A bold step by the Lithuanian distribution network takes Baltic public procurements into a new era

"For years, it has been said that in addition to price, sustainability should also be considered in procurements, but real actions have not been taken. The Lithuanians are the first in the Baltics to actually implement this," says Tarvo Leppik, Sales Director of Prysmian Baltics. According to him, this is a clear signal to the market that expectations for public procurements have changed.

The capacity to assess the product's life cycle and environmental impact

The terms of the ESO public procurement stated that 80% of the decision is based on price and 20% on sustainability criteria, focusing, among other things, on the assessment of the CO₂ footprint, or EPD (Environmental Product Declaration). This means that the manufacturer must be able to assess the entire life cycle and environmental impact of their product. In addition, the procurement focused on the origin of the materials used, their recyclability, and the sustainability of the packaging. For example, it was important whether the packaging is made from certified materials and whether it is realistically possible to take back and reuse the returnable transport packaging.

"A cable always comes with packaging and returnable containers, but the question is what happens to it next," explains Raigo Viltrop, Product Manager of the Construction Segment at Prysmian Baltics. "In the European Union, the manufacturer has an obligation to take back their returnable packaging, but if the goods are brought from the other side of the world and the packaging is left here, it becomes local waste. We always take back our wooden drums and reuse them. This is a part of responsible business, and it is clear to see that if drums are reused, a part of the forest remains uncut."

According to Leppik, there were initial fears that including environmental requirements in the procurement would raise prices, but practice shows the opposite. "Competition is not going away. Those who have been cheap so far will now simply have to make even more of an effort, and in addition to price, other criteria must also be in place. In Western Europe, such models have been in use for years and prices have not risen because of it," he points out as an example. "Hopefully, this will also give courage to other state-owned companies. In Europe, we have also seen procurements with a 60/40 split, where even more attention is paid to the environment. And nothing has happened, because there are still enough bidders on the market. It’s more a question of having the courage to take this step."

In recent years, Lithuania has been at the forefront of sustainability issues among the Baltic countries.

The roadsides may be clean, but the back rooms are not as green

According to Viltrop, Estonia appears to be green-thinking on the outside. For example, our roadsides are free of trash, but unfortunately, in the back rooms, things are not so green and development has been uneven.

The same view is confirmed by the results of the 2025 business ecosystem study conducted by Siemens and partners, according to which Estonia's built environment and industry are moving towards sustainability, digitalisation, and the circular economy, but the development is not taking place at an even pace. The aim of the study was to map the sustainable development trends and business opportunities in the Estonian industrial and infrastructure sectors until 2035. The study relied on 45 semi-structured interviews with representatives of large, medium, and small enterprises, academic institutions, the public sector, and professional associations.

"The study reflected well what we see on a daily basis," says Viltrop. "Companies are ready and moving forward, but the public sector has not always kept pace. The goals are there, but their implementation requires more consistency. Large international companies, and especially listed companies, are used to measuring their environmental impact and setting goals every year. For us, this is not a new topic; we are systematically moving towards carbon neutrality and are on schedule with our goals. The question is how the public sector and other companies can keep up the same pace."

Steps towards greener production are steady

Prysmian's steps towards greener production have been consistent. In the production building located in Keila, diesel forklifts are being replaced by electric ones, all lighting has been upgraded to energy-efficient LED solutions, and heating and energy use are managed smartly, making maximum use of the heat generated by the production processes. Also, for several years now, the energy used by the company has come from CO2-neutral sources, and production processes are constantly optimised to reduce both energy consumption and environmental impact.

"Sustainability means everyday decisions – how we produce, what we use, and what we leave behind," says Viltrop. "Both ESO's step and the broader market trends show that change has begun, although not everyone is moving at the same speed yet. The first step is the most important – once it's taken, others will follow. We have been dealing with sustainability for years and can reassure you that there is more to win than to lose."

Article from ehitusuudised.ee.