Proof, not promises: How the EU is rewriting public procurement

13 hours ago

3 min read

By Ben Rutledge

October 2026

Image: Brussels Jubilee Park

As public procurement systems evolve, the businesses best positioned to win public contracts may be those that can show not only that risks have been identified, but that conditions for workers are actually improving.

On 9 September, the European Commission published its proposal for a new EU Public Procurement Act, a single regulation that would replace the three procurement directives that have governed public purchasing since 2014.

If the proposal becomes law, public buyers covered by the regulation would have to take appropriate measures to ensure their suppliers comply with environmental, social and labour laws, look past price when awarding business, and question bids that look too cheap. Buyers can also score how goods are actually produced: the working conditions behind them, where they're sourced and how transparent the supply chain is. The proposal would significantly strengthen and clarify Europe’s public procurement framework, building on the duties already in place.

This is a big change in direction - meeting the minimum legal requirements will not, on its own, count as socially responsible procurement, and sustainability commitments, policy statements and generic questionnaires are unlikely to cut it. The question put to suppliers may changes, from 'do you have a policy?' to 'show us what is happening in your supply chain and what you are doing about it’.

Public procurement accounts for around 15% of EU GDP, making it one of the most powerful tools governments have to shape markets and influence business behaviour. If adopted, the proposal would mark a significant shift in how public money is spent across Europe, with potentially far-reaching consequences for suppliers, investors, and supply chains worldwide.

From lowest price to responsible value

The most important change is conceptual. Historically, many procurement exercises have been heavily influenced by price, and lowest cost. The Commission's proposal seeks to embed broader strategic objectives into purchasing decisions, including competitiveness, resilience, sustainability, climate goals, and fair working conditions.

Moving beyond price alone

Under the proposal, quality criteria would have to carry a minimum weighting in most procurement decisions. For most contracts, quality would account for at least 30% of the points awarded, rising to 50% for labour-intensive contracts. Quality criteria can include environmental and social considerations, including working conditions and human rights impacts within supply chains.

Suppliers offering unusually low prices will also be required to explain how those prices were achieved, including the labour costs underpinning them.

Compliance is no longer the goal

Another notable aspect of the proposal is that mere compliance with legal requirements would not automatically qualify as socially responsible procurement. In practice, this means organisations may need to demonstrate not only that they meet minimum legal standards but that they are actively managing and improving social and environmental outcomes.

That is a higher bar than many businesses are accustomed to.

Under the proposals, a public buyer that can show a supplier has breached environmental, social or labour law can also exclude it from the competition. The way back in would be evidence of remedy: compensation paid, facts clarified, and measures taken to stop it happening again.

Proof, not promises

The direction of travel is clear: procurement authorities will want proof, not promises. Companies will increasingly need to demonstrate that they can identify, assess, and address serious human rights and environmental risks within their operations and supply chains. Increasingly, good buyers will be looking for credible evidence that companies’ their efforts are producing real-world improvements for workers and affected communities.

What next?

The European Parliament and Council must now negotiate the text, and changes are still possible before any final regulation is adopted. But the proposal sits alongside broader developments such as the Corporate Sustainability Due Diligence Directive (CSDDD) and the Corporate Sustainability Reporting Directive (CSRD), which are collectively moving European regulation towards greater accountability for supply chain impacts and real-world outcomes.

For organisations that have invested seriously in due diligence, worker engagement, and supply chain transparency, this change in direction could create a competitive advantage. As procurement systems evolve, the businesses best positioned to win public contracts may be those that can show not only that risks have been identified, but that conditions for workers are actually improving.

The Outcome Gap supports supply chain actors to close the gap between due diligence effort and real-world outcomes, by digging into company data and developing the systems and analytics companies need to evidence, and demonstrate, effective human rights due diligence.