Procurement, often viewed as a back-office function, is one of the most powerful tools available to align public spending with national sustainability goals, writes Monica Beven.
The Australian Government’s Environmentally Sustainable Procurement Policy, introduced in 2023, may seem like another administrative regulation. But if implemented intentionally, it can become a strategic lever to shift entire industries toward environmentally sound practices. The question is: will we let procurement remain a transactional process, or will we reimagine it as a force for environmental leadership?
What sustainable procurement really means
Sustainable procurement isn’t about simply choosing the “green” product on a list – it’s about buying better. That means considering the entire lifecycle of a product: how it’s made, used, and ultimately disposed of. In sectors like ICT, which involve complex global supply chains and immense energy consumption, the implications are enormous. By demanding smarter, more sustainable products, the government sends a powerful market signal that can shift how entire industries produce and deliver goods.
This kind of strategic procurement is not just about reducing environmental harm. It’s also about stimulating innovation. When suppliers are encouraged to offer take-back schemes, repairability, energy efficiency, and circular design, they are motivated to compete on sustainability, not just price. That’s when real change happens.
The ESP Policy
The ESP Policy is notable for its broad but intentional framing. It applies initially to major construction procurements and, since 1 July, to ICT, furniture, and textiles for contracts over $1 million. While it outlines 14 sustainability principles across climate, environment, and circularity, it doesn’t require a one-size-fits-all approach. Instead, it allows agencies to tailor sustainability considerations to the specific procurement – balancing ambition with practicality.
Critically, the policy requires suppliers to submit a Supply Environmental Sustainability Plan as part of their bids. These plans become part of the contract itself, binding suppliers to their sustainability commitments. This accountability mechanism, combined with a reporting requirement, moves sustainability from a feel-good aspiration to a contractually enforceable obligation.
And yet, even the best policies are only as effective as the people implementing them. That’s where training, culture change, and stronger evaluation tools come in.
Certification: a trustworthy shortcut to smarter buying
One of the biggest challenges in sustainable procurement is verifying supplier claims. That’s where certification, such as TCO Certified in ICT, plays a critical role. A reputable, third-party certification does more than slap a green logo on a box. It provides independent verification of sustainability claims and ensures that suppliers are held accountable across the full supply chain, from raw materials to factory conditions.
But it’s not about relying on labels blindly, procurement professionals should ask hard questions. Is the certification multi-attribute? Is it updated regularly? Is verification independent and mandatory? And perhaps most importantly: can it be revoked if suppliers don’t comply?
Used strategically, certifications allow procurement officers to reward suppliers who are serious about sustainability while filtering out the greenwashers.
Real-world lessons
In practice, implementing ESP isn’t always smooth and asking suppliers to provide sustainability data is only half the battle. Evaluating those responses is often just as difficult. Many suppliers are still learning how to communicate their sustainability credentials effectively. And evaluators need training and tools to distinguish between empty promises and meaningful commitments.
Still, the tide is turning. Suppliers are starting to provide stronger evidence, particularly when encouraged to innovate rather than respond to overly prescriptive specs. And when sustainability requirements are integrated from the start, rather than bolted on at the end, they’re more likely to yield real impact.
What’s more, other jurisdictions are leading by example. Countries like the Netherlands and France use certifications not just to ensure compliance, but to strategically steer industry. In the US, states like Washington are banning hazardous chemicals by demonstrating that sustainable alternatives are available, using certifications as proof.
Procurement as a climate strategy
Ultimately, sustainable procurement is not just about policy compliance. It’s about aligning public spending with Australia’s net zero targets. One of the most impactful, yet often overlooked, actions agencies can take is extending product life. Data shows that even a one-year extension in a product’s use can drastically reduce its environmental footprint. Government buyers can enable this by prioritising durability, repairability, and reuse.
But perhaps the most important takeaway is this: procurement shapes markets. When government consistently demands environmentally responsible products, suppliers adapt. Innovation flows upstream. Markets shift. Standards rise. And the cumulative effect, one procurement at a time, can be transformative.
Lead with intention
Sustainability in procurement isn’t just a checkbox, it’s a chance to lead. With the right policies, certifications, and mindset, we can make every dollar of public spending count for the planet. The tools are here. The expectations are clear. The moment to act is now.
Let’s stop treating procurement like a transaction, and start using it as a tool for transformation.
Monica Beven – advisor at Proximity, an SPA Australia company
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