Operational Concept - Sustainable procurement
Overview | Sustainable procurement | Elements of sustainable procurement
Overview
The Queensland Government is committed to protecting the environment and doing business with ethical and socially responsible suppliers. Agencies must integrate the principles and practices of sustainability into the procurement of goods, services and construction.
Sustainable procurement
Sustainable procurement3 means that when buying goods and services organisations practicing sustainable procurement will consider:
- strategies to avoid unnecessary consumption and manage demand
- minimising environmental impacts of the goods and services over the whole-of-life of the goods and services
- suppliers’ socially responsible practices including compliance with legislative obligations to employees
- value for money over the whole-of-life of the goods and services, rather than just initial cost.
Queensland Government agency procurement decisions should encompass the consideration of goods and services which have a lower impact on the environment and human health than competing goods and services from suppliers, and which are ethically and socially responsible in value for money considerations.
Elements of sustainable procurement
The procurement of environmentally preferable goods and services is a key activity in implementing sustainable procurement. Environmentally preferable or ‘green’ goods and services are those that have a lower impact on the environment over the life cycle of the good or service, when compared with competing goods or services serving the same purpose.
This comparison may consider the source of raw materials, production, manufacturing, packaging, distribution, potential for reuse and recycling, operation, maintenance or disposal of the product. These may include, but are not limited to:
- energy and water efficient products and services
- products using less packaging or with provision for packaging take-back
- reduced waste
- products made from recycled or re-manufactured materials
- the use of renewable resources
- reduced hazardous waste
- reduced toxic and hazardous substances.
In order for budget sector agencies to increase the proportion of their procurement expenditure on sustainable goods and services, they are required to set, achieve, measure and report on sustainable procurement targets. The selection of targets should align with the agency’s strategic and operational procurement objectives.
Setting targets
Budget sector agencies must select at least three targets from the following categories of targets. The targets may derive from one category or more than one category.
- A specific proportion of the agency’s expenditure on goods and services. The proportion could be based on the analysis of procurement expenditure as part of the Corporate Procurement Planning process. For example, a target of 10% of the annual procurement expenditure on sustainable goods and services could be set which increases over time.
- Product-based targets. Targets could be based on purchasing a proportion of a particular type of product group. For example, a target of 80% of the total volume of the agency’s office copy paper volume must be environmentally preferred office copy paper.
- Demand management targets. Reducing consumption is also an aim of sustainable procurement. Agencies could focus on setting targets to reduce their paper consumption, fuel and other energy consumption. Another example of managing demand is the reuse of products.
- Other quantitative targets. Targets could include a proportion of the agency’s suppliers which supply sustainable goods and/or services or have certified Environmental Management Systems in place, the proportion of offer documents that include (where appropriate) sustainable specifications and evaluation criteria, or the number of agency staff who have completed sustainable procurement training.
- Qualitative targets. Targets could include senior management endorsement of an agency sustainable procurement policy, the assignment of responsibility to a senior officer to ensure sustainable procurement outcomes, the review of agency procurement procedures to integrate sustainable procurement principles and practices, or the development of an action plan.
Targets should be regularly reviewed and progressively improved (as a minimum, annually) to meet the increasing sophistication of agencies’ capability with regard to achieving sustainable procurement outcomes.
Achieving targets
Budget sector agencies are required to meet the targets they set within the specified timeframes by developing and implementing a strategy and methods which best suit the agency.
Measuring and reporting on targets
Budget sector agencies are required to report annually on sustainable procurement targets and include sustainable procurement strategies and targets in their Corporate Procurement Plans.
For more information and sustainable procurement tools access the Queensland Government Chief Procurement Office website http://www.qgcpo.qld.gov.au
For advice on how to comply with this operational concept contact the Queensland Government Chief Procurement Office on telephone 1800 631 991 or email betterpurchasing@qgcpo.qld.gov.au
3 Based on the definition used by Australian Procurement and Construction Council, http://www.apcc.gov.au