Department of the Environment, Water, Heritage and the Arts home page

About us | Contact us | Publications | What's new

Settlements Header ImageSettlements Header ImageSettlements Header Image

Publications

Environmental Purchasing Guide

Department of the Environment and Heritage, 2003
ISBN 0642 54955 9

s

Environment and Energy: Sustainable Procurement

Officers should be aware of Australian Government environmental legislation, policies, and performance targets that are relevant to the procurement of a wide range of goods and services. These considerations cover key sustainability issues such as energy, waste management, packaging, greenhouse gas emissions and environmental health. Section 516(A) of the Environment Protection and Biodiversity Conservation Act requires all Australian Government agencies to report on the environmental performance of their activities, including procurement.

Several other Australian Government policies place specific obligations on Government purchasers in relation to the environment. Some of these are listed below.

Document Issue Requirement
Measures for Improving Energy Efficiency in Commonwealth Operations Energy and greenhouse emission reduction Target of less than 10,000 MJ per person per year by 2002 for tenant's light and power use in Australian Government office buildings.
All new appliances to have 2-star or better Energy Rating under the Appliance Energy Efficiency Rating Label Scheme.
Departments and agencies to purchase only office equipment that meets the standards required to display an Energy Star label, where it is available and fit for purpose.
National Government Waste Reduction and Purchasing Guidelines Waste reduction Agreement to work towards whole-of-Government waste reduction and purchasing policies; individual agencies to adopt waste reduction and purchasing plans; effective monitoring and reporting systems to track implementation.
National Packaging Covenant Reduce the environmental impacts of packaging As a signatory, the Australian Government has agreed to facilitate implementation of purchasing policies for recycled goods.
Environment Protection and Biodiversity Conservation Act 1999 Environmental reporting Australian Government agencies to include information about their performance on Ecologically Sustainable Development (ESD) principles in their Annual Reports.
Commonwealth Procurement Guidelines Life cycle costing Officials buying goods and services need to be satisfied that the best possible outcome has been achieved, taking into account all relevant costs and benefits over the whole of the procurement life cycle.
National Greenhouse Strategy Encourages purchasing which takes into account operating energy costs as well as capital cost for assessment and selection of tendered goods and services.
National Occupational Health and Safety Commission Occupational Health and Safety (including chemicals and toxics risks) The National Occupational Health and Safety Commission (NOHSC) advise that suppliers of hazardous substances to the workplace must provide appropriate Materials Safety Data Sheets (MSDS).
Other Environmental Management Systems (EMS) Government has encouraged all departments and agencies to:

* join the Greenhouse Challenge Programme; and
* implement an Environmental Management System and accredit one large site by December 2003.

For more information about the environmental priorities and programmes of the Commonwealth, please see the Government environment portal at: www.environment.gov.au

Model Chief Executive's Instructions

Chief Executives may reinforce Australian Government policy requirements to take account of environmental issues in purchasing activities through their Chief Executive's Instructions (CEIs). Under Section 52 of the Financial Management and Accountability Act and the subordinate Regulation 6, Chief Executives of departments are authorised to issue CEIs to their department on a range of issues, including:

Chief Executives may issue instructions to clarify how environmental issues should be considered in purchasing and how this consideration should be reported. An environmental purchasing CEI can also assist in ensuring that purchasing off-contract and without tender follows the environmental purchasing policy of your organisation. Chief Executives are invited to contact the Department of the Environment and Heritage for assistance in formulating CEIs in relation to environmental purchasing.

If you have a useful CEI for environmental purchasing that you would like to share with other agencies, please advise the Department of the Environment and Heritage.

© Commonwealth of Australia