Fair Trade and Public Procurement: Report into Fair Trade expenditure and policy commitments within Scotland’s public sector, 2023–24 

This month, we are pleased to publish our report into Fair Trade expenditure and policy commitments within Scotland’s public sector. The report examines expenditure data and procurement policies from contracting authorities across Scotland for the 2023–2024 financial year. Through Freedom of Information requests, we gathered data from a number of contracting authorities on their Fair Trade spend and their policies on fairly and ethically traded goods. 

Scottish Fair Trade has been researching Fair Trade spend in the public sector since 2019. Several key challenges remain in relation to the data we are able to collect. Firstly, the current approach to monitoring Fair Trade expenditure is neither comprehensive nor consistent. Contracting authorities apply varying definitions of Fair Trade and use different procurement systems, some of which do not flag Fair Trade certified or verified products due to labelling discrepancies. Secondly, many authorities report spending on broadly “ethical” products that are not Fair Trade certified or verified, which can distort the accuracy of reported figures. 

Despite these limitations, the report highlights the opportunities within public procurement to strengthen Scotland’s commitment as a Fair Trade Nation. Many authorities provided positive examples of Fair Trade purchasing. NHS National Services Scotland demonstrated a strong commitment through its procurement of Fairtrade tea and bananas, while organisations such as the University of Edinburgh reported significant spend on Fairtrade certified coffee. The report also shows the valuable contribution of Scotland based suppliers, such as Coffee Conscience Ltd, in supporting Fair Trade procurement across the public sector. The examples highlighted in the report illustrate the breadth of Fair Trade products that are available through a vast range of suppliers and that switching to Fair Trade is often a very plausible option.   

As a Fair Trade Nation, Scotland must ensure accurate benchmarking and monitoring of Fair Trade procurement in the public sector. The Scottish Government’s updated Sustainable Procurement guidance recommends that contracting authorities collect data on their spend related to Fair Trade certified or verified goods, such as those carrying the Fairtrade Mark or the World Fair Trade Organization (WFTO) label. We hope that this updated guidance will encourage contracting authorities to adopt this approach to monitoring their Fair Trade spend.  

What is clear from this year’s report is the impact that contracting authorities can have through their spending decisions. We would like to encourage all authorities to establish their own baselines for Fair Trade expenditure and set targets for improvement. This will support meaningful, year-on-year progress and will enable authorities to demonstrate their commitment to Fair Trade through practical, measurable actions. Improving Fair Trade procurement means working to promote ethical supply chains, uphold human rights and support environmental protection, while ensuring that public spending contributes to a more just and sustainable global economy. 

This year’s report concludes with three key recommendations: 

1. Defining Fair Trade 
   Scottish Fair Trade will continue to advocate for a clear and consistent understanding of Fair Trade, using mechanisms such as the updated Scottish Government guidance. 
2. Monitoring and Purchasing 
   Scottish Fair Trade proposes working with stakeholders to develop guidance for contracting authorities to report Fair Trade expenditure annually using best practice methods. Contracting authorities should be encouraged to set their own baseline and annual targets for Fair Trade expenditure.
3. General Policies on Fair and Ethical Trade 
   Scottish Fair Trade recommends working with stakeholders to bring together best practice examples identified in this report and use them to produce guidance for contracting authorities on developing comprehensive policies on fair and ethical trade. 

If you are a contracting authority who would like to find out more about how Scottish Fair Trade can support you, please do get in touch on info@scottishfairtrade.org.