploring the role of technology in enhancing sustainable procurement practices could yield valuable insights. Additionally, longitudinal studies tracking the evolution of procurement practices over time would offer a deeper understanding of trends and patterns. Moreover, comparative analyses across industries and regions could provide a broader perspective on the global landscape of sustainable procurement.

While progress has been made in integrating CSR and low-carbon objectives into procurement practices within the building industry, there remains substantial ground to cover. Through continued research and collaborative efforts, the journey towards sustainable procurement will undoubtedly continue to evolve, shaping the future trajectory of the industry.

Statements and Declarations/Competing Interests

No potential conflict of interest was reported by the authors nor financial interests that are directly or indirectly related to the work submitted for publication.

Author Contribution

E.S. conducted the qualitative study, performed the literature review and introduction research, and contributed to the qualitative results section.J.M. conducted the bibliometric study, drafted the final literature review and introduction, and contributed to the bibliometric results section.L.T. drafted the methodology, conclusion, abstract, and worked on the overall coherence of the article.E.S., J.M., and L.T. contributed to the discussion section and collaborated on the manuscript's development.

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No competing interests reported.

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The transformative role of sustainable procurement in decarbonizing the construction industry

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Abstract

Figures

Introduction

Literature review

1.1. Reducing environmental impacts through sustainable procurement

1.2. Decarbonization of industry: challenges and strategies

Methodology

2.1. Bibliometric methodology

2.2. Qualitative methodology

Results

3.1. Bibliometric analysis

3.1.1. Evolution of the publications

3.1.2. Scientific community

3.2. Qualitative analysis

3.2.1. Sustainable procurement practices

3.2.2. Collaboration with stakeholders

3.3. Comparison of bibliometric analysis and qualitative analysis

Discussion

4.1. Enhanced buyer maturity regarding sustainable procurement

4.2. Integration of non-economic criteria in buyers' decision-making processes

4.3. Circular economy, wasterials, and recycling

4.4. Transformation of the procurement function

Conclusion

Declarations

Author Contribution

References

Additional Declarations

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