Study on social sustainability in the supply chains of commercial vehicles and verification options in the context of public procurement processes

Germany
Engagement Global gGmbH, 2022 - 2023

How can public procurement organizations in German municipalities integrate social sustainability criteria in the market dialogue with potential providers for municipal commercial vehicles? Which verification options are available and currently applied by actors along the respective supply chains? Projekt-Consult, together with three partners from academia, civil society and public procurement, worked on a study to provide answers to these questions.

The donor of the project was the Federal Ministry for Economic Cooperation and Development through a partnership with Engagement Global and its service point “Kommunen in der einen Welt”. Project partners included the Institute for the Automotive Industry (IFA), the Hamburg Institute for Innovation, Climate Protection, and Circular Economy (HIICCE), and SÜDWIND e.V. The project was overseen by the German Institute for Human Rights.

The objective of the project was to generate knowledge of sustainability and human rights in the supply chains of municipal commercial vehicles. Therefore, the assignment was divided into three parts:

1. Identification of vehicle components in whose supply chains high social risks occurred.
2. Mapping of the supply chains with relevant companies, specific risks, and existing standards for the following components and raw materials:

  1. Batteries (lithium, cobalt)
  2. Sensors (germanium)
  3. Tires (natural rubber)
  4. Motor and cables (copper)
  5. Frame and shell (zinc, aluminum, and iron) suppliers and respective countries of origin.

3. Definition of product-specific questions for the public procurement process and user-friendly criteria for assessing corporate sustainability initiatives and verification mechanisms.

Municipalities play a crucial role in public procurement, and are therefore key actors when it comes to integrating sustainability into procurement processes. The challenge of socially sustainable procurement for municipal vehicles is particularly relevant in light of two relatively new laws: the German Supply Chain Law and the Law on Procurement of Clean Road Vehicles, which encourages the transition of public fleets to alternative fuels. The upcoming investments in commercial vehicles, such as city buses or waste collection vehicles, have the potential to significantly impact the manufacturing industry by incorporating social standards into supply chains. Consequently, this study aims to equip procurement officials with practical information and tools to engage in effective and viable sustainability requirements during dialogues with producers.

The final study can be found under our publications page or following the link: here

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