Environmentally sustainable business practices: social procurement guide

Overview

Environmentally sustainable business practices is one of three sustainable procurement objectives included in the Social Procurement Framework.

This objective has one outcome:

adoption of sustainable business practices by suppliers to the Victorian Government

Sustainable business practices

This objective is about the operations of suppliers. It is not directly related to the provision of the contracted goods or services. Instead, it focuses on the back-of-house practices of suppliers.

Take, for example, a buyer procuring cleaning services. The supplier might pledge to use environmentally friendly cleaning products. This would not count toward this objective. Instead, it would be considered part of Environmentally sustainable outputs. If the supplier used those products in their own head office, it would meet this objective.
Other procurement-related policies.

This objectives operates in accordance with the Supplier Code of Conduct. The code lists minimum ethical standards of behaviour, including environmental management.

Sustainable business practices by suppliers

The Victorian Government is committed to promoting environmental responsibility. It expects its suppliers to minimise the environmental impact of their operations. To this end, it expects suppliers to maintain environmentally responsible policies and practices.

This process may not be necessary for smaller procurements. This is especially true of low-value goods. Buyers need to assess the environmental impact of the products directly. However, for larger or more complex procurements, this process is important to ensure best practice. They help buyers meet Framework and Recycled First Policy requirements.

Environmentally sustainable business practices cover a variety of areas, such as:

minimising the use of energy, water and natural resources
sustainable use of resources including the use of renewable energy
waste management (including maximising resource recovery and prevention of pollution)
use of recycled products and products with low environmental impact
reuse of products (reducing the need for new products)
minimising and mitigating greenhouse gas emissions
habitat and environment protection
minimising travel

Environment management systems

Agencies may implement relevant business practices under a broader framework. This may be an environmental management system or sustainability policy. They may also feature individual strategies targeting specific areas.

An environment management system is a set of policies. It provides a formal structure to environmental management. It covers areas such as training, record management, inspections, objectives and policies.

A supplier’s environment management system may be designed to meet accreditation requirements such as that of the International Organisation for Standardisation
(for example ISO 14001:2015).

Procurement activity by threshold

Where appropriate, government buyers can ask suppliers to provide:

a written declaration in response to any self-assessment checklist
documentary evidence in support of their self-assessment checklist

Consider:
- ask supplier(s) to demonstrate environmentally sustainable business practices in weighted framework criteria.
For goods and services, the model clauses need to be embedded in the market approach documents. See, Social procurement toolkit.
For construction, clauses related to social procurement (including building equality policy) have been embedded in approved standard form construction contracts.
Consider:
- ask supplier(s) to demonstrate environmentally sustainable business practices in weighted framework criteria
The social procurement model clauses provide guidance on how to seek social procurement commitments. Use of social procurement model clauses is required for procurement projects valued at over $20 million, and may also be used on lower value procurements, where applicable.
For goods and services, the model clauses need to be embedded in the market approach documents. See, Social procurement toolkit.
For construction, clauses related to social procurement (including building equality policy) have been embedded in approved standard form construction contracts.

See, Social procurement requirements and expectations to understand what recommended actions are available based on procurement thresholds. Value thresholds are exclusive of GST.

Opportunities to maximise

Environmental Protection Agency

The Victorian Environmental Protection Agency provides a set of tools. These help businesses follow environmental legislation. Buyers may wish to provide information on these tools in tender documents. They may also provide contracted suppliers with the information.

Tools and support

For more information about social procurement, please contact Buying for Vic.

Updated 19 November 2024