The New Zealand Government spends about $51.5 billion on goods and services each year. But its advice on doing so sustainably is vague and lacks meaningful targets.
By embedding sustainability into procurement, suppliers must rise to the challenge if they want to secure valuable contracts and tenders.
In short, sustainable procurement fosters a low-emissions, circular economy and helps scale green innovation through the award of valuable contracts. All the good stuff. But even if you don’t give a hoot about the environment or Freddy the Frog, there are still benefits to be had.
For example, the South Korean Government created its own comprehensive ecolabel Keiti, back in the 90s, with a view to all departments using it for sustainable procurement.
Fast forward to 2017, and a study by the United Nations Environment Programme found this simple directive reduced emissions by 650,000 tonnes that year, created 4500 jobs and saved the Government more than USD$60 million ($105m) due to the purchase of durable and efficient products.
Sustainable procurement has proven so effective for Korea, it is now one of its Nationally Determined Contributions as per its obligation to limit global warming under the Paris Agreement (New Zealand is also a signatory) and is arguably the most high-impact, low-cost emissions reduction tool at it, or any Government’s disposal.
Fun fact, a National-led Government established its own ecolabel, Eco Choice Aotearoa, the very same year as Korea (1992). Less fun fact, it was set up as an independent non-profit and has never been properly funded or utilised by any Government since. With the cessation of the Government Initiative for Decarbonising Industry (Gidi) project and few other proven and affordable initiatives to decarbonise on the horizon, perhaps it’s time to recognise the value of a non-regulatory instrument, already in the toolbox.
Some government departments have actively sought to exercise the impact and influence they can have through procurement. Corrections recently chose to purchase cleaning products from social enterprise Will&Able; an organisation that employs people with disabilities who would otherwise struggle to find meaningful work. Will&Able’s products are also certified as environmentally preferable by Eco Choice Aotearoa, containing no unnecessary chemicals.
With 26 prisons nationwide, the contract is a game-changer for Will & Able. After having to let staff go during Covid, they’re now looking to rehire them. And guess what? According to Corrections, Will&Able’s products are cost comparable if not cheaper than others on the market.
Sustainable procurement isn’t just for government departments or local councils, though. Corporations also have a great deal of buying power in this country, and perhaps even more incentive to use it wisely. In addition to limiting supply chain risk, sustainable procurement offers a fast track to achieving environmental, social and governance (ESG) goals – ultimately keeping banks, shareholders and various other VIPs happy.
So on World Environment Day today, I’d like to give you a wee gift; something to help you get started on your sustainable procurement journey. Eco Choice Aotearoa and the Procurement Excellence Forum have partnered on a toolkit to help you buy better for people, planet and your bottom line. Use it, and make every dollar you spend contribute to a thriving Aotearoa for future generations.
