Follow the steps below to undertake a sustainable procurement.
Step 1: Plan the procurement
You will deliver the best outcomes when you plan for environmental sustainability in your procurement.
- Identify the need and outcomes
- Assess the risks and opportunities
- Undertake market research
Planning is the critical step for sustainable procurement. You will deliver the best outcomes when you plan for environmental sustainability in your procurement.
Assess the opportunities
Use the Sustainable Procurement Assessment tool to identify and assess environmental sustainability opportunities for your procurement.
Using recycled content is a priority for the Australian Government based on the National Waste Policy Action Plan. Check the recycled content products list to see if there are products relevant to your procurement.
Plan your procurement
Use the Sustainable Procurement Planning Tool to:
- Identify the environmental sustainability outcomes you want from your procurement
- Conduct market research on environmental sustainability and recycled content
- Consider and outline the benefits of using recycled content
- Identify any risks you may need to manage
- Record environmental sustainability requirements and contract terms to include in approach-to-market documentation
Additional tools are available to help you identify and prioritise your environmental sustainability outcomes. Refer to the sustainability impact assessment and risk prioritisation tools in the Sustainable Procurement Guide.
Step 2: Approach the market
Prepare your documentation to request quotes or tenders from potential suppliers.
- Specify sustainability requirements
- Set sustainability evaluation criteria
- Consider additional contract terms
Before approaching the market, consider factors including the procurement aims, contract arrangements and the approval process.
Use the Sustainable Procurement Checklist to check the tasks to be completed before approaching the market.
To achieve environmental sustainability outcomes, you need to be clear about your requirements and include these in your approach to market documents and contract.
For example, an environmental sustainability requirement could be delivering a plan on how the supplier will maximise use of recycled content.
Use the model clauses from the Sustainable Procurement Guide to identify sustainability requirements and contract terms for your procurement.
Step 3: Evaluate and engage
When assessing value for money, you must consider environmental sustainability where relevant. This includes the use of recycled content.
- Assess tender responses
- Debrief unsuccessful tenderers
- Negotiate and enter into contract
You need to demonstrate how the tender responses to any environmental sustainability requirements represent value for money.
Use these tools to inform the evaluation of the environmental sustainability requirements of your procurement. Consider adding elements from these tools to your overall evaluation template.
For procurements with low to moderate sustainability opportunities use:
For procurements with moderate to high sustainability opportunities use:
Refer to the Sustainable Procurement Guide for more information on evaluating environmental sustainability such as through Life Cycle Costings and the Materials Circularity Index.
Once you determine the preferred supplier, you can negotiate contract terms to enforce sustainability outcomes. The supplier could nominate additional requirements.
Step 4: Report and manage
Monitor supplier performance regularly to ensure sustainability requirements are delivered.
- Monitor compliance, performance and stewardship of goods and / or services
After a contract is awarded, you should monitor supplier performance and ensure sustainability requirements are delivered.
Effective contract management relies on appropriate environmental sustainability requirements, contract terms and KPIs. For more information, see Model Wording (see Step 2: Approach to market) and the Sustainable Procurement Guide.
If you have concerns about contract risks or non-compliance, seek advice from your central procurement team.
Step 5: Review and learn
Work with your supplier to review the success of the contract and identify opportunities to improve sustainability outcomes.
- Identify opportunities to improve
- Monitor and track progress
- Share your experience
The contract management process provides opportunities to work with the supplier to improve sustainability outcomes within your procurement. It provides a mechanism for you to raise any concerns or suggestions and allows the supplier to share ideas for new innovations, technologies or ways to improve sustainability.
You may want to create a “lessons learned” register to document learnings within your entity. This will assist any future procurement activities you undertake and other procurements across your entity.
We want to know about your sustainable procurement. We are gathering information on sustainable procurement to showcase success stories. Email information to firstname.lastname@example.org