Procurement Guide

Sustainable Procurement Guide
An environmental focus for Commonwealth entities
April 2024
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procurement-guide
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the Environment and Water
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Acknowledgement of Country
We acknowledge the Traditional Owners of Country throughout
Australia and recognise their continuing connection to land,
waters and culture. We pay our respects to their Elders past
and present.
Minister Foreword
In a world where our choices are echoed in the
environment, the impact of product manufacturing
and consumption carries profound consequences.
Nearly half of global greenhouse gas emissions stem
from the creation and use of products.
And more than 70% of a product’s environmental This guide will provide clarity and guidance
impact is locked in at the design stage, before for the government’s sustainable procurement
a customer ever considers it. This means of goods and services.
we need to get things right at the start,
It aligns with circular economy principles,
when we are designing products, to make
including designing out waste, and the
sure they are made to be reused and recycled,
Australian Public Service net zero commitment.
not thrown out.
Our mission is to leave nature
The Australian Government takes
better off for our kids and grandkids.
our responsibility as environmental managers
seriously. That is why we have introduced Globally, the colossal scale of government
the Environmentally Sustainable Procurement spending on goods and services means
Policy, which takes effect in two stages from public purchases are responsible for 15%
1 July 2024 and 1 July 2025. of greenhouse gas emissions.
Sustainable procurement policies give businesses Harnessing this financial might for positive
the confidence they need to make their products environmental change is not just an
and services more sustainable, knowing there opportunity, but a responsibility.
will be the demand to sustain it.
The Australian Government’s $75 billion
The policy sends a clear message that expenditure in 2022-23 alone accounted
we want to drive a circular economy through for 17% of the country’s gross domestic product.
the use of sustainable products. It promotes
Take furniture, for example, where the Australian
environmentally sustainable procurement
Government spent over $355 million between
best practices across our highest impact
2017 and 2022. While 90% of office furniture
purchases: construction services,
can be recycled, most of this waste ends
ICT products, uniforms and textiles,
up in landfill.
and fit outs of building and office interiors.
The environmental impact is clear,
These four high-value areas were chosen
and it’s time for conscientious action.
because they already have existing ways
We need to do better. If we take a more
of measuring their impacts on nature.
considered approach, we can reduce
Industry is ready and able to implement
the environmental impacts of procurement,
this policy without disruption.
saving both money and the environment.
The Australian Government’s purchasing
power will encourage producers and
manufacturers to respond with innovative
products and services that quantify their Hon Tanya Plibersek MP
environmental impact and seek to reduce Minister for the
their demands on our natural world. Environment and Water
Sustainable Procurement Guide—An environmental focus for Commonwealth entities |3

Table of Contents
Minister Foreword 3
Glossary5
Scope 7
Introduction8
Value for money 9
Transitioning to a Circular Economy 10
High opportunity categories 11
Procurement process overview 12

Step 1 Embedding environmental sustainability into your procurement practice 13
Before you start 13
Identify the need for the goods or services 13
Questions to ask 14
Step 2 Market research and engagement 15

Undertake market research 15
Engage with the market 16
Identify and prioritise environmentally sustainable outcomes 16
Step 3 Documenting environmental sustainability in a Procurement Plan 17

Analyse environmental opportunities for increased sustainability 17
Step 4 Approaching the market 20

Specify environmentally sustainable requirements 20
Set Key Performance Indicators (KPIs) 23
Step 5 Evaluate and Debrief 27

Evaluate environmental sustainability criteria and requirements 27
Step 6 Contract Management 29

Monitor sustainability compliance and performance 29
Identify opportunities to improve environmental impact 29
Disposal of goods 30
Step 7 Share your experience 31

Knowledge sharing 31
Appendix A: Using labels and schemes to verify environmental sustainability 32

Certifications and standards 32
Ecolabels 33
Greenwashing39
Ecolabel matrix 40
How to use these model clauses 41
Appendix B: Model Clauses for Environmental Sustainability 41

A. Environmental Sustainability 42
B. Environmental Management Practices 43
C. Environmental Sustainability Plan 44
D. Waste Management 46
E. Use of Recycled Content 47
Department of Climate Change, Energy, the Environment and Water
Glossary
Term Definition
As defined in the Commonwealth Procurement Rules (CPRs), this is any notice

Approach to market inviting potential suppliers to participate in a procurement which may include
documentation (ATM) a request for tender, request for quote, request for expression of interest,
request for information or request for proposal.
• Potential supplier (might respond to a tender)

Australian Government • Tenderer (has applied to a tender)
terms used in this guide • Supplier (has entered into a contract with the Australian Government)
All terms as defined in the Commonwealth Procurement Rules.
For the purpose of this Guide, circular economy is the opposite of a linear ‘throw
away’ society model, which depletes the resources of our planet and our economy.
In a circular economy, nothing is wasted, rather it gets reused or transformed. At
Circular economy the broadest level, circular economy policies aim to change patterns of natural
resource use in the economy (make, use, dispose) in order to achieve sustainable
growth by slowing, narrowing and closing material loops (maintaining the value of
resources for as long as possible).
• Buildings and fit-outs use less materials, minimise waste, can be deconstructed
and reused, are designed for adaptability and flexibility
• Goods are durable, repairable, reusable, recyclable
• Goods have been refurbished or existing goods are reused
• Goods contain recycled content/recycled materials are used
Circularity
• Goods are recycled at the end of useful life
• Goods are returned for resource recovery through a take-back or end-of-life
scheme
• Goods are available for lease, rent or product-as-a-service as an alternative to
buying outright
For the purpose of this Guide, climate impacts refer to the reduction
Climate Impacts of greenhouse gas emissions, optimising energy use and using low
embodied carbon materials.
A legislative instrument issued by the Finance Minister under section 105B

of the Public Governance, Performance and Accountability Act 2013 (PGPA Act),
Commonwealth which establishes the framework under which entities govern and undertake their
Procurement Rules (CPRs) own procurement. It also includes good practice guidance. All officials performing
duties in relation to CPRs must act in accordance with the Commonwealth
Procurement Rules.
Ecolabels provide information on environmental and health standards for specific

product categories. Ecolabels are usually awarded by an impartial third party for
Ecolabels
specific products or services that have been independently determined to meet
transparent criteria based on life cycle considerations.
All greenhouse gas emissions that are released as part of creating

Embodied emissions
and making a product for use. This is also referred to as ‘embodied carbon’.
For the purpose of this Guide, environmental impact refers to biodiversity

Environmental impact conservation, minimised use of harmful substances and chemicals
of concern, minimisation of waste, and water and energy efficiency.
An Environmental Management System (EMS) is a structured system which helps

an organisation to identify the environmental impacts resulting from its business
Environmental
activities and to improve its environmental performance. The system aims to
Management System
provide a methodical approach to planning, implementing and reviewing an
organisation’s environmental management.

Term Definition
State of a given system, including environmental and economic aspects,

Environmental
in which the needs of the present are met without compromising the ability
sustainability
of future generations to meet their own needs.
A framework which outlines the measures and activities an organisation will

Environmental
undertake to satisfy environmental sustainability requirements or goals within
Sustainability Plan
nominated timeframes.
Greenhouse gas Has the same meaning as set out in the National Greenhouse and Energy Reporting
(GHG) emissions Act 2007.
Greenwashing is the practice of making false, misleading and/or deceptive claims

about the environmental practices of a company or the environmental attributes
Greenwashing or benefits of its products or services. Greenwashing is often unintentional and
can include claims that are vague, irrelevant or inaccurate or that only tell part
of the story about the environmental impacts of a product.
A non-government international organisation comprised of various representatives

International Organization
from national standard organisations. ISO develop and publish international
for Standardization (ISO)
standards. ISO:20400:2017 is the standard for sustainable procurement.
Life Cycle Cost (LCC) The LCC methodology is one tool available for practical support in calculating
model whole-of-life costs.
The MCI is an assessment tool used to identify the circular value

Material Circularity
of products and materials. It assesses trade-offs between material circularity
Indicator (MCI)
and the economic, environmental and societal objectives of procurements.
Procurement is the process of acquiring goods and services, and further defined
Procurement
in the CPRs.
As defined in AS 14021:2018, recycled content is a proportion by mass, of recycled

material in goods or packaging. Recycled content can be either pre-consumer
Recycled content materials, diverted from waste during the manufacturing process, or post-
consumer material, generated by households, commercially, or industrial
and institutional facilities.
The CPRs (Appendix B: Definitions) defines Specification as ‘a description of the

Specification features of the goods and services
to be procured’.
Development that meets the needs of the present without compromising

Sustainable development
the ability of future generations to meet their own needs.
Sustainable procurement looks beyond the up-front cost to make purchasing

decisions based on the entire life cycle of the goods and services, taking
Sustainable procurement
into account associated costs, environmental and social risks and benefits,
and broader social and environmental implications.
Achieving value for money is the core rule of the Commonwealth Procurement
Rules and price is not the sole factor when assessing value for money.
When conducting a procurement, an official must consider the relevant financial
and non-financial costs and benefits of each submission including, but not limited
to the:
a. quality of the goods and services
Value for money b. fitness for purpose of the proposal
c. potential supplier’s relevant experience and performance history
d. flexibility of the proposal
e. environmental sustainability of the proposed goods and services
(such as energy efficiency, environmental and climate change impact
and the use of recycled products)
f. whole-of-life costs.

Scope
The Sustainable Procurement Guide provides the steps for embedding environmental sustainability within all
government procurements. It is designed for officials in non-corporate Commonwealth entities and prescribed
corporate Commonwealth entities listed in s30 of the Public Governance, Performance and Accountability Rule 2014.
All Commonwealth entities are encouraged to apply this guidance.
The Guide supports officials to consider environmental sustainability at each step of the procurement process,
from planning and identifying the business need through to contract management and reporting. It is designed
to provide entities with the flexibility to apply the guidance within their own departmental procurement
frameworks.
The Sustainable Procurement Guide also serves as a companion document to support implementation of the
Environmentally Sustainable Procurement Policy. Specific guidance information on the Policy can be found at
www.dcceew.gov.au/sustainable-procurement.

XXXX Introduction
Procurement is critical to our business. It is how we source the products

and services we need to do our job and operate our workplaces.
What we buy in the Australian Government ranges widely. It includes stationery,
computers, desks and office space, architectural, waste, cleaning, engineering,
project management and recruitment services.
As public servants we are bound to procure these Collectively these policies and practices
products and services in an efficient, effective, ethical make our procurements sustainable.
and economic manner. This means making sure
To achieve better value for money, sustainability
we get value for money. Value for money isn’t about
should be considered from the planning stage and
the lowest price. It is about the social, environmental
include reporting requirements to measure results
and economic value that comes with the product
under the contract. This guide demonstrates how
or service.
to integrate environmental sustainability into your
For example, the Great Barrier Reef Marine Park procurement process for an optimal outcome. Case
Authority recently transitioned to sustainable studies of Australian Government environmentally
corporate uniforms. The procurement criteria included sustainable procurements are available on the
supplier ethical certifications, voluntary opt-in to the Department of Climate Change, Energy, the
Modern Slavery Act, 100% compostable material and Environment and Water (DCCEEW) website at
packaging, low waste and water use, low chemical www.dcceew.gov.au/sustainable-procurement.
use in manufacturing, product circularity initiatives
For assistance using this guide or implementing
to include a take-back program and a low emission
environmentally sustainable procurement, please
profile of the product. The successful supplier,
contact the Commonwealth Sustainable Procurement
a small to medium sized business, is tracking the
Advocacy and Resource Centre (C-SPARC) in DCCEEW
treatment of workers in their supply chain. The
at [email protected].
uniforms are made from Global Organic Textile
Standard (GOTS) certified 100% Certified Organic
cotton. The supplier makes products to order. This
means they only make what they sell. Their products
are certified by Ethical Clothing Australia and BCorp,
and the supplier offsets any emissions with
re-foresting carbon credits. When the uniforms
are worn out, the supplier offers a take-back program
Social Economic
where products are recycled into new products
Optimal
or re-purposed. outcome
Environmental sustainability is not an add on to
the procurement process. It should be considered
alongside other requirements and government
priorities when undertaking a procurement.
Environmental

Value for money

Value for money is the core principle underpinning Australian Government procurement (Commonwealth
Procurement Rules, paragraph 3.2). Value for money is not simply the lowest price and encourages competition,
efficiency, effective, economical and ethical procurement. Officials must consider all relevant costs and benefits
over the entire life of the procurement. The Commonwealth Procurement Rules (CPRs) affirm that sustainability is
an important consideration in this assessment.
Where appropriate, officials should consider factors such as:
Energy consumption Greenhouse gas emissions Reduction of waste
Reduction in
Use of recycled products Packaging
harmful substances
Using an environmentally sustainable approach

can improve relevant financial and non-financial
costs and benefits achieved by the procurement.
End-of-life recycling This will ultimately result in minimising impact
on the environment.

Transitioning to a Circular Economy

The way government procures goods and services is shifting, where traditional procurement processes are
modernising to align to circular economy principles. We are changing buying behaviour to optimise use of our
limited resources and minimise the overall impact on the environment. Keeping our resources in the value chain
for longer will put our economy on a more sustainable footing for growth over the long-term.
Reduce input
of virgin materials
Decrease waste Resources

(renewable
to landfill
and finite)
Recycling Design
A circular economy
maintains the
value of products
Collection and materials Production
Consumption
and use,
reuse, repair, Distribution
refurbish
Sustainable Procurement Guide—An environmental focus for Commonwealth entities | 10

High opportunity categories

Although this Guide applies to any type of procurement, some areas will naturally be able to achieve higher levels
of environmental sustainability. This will vary depending on what you are procuring and the market maturity in
that category.
Consider the design through to end of life (disposal) of structures and

Construction installations, and determine where projects can optimise recycled
Services content, address emissions reductions, and other environmental
outcomes as addressed in the Guide.
Consider the use of recycled content in the materials and furniture

contained in the fit-out and ensure the goods purchased have end-of-
life options for re-use, refurbishment or disposal. Consider whether
Fit-outs emissions can be reduced through sourcing goods and services locally,
and by achieving energy efficiency through electrical products such
as lighting and white goods. This also includes goods and services
delivered under a property services contract that fall into this category.
High
opportunity Consider uniforms made from certified sustainable sources, from non-
categories Textiles & mixed fibres to make reprocessing easier, and the take-back systems
are: uniforms and remanufacture pathways available at end of useful life.
Consider purchasing extended warranties to increase the serviceable

ICT goods life of the product and reduce e-waste. ICT goods can also contain
and services recycled content and be energy efficient.
Ensure our suppliers of services are also committed to environmental

sustainability through their own policies and procedures. For example
they may have an ISO 14001 certified Environmental Management
Services System, energy saving results or internal policies on the use of recycled
content, water and waste minimisation, recycling, and emissions
reduction initiatives.

XXXX Procurement
process overview
The Commonwealth government applies two principles to all procurement activities1:
1. Irrespective of the size, scope or nature of a procurement, officials must seek to achieve value for money
in accordance with the CPRs.
2. Officials must ensure they conduct procurements in accordance with their entity’s Accountable Authority
Instructions and relevant operational guidelines, which in turn must be consistent with the CPRs.
The procurement process generally consists of the following stages.

Figure 1 shows the stages where environmental sustainability has the most potential to be applied.
Figure 1 Procurement diagram
Value for money
Plan and Scope the Determine

Prepare ATM
Identify Need procurement the method
Approach Evaluation and Manage

the market conclude process the contract
Key
Environmental sustainability opportunities
1 www.finance.gov.au/government/procurement/buying-australian-government/procurement-process-considerations

Step 1
Embedding environmental
01 sustainability into your
procurement practice
• Before you start
• Identify the need for the goods or services
• Questions to ask
Applying environmental sustainability to your procurement can improve value
for money. For example, energy efficient appliances use less energy which reduces
power costs and reduces greenhouse gas emissions.
The best outcomes are achieved when environmental

sustainability is addressed from the planning stage.
Before you start Identify the need

• The very first step in considering environmental for the goods or services
sustainability is to ask if the procurement is
necessary. Are there alternatives to purchasing Rethink the purchase - avoid and reduce waste
such as refurbishing, repairing, reusing, leasing by critically considering the business need for
or hiring? procurement.
• If you decide the procurement is necessary, By using demand management strategies you can
what are the potential environmentally sustainable avoid excess consumption and reduce unnecessary
outcomes? Can you achieve any of the following: purchasing costs.
– minimisation of greenhouse gas emissions Strategies include:
– increase in circularity • not buying the goods or service if they aren’t
– benefits or improvements to the environment critical or needed
– minimisation of waste to landfill. • choosing an alternative to buying, including
reusing, hiring/renting or sharing goods/services
• Check your entity’s environmental sustainability
• reducing the quantity of goods to be purchased
policies and processes.
• defining the functional and performance
• Contact the Commonwealth Sustainable
requirements at strategic and operational levels
Procurement Advocacy and Resource Centre
to achieve your environmentally sustainable
at [email protected]
outcomes.
for assistance.
• Look at case studies of how other government
entities have approached sustainability in similar
procurements.
• Consider opportunities for innovation,
for example a change in processes,
materials used, or type of goods.

Questions to ask
Use the following questions to identify opportunities to achieve environmentally sustainable outcomes
from the procurement.
9 Have you identified how potential suppliers can demonstrate if their goods or services contribute
to circularity, minimise greenhouse gas emissions and positively impact the environment?
9 Are there comparable goods or services using more recycled content?
9 What is the impact on operational greenhouse gas emissions, energy and water use?
9 Do the goods avoid the use of harmful chemicals or materials?
9 Are renewable resources used in the manufacture of the goods?
9 What options are available to extend the longevity of the goods? For example, extended warranty, reuse, repair,
repurpose, upgrade or modification.
9 How will the goods be disposed at end of useful life? Does the potential supplier offer a take back scheme?
9 Can the goods be procured as a service, rather than buying equipment outright? For example, photocopiers
and printers are common goods procured as a service. Goods as a service is emerging as a new model for
goods such as lighting and furniture.
9 Is packaging minimised, is it made with recycled materials, and is it recyclable?
Steps 2-6 explore these questions and provide guidance on how to apply
environmentally sustainable principles when planning and executing
your procurement.
Step 01 checkpoint
`
9 Are there alternatives to purchasing? For example, refurbishing, repairing, reusing, leasing or hiring.
9 Have you checked your entity’s environmental sustainability policies and processes?
9 Have you read the ‘Questions to ask’ section and applied what is relevant to your procurement?

Step 2
02 Market research
and engagement
• Undertake market research
• Engage with the market
• Identify and prioritise desired environmentally sustainable outcomes
Environmental sustainability focuses on achieving climate, circularity
and environmental outcomes by applying a set of principles to the goods
and services purchased by the Australian Government. These principles
are listed in the table below.
Market research can help determine realistic outcomes and sustainable alternatives.
Undertake market research

Market research will help you to develop fit-for-purpose requirements in your Approach to Market (ATM)
documentation and identify businesses offering environmentally sustainable goods or services.
Focus areas and principles to consider in your market research:
Focus Areas Climate Environment Circularity
• minimise greenhouse • optimise water • buildings and fit-outs use less

gas emissions efficiency materials, minimise waste,
• optimise • use safe and renewable can be deconstructed
energy efficiency inputs and reused, are designed
for adaptability and flexibility
• use low • safely use and dispose
emissions materials of chemicals • goods are durable, repairable,
reusable, recyclable
• actively minimise the
creation of waste and • goods have been refurbished
the amount that is sent or existing goods are reused
PRINCIPLES to landfill • goods contain recycled content /
recycled materials are used
• goods are recycled at the end of
useful life
• goods are returned for resource
recovery through a take-back or end
of life scheme
• goods are available for lease,
rent or product-as-a-service
as an alternative to buying outright
The questions listed in Step 1 will help you to embed these principles in your procurement.
When engaging with the market, you should also investigate the potential for innovation or emerging
technologies that meet the procurement need and increase environmentally sustainable outcomes.

Engage with the market Identify and prioritise

The market for environmentally sustainable goods environmentally
sustainable outcomes
and services is constantly evolving. Market research
and engagement is important for keeping up with
these changes. Industry briefings can provide potential
suppliers with the time and information Market research and engagement will allow
they need to respond to the proposed environmentally you to identify the possibilities for environmental
sustainable outcomes. sustainability that are particular to the goods
or services you are procuring. This should be included
Before engaging with the market, check with your in your procurement plan. During your research,
procurement team so that probity guidelines are you should:
followed. The Department of Finance website has
guidance on how to approach the market and conduct • document the environmentally
effective market research. sustainable outcomes
• identify the requirements to achieve
these outcomes
• determine desirable and mandatory
requirements for your procurement.
Your priorities should reflect the Government’s

environmentally sustainable procurement principles,
your entity’s environmental sustainability policies,
and be informed by your market research.
Step 02 checkpoint
`
9 Have you researched environmentally sustainable options in the market?
9 If appropriate, have you engaged with current or potential suppliers to research innovations
or new technologies that would maximise environmental sustainability outcomes?
9 Have you used the market research to determine the environmentally sustainable outcomes
for your procurement?

Step 3
Documenting
03 environmental sustainability
in a Procurement Plan
• Analyse environmental sustainability opportunities
• Assess the risks
It is important to capture environmental considerations in your procurement plan so they

can be included for opportunity identification, risk assessments, ATMs and other contractual
documentation. Align the desired environmentally sustainable outcomes with your entity’s
environmentally sustainable procurement policies and processes.
Procurements need to be well planned and with sufficient

time to give decision-makers a genuine choice1.
Analyse environmental opportunities

for increased sustainability
Environmental sustainability requirements contained in ATM documentation and supplier briefings must
be well-defined, verifiable, and allow for fair competition. Environment, circularity and climate outcomes
should be considered when setting requirements. Table 1 explains the different types of requirements.
Table 1 – Examples of requirements for increasing environmental opportunities
Types of requirements Examples Outcome

Improve circularity by selecting
goods that can be re-manufactured
Characteristic of Uniforms to be made from non-mixed
the goods or service fibres, from certified sustainable sources. Minimise environmental
impacts by avoiding use
of harmful chemicals
PRODUCTS
Minimise energy use

Performance or Goods that use water must contain
functional requirements a minimum 3 star efficiency rating. Reduce greenhouse gas emissions
in the entity’s operations
Improve circularity of the goods by
The minimum requirement for a laptop keeping materials in use for
Minimum or optional
warranty is three years, an extended as long as possible
requirements
warranty of four years is preferred.
Reduced landfill
Supplier demonstrates Supplier to provide evidence, including

SERVICES
Suppliers have environmental

a commitment any relevant results, of their organisation’s
sustainability policies
to environmental commitment to improving its own
and processes.
sustainability practices environmental sustainability performance.
1 source: www.anao.gov.au/work/audit-insights/procurement-and-contract-management

Assess the risks

Risk assessments are a requirement of procurement planning. Risk assessments should address the
environmentally sustainable outcomes of the procurement. This may require technical input from stakeholders.
Table 2 provides prompting questions to help you identify risks for environmental sustainability. These questions
should be adapted to your specific need and you should follow your entity’s procurement risk process.
Table 2: Example questions to identify risks
• Is technical expertise required in using the alternative sustainable goods

and is this expertise available?
• Is the supplier experienced in using the alternative sustainable goods?
Experience
• Will extra support be required to enable innovative alternative sustainable goods
use / development?
• Can the environmental claims made by a supplier be verified?
• Has the inclusion of environmentally sustainable outcomes increased the complexity

Complexity of the procurement (technically, legally or financially)?
• Is there a need to seek expert advice (internal/external)?
• Are you unintentionally excluding SMEs from responding to the ATM as a result
of the request for environmental sustainability?
Sensitivity • Is the procurement project high profile with the potential to attract media attention
for any negative environmental impact (from stakeholders and public)?
• Does the desire for environmentally sustainable outcomes negatively
or positively affect other policy considerations prescribed in the CPRs?
• Will an environmentally sustainable alternative meet required specifications

(particularly regarding compliance/conformance)?
• Is there a risk that the environmental claims of the goods are unsubstantiated
(i.e. greenwashed)?
Product • Are there foreseen risks or opportunities in using goods made from particular material
integrity types in different environmental settings?
• Will disposal at end of useful life cause environmental concerns
(e.g. chemical leakage, excessive waste, biodiversity impacts)?
• Is there a risk associated with not using a verified environmentally
sustainable good or methodology?
• Do higher environmental sustainability requirements significantly impact price?

Price
• Do the potential financial benefits from environmental sustainability offset the price?

Step 03 checkpoint
`
9 Does your procurement contribute to your entity’s or whole-of-government

objectives and targets for environmental sustainability?
9 Does your risk assessment include environmental sustainability risks?
9 Does the risk assessment consider the risks associated with:

a. choosing an environmentally sustainable goods or service?
b. not choosing an environmentally sustainable goods or service?
9 Have you documented the environmentally sustainable outcomes in the Procurement Plan
so they can be included in the ATM?

Step 4
04 Approaching the market
• Specify environmentally sustainable requirements

• Set Key Performance Indicators (KPIs)
• Develop evaluation criteria and reporting requirements
• Use Standard Clauses for guidance
When the environmentally sustainable requirements for your procurement
have been specified, they can be introduced to potential suppliers. They can
be included in relevant Approach to Market (ATM) documentation or presented at a
supplier briefing, along with the associated KPIs and evaluation criteria if relevant.
Don’t simply ask for ‘lower environmental impact’.

Be specific. Use your market research to set requirements.
Specify environmentally sustainable requirements

To embed environmental sustainability successfully within the ATM documentation, you can include:
Physical Describes characteristics of the Example:

requirements goods or service contains recycled content
Example:
Functional Specifies the proposed function for
requirements the goods or service to fulfil packaging must be made from a
sustainable durable material
Example:
Performance Defines the performance standards
requirements to be met by the goods or service percentage of waste diverted from
landfill
Example:
Management Triggers an appropriate design and monitoring of specific sustainability

requirements specification response risk such as ensuring a clean supply
of recyclable material and what
method/process they will use

When specifying sustainability requirements, it is better to be descriptive, outlining minimum

or desirable requirements.
8 Don’t simply ask for ‘lower environmental impact’.

9 Consider these requirements as potential starting points:
Plastic, paper and glass packaging contain a set Achieving a sustainability certification
percentage of recycled content, aligned with the or ISO standards for buildings or fit outs.
Australian Packaging Covenant Organisations’
National Packaging Targets
Furniture and fittings include recycled content Service providers are to articulate how
and are returned to the supplier at the end of they address the principles of environmentally
useful life for recycling. sustainable procurement and practices within
their own operations.
Suppliers are participating in a validated Food waste generated from events and excess
product stewardship scheme where relevant. catering to be collected by a food and organic
waste service.
Specifying use of a particular

ecolabel cannot be set as
a mandatory requirement,
as it may exclude other equivalent
goods from potential suppliers’
Ecolabels (environmental labels) can proposals. Further information
provide information to set requirements on how to address this can be
and minimum standards. found in Appendix A (Ecolabels,
certifications, standards and
product stewardship schemes).

Assessing whole-of-life costs

Whole-of-life costing generally refers to the process of estimating the cost of a good or service from acquisition,
maintenance and operation, to the end of life (refer to table 3). Taking into account the whole-of-life cost can help
officials make a holistic assessment of the potential costs during the lifetime of the good or service and identify
any cost saving when comparing different options.
The option with the lowest up-front (acquisition) cost may not offer the lowest cost option over the life of the good
or service. This is typically the case for goods that use power, water, fuel or other consumables, or goods where
a disposal pathway or market does not exist or is cost prohibitive (e.g. goods containing harmful materials).
Table 3 Whole-of-life costing considerations
Whole-of-life costing
Acquisition costs Maintenance costs Operating costs End-of-life costs
Example: Example: Example: Example

• Purchase cost • Specialist labour • Labour • Safe disposal
• Delivery charge • Specialist tooling • Materials • Resale
• Insurance and • Spare and • Consumables • Ongoing liabilities
taxes replacement • Energy supply • Decommissioning
• Installation and parts and consumption • Removal for sale
commissioning • Reduced output • Contract of scrap
• Training and with age and supplier • Reinstatement
support • Frequency of management of land or
• Internal costs maintenance and • Transaction costs buildings for
associated with recommended alternative use
• Environmental
changing from downtime
costs
the incumbent • Servicing and
• Cost of change
supplier (which inspection
(e.g. a decision
should be regimes
to use alternative
identified prior • Costs associated methods)
to tenders being with equipment
received) downtime
Life Cycle Cost (LCC) calculations are usually used during the planning stage to evaluate alternative options for
a tender, or during the tender evaluation stage to compare different bids. However, the use of LCC will be guided
by the individual characteristics of the procurement. It is best suited to procurements where a sustainability
assessment has identified significant risks or opportunities.
The LCC method considers the following direct and indirect costs:
Cost relating Maintenance Cost of use, including operating Disposal at the end of life,
to acquisition, and repair costs costs for the ongoing use including collection, recycling
installation and of the goods, such as energy costs, landfill fees and treatment
commissioning and consumable components of any harmful components.
There are tools available online for procurement officers. The decision to use a LCC tool will depend
on the goods or services being procured and environmental factors determined in the market research step 2.
Further reading on LCC tools:
• Life-Cycle Costing across the European Union

• Life-cycle costing tools and practices: Hungary and other European countries

Set Key Performance Indicators (KPIs)

KPIs allow sustainability requirements to be measured and tracked. They should be included in both the ATM
and the contract. For each KPI, remember to clarify who is responsible and accountable for ongoing adherence.
Refer to the table below for example outcomes, KPIs and targets.
Target for overall

Outcome Example KPI Evidence against outcome
performance (examples)
Evidence of recycled content

Use of Identify optimal Task chairs should include
in materials purchased under
recycled percentage of a minimum of 60% recycled
contract e.g. recycled content
content recycled content content
certification
Parts of the goods are

Extending Designed to be easily
interchangeable and can
Circularity standard useful repaired, dismantled,
be sent back to the supplier
life of good and recycled locally
for repair/replacement
Reduced Tonnes of waste

2000 tonnes per Evidence of waste landfilled
waste to diverted from
annum/contract and diversion amount
landfill landfill
Reduction of
CO2 reduced Using goods and services Tonnes of CO2
greenhouse
or avoided that decrease emissions reduced or avoided
gas emissions
Audit of new appliances

Continuous Replacement electrical
purchased and their energy
Energy improvement goods to meet 5-star rating
rating, indicating, where
efficiency in energy star or above, where applicable
possible, the improvement
ratings or where such goods exist
in star rating
Continuous
Water Reduced water Water Efficiency Labelling
improvement in
efficiency usage in building and Standards (WELS) rating
water efficiency

Develop evaluation criteria

Your ATM documentation typically includes evaluation criteria. In some cases, potential suppliers may
be requested to provide supporting evidence with their tender submission. This also applies to environmental
sustainability. All criteria must be clearly articulated so tenderers are treated equitably. You should also
include any reporting that will be required under the contract.
Ideally, criteria should be weighted. This will indicate the importance of the criteria and where potential suppliers
need to focus their efforts when responding to the ATM. The precise weighting of criteria depends on the entity’s
procurement priorities and opportunities for environmental sustainability.
Criteria can be qualitative, quantitative, rated or fit-for-purpose.
Table 4 Types of evaluation criteria
Criteria Example
Set minimum standards for the procurement.

These criteria must be met, or intended Tenderers must comply with the Australian
Qualifying to be met, before the contract commences. Packaging Covenant Organisation’s (APCO)
If the tenderer cannot meet these criteria packaging standard.
their submission does not qualify.
Goods must contain 25% recycled content

Use weightings to allow bids/proposals or higher. Goods that exceed the 25%
Rated
to be scored and ranked in order of merit. requirement are ranked higher than
goods that just meet the 25% requirement.
Manufacturing and operation (tCO2e). Goods

To enable comparison between responses (e.g. that produce less tonnes of CO2 per annum
Quantifiable energy consumption, greenhouse gas emissions are ranked higher than goods that produce
or disposal of waste to landfill avoided). more tonnes of CO2 per annum.
Used to identify and evaluate whether goods or

Fit for services have limited performance, have higher An efficient and effective heating, ventilation,
purpose repair or replacement costs, are over engineered and air conditioning (HVAC) system.
or have unwanted functionality.
As defined in the CPRs, price is not the sole factor when assessing value
for money. It is a requirement to consider the non-financial and financial
costs and benefits. This includes environmental sustainability and whole-
of-life costs.

When setting criteria, you should also consider how they will be captured in the contract. For example:
• leaving room for improvement and/or innovation over the life of the procurement if over multiple years
• if appropriate, ensuring there are clauses to allow opportunities for updating/negotiating the environmentally
sustainable outcomes throughout the term of the contract if over multiple years
• managing them throughout the entire term of the contract,
• reporting against criteria in the contract management phase.
Refer to Table 5 for example criteria that could be used to evaluate the different aspects of environmental
sustainability of a product.
Table 5 – Example evaluation criteria for measuring a goods environmental sustainability.
Criteria type Criteria Score – yes Score - no
Third party certifications including

All relevant
Qualifying relevant ecolabels that incorporate No certifications
certifications acquired
recycled content
The goods contain problematic

Problematic or unwanted plastic The goods do not
Qualifying or unwanted plastic.
content should be avoided include this material
Submission does not qualify
Criteria
Criteria Score – high Score – medium Score - low
type
Recycled content to be
greater than 25% (note Between 51%
Greater than 80% Less than 50%
Rated that percentage will vary to 80% recycled
recycled content recycled content
depending on product and content
material)
Percentage of waste disposed No disposal Greater than 20% Greater than 80%
Rated
to landfill at end of life to landfill to landfill to landfill
Quantifying Amount of carbon Less than 10 Less than 25 Less than 50 tonnes
emissions produced during tonnes per tonnes per per annum of CO2
manufacturing and operation annum of CO2 annum of CO2
(tCO2e)
Use standard clauses for guidance

Standard clauses have been developed as example environmental sustainability requirements for ATM documents
and contract terms. These cover high level environmental sustainability requirements including environmental
management practices, development of an environmental sustainability plan, waste management, and use of
recycled content.
These standard clauses can be found in Appendix B
Consider reviewing case studies and masterclasses that are relevant

to your procurement at www.dcceew.gov.au/sustainable-procurement.

Step 04 checkpoint
`
9 Have you developed and included environmentally sustainable outcomes in your ATM documentation?
9 Have you determined which environmentally sustainable outcomes are mandatory or desirable?
9 Are environmental sustainability requirements and KPIs clearly stated in the ATM documentation?
9 Have you developed relevant KPIs and/or targets to monitor and measure performance against
the contract?
9 Have you developed quantifiable and qualifying criteria for the criteria contained in the ATM?
9 Have you included appropriate questions in the ATM to address the management of environmental
sustainability risks?
9 Have you identified what information is required from potential suppliers to enable decisions based
on whole-of-life costs and the environmental priorities for your entity?
9 Have you included disposal requirements (where applicable) to ensure the goods are refurbished,
reused, recycled or disposed of responsibly?
9 Have you developed evaluation criteria to assess responses to the environmental sustainability outcomes?
9 Have you checked if any of the standard clauses are relevant to your procurement? Refer to Appendix B

Step 5
05 Evaluate and Debrief
• Evaluate environmentally sustainable criteria and outcomes

• Compare goods or services
• Debrief unsuccessful suppliers as per your entity’s procurement policies
and processes.
For the evaluation, the panel must review the tender responses to the environmental
sustainability criteria set in the ATM and assess a tenderer’s ability to deliver against
these criteria.
Consider sourcing a subject matter expert to assist with

tender evaluations, particularly for complex procurements
Evaluate environmental Compare goods or services

sustainability criteria Considering the circularity, environmental and climate
impact related to the goods or service is the best place
and requirements to start. In some cases, ecolabels, standards,
and certifications are useful for supporting purchasing
As with any tender evaluation, the potential suppliers’ decisions but cannot be the sole determining
response to the environmentally sustainable outcomes information.
or criteria need to be assessed. For complex or high- Ensuring you consider the circularity, environmental
risk procurements, subject matter expertise may and climate impact related to the goods or service
be required to inform evaluation. is the best place to start. Some goods use their
When considering whole-of-life costs for value specification to demonstrate their environmental
for money you include: credibility, and you should seek further information
from the supplier to be sure you understand the
• acquisition specifications.
• maintenance See Appendix A for information on ecolabels,
• operation certifications, standards and product stewardship
• end-of-life/disposal methods. schemes, as well as awareness of false environmental
claims.
The option with the lowest up-front (acquisition) cost
may not offer the lowest cost option over the life
of the good or service. This is typically the case
for goods that use power, water, fuel or other
consumables or goods where a disposal pathway
or market does not exist or is cost prohibitive
(e.g. goods containing harmful materials).

Debrief unsuccessful suppliers

Where environmentally sustainable outcomes or criteria were not met, use this as an opportunity to discuss
these areas and raise awareness of ways to improve environmental outcomes of the goods or services offered
in response to the ATM.
Feedback for unsuccessful suppliers reinforces the government’s expectation

for environmental sustainability to be embedded in all procurements.
It helps these suppliers to improve their next tender.
Step 05 checkpoint
`
9 Have you identified a person with subject matter expertise (if required) to assist in assessing
the ATM responses?
9 Can the supplier give you assurance of the environmental claims? If relevant, have you considered
appropriate ecolabels, standards, certifications for assurance?
9 When debriefing unsuccessful suppliers, did you provide feedback on their response to environmental
sustainability criteria?

Step 6
06 Contract
Management
• Monitor sustainability compliance and performance
• Identify opportunities to improve environmental impact
• Disposal of goods
Regular conversations with your supplier can improve sustainability outcomes.
Monitor sustainability compliance and performance

Any standards and specifications, KPIs and compliance measures identified in the ATM must be reflected
in the contract and monitored throughout the contract’s life. Advice on how to address underperformance and
non-compliance on sustainability requirements should be sought from your entity’s procurement and legal teams.
Remember to engage subject matter experts to assess performance on environmental sustainability,
where necessary.
Identify opportunities to improve environmental impact

The contract management process provides a mechanism for you to raise any concerns or suggestions with
your supplier. It allows your supplier to share ideas for innovations, technologies, or ways to improve
sustainability.
You can ask your suppliers about evolving best practice and industry innovations or standards to ensure you
are optimising environmental outcomes from your procurement.
Remember, the focus areas and principles for high environmental impact:
Focus Areas Climate Environment Circularity
• minimise • optimise water • buildings and fit-outs use less materials,

greenhouse efficiency minimise waste,
gas emissions • use safe and can be deconstructed
• optimise renewable inputs and reused, are designed
energy efficiency for adaptability and flexibility
• safely use and
• use low dispose of chemicals • goods are durable, repairable,
emissions materials reusable, recyclable
• actively minimise
the creation of waste • goods have been refurbished
PRINCIPLES and the amount that or existing goods are reused
is sent to landfill • goods contain recycled content /recycled
materials are used
• goods are recycled at the end of useful life
• goods are returned for resource recovery
through a take-back or end of life scheme
• goods are available for lease,
rent or product-as-a-service
as an alternative to buying outright

Disposal of goods
As you come to the end of the contract term, it is good practice to review the end-of-life solution identified
for the goods for compliance and best practice.
Where sustainability requirements for end-of-life solutions have not been documented in the original contract
(and/or any variations), there is still opportunity to influence disposal of the goods.
The following options may be applicable to goods or materials used under your contract:
• reuse through refurbishment

• secondary market options for usable goods no longer required by the entity
• recycle through a commercial recycling collection service
• recycle with help from a specialist recycler (e.g. electronic waste recycler, textile recycler)
• the supplier takes back the product through a product stewardship scheme (e.g. computers,
televisions, tyres) that ensures the goods will be recycled, refurbished or reused.
Step 06 checkpoint
`
9 Are the ATM sustainability requirements included in the contract?
9 Have you briefed the contract manager on the environmentally sustainable outcomes?
9 Are there any metrics that need to be collated for reporting internally or externally?
9 How often should metrics be reported i.e. quarterly, monthly, etc. Set clear and reasonable timeframes.

Step 7
07 Share your experience
Share your knowledge and experiences, both positive and negative.
The Sustainable Procurement in Action Masterclass series on the Department of Climate Change,
Energy, the Environment and Water’s website shares sustainable procurement practices.
Knowledge sharing
Knowledge sharing can encourage and incentivise positive behaviour. It empowers others to realise sustainable
procurement outcomes in their procurements.
Successes and lessons can be shared in a variety of ways, including:
• articles in internal newsletters

• verbal updates at departmental meetings
• notices on the Sustainable Procurement page on the GovTeams Procurement
and Contract Management community of practice
• Case studies shared with the APS.
Step 07 checkpoint
`
9 Have you identified improvements for the next procurement?
9 Have you shared with colleagues your successes and lessons from your recent procurement?
9 Have you contacted C-SPARC to share your experience as a case study for the APS?

Appendix A:
Using labels and schemes
A to verify environmental
sustainability
This appendix provides information about
• ecolabels
• certifications and standards
• product stewardship schemes
• greenwashing.
Information on world ecolabels can be found at www.ecolabelindex.com
Certifications and standards

Certifications and standards can be used by suppliers to verify environmental sustainability of their products
and services. This assists procurement officers in their value for money evaluations. Examples include:
• environmental product declarations (EPDs) published on websites such as EPD Australasia

• Australian standards available through Standards Australia, and
• relevant International Organization for Standardization (ISO) standards such as:
– ISO 14001 Environmental management systems

– ISO 9001 Quality management systems
– ISO 14020 Environmental statements and programmes for products.

Ecolabels
Ecolabels can help navigate the social and environmental benefits of the products and services you procure.
They can be useful for confirming that products bearing a label meet a range of environmental standards.
There are three types of ecolabels with different characteristics that affect their efficacy, dependability,
and diligence.
Type 1 Type 2 Type 3
Ecolabels (based on ISO 14024) Ecolabels (based on ISO 14021) Ecolabels (based on ISO 14025)
are a third-party assessment are self-declared claims made by are voluntary declarations of the
of a product based on the manufacturers or distributors and sustainability of a product
environmental and social impacts are not independently verified. or service.
throughout its lifecycle. Evaluation These tend to focus
and selection requirements are on a particular quality
available to the public. of a product e.g. compostable.
To verify an ecolabel, you should check it meets an internationally recognised quality standard such
as the ISO standard referenced for each ecolabel type. It is recommended that you carefully consider
and check the credentials and validity of any labels, certifications, standards or schemes.
Caution should be applied to ecolabels that do not verify specific qualities of products, include vague claims
or rely on buyer’s’ own conclusions about the sustainability of the product.
If specifying that a product carry a recognised ecolabel in your ATMs, the phrase ‘or equivalent’ should be used
in addition to that ecolabel. For example ‘Green Tag certified, or equivalent’.

Product stewardship schemes

Product stewardship requires all actors along the supply chain – including producers and retailers – to better
manage the environmental and human health impacts of products and material streams throughout their life
cycle.
Items regularly procured by the Australian Government covered by a product stewardship scheme include
batteries, printer cartridges and electronic goods such as computers, mobile phones and tablets.
Mandatory and co-regulatory stewardship schemes are established by government regulation. Voluntary
arrangements are funded and delivered by industry. Voluntary arrangements can operate independently,
or apply for government accreditation.
The Minister for the Environment can accredit voluntary arrangements after their environmental and human
health outcomes have been assessed by the Department of Climate Change, Energy, the Environment and Water.
Accredited arrangements can demonstrate that their outcomes are supported through their reporting obligations
to the Minister for the Environment. For example, Tyre Stewardship Australia (TSA), an accredited product
stewardship scheme, develops new uses for end-of-life tyres, helping find ways to convert waste.
Examples of good product stewardship include:
• Companies who drive environmentally beneficial outcomes through good design and clean manufacturing
• Products designed for easier repair, dismantling, and/or recycling
• People who recycle products, and their packaging
• Companies that use more recycled materials and less virgin resources to make their products
• Companies that limit the harmful materials their products contain and remove chemicals of concern
when manufacturing their products.
Choosing accredited schemes (and their members) helps you verify sustainability credentials of tenderers.
Accredited arrangements are approved by government and sustainability claims are third-party verified
which reduces the risk of greenwashing.

The following list provides information about a number of ecolabels, standards and certifications
used in Australia.
Ecolabels/Certifications
The Australasian Recycling Label (ARL)

The ARL is an evidence-based system underpinned by the Packaging Recyclability
Evaluation Portal design tool to provide a nationally consistent approach
to packaging transparency. It has easy-to-understand instructions about how
to correctly dispose of every part of a product’s packaging. The ARL was developed by
the Australian Packaging Covenant Organisation and Planet Ark. Further information
on the ARL is available on the Recycling Near You website.
Compostable
The Australian Standard 4736-2006 for compostable and biodegradable plastics. It
indicates that the product is suitable for composting and other microbial treatment.
It is known as the seedling logo and is a certification system throughout Australia and
New Zealand.
Energy Rating Label

The Energy Rating Label describes the energy efficiency of an appliance
by awarding it a number of stars and displaying the annual energy consumption of the
appliance. An appliance can receive a rating of up to six stars based on its efficiency
compared to similar models of similar capacity or size. The more energy efficient the
appliance, relative to similar models, the more stars on the Energy Rating Label.
EPEAT
EPEAT is a global ecolabel in the IT sector managed by the Green Electronic Council,
which provides an independent verification on manufacturers’ claims around
sustainability. EPEAT criteria addresses the entire life cycle of the goods including
design, production, energy use and recycling.
Fairtrade Australia New Zealand

The Fairtrade mark is a globally recognised label displayed on goods that have
been independently certified along the supply chain to ensure they meet the social,
economic and environmental standards set by Fairtrade International.
Forest Stewardship Council Certification

The Forest Stewardship Council Certification (FSC) is an internationally recognised
certification system that provides a guarantee that processes and operations or the
production and source of goods meet the FSC standards. Independent certification
bodies certify forest managers or forest goods companies.

Fuel consumption label

The fuel consumption label is an Australian Government initiative to inform consumers
of the fuel consumption of a car and the potential carbon emissions and allow
purchasers to compare vehicles using a common basis.
It is a requirement that model specific fuel consumption labels are to be placed on
the windscreens of all new vehicles up to 3.5 tonnes gross vehicle mass. It is also a
requirement that energy consumption labels are placed on the windscreens
of all new electric and externally chargeable hybrid electric vehicles.
Good Environmental Choice Australia

Good Environmental Choice Australia (GECA) offers a suite of services, including
Australia’s only not-for-profit multi-sector ecolabelling program. Following ISO
14024 principles and ISEAL frameworks for global best practice in ecolabelling, all GECA
standards are independently assessed. GECA’s Claims Authentication service provides
independent third-party assurance that a claim has been substantiated through an in-
depth exploration.
Green Tag ™ certification

Green Tag ™ certification is a third party green building and goods certification
and rating system that is underpinned by scientific and Life Cycle Assessment (LCA)
processes. The purpose of the program is to allow the market to understand the
degree to which a good is ecological, safe and socially responsible.
Green Tag ™ compares the goods to ‘worst case, business-as-usual’ goods with the
same functional purpose.
Programme for the Endorsement of Forest Certification

Programme for the Endorsement of Forest Certification (PEFC) works to protect forests
by promoting sustainable forest management through certification. It is an umbrella
organisation that endorses national forest certification systems which have been
developed and tailored to local priorities and conditions.
Recycled content
Recycled content is defined in Australian Standard 14021:2018. This logo can be used
to indicate the percent of recycled content. Where recycled content has been claimed,
the percent of recycled material based on the mass of the goods,
is to be stated. The percentage of recycled content in goods and their packaging are
to be stated separately, not aggregated. The use of the recycled content symbol is
optional and may be accompanied by a percentage value.
Responsible Wood
Responsible Wood is an Australian certification scheme underpinned
by the internationally recognised PEFC. The scheme and its standards promote
environmentally sound, socially just, and economically viable management
of forests. Certification of compliance with standards is carried out by independent
third parties. Responsible Wood is relevant to wood sourced
from Australia.

TCO Certified
TCO Certified is a global sustainability certification for IT products, covering both social
and environmental responsibility. TCO Certified helps purchasers and the IT industry
address the most important sustainability challenges connected to electronics,
such as climate, circularity, hazardous substances and supply chain responsibility.
Compliance with all criteria is mandatory and independently verified by accredited
experts.
Water rating label

The label is part of the mandatory Water Efficiency Labelling and Standards scheme
regulated by DCCEEW, that applies to taps, toilets, showers, urinals,
flow controllers, washing machines and dishwashers. All products for the Australian
market must be registered (at www.waterrating.gov.au) and offered for sale labelled
with their water efficiency rating so that consumers can compare products. The more
stars, the more water efficient. When specifying sustainability requirements, minimum
requirements for water fittings and appliance are 4-stars for showers and toilets, 5
stars for washing machines, and 6-stars for taps, urinals and dishwashers.
Certifications, building and construction
EnviroDevelopment
Environmentally sustainable developments can receive EnviroDevelopment certification
in the form of leaves. Up to six leaves can be received and they represent six categories
of sustainability—ecosystems, waste, energy, materials, water and community—for
outstanding performance in four or more of these areas. Developments that have
received certification have been designed to protect the environment and promote the
responsible use of resources.
Green Star
Green Star is an internationally recognised holistic rating and certification scheme
designed by Australian industry for the Australian built environment. The scheme
assesses sustainability in design, construction, operation and fit outs. Buildings,
refurbishments or precincts are awarded a star rating based on a numeric score that
corresponds to the project’s performance against a series of weighted credits. The
scheme is administered by the Green Building Council of Australia and certified as
compliant with the ISO 9001:2015 – quality management system. Projects that claim to
meet the requirements of Green Star but are not certified are potentially in breach of
trademark rules and may be accused of ‘greenwash’.
Infrastructure Sustainability Rating Scheme

The Infrastructure Sustainability Rating Scheme was developed by the Infrastructure
Sustainability Council (ISC) as a way to drive and evaluate sustainability in infrastructure
projects and assets. ISC assess sustainability across the planning, design, construction,
and operational phases based on the quadruple bottom line (governance, economic,
environmental and social). Projects are assessed by third party verifiers and awarded
an Infrastructure Sustainability (IS) rating based on an overall score.
National Australian Built Environment Rating System

The National Australian Built Environment Rating System provides simple, reliable,
and comparable sustainability measurement across building sectors like hotels,
shopping centres, apartments, offices, data centres and more.
The system uses 12 months of actual data and provides a rating from one to six
stars to reflect the efficiency of the building across energy, waste, water and indoor
environment. Projects that claim to meet the requirements of NABERS but are not
certified are potentially in breach of trademark rules.

Standards
International Organization for Standardization

The International Organization for Standardization (ISO) is a non-governmental
international organisation that, through its members, provides voluntary and
market relevant international standards that support innovation and provide
solutions to global challenges. A number of ISO standards have been developed
to help organisations incorporate environmental outcomes, including: ISO:20400
for sustainable procurement, ISO:14020 for environmental labelling, ISO:15392
for sustainability in building construction – general principles, and ISO: 20245 for
cross-border trade of second-hand goods.
Product stewardship schemes
The Australian Government implements a voluntary product stewardship

accreditation program to recognise industry-led stewardship schemes. Accredited
schemes are granted conditional use of the government’s accreditation logo.
Administrators of accredited schemes also have annual reporting requirements
to the Minister for the Environment, which supports transparency of stewardship
arrangements. A list of accredited schemes is available on the DCCEEW website.
Australian Packaging Covenant Organisation

The Australian Packaging Covenant is a cooperative arrangement between
industry and Australian, state and territory governments. It operates to reduce
the environmental impacts of consumer packaging—including plastics, paper
and cardboard—by changing the culture of businesses to design more
sustainable packaging, increase recycling rates and reduce litter.
Mobile Muster
MobileMuster is the mobile phone industry’s recycling program. Administered
by the Australian Mobile Telecommunications Association (AMTA) on behalf of
the mobile phone industry, MobileMuster provides a free collection and recycling
service to consumers to help keep mobile phone products out of the general
waste stream and to ensure they are recycled in a safe, secure and ethical way.
Mobile Muster accepts new product streams: network connectivity (modems and
routers, landline phones, TV streaming devices; smart home technology (smart
speakers, smart digital hubs displays); wearables and peripherals (smart watches,
tracking tags, VR headsets).
National Television and Computer Recycling Scheme

National Television The National Television and Computer Recycling Scheme provides Australian
and Computer households and small businesses with access to free industry-funded collection
Recycling Scheme and recycling services for televisions and computers, including printers, computer
parts and peripherals.
Tyre Stewardship Australia

Tyre Stewardship Australia (TSA) administers the national tyre product
stewardship scheme. The scheme aims to increase domestic tyre recycling,
expand the market for tyre-derived products and reduce the number
of Australian end-of-life tyres that are sent to landfill, exported as baled tyres
or illegally dumped. TSA also conducts education, communication and market
development activities.

Greenwashing
Greenwashing is the practice of making false, misleading and/or deceptive claims about the environmental
practices of a company or the environmental attributes or benefits of its products or services. Greenwashing
is often unintentional and can include claims that are vague, irrelevant or inaccurate or that only tell part of the
story about the environmental impacts of a product.
Environmental claims may be made in a variety of ways1:
Claims using logos

Product specific claims Company-wide claims and symbols (including
certification trademarks)
These may appear on packaging, These will generally appear These can appear on product
websites, advertisements or social on websites or in corporate packaging, websites,
media posts by influencers. social responsibility statements or advertisements.
and reporting documents.
Procurers using environmental claims to support purchase decisions should be aware of unsubstantiated
statements. Using verified ecolabels, certifications and standards will help to avoid greenwashing.
Procurers must be aware of statements promoting a product’s environmental credentials that may be misleading
or even false. Examples of this may include statements such as:
8 ‘100% recycled’
8 ‘lower environmental impact’
8 ‘non-polluting’
8 ‘zero emissions’, or
8 ‘100% plastic free’.
As a purchaser, you are entitled to ask suppliers for verification or evidence of these claims and must note
in the ATM documentation that you may request this.
Procurers should also look out for suppliers who claim to have introduced environmental protection measures,
where these measures are already required by law. Such measures should not be used to promote the
sustainability of a product or company. An example of this would be a claim stating that ‘we only provide
computer monitors which carry an energy rating’ when in fact this is a requirement by law.
1 ACCC, Greenwashing by businesses in Australia March 2023

Ecolabel matrix
Example ecolabels and categories
Energy General
Construction ICT & Furniture Office
ecolabel and Water Goods and
services Appliances and Fit out supplies
Efficiency Services
Australian Carpet
Classification Scheme (ACCS) 
- Environmental Certification
Australasian Recycling Label

(ARL)
 
Cradle to Cradle   
Energy Rating Label  
EnviroDevelopment 
Environmental Product
Declaration (EPD)
   
EPEAT 
Fairtrade Australia
New Zealand
  
Forest Stewardship
Council (FSC)
   
Global Green Tag    
Good Enviromental
Choice Australia (GECA)
   
Green Star (Green Building
Council Australia)
  
Infrastructure Sustainability
Rating (Infrastructure 
Sustainability Council)
National Australian Building

Energy Rating System  
(NABERS)
Programme for the

Endorsement of Forest   
Certification (PEFC)
Recycled Content (Australian

Standard 14021:2018)
   
Responsible Wood    
TCO Certified 
Water Rating Label  

Appendix B:
General Clauses
B for Environmental
Sustainability
The standard clauses contained in this appendix provide example environmental
sustainability requirements for Approach to Market (ATM) documents as well as
contract terms for Australian Government procurers.
How to use these standard clauses

All standard wording contained within this Guide is optional and can be amended to reflect the scope, complexity
and risk of a particular procurement. Officials should consider the context of the procurement before using
standard wording and ensure the wording complies with the Commonwealth Procurement Rules.
Key tips to interpret the standard clauses:
• Uses terms consistent with the Commonwealth Contracting Suite templates. For example: ‘Supplier’;
‘Customer’; and ‘Contract’. Commonwealth entities can amend these terms if required by specific policies.
• Optional wording is indicated by square brackets with green highlight: [annually] or [10] business days.
• Standard wording for ATM requirements and contract clauses is written in italics.
Evaluating environmental sustainability

Note to Drafters: After specifying the environmental sustainability requirements in the ATM documents, it
is recommended that environmental sustainability be assessed in the overall evaluation process alongside
organisation-specific criteria such as cost, quality and reliability. If available, weightings should be assigned
according to the agency’s objectives, priorities and targets.
Sustainability reporting requirements

Note to Drafters: The Customer should identify their environmental sustainability reporting requirements early
in the procurement process. Reporting requirements can include specific reporting metrics or a standardised
reporting framework. These requirements should be included in the ATM documents and Additional Contract
Terms. The Customer can use Key Performance Indicators (KPIs) to ensure the Tenderer/Supplier delivers
environmental sustainability outcomes over the term of the Contract, and report regularly on this progress.
Refer to the KPI examples under Step 2: Approach the market.

A. Environmental Sustainability
Best suited to Goods and/or Services procurements over $80,000 (GST inclusive) where the Customer has
identified potential sustainability and use of Recycled Content opportunities. Detailed information on
opportunities may be unknown due to limited market information or subject matter expertise. For support with
identifying sustainability opportunities contact [email protected].
Example procurements: office furniture, office fit outs and outdoor applications (pavements or park benches).
ATM Requirement Contract Terms
Use the single clause: Use the single clause:

Reduce environmental impacts and / or use Continuous improvement
Recycled Content
The Supplier must review and report to the Customer
The National Waste Policy (2018) outlines Australia’s on further opportunities to improve environmental
strategy for transitioning to a circular economy. The sustainability outcomes and increase use of Recycled
National Waste Policy Action Plan (2019) details the Content over the term of the Contract as opportunities
actions required across government and industry to arise and at regular intervals with a frequency of no
implement the National Waste Policy (2018). More less than [annually]. The Supplier must use these
information is available at: https://www.dcceew.gov.au/ opportunities when directed by the Customer to do
environment/protection/waste/publications/national- so, subject to the parties agreeing any reasonable
waste-policy-2018 amendments to the fees and payment arrangements
directly associated with the relevant opportunities.
Sustainability and use of Recycled Content is a priority
within the Action Plan (2019) and is of particular
importance for this procurement.
The Response should detail how the Potential Supplier
will deliver cost effective, practical and fit-for-purpose
sustainability outcomes.
The Potential Supplier should demonstrate in their
Response how Goods and/or Services will be delivered
in a way which:
• reduces environmental impacts; and/or

• uses Recycled Content in Goods and/or Services
to the maximum extent possible without
compromising the safety, quality or capability of
the Goods and/or Services.
An Ideal Response to the ATM Requirement
An ideal response would:
• Outline how the Potential Supplier will manage key environmental risks and the Potential Supplier’s plan
or process to deliver positive sustainability outcomes. Environmental impacts can include prevention
of pollution, sustainable resource use, climate change risks and biodiversity, habitat or environmental
protection.
• Outline how the Potential Supplier will identify opportunities and prioritise use of Recycled Content in
Goods and/or Services. The Potential Supplier would also outline how it will meet and maintain safety,
quality and capability outcomes while using Recycled Content, including how the Potential Supplier will
manage any risks.

B. Environmental Management Practices

Best suited to Goods and/or Services procurements over $200,000 (GST inclusive) where the Customer wants
evidence on how the Supplier will manage direct environmental risks and impacts.
Example procurements could be:
• Infrastructure projects which involve development approval and environmental impact assessments.
• Manufacturing or production services which involve resource consumption or pollution. This could include
printing, electricity and gas supply or lab research with hazardous chemicals.
ATM requirement Contract Terms
Use the main clause and the additional clause as Use the main clause and additional clauses as needed:
needed:
Main clause
Main clause - Environmental Management Practices
The Supplier must implement and maintain a
The Potential Supplier should detail its environmental documented Environmental Management System.
management practices including any Environmental
Additional clause - meeting International Standards
Management Systems, policies and / or processes
as applicable. Where the Potential Supplier has The Supplier’s Environmental Management System
referred to any third party certifications, such as must address the requirements of ISO14001:2015
International Organization for Standardization (ISO) Environmental Management Systems.
ISO14001:2015 Environmental Management Systems
Additional clause - verifying against International
and ISO20400:2017 Sustainable Procurement, it
Standards
should supply a copy of the third party certificates with
its Response. Where environmental claims (such as The Supplier’s Environmental Management System
“eco-label”, “green” or other environmental claims) are must be third party certified to ISO14001:2015
made in the Response, the Response should include Environmental Management Systems.
the methodology used to evaluate the claim and any
third-party certificates as applicable.
Additional clause - Australian Packaging Covenant
Organisation affiliation
If the Potential Supplier is a member of the Australian
Packaging Covenant Organisation (APCO), it should
advise in its Response which category or categories its
membership is under.
An ideal response would include an Environmental Management System framework which outlines:
• Planning – identifies significant environmental impacts, legal environmental obligations and key
environmental objectives
• Implementation and operation – an environmental policy as well as documented roles, responsibilities
and other records to deliver environmental obligations and objectives. Other resources may include
environmental training, external communication plans for environmental impacts and records of
management review.
• Quality control – processes to monitor and measure environmental performance, evaluate compliance,
undertake corrective action for environmental issues and conduct internal audits on the Environmental
Management System.
• Third party certificates for any ISO or other environmental claims.
International Standards
Note to Drafters: ISO14001:2015 Environment Management Systems sets out a framework for establishing an
effective environmental management system. The standard wording does not need the Customer or Potential
Suppliers to have access to ISO14001:2015. Rather, the standard wording allows Potential Suppliers to provide
assurance to the Customer on their efforts to reduce environmental impacts by providing certification.

C. Environmental Sustainability Plan

Applicable to most Goods and/or Services procurements regardless of value.
Ideal for a Customer seeking:
• a Supplier to actively pursue Recycled Content and sustainability outcomes over the term of their contract;
and
• a transparent and accountable reporting system for Recycled Content and sustainability impacts.
The single clause: Use both clauses:

Request draft Environmental Sustainability Plan Main clause - timeframes & approval
Potential Suppliers should include a draft The Supplier must deliver to the Customer an
Environmental Sustainability Plan in its Response Environmental Sustainability Plan within [20] business
to demonstrate how it will satisfy the specified days of Contract execution for Customer approval.
environmental sustainability requirements, including: The Customer must within [10] business days notify
the Supplier of its approval of the Environmental
• [add sustainability plan requirements outlined Sustainability Plan or outline required changes for
below] the Environmental Sustainability Plan. The Supplier
must resubmit a revised Environmental Sustainability
Plan which addresses the required changes within
[10] business days of being notified of the required
changes for approval. This clause will apply to any
resubmitted Plan.
The Supplier must report against the Environmental
Sustainability Plan on a [annual] basis or when
otherwise directed by the Customer to do so.
Main clause - sustainability plan obligations
The Environmental Sustainability Plan must describe:
• a. [add sustainability plan requirements]

Add the sustainability plan requirements as needed:
• How it will work with suppliers and the Customer to minimise or avoid waste to landfill throughout the life
cycle of Goods delivered or consumed in delivery of Services under the Contract, including what happens to
Goods at end of life;
• How it proposes to use Recycled Content in Goods and/or Services delivered under the Contract to the
maximum extent possible without compromising quality, safety or capability;
• A list of Recycled Content products proposed for use under the Contract, including the proportion of
Recycled Content used in each product and Recycled Content product supplier details;
• How any Recycled Content proposed to be used under the Contract will be recorded, reported and verified;
• How it will work with the Customer to continually improve the environmental sustainability of Goods and/or
Services delivered under the Contract over the term of the Contract;
• Any standards or specifications specific to use of Recycled Content in Goods and/or Services delivered under
the Contract;
• Any whole-of-life and /or life cycle costing tools proposed to be used under the Contract; and
• Any risks associated with the Environmental Sustainability Plan, and proposed risk management
methodology.

An Environmental Sustainability Plan that addresses all the applicable points, allowing the Customer to clearly
understand the environmental risks and opportunities associated with the procurement. The evaluation team
should have confidence that the Potential Supplier understands their environmental impacts and has processes
in place to manage its environmental impacts, and to monitor and continually improve their environmental
performance.
The Response may include:
• A waste management plan in which the Potential Supplier details their approach to manage waste
associated with their goods and/or services.
• Innovative end of life opportunities for goods, such as buy-back schemes or options for re-use or re-
purpose.
• Information on the financial costs and environmental impacts associated with suggested end of life options.
• Recycled Content product options applicable to the procurement, including the proportion of Recycled
Content used in the product, therefore detailing the proportion of waste the Potential Supplier will divert
from landfill in the delivery of their Goods and/or Services.

D. Waste Management
Best suited to procurements of good or material-intensive services. For example:
• Catering (reduce food wastage)

• Uniforms (use recycled fabrics and recycle clothing at end of life)
• ICT hardware (use recycled metals and dismantle product at end of life to reuse or recycle components)
Use the single clause: Use the single clause:

Minimising waste to landfill Continuous improvement
The Potential Supplier should detail how it will The Supplier must review and report to the Customer
minimise waste to landfill over the term of the on further opportunities to improve its waste
Contract, including how it will work with suppliers and management performance through the term of the
the Customer to reduce waste and increase use of Contract as opportunities arise and at regular intervals
Recycled Content. with a frequency of no less than [annually]. The
Supplier must use these opportunities when directed
The Potential Supplier should also detail end of life
by the Customer to do so, subject to the parties
disposal pathways for products to be used over the
agreeing any reasonable amendments to the fees and
term of the Contract, through resale, reuse, repurpose
payment arrangements directly associated with the
or other product stewardship activities.
relevant opportunities.
An ideal response would include:
• A waste management plan in which details how the Potential Supplier intends to manage waste associated
with their Goods and/or Services.
• Innovative end of life opportunities for goods, such as buy-back schemes or options for re-use
or re-purpose.
• Information on the financial costs and environmental impacts associated with suggested end of life options.
• Detailed Recycled Content product options applicable to the procurement, including the proportion
of Recycled Content used in the product, therefore detailing the proportion of waste the Potential
Supplier will divert from landfill in the delivery of the goods and/or services.

E. Use of Recycled Content

Best suited primarily to goods. However, may also be suited to some services over $80,000 (GST inclusive) where
the Customer can identify high opportunities to use Recycled Content through market research. For example:
• Office stationery (recycled paper and plastic in pens, notepads, document trays and folders)
• Laying roads (recycled glass in road base or recycled rubber in asphalt)
• Building fit out (recycled plastic or metal in chairs, desks and dividers)
Use one or both requirements as needed: Use one or a combination of clauses as needed:
Request Recycled Content products and data Optimising appropriate use of Recycled Content
The Response should include the: Recycled Content must be used where reasonably
practicable and where that use will not compromise
• products containing Recycled Content; the safety, quality or capability of the Goods and/or
• mass and proportion of Recycled Content used in Services.
each product; Recycled Content Standards and Specifications
• overall mass and proportion of Recycled Content
which could be used in the procurement; The Supplier must comply with all relevant Recycled
Content Standards and Specifications associated with
• country of origin for Recycled Content; and delivery of Goods and/or Services under the Contract
• supplier of the Recycled Content product including, but not limited to, the following:
Environmental sustainability a. [Insert key environmental sustainability and
or Recycled Content Standards and Specifications Recycled Content standards and specifications relevant
to this procurement here]
The Response should include any known
environmental sustainability or Recycled Content Reporting use of Recycled Content
Standards and Specifications associated with delivery
The Supplier must provide a [monthly] report on the
of Goods and/or Services under the Contract including,
use of Recycled Content under the Contract, that
but not limited to, the following:
includes at least the following information:
[Insert key environmental sustainability and Recycled
Content standards and specifications relevant to this • A list of products containing Recycled Content
procurement here] and the mass and percentage of Recycled Content
within each product.
• [Add Recycled Content reporting requirements as
required]
An ideal Response would:
• Outline how the Potential Supplier intends to incorporate Recycled Content into the Goods and/or Services.
• Detail Recycled Content product options applicable to the procurement, including the proportion of
Recycled Content used in the product, and the product supplier.
• Provide an outline of how the Potential Supplier will report on its use of Recycled Content in Goods and/or
Services to the Customer, including what information will be reported, and when.
• Advise how the Potential Supplier will monitor and improve its use of Recycled Content over the term of the
contract to use Recycled Content to the maximum extent possible.

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Sustainable Procurement Guide

An environmental focus for Commonwealth entities

Sustainable Procurement Guide—An environmental focus for Commonwealth entities |3

Procurement process overview 12

Step 2 Market research and engagement 15

Step 3 Documenting environmental sustainability in a Procurement Plan 17

Step 4 Approaching the market 20

Step 5 Evaluate and Debrief 27

Step 6 Contract Management 29

Step 7 Share your experience 31

Appendix A: Using labels and schemes to verify environmental sustainability 32

Appendix B: Model Clauses for Environmental Sustainability 41

As defined in the Commonwealth Procurement Rules (CPRs), this is any notice

• Potential supplier (might respond to a tender)

A legislative instrument issued by the Finance Minister under section 105B

Ecolabels provide information on environmental and health standards for specific

All greenhouse gas emissions that are released as part of creating

For the purpose of this Guide, environmental impact refers to biodiversity

An Environmental Management System (EMS) is a structured system which helps

Sustainable Procurement Guide—An environmental focus for Commonwealth entities |5

State of a given system, including environmental and economic aspects,

A framework which outlines the measures and activities an organisation will

Greenwashing is the practice of making false, misleading and/or deceptive claims

A non-government international organisation comprised of various representatives

The MCI is an assessment tool used to identify the circular value

As defined in AS 14021:2018, recycled content is a proportion by mass, of recycled

The CPRs (Appendix B: Definitions) defines Specification as ‘a description of the

Development that meets the needs of the present without compromising

Sustainable procurement looks beyond the up-front cost to make purchasing

Sustainable Procurement Guide—An environmental focus for Commonwealth entities |6

Sustainable Procurement Guide—An environmental focus for Commonwealth entities |7

Procurement is critical to our business. It is how we source the products

Sustainable Procurement Guide—An environmental focus for Commonwealth entities |8

Value for money

Energy consumption Greenhouse gas emissions Reduction of waste

Using an environmentally sustainable approach

Sustainable Procurement Guide—An environmental focus for Commonwealth entities |9

Transitioning to a Circular Economy

Decrease waste Resources

Sustainable Procurement Guide—An environmental focus for Commonwealth entities | 10

High opportunity categories

Consider the design through to end of life (disposal) of structures and

Consider the use of recycled content in the materials and furniture

Consider purchasing extended warranties to increase the serviceable

Ensure our suppliers of services are also committed to environmental

Sustainable Procurement Guide—An environmental focus for Commonwealth entities | 11

The procurement process generally consists of the following stages.

Figure 1 Procurement diagram

Value for money

Plan and Scope the Determine

Approach Evaluation and Manage

Environmental sustainability opportunities

Sustainable Procurement Guide—An environmental focus for Commonwealth entities | 12

The best outcomes are achieved when environmental

Before you start Identify the need

Sustainable Procurement Guide—An environmental focus for Commonwealth entities | 13

9 Are there comparable goods or services using more recycled content?

9 Do the goods avoid the use of harmful chemicals or materials?

9 Are renewable resources used in the manufacture of the goods?

Procurement process overview 12

Step 2 Market research and engagement 15

Step 3 Documenting environmental sustainability in a Procurement Plan 17

Step 4 Approaching the market 20

Step 5 Evaluate and Debrief 27

Step 6 Contract Management 29

Step 7 Share your experience 31

Appendix A: Using labels and schemes to verify environmental sustainability 32

Appendix B: Model Clauses for Environmental Sustainability 41