Sustainable procurement. How do you demonstrate your commitment to sustainability in your tender?

Governments are increasingly looking to award contracts to suppliers that can demonstrate their commitment to sustainability.

But what does this really mean?

It means that as a supplier, you need to be able to show your responsibility to sustainability in all aspects of your tender response.  Sustainable procurement includes how you will reduce your environmental impact, your social responsibility initiatives, and economic development programs.

By taking these steps, you can increase your chances of winning government tenders and contracts.

So how do you demonstrate this commitment in your tender submission? 

Glad you asked – read on.

Why is there a push on a commitment to sustainable procurement?

Firstly, we need to understand why the push by the Australian Government to award tenders and contracts to suppliers that can demonstrate their commitment to sustainability.

This is due to a number of factors, including:

Climate change

Governments are under increasing pressure to take action on climate change.

By awarding tenders and contracts to sustainable suppliers, governments can reduce their own environmental impact and encourage other businesses to do the same.

Social responsibility

Governments are also becoming more interested in supporting social and economic development.

By awarding tenders and contracts to suppliers that are committed to social responsibility, governments can help to create jobs, reduce poverty, and improve the lives of Australians.

Innovation

Governments are also looking for suppliers that can come up with new and innovative solutions to their challenges.

Sustainable suppliers, generally, tend to be more innovative, as they are constantly looking for ways to reduce their environmental impact and improve their social and economic performance.

Some governments, provide financial and other support to suppliers to help them to improve their sustainability performance. This support can include grants, tax breaks, and access to technical assistance.

HINT! Look out for government programs that recognise and reward sustainable suppliers. These programs can provide your business with publicity, awards, and other benefits.

How do you demonstrate your commitment to sustainable procurement when bidding for government tenders and contracts?

Reducing your environmental impact

As a supplier, you can reduce your environmental impact by using renewable energy, reducing your waste, and using sustainable materials in your products and services.

Although a lot of environmentally friendly solutions take time and money, and may require some forward planning, there are also ways that your business can incorporate some quickly.  

Let’s look at some ideas –  

Using renewable energy

• Install solar panels on the roofs of factories and warehouses
• Purchase electricity from renewable energy providers
• Use biofuels or electric vehicles for transportation
• Switch to energy-efficient lighting and appliances

Reducing waste

There are many companies in Australia who can help your business in waste management.

Ways to reduce your waste can include –

• Implement a waste management plan that reduces, reuses, and recycles waste
• Use recycled materials in products and packaging
• Donate surplus food and other goods to charities
• Compost food scraps and other organic waste

Using sustainable materials

Use certified sustainable materials in products and packaging, such as recycled paper, Forest Stewardship Council (FSC) certified wood, and Fairtrade cotton.

Look at sourcing materials from local suppliers to reduce transportation emissions

Design products for durability and repairability

Reducing your water consumption

Suppliers can reduce their water consumption by implementing water-saving measures such as rainwater harvesting, water recycling, and wastewater treatment.

Reducing your air pollution emissions

Suppliers can reduce their air pollution emissions by using cleaner fuels and technologies, and by reducing their waste.

Protecting biodiversity

Suppliers can protect biodiversity by sourcing materials from sustainable sources and by protecting habitats in the areas where you operate.

These steps are just a few ways that you can make a significant contribution to reducing the environmental impact of your operations.

Supporting social and economic development

You can support social and economic development by creating jobs, paying your employees fair wages, and sourcing from local suppliers.

Being transparent and accountable

Be transparent about your sustainability performance and accountable to their stakeholders. This means reporting on their sustainability progress and allowing stakeholders to provide feedback.

Here are some specific examples of how suppliers can show how they will reduce their environmental impact and support social and economic development in their tender responses:

Environmental impact

Provide information on your energy consumption and greenhouse gas emissions, and how your company is working to reduce them.

Also, demonstrate your waste management practices and how they are working to reduce your waste.

Communicate the sustainable materials that they use in their products and services.

Social and economic development

Demonstrate the number of jobs that winning this tender will create and the average wage that you will pay your employees.

You can provide information on the percentage of their goods and services that you source from local suppliers.

Provide information on how they support social and economic development in the communities in which you operate.  This could include supporting education programs, healthcare initiatives, and other community development initiatives.

Need help communicating your commitment to sustainability?  Want to increase your chances of winning government tenders and contracts?

Sustainable procurement tips for suppliers who are bidding for government tenders and contracts

Here are some tips, you can increase your chances of winning government tenders and contracts that are awarded to sustainable suppliers.

Be aware of the government’s sustainability requirements.

Many governments now have sustainability requirements in place for suppliers. Make sure that you are aware of these requirements and that your tender response addresses them.

Highlight your sustainability strengths.

When writing your tender response, ensure you have communicated and highlighted your company’s sustainability strengths. This could include your environmental performance, your social responsibility initiatives, or your commitment to innovation.

Provide evidence to support your claims.

Don’t just make claims about your sustainability performance. Provide evidence to support your claims, such as case studies, certifications, or awards.

Be prepared to answer questions about your sustainability performance.

Tender evaluators may ask you questions about your sustainability performance during the tender process. Be prepared to answer these questions in a clear and concise manner.

Australian governments are helping to create a more sustainable supply chain. This is beneficial for everyone involved, including governments, suppliers, and customers.