Sustainability policy could be boon for N.S. businesses

Sustainability policy could be boon for N.S. businesses

Rachel Brighton, Chronicle Herald: BUSINESSES IN Nova Scotia are being given an $800-million nudge in the direction of sustainable development. The incentive comes in a new policy designed to make Nova Scotia a leader in the high-stakes market of sustainable procurement across North America.

From now on, government purchases must factor in environmental, social and local economic concerns, to create a “holistic” picture of what constitutes best value, not best price.

Essentially, the new philosophy looks beyond just the cost of purchases to the cost of making just purchases.

The new policy was called for in the Environmental Goals and Sustainable Prosperity Act of 2007. It came into effect in August.

Government departments, agencies, boards and commissions must consider how their purchases will support the environment, the local economy, worker health and safety, inclusiveness, fair wages and health promotion.

As an example, government departments are now requiring janitorial services to use certified “green” products and to pay fair wages to their cleaning staff.

There is also a “buy local” component in the new policy. Preference will now be shown to local manufacturers and local agricultural and aquaculture products, up to a threshold of $10,000.

The policy brings threats as well as opportunities, however, especially for small businesses. While it opens doors for switched-on, socially engaged entrepreneurs, it may close doors for businesses that can’t compete on the new terms.

So far, the concept of sustainable procurement has been applied to big-ticket items, including communications equipment, buildings and the government fleet, and to more mundane items such as paper towel, toilet tissue, stationery, garbage bags, toner cartridges, printers and IT hardware. In time, specifications will be created for a broad range of goods and services.

However, while the concept of “green” products and services is now a popular notion among consumers and businesses, the idea that businesses have social obligations has been slower to catch on.

In a round of consultations held by government last year, suppliers said they saw the link between health and safety concerns and the new policy. They also supported the “buy local” strategies promoted under the new deal. But they were left scratching their heads on the question of how their business related to broader social concerns.

By seeking the best value, not the best price, government is signalling a new concern for business ethics.

To support the move, civil servants will have to be trained to understand the new “holistic approach.” Business and government will need to work with suppliers to get the message across.

The popularity of the fair trade coffee movement has shown that people will pay a premium to see profits shared fairly among overseas workers or to see coffee harvested in an environmentally sustainable fashion.

But the new policy will be a small test of that conviction on our own turf.

Whether the government’s new philosophy will bring about the broader social, environmental and economic changes it hopes for will depend on how well it can sell the “fair trade” message at home.

Rachel Brighton publishes the regional magazine Coastlands and is a former business editor and journalist. This is the first of a weekly column called Just Business. (business@herald.ca)