The Sustainable Procurement guide for local government in NSW was developed by Local Government NSW as part of the ESSTAM project in 2017.
Sustainable procurement takes into consideration the responsibility for the economic, environmental, social and governance impacts of any purchase – products or services. These four factors are referred to as the quadruple bottom line and relate to a total purchase cost, and not just the upfront dollar expense. More broadly, sustainable procurement considers the:
- cost and economic impact of the purchase
- environmental impact of the growth, manufacture and transport of the product or service
- social and ethical implications, and
- application of good governance.
The majority of impacts come from the supply chain across the globe and have previously been ‘out of sight, out of mind’. Sustainability is now an essential part of procurement – to ensure purchasing decisions are based on sound principles that maximise the benefit to society and meet community expectations while also protecting against reputation risks. The importance for the public sector to use sustainable procurement is even greater, as there is a duty to spend public funds responsibly and in a way that can stand up to the rigours of community scrutiny.
