Sustainable procurement for Carbon-neutral construction

Abstract

This study explores the integration of sustainable procurement practices within the construction sector of Bangladesh, using National Development Engineers Ltd. (NDE) as a case study. The research aims to assess how sustainability-driven procurement policies can contribute to achieving carbon-neutral construction by embedding environmental, social, and economic considerations across all purchasing and supply chain processes. Adopting a mixed-method approach, the study combines quantitative survey data from 25 respondents across NDE’s Procurement, Finance, Quality, and Project departments with qualitative interviews of key managerial personnel. Statistical analyses, including regression and correlation tests, were applied to examine relationships between sustainable procurement adoption, supplier engagement, cost performance, and emission reduction. The results demonstrate a strong positive relationship between sustainability practices and Scope-3 emission reduction, with supplier engagement significantly enhancing compliance with ISO and Environmental Product Declaration (EPD) standards. The findings also reveal that sustainability integration does not increase overall procurement costs, highlighting its long-term economic viability. The study concludes that NDE’s structured procurement governance—anchored in ISO 20400 and PAS 2080 frameworks—effectively links traceability, digital documentation, and supplier development to environmental outcomes. It recommends expanding digital traceability systems, enhancing supplier training, and institutionalizing carbon accounting in procurement to accelerate progress toward carbon-neutral construction. This research contributes practical insights to the growing field of sustainable procurement and provides a replicable framework for other construction firms in Bangladesh and beyond.