Western Australian Government - Sustainable Procurement · Web viewThe information and advice...

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Procurement Practice Guidelines Sustainable Procurement Introduction This appendix provides information and practical advice to Western Australian public authorities and government procurement officers on how to integrate sustainability considerations into the procurement process. The information and advice builds on guidance in the ISO 20400:2017 Sustainable Procurement (the Standard), and work undertaken by the Western Australian Local Government Association. The Standard, published by the International Organization for Standardisation, sets out international guidance for all organisations, regardless of their activity or size, around how to integrate sustainability within procurement. The Standard is intended for stakeholders involved in, or impacted by, procurement decisions and processes. Contained within associated documentation for the Standard are: definitions; a description of fundamental sustainable procurement principles; guidance on implementing sustainable procurement strategies within the organisation; and how to incorporate sustainable principles throughout the procurement process. Public authorities have an important role in using their purchasing power to lead by example and embed practices into their procurement processes that encourage suppliers to adopt sustainable practices that achieve environmental, social and economic benefits. Sustainability considerations should be incorporated into every stage of the procurement process, including at the forward procurement planning and budget allocation stages. However, the extent to which sustainability considerations should be applied to a particular procurement will vary depending on a range of factors, including the procurement’s value and significance, the severity of associated sustainability impacts, the maturity of the market and regulatory requirements. What is Sustainable Procurement? 1 Ver. March 2020

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Procurement Practice Guidelines

Sustainable ProcurementIntroductionThis appendix provides information and practical advice to Western Australian public authorities and government procurement officers on how to integrate sustainability considerations into the procurement process.

The information and advice builds on guidance in the ISO 20400:2017 Sustainable Procurement (the Standard), and work undertaken by the Western Australian Local Government Association.

The Standard, published by the International Organization for Standardisation, sets out international guidance for all organisations, regardless of their activity or size, around how to integrate sustainability within procurement. The Standard is intended for stakeholders involved in, or impacted by, procurement decisions and processes. Contained within associated documentation for the Standard are: definitions; a description of fundamental sustainable procurement principles; guidance on implementing sustainable procurement strategies within the organisation; and how to incorporate sustainable principles throughout the procurement process.

Public authorities have an important role in using their purchasing power to lead by example and embed practices into their procurement processes that encourage suppliers to adopt sustainable practices that achieve environmental, social and economic benefits.

Sustainability considerations should be incorporated into every stage of the procurement process, including at the forward procurement planning and budget allocation stages.

However, the extent to which sustainability considerations should be applied to a particular procurement will vary depending on a range of factors, including the procurement’s value and significance, the severity of associated sustainability impacts, the maturity of the market and regulatory requirements.

What is Sustainable Procurement?Sustainable procurement involves an organisation meeting a need for products and services in a way that achieves value for money and generates benefits not only to the organisation, but also to society and the economy, while minimising damage to the environment.

The Standard defines sustainable procurement as “…procurement that has the most positive environmental, social and economic impacts possible over the entire life cycle of a product or service”.

Sustainable procurement can minimise a public authority’s environmental impact as well as benefit society and the natural environment and reduce overall operational costs.

The State Supply Commission’s Sustainable Procurement policy requires public authorities to consider sustainability during the procurement process, including:

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Procurement planning – integrate sustainability by implementing demand management strategies, identifying potential sustainable impacts and opportunities, and analysing the supply market;

Request formation – define procurement criteria that reflect key sustainability issues, and include procedures to verify compliance;

Evaluation – suppliers should be evaluated based on the qualitative and compliance criteria that assess sustainability commitments, where sustainability is a non-cost factor of value for money;

Contract management – obtain agreement on contractual clauses that include sustainability criteria, including monitoring any associated performance targets; and

Contract review – assess the experience acquired and supplier’s performance on all relevant criteria including sustainability and, based on findings, develop recommendations with a view to continual improvement.

Key Sustainable Procurement Principles

At a high level, the Standard is built around nine principles of sustainable procurement. The Standard recommends that these principles underpin the development and implementation of sustainable procurement strategies, policies, guidelines and tools.

Value for money is the primary consideration in government procurement in Western Australia, including all relevant financial and non-financial costs and benefits over the life cycle of the procurement. Sustainability is a non-financial cost factor of value for money.

The following sustainable procurement principles should be considered as part of a value for money assessment:

Accountability: a public authority should be accountable for its impacts on society, the economy and the environment;

Transparency: a public authority should be transparent in its procurement decisions that impact society, the economy and the environment;

Ethical behaviour: a public authority should behave ethically, and promote ethical behaviour in suppliers;

Respect for stakeholder interests: a public authority should respect, consider and respond to the interest of its stakeholders impacted by its procurement activities;

Respect for the rule of law and international norms of behaviour: a public authority should be aware of any violations of these rules by suppliers, and actively encourage suppliers to abide by these rules;

Transformative and innovative solutions: a public authority should seek innovative solutions to address sustainability objectives;

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Focus on needs: a public authority should review demand, only buy what is needed, and first seek more sustainable solutions; Integration: an organisation should integrate sustainability into all existing

procurement processes;

Entire life cycle of the purchase: a public authority should make purchasing decisions based on the entire life cycle of the products and services taking into account associated costs, environmental and social risks and benefits including broader social and environmental implications. The assessment of cost needs to consider any ongoing costs that may accrue beyond the initial price. This includes the associated costs of holding, using, maintain and disposing of the goods and services; and

All costs: a public authority should also consider the costs and benefits incurred through procurement to society, environment and economy.

Sustainable procurement dimensions

Sustainable procurement is comprised of three dimensions: social, environmental and economic aspects. Sustainable procurement looks beyond the up-front cost to make purchasing decisions based on the entire life cycle of the products and services, taking into account associated costs, environmental and social risks and benefits, and broader social and environmental implications.

Figure 1: Examples of key considerations in sustainable procurement decisions (as depicted in the Australian Government’s Sustainable Procurement Guide)

Environmental (as adapted from British Standard BS 8903:2010)

OverviewEnvironmentally preferable products and services are defined as those that have a lower impact on the environment over the life cycle of the product or service, when compared with competing products or services serving the same purpose.

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There are significant variations in the sustainability impacts associated with different commodities. In order to ensure that damage to the environment is minimised, it is necessary to determine the impacts that are most significant for a particular commodity.

Key environmental issues, which might be considered over the life cycle of the product/service, include:

Energy use, and type of energy utilised;

Water use and water quality impacts;

Resource use, including the use of non-renewable resources and use of recycled materials;

Volume and type of waste generated;

End-of-life options, e.g. reuse, recyclability, resource recovery;

Impact on natural habitat;

Level of toxic and hazardous substances/waste; and

Noise, pollutants and emissions.

Desirable outcomes / benefits (examples only) Improved air quality by reducing or eliminating emissions to air (e.g. greenhouse

gases, such as carbon dioxide, and other pollutants);

Reduced use of water (e.g. water saving or efficiency);

Improved water quality by reducing or eliminating releases to water (e.g. chemical pollution of water courses);

Improved soil quality by reducing or eliminating releases to land (e.g. chemical fertilisers);Reduced demand on raw materials and natural resources (e.g. sustainable forestry, biodiversity);

Reduced use of energy (e.g. energy efficiency, use of renewable energy);

Reduced energy emitted (e.g. heat, radiation, vibration, noise); and

Reduced waste and by-products (e.g. waste avoidance, reuse, use of recycled products or products with recycled content, recycling and resource recovery).

Where it is not possible to calculate dollar benefits associated with environmental impacts, they can be described in other quantitative terms, for example:

Energy use (Kwh);

Usage (mega litres);

Resource use (kg per product);

Waste production (kg per product, or percent of product);

Packaging type and quantity (kg per product); and

Waste water parameters (BOD, TSS, P, flow).

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Premier’s Circular 2018/03, released in November 2018, should also be considered. This policy seeks to reduce the amount of single use plastics procured by public authorities. It contains minimum requirements regarding selection of sustainable options when procuring goods and services and increasing the use of recycled products.

Social benefits

Being sustainable is also considering the social factors of a product or service. Suppliers can be socially responsible by adopting ethical practices and being compliant with legislative obligations and other actions that benefit society including inclusiveness, equality, diversity, regeneration and integration.

Social impacts that can be taken into consideration across sustainable procurement activities include:

Supporting suppliers to government who are socially responsible and adopt ethical practices;

Considering human health impacts;

Supporting the use of local and/or emerging small businesses;

Supporting socially inclusive practices, such as employment and training focused on disadvantaged groups;

Assessing the impact of occupational health and safety concerns (both here and abroad); and

Ensuring compliance with relevant regulatory requirements.

Economic (as adapted from British Standard BS 8903:2010)

OverviewSustainable procurement can contribute directly to economic (financial) outcomes including cost savings, for example:

Procuring products and services that are more efficient to operate and thereby reduce operating costs (including consumables, energy, water and time);

Capital procurement that achieves reduced through-life costs, e.g. through reduced annual operating and maintenance costs;

Re-examining requirements, and where appropriate challenging demand at source, so as to avoid procurement in excess of needs;

Reducing end of life disposal costs and impacts; and

Driving supply chain efficiency and developing market competitiveness, innovation and capacity.

Some products that may appear more expensive in terms of up-front acquisition cost may in fact provide greater economic benefit over the whole life of the product.

Desirable outcomes / benefits (examples only) Reduced whole-of-life costs to achieve value for money, including cost savings;

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Supply chain efficiency;

Job creation (e.g. green technologies, use of local suppliers, creating markets for recycled products, back to work schemes);

Supporting small and medium enterprises;

Reducing entry barriers (e.g. facilitating open competition);

Ensuring suppliers’ agreements are at fair and viable margins; and

Ensuring business continuity (e.g. supply chain resilience).

Key Considerations for Sustainable ProcurementAs adapted from the Standard, key considerations for sustainable procurement include:

Managing risk (including opportunity) – in the context of sustainable procurement, the objective of risk management is to identify, prioritise and manage internal and external risks (including opportunities) related to procurement activities. This will ensure that sustainability impacts are managed appropriately, resources are applied effectively and that decisions made can be justified. Risk management of sustainable procurement should be integrated into the procurement process.

Addressing adverse sustainability impacts through due diligence – these can be addressed through the public authority’s procurement practices and the design or disposal of goods or services by the public authority. Due diligence is a way to address adverse impacts. When public authorities identify potential negative impacts they should seek to prevent or control, or treat and control, actual adverse sustainability impacts.

Setting priorities for sustainability issues – this will allow the public authority to focus on managing risks and delivering the maximum contribution to sustainable development.

Exercising influence – a public authority should wherever possible exercise its ability to influence the behaviour of suppliers and other stakeholders towards sustainability.

Avoiding complicity – public authorities should avoid becoming complicit in wrongful acts of other organisations that cause sustainability impacts.

Integrating Sustainability into the Procurement ProcessIn order to integrate sustainability into the procurement processes, public authorities should first:

Clearly articulate their objectives and goals as they relate to sustainable procurement to ensure consistency with any overarching relevant government objectives; and

Clarify accountability within the public authority to ensure support for and commitment to implementing sustainable procurement in a manner that is consistent with the public authority’s objectives and goals.

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By integrating sustainability in procurement policies and practices, public authorities can manage risks and identify opportunities for sustainable environmental, social and economic development.

Sustainable procurement should be integrated into the procurement process in the following five phases as illustrated in the diagram below:

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Figure 2: Integrating sustainability into the procurement process (adapted from the Standard).

Planning: Preparing a Sustainable Sourcing StrategyWherever possible, sustainable procurement considerations should be integrated into the procurement process at the very outset – i.e. at the early procurement planning stage. This should certainly be the case with high value procurements involving a public tender and the development of a procurement plan.

Demand management and analysis strategies

Before beginning a proposed procurement, public authorities are encouraged to consider relevant demand management strategies that can potentially reduce overall consumption levels, identify more sustainable alternatives, or in some cases negate the need to undertake the procurement. Examples include:

Reducing frequency of use or consumption;

Leasing/sharing (consolidating demand) or outsourcing arrangements when possible;

Considering the use of recycled or renewable or environmentally friendly options;

Exploring option of reusing, repairing, repurposing or recycling goods;

Consider the lifespan of the product, options for extended warranties;

Acquiring second-hand or used goods, etc.

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Planning: preparing a sustainable sourcing

strategy

Procurement criteria definition: integrating

sustainability requirements in the request document

Sustainability aspects of supplier selection: awarding the contract to a sustainable

supplier

Contract management: managing the contract

sustainably

Contract review and lessons learnt: evaluating and

improving sustainability performance

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During demand analysis, consideration should be given to the required outcome sought from the procurement and whether the ‘need’ can be met by alternative means. For significant procurements, it is important to include how sustainability may contribute to ‘value for money’.

Demand management may also include a stakeholder consultation where key stakeholders should be identified and sustainability issues introduced into discussions regarding the proposed procurement and its objectives.

The Standard provides direction on who a typical range of stakeholders may be and when they should be engaged (see Table 1). This will facilitate a better understanding of what sustainability considerations might be incorporated into the requirement specifications. End users, business analysts and technical officers, including sustainability experts (e.g. environmental officers) are important stakeholders in this process, as they may be responsible for or have a major influence over developing the specifications.

Table 1: Types and examples of stakeholders and interests (as depicted in the Standard)

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Type of stakeholder

Examples of stakeholder

Examples of stakeholder interests

Internal functions

Top management / entrepreneurs

Protect image

Improve brand reputation

Gain competitive advantage

Support innovation

Increase investor confidence

Procurement employees

Manage procurement risk (including opportunities

Reduce costs

Sustain innovation

Motivate buyers

Specifiers

Buy or use goods or services that are more sustainable

Ensure goods and services are fit for purpose

Ensure goods are authentic

Production employees

Comply with production schedules

Improve efficiency

Check product quality

Social responsibility / sustainability people

Improve sustainability performance

Support innovation

Create value through social responsibility

Other internal people (finance, health and safety, human resources, operational managers, etc.)

Improve health and safety

Monitor payment terms

Return on investment

Supply chains

Suppliers (tier 1, 2 and beyond)

Receive prompt payment

Receive a fair price

Gain customer insights

Obtain fair contracting conditions

Create demand for goods or services that are more sustainable

Subcontractors / workers

Receive fair contracting conditions

Be provided healthy and safe working conditions

Business partners, consultants

Improve collaboration

Innovate

Create mutual benefits

Customers, clients and users

Buy or use more sustainable goods or services

Support local employment

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Assessing Sustainability Impacts and Opportunities

Depending on the value, sensitivity and complexity of a proposed procurement, there are a number of actions that a public authority or procurement officer can undertake in order to better understand the sustainability impacts and opportunities.

For example, a sustainability impact and opportunities assessment is useful for major procurement activities to understand the potential to influence suppliers. One way to identify relevant opportunities is to consider the life cycle of a product.

See Figure 3 for examples of sustainable opportunities of a product or services through the lifecycle. Once these impacts and opportunities have been considered, the next step is to prioritise how the impacts and opportunities can be addressed through the procurement. When prioritising, agencies may need to determine:

How important is this issue/impact to the Government;

What scope is there to improve;

Will the market be able to respond to this issue/impact?

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Figure 3: Example of environmental impacts and opportunities of a product or service through the life cycle (as depicted in the Western Australian Local Government Association’s Guide to Sustainable Procurement)

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There are three factors to consider when prioritising sustainability impacts and opportunities:

Significance of the potential impact and opportunity: determine the degree to which the environment, society and economy can benefit from the public authority’s decision (for example, the possible scenarios that may arise if action is taken/not taken).

Relevance to government: assessing, for example, alignment with organisational objectives and commitments, or linkages with core activities of the public authority.

Ability to influence: determining the difference that can be achieved by focusing evaluation criteria on the identified opportunities (e.g. capacity to influence suppliers to adopt more sustainable practices).

It is important that public authorities determine how impacts and opportunities that might arise will be communicated and managed.

Analyse the market

Market analysis should be undertaken to gain an understanding of the existing or future capability of the supply market to support the public authority’s sustainability needs. Additionally, the analysis should make clear whether sustainability criteria reduce or increase the level of competition and/or the public authority’s buying power.

Consider the market position between the buyer and the market: what is the sustainability ambition of the public authority, and what leverage does it hold over the market? It may also be beneficial to consider the elements in Figure 3 from a supplier perspective. For example, consider suppliers who have invested in and are, or will, actively promote sustainability.

Figure 4: Market engagement matrix (as taken from the Standard)

Where leverage and ambition are high, it may be possible to influence suppliers or markets to a higher level of sustainable behaviour.

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Where ambition is high but leverage is lower, selecting the current level of best practice is probably the best outcome.

Where ambition is low but leverage is significant, it is unlikely there is appetite to change the market, but this leverage can be used to influence suppliers to improve sustainability practices.

Where leverage is low and ambition is also low then the appropriate strategy would be to adopt the standard sustainability practice offered by the market.

Request Formation: Procurement Criteria Definition – Integrating Sustainability Requirements in the RequestOnce the strategy is established to source the procurement, the Request, including the criteria and the specification, should be carefully crafted to take into account sustainability principles. Integrating sustainability aspects into the Request is the most effective means of ensuring that sustainability risks and opportunities are incorporated into the procurement decision-making.

While developing suitable criteria to assess sustainability in suppliers, agencies should consider the potential impacts identified in the sustainability impacts and opportunities assessment.

Suitable criteria provide an opportunity for a public authority to select a supplier that demonstrates a sustainable benefit. Any criteria should be relevant to the specific procurement and market, and must be able to be validly applied to all potential respondents. The criteria should reflect the public authority’s sustainable procurement objectives and goals, must be verifiable, transparent and clearly communicated to potential suppliers. The criteria could relate to the goods or services being purchased and others might apply to the supplier and the way it delivers its goods and services.

Evaluation criteria that relate to sustainability can be described as either pre-qualitative or qualitative criteria. Pre-qualitative criteria, or minimum requirements, establish minimum acceptable performance and actively exclude undesirable features. Qualitative criteria allow the sustainable practices of potential suppliers to be assessed as part of the value for money assessment.

Consideration should be given to determining how sustainability will be addressed. The approach adopted will be influenced by such factors as: the severity of the sustainability impact; the maturity and number of suppliers in the market; the criticality of the supply arrangement; the contract value and term; and any regulatory frameworks covering the industry.

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Pre-qualification requirement

A pre-qualification requirement may be included in relation to sustainability requirements. .Including minimum accreditations that respondents must have in order to pass through the desktop assessment stage of an evaluation; e.g. possessing a license to operate a high temperature incinerator or having an ISO 14001 certified Environmental Management System. These will be included as pre-qualification requirements, which must be specified with extreme caution as respondents must be excluded from consideration if they do not comply with the pre-qualification requirements.

However, serious consideration needs to be given as if it is not met it will preclude further consideration of the supplier

Qualitative criteria

When developing qualitative criteria related to sustainability, the following principles should be observed:

Criteria should be weighted appropriately: for a procurement where sustainability criteria are likely to make a difference (for example, a contract with the opportunity to build economic development through local employment and contracting) the criteria should be weighted higher than a procurement with less opportunity to influence (such as office-based consulting services).

Criteria may differentiate between supplier specific criteria (that focus on how the supplier manages environmental and social impacts through policies and systems), and product specific criteria (for example white goods with a higher than four star energy rating).

Example issues to consider when drafting criteria in relation to sustainability include:

- Is the supplier and/or the goods and services it supplies certified and verified, for example, certified to ISO 14001 (EMS certification), GECA certified, Fairtrade certified?

- Does the supplier report publicly on its environmental and/or social performance (triple bottom line report or modern slavery statements or reports)? How does it manage environmental and social risks? Can it provide a copy of relevant reports?

- Can the supplier provide evidence that it has considered the environmental and social impacts in its supply chain and has put into place management strategies?

- Has the supplier ever received a notice from the relevant environmental protection organisation/department (the Department of Water and Environmental Regulation or the Environmental Protection Authority) or been in breach of environmental regulation or legislation? A similar question could be asked for subcontractors or the supply chain.

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- Has the supplier ever received a notice from the Fair Work Ombudsman or been in non-compliance with a social certification standard such as SA8000® Standard.

Include a requirement that suppliers provide information on a range of sustainability related criteria in order to allow their sustainability credentials to be scored and/or assessed; e.g. provide evidence of any program or initiative the supplier has in place to minimise or reduce the amount of packaging used.

Including a contractual requirement that suppliers should move to the provision of more sustainable products over time, should they be awarded a contract; e.g. the supplier to increase the proportion of products covered by a certain class of environmental label over the term of the contract.

Including contract clauses and/or key performance indicators (KPIs) that aim to achieve a specified level of sustainability performance; e.g. quarterly reporting on the proportion of products offered covered by a recognised environmental label.

Specification / scope of work

Different types of requirements can be used in the specification. For example:

Product or service specifications that relate to sustainability – the characteristics of the goods or services sought. For example, specifications for the product to be manufactured in a sustainable manner (reduced emissions, waste generation etc.), recycled or renewable content, any sustainable certification standards or product standards or certification that might be relevant. Potential relevant and recognised environmental accreditation standards include:

- ISO 14001 Environmental Management Systems certification for products, services or organisations where relevant;

- Carbon offsets being accredited by National Carbon Offset Standard;

- Water rating performance under Water Efficiency Labelling and Standards (WELS);

- Energy rating performance under Minimum Energy Performance Standard (MEPS);

Disposal of tyres by organisations with appropriate accreditation 1

Disposal of unwanted paint at accredited collection points.

Functional specifications that relate to sustainability – what function do the goods or services need to perform. For example, strength and durability characteristics of concrete, and energy efficiency of IT equipment.

Performance specifications that relate to sustainability – the performance standards for the goods or services that contribute to the procurement goals. For example, percentage waste diverted from landfill, and percentage carbon emissions reduction.

1 Where a public authority is considering supplier or product accreditation that are not recognised nationally or by the WA government, ensure that due diligence is undertaken to verify that the accreditation programs referred to are independent and are, or can be, independently verified. The Ecolabel Index is a global directory of ecolabels that may be useful to verify such accreditation and labelling programs www.ecolabelindex.com.

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Including requirements that encourage respondents to offer items that meet or exceed the Request’s sustainability specifications and/or special conditions of contract. For example, white goods must have an Energy Star rating above a specified threshold.

Sustainability aspects of supplier selection – awarding the contract to a sustainable supplier

Incorporation of sustainability principles in the sourcing strategy during planning and analysis and through the request formation stage will ensure sustainability outcomes are taken into consideration at the evaluation stage.

Whilst a public authority should not deviate from the selection process set out in the Request, value for money is the primary consideration in government procurement in Western Australia. A public authority must ensure that its procurement of goods and services achieves the best value for money outcome. This includes ensuring that a public authority’s activities align with Government policies, objectives and strategies and that it actively supports whole of government initiatives. Achieving value for money at the individual purchase level requires in its assessments (as set out in the Request) consideration of cost and non-cost factors, where sustainability is a non-cost factors.

Contract Management – Managing the Contract SustainablyMonitoring sustainable performance

Where a contract includes sustainability provisions or specific sustainability KPIs, public authorities must monitor contractor compliance with these provisions.

Sustainability KPIs must be measurable and clearly defined. The contract should specify actions that may result if there is a downward trend or fall in performance against any agreed benchmark or threshold. Potential approaches to addressing sustainability through KPIs may include:

Setting specific targets or actions that the supplier is required to meet within a prescribed timeframe ― e.g. requiring a contractor that indicated in their offer they were moving towards implementing an ISO 14001 accredited Environmental Management System, to achieve accreditation within one year of contract commencement.

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Requiring a contractor to progressively increase the sustainability performance of their products ― e.g. a minimum of 30% of a supplier’s product catalogue have a certain environmental certification or eco-label standard within two years of contract commencement, and this is to rise to 40% by the end of year four.

Requiring supply chain initiatives or reporting ― e.g. reporting on the origin and certification of products or components (such as imported timbers).Requiring contractors to provide a general update (e.g. an annual report) on their progress, initiatives and innovations relating to sustainability. In order to have the information available to measure the benefits associated with sustainable procurement, it is vital that related performance measures and reporting requirements are specified in the Request, and subsequently in the contract management plan. It is then the responsibility of the contract manager to proactively manage the contract and ensure that KPIs are monitored and reporting requirements met.

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KPIs may be monitored through regular review meetings, which may also provide suppliers an opportunity to provide feedback to the public authority. Suppliers’ sustainability expertise may also be harnessed to maintain competitive advantage. Periodic audits should be carried out as good practice, especially for important and complex contracts, to verify that sustainability claims and work practices meet stated contract requirements.

Purchasing from a standing arrangement

With Common Use Agreements, standing offer arrangements or preferred supplier panels, where a range of buyers utilise a contract on an on-going basis, it is critical that buyers are educated and kept informed about the sustainability objectives and buying arrangements/rules for the contract. Ideally, contract developers and managers should produce guidance material for contract users/buyers that specify the most sustainable products or services available under the arrangement and highlight the key sustainability impacts and issues associated with utilising the contracted items.

Where applicable, the guidance material (for example, Buyers’ Guide, fact sheet, smarter buying brochure, product catalogue) should also detail potential demand management strategies. For example, the Buyers’ Guide for a contract supplying copy paper might recommend that agencies set their printers to default to duplex printing in order to reduce paper usage, as well as providing information regarding the recycled content of different papers available under contract.

As a minimum, buyers should be made aware of the sustainability implications of their buying behaviour and how they may minimise negative impacts

Contract review

At the end of a contract, or when deciding whether to exercise any available extension options, sustainability performance should be included as part of the contract review process. Before deciding if a contract should be renewed or extended, it is important to:

Review performance against the agreed sustainability KPIs;

Determine whether the desired sustainability objectives have been met and/or exceeded, and whether they still align to the Government’s and/or the public authority’s sustainable procurement strategy;

Assess whether the public authority’s value as a client has changed or whether the market has changed (i.e. are there new suppliers in the market or new, more sustainable products available); and

Document findings and lessons learned, so that this information can be used in the planning stage for any future contract.

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Other InformationThe list below may assist in providing further information and guidance:

Resource Source

ISO20400:2017 Sustainable Procurement Guidance

www.iso.org/standard/63026.html

Infrastructure Sustainability Council of Australia

www.isca.org.au

Eco Specifier www.ecospecifier.com.au

Good Environmental Choice Australia www.new.geca.eco

United Nations Sustainable Consumption and Production Platform

www.scpclearinghouse.org

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