Environmentally sustainable outputs: social procurement guide

Overview

Environmentally sustainable outputs 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.

Using resources sustainably has an important impact on Victoria by reducing waste. For example, the use of sustainable resources can reduce:

carbon emissions
use of virgin materials
transport
energy
water use

This objective is about the products and services procured by government. There is emphasis on the design and planning stages of a project. The objective focuses on the manufacturing process and service provision.

This objective has two outcomes:

project-specific requirements to use sustainable resources and to manage waste and pollution
use of recycled content in construction

For best results, it is essential to start early. Environmental sustainability requirements need a lot of planning.

Project-specific requirements to use sustainable resources

Consider sustainability at the design and planning stages of a project. This maximises the opportunity to achieve positive outcomes in the most cost-effective way. Good design can often reduce the use of materials from the outset. It also improves other aspects of performance and reduces lifecycle costs.

This process may not be necessary for small procurements. Especially for low-value physical goods. For those procurements, buyers may assess the environmental impact of direct procurement. For larger or complex procurements, the components above are essential for best practice.

There are three steps to deliver this outcome:

Before going to market, complete:
- an environmental impact risk assessment
- an environmentally sustainable design opportunities assessment.
These should ideally be conducted before project approval has been granted. Consult with a suitably qualified environmental professional or professionals. They should have expertise in environmental impact assessment and/or environmentally sustainable design.
This includes:
- identified environmental impact risk areas
- detailed environmental performance standards that suppliers are expected to comply with
This should include relevant regulatory standards. Performance may be specified as needing to meet a specified rating level within a relevant industry rating system.

Use of recycled content in construction

Note: This outcome requires planning, analysis and early engagement with specialists. This will enable buyers to create appropriate targets for recycled content.

There are four steps to deliver this outcome:

Procurement activity by threshold

Where appropriate, government buyers can require suppliers to provide evidence on how they will identify environmentally sustainable outputs.

While strict targets may not be appropriate for smaller projects, buyers can still achieve positive environmental outcomes. Even when conducting small procurements, buyers can consider:
- the use of resources (such as water) in the production process
- the use of recycled materials in products and services procured
- excessive packaging (especially plastic)
- product disposal, for example, is it recyclable or will it go to landfill
There is no recommended action at this threshold under the Social Procurement Framework.
Buyers can still achieve positive environmental outcomes. Even when conducting small procurements, buyers can consider:
- the use of resources (such as water) in the production process
- the use of recycled materials in products and services procured
- excessive packaging (especially plastic)
- product disposal, for example, is it recyclable or will it go to landfill
Buyer can ask suppliers to demonstrate how their outputs are environmentally sustainable. To do this, include sustainable outputs as part of tender evaluation criteria.

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

Sustainability Victoria

Sustainability Victoria offers a range of advice relating to environmental sustainability. It covers many different topics. Consider consulting them before any procurement, especially large, complicated procurements.

Recycled product directories

Sustainability Victoria maintains a directory of products containing recycled materials. It covers an array of industries. EcologIQ maintains a similar directory for the construction industry. This directory is useful for both buyers and suppliers.

Disposal of construction and demolition waste

The Environment Protection Agency offers a toolkit. It covers the management of solid waste from civil construction and demolition sites. Buyers can consult this information before undertaking any construction project. The information should also be made available to potential suppliers.

Recycling Victoria

Recycling Victoria: a new economy is the Victorian Government’s 10-year circular economy policy. It requires consideration for how products/services are designed, used, maintained, and managed at the end of life. It also requires buyers to consider the costs throughout these stages. It is supported by the Recycled First Policy for construction.

Before disposal to landfill, buyers should explore other options. These should include reuse and recycling of construction and demolition waste.

For environmental concerns relating to the workplace (especially the office) of a supplier, see Environmentally sustainable business practices.

Tools and support

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