SUSTAINABLE PROCUREMENT

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1 SUSTAINABLE PROCUREMENT Responsible Section: Date Approved: Date Reviewed: Strategic Services 2008 August (MANEX) TABLE OF CONTENTS 1.0 OBJECTIVE BACKGROUND DEFINITIONS APPLICATION OF PROCEDURE Value for Money and the Sustainability Preference Procurement Goals Actions Responsibilities REVIEW...3 APPENDIX A - ENVIRONMENTAL PROCUREMENT CHECKLIST...4

2 1.0 OBJECTIVE Council is committed to promoting competitiveness through environmental, social and economic aspects in procurement and contract management. The objectives of Sustainable Purchasing are for the Council to: Seek to ensure that goods and services purchased have the least impact on the environment and on human health; Eliminate unnecessary purchasing so reducing associated costs and waste; Promote the sustainable use of resources; Work with local business to encourage continuous improvement in the environmental impact of the goods and services it buys; Regularly revise purchasing systems, procedures, management practices and structures to minimise their environmental impact; Encourage staff to make continuing improvements in the environmental impact of Departmental programs; Increase awareness of the range and quality of environmentally preferable products across council and in the community. 2.0 BACKGROUND The purpose of this policy is to provide a purchasing framework that will advance the sustainable use of resources. 3.0 DEFINITIONS Sustainable Procurement refers to the purchase of goods or services that have a lesser or reduced effect on human health and the environment (over the entire life cycle of the product i.e. production, distribution, usage and disposal) when compared with competing products or services that serve the same purpose. 4.0 APPLICATION OF PROCEDURE This Procedure applies to and should be read in conjunction with the following Ballina Shire Council Policies/ Procedures: Purchase & Supply of Goods and Services (BSC); Personal Protective Equipment (BSC); Banner Poles (BSC); Tendering (BSC); Software Usage (BSC); The Procurement Manual (BSC). 4.1 Value for Money and the Sustainability Preference Council should base purchasing decisions on the principle of value for money over the life cycle of the product or service. Value for money considerations will include matters such as price and quality of goods or services. Other issues for consideration may include but are not limited to goods or services which contain recycled content, are recyclable, minimise waste and greenhouse gas emissions, conserve energy or water, minimise habitat destruction & environmental degradation and are non toxic. Page 1 of 6

3 It is recognised that in some cases the selection of environmentally preferable products may be less price competitive. Depending on scale and degree of price differential Council may purchase the more expensive product where there is definable and significant environmental benefit that on balance outweighs the additional dollar cost to the organisation. 4.2 Procurement Goals Wherever possible council employees and contractors should pursue the following goals, when purchasing products and services. Minimise Waste Purchasing decisions should be made in the context of the waste hierarchy to avoid, reduce, reuse and recycle: purchases shall only be made once it has been determined that the product or service is necessary; AVOID - identifying ways of carrying out a function or task without using materials that generate waste. An example is sending information electronically instead of on paper; REDUCE using less in the first place and avoiding waste. An example is purchasing in bulk to reduce packaging; REUSE using the same item more than once, and extending the useful life of products and equipment before replacing an item. Aim to reuse or repair existing products. Ensure that purchases are durable, have a long service life and are easy to maintain and upgrade; RECYCLE purchasing products that contain recycled materials or those that have or can be remanufactured. Minimise Climate Damage & Conserve Water Purchasing decisions should consider a reduction in greenhouse gas emissions: purchase energy & water efficient products by checking that the energy or water rating and efficiency features are the best available for the price; purchase renewable energy and reduce the purchase of fossil fuels; and where appropriate purchase goods locally that have not been transported long distances. Minimise Pollution Where appropriate purchase products that are free from toxic or polluting materials which may result in the degradation of air, water or soil quality or which adversely affect human health. Minimise Habitat Destruction Where appropriate purchase paper and timber products obtained from recycled, salvaged, plantation or renewable sources. Minimise Social Impact Where appropriate purchase goods and services from a provider that demonstrates social responsibility or commitment to the local community. 4.3 Actions To achieve the above procurement goals council will: nominate key staff members to support the implementation of sustainable purchasing initiatives; Page 2 of 6

4 establish a staff education program for the implementation of these guidelines; ensure that staff have access to information on environmentally preferred products and services; participate in the LGSA Sustainable Choice program to build council s sustainable purchasing capacity through staff peer education and support and information sharing; and actively promote sustainable purchasing to staff and the community. 4.4 Responsibilities The key staff members who are supporting the implementation of these guidelines will: act as key contacts with the Sustainable Choice program;; assist with the distribution and sharing of information on environmentally preferred products and services with staff; look to identify and report on the scope and level of sustainable purchasing within council; and The Sustainable Choice program will assist council staff involved in purchasing to comply with council s policy for sustainable purchasing by providing guidance and appropriate document templates. They will also develop and maintain an online database of green products and service suppliers. 5.0 REVIEW This procedure will be reviewed every four years. Page 3 of 6

5 APPENDIX A - ENVIRONMENTAL PROCUREMENT CHECKLIST Acquisition The environmental objective is to avoid or reduce procurement. It is therefore essential to firstly determine if the product or service is truly necessary. Some consideration may include: Do other units within Council have surplus goods or equipment? Is the item available for short-term rental? Can the item be shared with other Councils or units (who may already have the material)? Is the quantity being purchased appropriate? Will the product be fully used or will there be wastage? Will the purchase be used to the end of its useful life? Can the product be easily relocated to another site? Are parts and service available in NSW? Is the product suitably labelled with relevant environmental information (including disposal)? Waste reduction The environmental target is to reduce waste in general as well as specifically, waste to land-fill. Consideration should be given to: What is the durability of the product? Is the product easy and economical to service and maintain? Is the product designed to reduce consumption and minimise waste? Is the product reusable? Can the product be technically and economically recycled? Are there recycling collection systems for the product? Is the product returnable to the supplier at the end of its useful life? Is the product compostable and are there local composting systems? Is the product biodegradable into harmless elements over time? Material source The environmental objective is to use as few materials as possible as even renewable materials can place a burden on the environment. The following should be considered: What is the percentage of recycled materials? What is the percentage of post-consumer materials (that is, recycling vs reuse)? Is the wood in the product from a sustainable well-managed forest? Page 4 of 6

6 Energy efficiency Energy efficiency does not only reduce cost. It has environmental benefits because producing energy consumes non-renewable resources. In Australia, most energy production also produces greenhouse gases. Consideration should be given to: Is the product as energy efficient as competitive products? Is a sleep/snooze mode available to conserve energy? Is the supply of electricity from rechargeable power sources? Are renewable fuels being used? Does this product require less energy to manufacture than competing ones? Are alternative technologies available? Water conservation As for energy above, water should be conserved not just because to do so saves money but it is a scarce resource. Questions that may be asked include: Is less or recycled water used during operation? Is less or recycled water being used during production? Is less pollution being produced in operation than competing products? Hazardous materials use and disposal The incorrect use of some materials can lead to land degradation and health and safety risks. Consideration should be given to: Is this product considered a hazardous material? Is this product toxic to humans? Is it toxic to marine life? Is the product inflammable? Is the product biodegradable? Are the by-products of the degradation safe for the environment? Does the production of the good or service affect the environment? Are the products free of: banned substances heavy metals volatile organic compounds (VOC) toxic chemicals? Is there a competitive product that uses fewer chemicals or pesticides? Do the products emit VOC s or other air pollutants? Are there special requirements for disposal? Are there special instructions for use of the product to protect worker health and safety? Page 5 of 6

7 Packaging Unfortunately, packaging is hardly ever re-used and wastes scarce resources without adding much to a product s functionality. Some questions that should be asked include: Is packaging necessary? Has consideration been given to use bulk packaging? Can packaging be reused or recycled? Are recycled materials used in packaging? Service provider environmental/social record The service provider s environmental/social record is sometimes the only thing that can be checked. Where competing products have the same environmental impacts, the environmental/social performance of the service provider is the deciding concern. Some questions that can be asked include: Does the service provider have an environmental policy or Environmental Management System? Has the service provider developed an environmental management plan and set quantified objectives and targets for environmental improvement? Does the service provider have or plan programs for promoting resource efficiency? Is there evidence of environmental or waste audits by the provider? Has the service provider the capability to tender and bill electronically? Has the service provider conducted life-cycle analysis of the products or services (and any packaging)? Has any other established product verification process verified the environmental merits of the product? How engaged is the service provider with the local community? eg employ local people, involved with local organisations through sponsorship or in-kind support. Does the service provider have a progressive industrial relations policy? eg family friendly workplace. Page 6 of 6