Incorporating environmental considerations into water procurement could deliver better outcomes

One of the best bosses I ever had would, if something went wrong, calmly analyse what led to the error, and then, without pointing fingers, figure out how to prevent the mistake from happening again. Every failure was an opportunity to learn and improve.

I am not inclined to call the recent errors in water procurement a “scandal.” Chief Executive John Lee’s description of the Government Logistics Department’s “failure to do its job” seems fairer.

Yes, avoidable mistakes were made, but to err is human, and I don’t see anything particularly scandalous about being human. 

It’s more constructive to see what can be learned to prevent similar issues from arising in the future. The Audit Commission is grinding through that process now.

And in the spirit of constructive feedback, I do see an opportunity to improve procurement processes in such a way that could have saved tens of millions of dollars while keeping water quality irreproachably high – all while keeping due diligence costs low.

Here’s the trick: incorporate environmental considerations into the procurement process.

See also: Hong Kong gov’t’s bottled water scandal and political accountability

We know that as of today, cost and value-for-money are two of the most important factors in selecting a new supplier. What if environmental considerations are also baked in right at the start?

Bottled water is trucked from water plants, so carbon emissions are embedded in transportation. The water bottles also generate large amounts of waste: the plastic carboys themselves are reused but not infinitely, and the plastic seals on the carboys contribute even more to the waste footprint.

If we could identify a source of water that avoids all that carbon and waste, while maintaining water quality and taste, surely that should count for something? And if it were cost-competitive, that should make it a top contender.

Let me introduce a high-quality, very affordable, great-tasting water supplier: Hong Kong’s tap water. Not only does it tick the boxes for cost and quality, but due diligence should also be easy.

The Water Supplies Department enjoys the imprimatur of the Hong Kong government, which, I would hope, holds some water during the government’s due diligence process.

I know many Hongkongers flinch at the thought of drinking water straight from the tap. Some of this is a legacy from the days when corroding pipes in older buildings would make the water appear an unappealing rusty colour.

But modern buildings use better pipes, so that really isn’t an issue today. Many Hongkongers still boil or filter their tap water before consuming it. Strictly speaking, this is unnecessary from a water quality perspective, but if an extra filtration step makes people feel more comfortable, sure, why not?

If civil servants in government buildings really blanch at the thought of drinking water straight from the tap, perhaps the procurement process could have considered installing and maintaining water filters instead of trucking in bottled water. 

I’m not saying all this to provide an advertorial for the Water Supplies Department or to besmirch the reputation of bottled water suppliers.

Rather, I’m suggesting that if, right at the start of the supplier selection process, the questions “How much CO₂ is emitted? How much waste will be generated?” had been asked, then perhaps the problem of how to hydrate thirsty civil servants might have been solved with a higher quality, cheaper, and – as a cherry on top – more environmentally friendly outcome.

Every failure is a learning opportunity. I hope that in this case, the procurement department, whether in government or in the private sector, can learn that incorporating environmental considerations into decision-making may even result in higher-quality procurement at lower cost.