Procurement plays a crucial role in driving sustainability initiatives, particularly in infrastructure, where government-led procurement can make a significant impact. According to the UN’s “Infrastructure for Climate Action,” infrastructure is responsible for 79% of global greenhouse gas (GHG) emissions. Governments, therefore, have a pivotal role in mitigating climate change through strategic infrastructure procurement.
A standout example of this is in the European Union, where environmental costs were incorporated into lifecycle assessments. This approach revolutionised the shift to low-emission vehicles. By calculating the environmental impact of road transport over its entire lifespan, the EU effectively demonstrated the financial advantage of switching to electric vehicles, making it both a smart economic and environmental decision.
Government policymakers have a unique opportunity to shape a more sustainable future. Moving beyond basic initiatives like reducing paper usage and electricity consumption, visionary governments can establish comprehensive cost models. By introducing these models at the beginning of the tender process, suppliers can assess lifecycle costs equitably, making sustainability a practical and cost-effective option.
However, the absence of standardised cost models at the outset of tenders presents a challenge. Without a clear understanding of the budget allocated to sustainability outcomes, it becomes difficult for suppliers to align with government goals. A transparent, structured approach is vital if we are to meet net-zero emissions targets.
There are resources available to assist in this effort. The Chancery Lane Project provides excellent case studies and open-source clauses to help agencies enhance sustainability outcomes within procurement and contract documentation.
At GovN Group, we are passionate about sustainability. We offer government agencies up to 100 hours of expert consultation to explore how to improve sustainability within their procurement processes. Contact us today to learn more!
Commonwealth Government Buyers and Suppliers
If you are a commonwealth government entity From 1 July 2024, the Environmentally Sustainable Procurement Policy (ESP Policy) requires high value procurements in specific categories to address environmental impacts. This includes reporting and contract management obligations.
There are tools available from the Commonwealth Sustainable Procurement Advocacy and Resource Centre that an support both buyers and suppliers achieve better sustainability outcomes. (see here: https://www.dcceew.gov.au/environment/protection/waste/sustainable-procurement)
DCCEEW offer tools to support environmental considerations and better practices. APS entities can use the Sustainable Procurement Guide to help embed environmentally sustainable procurement practices. DCCEEW also offer masterclass video series provides practical insights from the field about including environmental sustainability requirements in procurement projects. Watch the Masterclasses.
Suppliers to government will find useful information on DCEEWs Suppliers page.
