Greening Government procurement will improve the Australian Government's environmental performance and could stimulate broader environmental benefits. Positive commercial outcomes for both the Australian Government and greener industries are foreseeable from a greener procurement strategy.
The beneficial aspects of greener public procurement may include:
Policies to "green" government procurement are being developed and implemented by many international governments. The European Commission reports that...
as public procurement amounts to over €1,000 billion every year across the European Union (14% of EU GDP), 'greening' these purchases could contribute substantially to sustainable development .
The Green Office Guide provides information for Australian Government procurement officers on buying environmentally friendly office equipment and how this can reduce operating and environmental costs. Advice is provided on the full range of office equipment and also a range of features such as Energy Star, Green Power, energy management software. Some case studies and references are also provided.
Australian Government Procurement Guidelines and Best Practice Guidance clarify what is required and expected in Australian Government procurement activity. The guidelines allow agencies to decide how best to handle their affairs, taking account of their own circumstances and the nature of the markets in which they are operating. These core policies and principles are intended to strike a balance between prescription and empowerment so as to encourage agencies to obtain the best value from procurement, on a whole of life basis.
The support of Government policies, including environmental considerations, is included within the Australian Government Procurement Guidelines. Agencies and their officials have an obligation to reflect the requirements of relevant government policy in the way they do business .
The Department of Finance & Administration guidelines state ¼
Value for money is the basis for comparing alternatives so buyers can choose the most cost-effective outcome. This requires careful comparison of costs, benefits and options. In any particular case, the benefits should be at least commensurate with the costs.
Price alone is not often a reliable indicator of value for money. Best value for money means the best available outcome when all relevant costs and benefits over the procurement cycle are considered. Buyers will not necessarily obtain the best available value for money by accepting the lowest-priced offer that meets mandatory requirements. Environmental attributes are a core principle in relation to the support for other Australian Government policies.
When developing tender documents and contracts, agencies should consider including appropriate clauses covering environmental principles to guide the potential provider. Contracts should consider 'green' purchasing principles as well as the specific conditions and requirements of the contracting agencies as part of the procurement process. Agencies should give preference to products and services identified as "environmentally preferable" where quality, function and costs are equal or superior.
In addition, agencies should give preference to products which are recyclable or contain recycled content where they are suitable, environmentally preferred and of comparable cost and quality to other products.
Agencies are encouraged to consider:
The inclusion of an environmental clause in tender documents and contracts is an effective way of instigating environmental issues in procurement. The Dutch Government, for example, uses an 'environmental clause' in tenders that requires suppliers to supply detailed information on their product's performance against a set of criteria. The clause requires suppliers to guarantee the accuracy of the information they supply and to take back recyclable goods they have supplied and to recycle them at the end of use.