As society continues to develop over the last decade in order to meet the 2030 Agenda for Sustainable Development the companies and authorities must adapt and invest faster in strategic actions that protect the environment, natural resources, and reduce inequalities.
The European Union’s top priority by 2030 is to encourage responsible spending that has a positive social and environmental impact and contributes to the achievement sustainable development goals. ESG (Environment, Social, Governance, or ESG) criteria are a constant concern for the business environment. Although the procurement sector in companies is still voluntary, it may be one of the areas that companies can contribute to social inclusion of vulnerable persons through social governance or by contracting certain products and services to protected units.
Companies that are leaders in sustainable governance want to be known by consumers as they seek to provide information about the origin of products purchased and the materials used to make them. The most important topics in procurement are sustainability, digitization, and savings.
In this context, the Ateliere Fri Frontiere Association organized Sustainable acquisitions in Romanian Business Environment Challenges, Solutions and Good Practices Debate. This is part of a larger project entitled Acquisitions with Social and Environmental Impact. It was carried out by Center for Nonprofit Legislation in partnership with Civitas Foundation for civil Society and Ateliere Fara frontiere through the Active Citizens program Fund Romania, funded by EEA grants and Norwegian Grants.
The project aims at increasing the implementation of environmental and social procurement at the level public institutions and companies. This will improve the social inclusion and quality of life for people from vulnerable groups. It also reduces negative effects on the environment.
It is well known that the society places enormous pressure on companies today to reduce the environmental impacts of their products, processes, or supply chains. As a strategic business partner, procurement can play a crucial role in reducing an organization’s environmental impact by integrating sustainability criteria into supplier assessments and selection procedures. Although technology is readily available, measuring environmental parameters and standardizing integration into procurement decisions remain major challenges for companies, Laszlo Borowly, State Councilor for Sustainable Development said.
Romania’s relative poverty remains high. In 2020, it was 23.4% in absolute value (INS). The weight of long-term unemployment in total unemployment rate rose to 44.1%. A large portion of these statistics are vulnerable people with poor socio-economic and health conditions.
Social inclusion can be achieved through acquisitions of businesses. These transactions can contract products and services from social insertion enterprises or units that offer work integration for people who are not in the labor force.
The Ateliere fr Frontiere Association is a recognized provider of products, mainly for private sector, that helps vulnerable people to be reintegrated into the labor market. Sales account for approximately 50% of our revenues, with most of our clients being Romanian businesses. We collect electronic and electrical waste, refurbish computers, then give them to schools. We also reuse outdoor advertising materials, which we transform into products, and grow certified organic veggies. Although we have a lower productivity than a regular business, we are able to offer a chance to those who were previously considered non-employable. Damien Thiery, CEO at Ateliere Fr Frontiere, said that although our productivity is lower than a regular company, it still allows us to give a chance.
The companies who were invited to the event presented their policies as well as how they implement the ESG criteria in procurement. While acknowledging that this is still a very early stage, such discussions can be very helpful.
This material does NOT necessarily reflect the official position or the 2014-2021 EEA nor Norwegian Grants. For more information visit www.eeagrants.org. We can all work together to create a green, inclusive, and competitive Europe.
