Overview
Climate change implementation objective is one of three sustainable procurement objectives included in the Social Procurement Framework.
Where sustainability is a key project deliverable, think about how the inclusion of this objective could leverage environmentally sustainable outputs in addition to what the project would normally be expected to deliver.
This objective builds on:
These commitments establish a long-term emissions reduction target of net-zero by 2045.
They also work toward preparedness for changes stemming from our increasingly hot world.
Two outcomes have been identified for this objective:
- project-specific requirements to minimise greenhouse gas emissions
- procurement of outputs that are resilient against the impacts of climate change
For best results, it is essential to start early. Before going to market, buyers need to plan:
- minimising greenhouse gas emissions
- climate change resilience
Project-specific requirements to minimise emissions
Buildings and infrastructure play an important role in net zero emission transition. Long-lived, high-carbon buildings and infrastructure can create a ‘lock-in’ effect. This is where a commitment is effectively made to high emissions over many years. The release of large quantities of greenhouse gases can stem from the:
- selection of raw materials
- construction process itself
Throughout the procurement lifecycle, consider how to:
- reduce emissions through design features, including low-energy design and incorporating low-carbon materials. All new government buildings must be constructed as all electric
- use procurement to stimulate markets for energy-efficient and low-carbon technologies, products and services
- provide significant cost savings over the life of assets by improving energy efficiency
The model approach to deliver this outcome involves a commitment from suppliers, consider:
- achieving specific rating levels. The level needs to be within relevant industry rating systems for the design, delivery and operational phases of a project
- create an environmental management plan. This involves identifying and managing risks to achieving the specified rating levels. The commitment should be through all stages of the project
Industry standards and rating systems
Industry standards are important. They help drive better practice in the planning, design and operation of infrastructure projects. These standards allow a buyer to pre-define a rating level for projects. These should be appropriate for the project’s budget, context and objectives. Potential certifications should be considered very early in the project planning process. Otherwise, some standards may be unachievable or much more difficult to achieve.
Two widely-used ratings systems for infrastructure are provided by:
Environmental management plans
Buyers and suppliers can develop environmental management plans. These assist in meeting emissions reduction goals. They describe how an action might impact on the natural environment in which it occurs. The plans also outline clear commitments from the entity taking the action. They should cover how any impacts will be avoided, minimised and managed so that they are environmentally acceptable. These impacts include the release of greenhouse gasses.
These plans operate in a similar way to risk management plans. They identify potential environmental risks and opportunities. They then consider actions to minimise or mitigate those risks.
Procurement outputs resilient to climate change
Climate change already poses significant risks that are:
- physical
- operational
- economic
These risks apply to buildings, infrastructure and the users and communities they serve.
Buildings and infrastructure typically have long operating lives. This makes them vulnerable to long-term climate change impacts. It is often expensive or difficult to retrofit or move these assets once they have been established.
Relying on insurance to pay for reconstruction or repair due to environmental damage is becoming more difficult. This is especially true for assets with high exposure to climate change risks. Instances of uninsurable assets are becoming more common.
Taking account of climate change risks when designing buildings and infrastructure is important. It helps protect the wellbeing and safety of people and communities who use and depend on these assets.
The model approach to deliver this outcome involves three steps:
Climate change risk assessment
A climate change risk assessment is a flexible and scalable tool that can be used to assess different types and sizes of projects.
Typically, a climate change risk assessment will:
- summarise the project site’s characteristics and the assets on the project site
- identify the current and future climate impacts that may occur on the project site. Buyers should rely on best available information. This includes relevant climate change scenarios, if available
- assess the risks that these impacts pose for the assets and people on the project site
- list actions and responsibilities for addressing these risks. Emphasise those rated as high or extreme
- include a mechanism for monitoring and reviewing impacts, risks and actions over time
The most used and recognised standards for developing climate change risk assessments are:
- ISO 31000:2018 and the Australian Greenhouse Office Climate Change Risks and Impacts: A Guide for Government and Business 2006
- Australian Standard AS 5334:2013 Climate change adaptation for settlements and infrastructure – a risk-based approach.
Procurement activity by threshold
See, Social procurement requirements and expectations to understand what recommended actions are available based on procurement thresholds. Value thresholds are exclusive of GST.
Tools and support
For more information about social procurement, please contact Buying for Vic.
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