Australia and New Zealand Recycling platform (ANZRP) welcomes Federal Government procurement initiative.

ANZRP applauds the Federal Government for its commitment to enhancing the domestic circular economy. Leveraging its purchasing power to bolster local demand for recycled content goods is a commendable step toward reducing waste and promoting sustainability.

The timing of announcement coincided with the launch of the CRDC Victoria RESIN8 plastic recycling plant where a key theme of the event, attended by industry delegates, was that you only recycle successfully “when you buy recycled”. In other words, it is only when products made with recycled content come back onto the market and back in use, that we have closed the loop. CRDC Victoria is a joint venture initiative launched by CRDC Global and ANZRP which serves to improve the economic circularity of technology products in Australia by capturing the e-waste plastic (as well as other hard to recycle plastics) and refining these to make value added building products. It is when these building products are used in construction projects that we can claim recycling to have been a success.

What does the Environmentally Sustainable Procurement Policy entail?

The inaugural Environmentally Sustainable Procurement (ESP) Policy, a landmark initiative by the national government, reflects the insights outlined in the Circular Economy Ministerial Advisory Group interim report. This policy acknowledges that market forces, rather than end-of-pipe solutions, will be the primary catalyst for change. It emphasizes the importance of manufacturing products with recycled content and actively fostering markets for them, rather than solely focusing on finding new homes through post-production efforts.

At a high level, the government will buy products that:

• minimise greenhouse gas emissions.
• are safe for the environment.
• retain their value for longer.

At its core, this policy is about delivering a future remade in Australia – remaking, remanufacturing and recycling more goods to boost jobs while better protecting the environment. By generating demand for these products, we will support Australia’s transition to a net zero, circular economy.

The ESP Policy acknowledges that the Australian Government’s significant and consistent procurement expenditure is a crucial lever for driving the desired change. This policy is crafted to catalyse industry investment and foster innovation in sustainable goods and services by creating substantial demand on a large scale. The policy also sets out the principles and focus areas which form the basis for consideration and improving environmental sustainability. These focus areas are:

• climate,
• the environment; and
• circularity

The ESP Policy also delivers on objectives that are articulated in the National Waste Policy Action Plan – a framework that drives implementation of ambitious targets including reducing waste by 10% per person by 2030; recover 80% of all waste by 2030; and significantly increase the use of recycled content by governments and industry.

What are some of the Environmentally Sustainable Procurement (ESP) Policy highlights from an ANZRP Member perspective?

The ESP Policy will initially focus on four procurement categories which form a significant portion of federal government spending. These are:

• Construction Services,
• Furniture, Fittings and Equipment,
• Information and Communications Technology (ICT); and
• Textiles

Two of the procurement categories are of particular relevance to ANZRP and our Members, given they intersect with our mission and values. These are ICT and Construction Services. Specifics are provided below.

 

Procurement category	Value threshold for Policy application	Commencement date
ICT	≥ $1m (including GST) total estimated procurement value	Phase Two 1 July 2025
Construction Services	≥ $7.5 million (including GST) total estimated procurement value	Phase One 1 July 2024

 

While ANZRP members do not directly place construction services or products on the market, our joint venture partnership with CRDC Victoria does so. Therefore, our sector has a vested interest in and acknowledges the implications for the circularity of ICT products.

How will the policy be applied?

Suppliers to the federal government will be required to report against environmental sustainability metrics, through a Supplier Environmental Sustainability Plan (SESP). The SESP is to be submitted as part of the tender documentation.

Procurement officials will then be required to evaluate SESP taking into consideration:

• proposed approach to optimising environmental sustainability outcomes in the delivery of the contract
• proposed approach to substantiating environmental sustainability claims
• proposed environmental outcomes in the SESP and how they align with the focus areas and principles specified
• corporate commitment to environmental sustainability

ANZRP is enthusiastic about Minister Plibersek’s policy announcement and the opportunities it presents for our members.

 

For more information:

Delivering a future remade in Australia media release

Environmentally Sustainable Procurement Policy and Reporting Framework