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South Australian Government announces new policy on sustainable procurement

South Australia

South Australia’s state government has introduced a new Sustainable Procurement Policy as it accelerates its goal of net zero emissions by 2050 across infrastructure and transport programs.

The Department for Infrastructure and Transport will ensure sustainability risks and opportunities are identified as part of procurement planning, and appropriate requirements are included in tender and contract documents in line with net zero emissions targets.

As part of the policy’s framework, suppliers may be asked to provide information on the carbon footprint of their products or services. They may also be quizzed on what actions they are taking, or plan to take, to reduce emissions.

Suppliers can expect questions that will be tailored according to specific sustainability risks or opportunities involved, but may relate to greenhouse gas emissions, resilience to climate change and resource efficiency, as well as social or environmental aspects.

Suppliers who operate vehicle fleets as part of service delivery contracts will also be required to participate in the Government’s EV Fleet Pledge program, which encourages local business to undertake the transition to electric vehicles.

Additionally, by mid-2024 all contractor’s bidding for work over a $50 million threshold will be required to have organisational emission reduction targets that address emissions from their own fuel and electricity use, as well as in their supply chain.

The state government has also pledged to purchase climate-smart goods and services to reduce its own carbon footprint and drive the transition to a low emission economy.

It said in a statement, “By using its procurement power to support suppliers who offer low carbon products, the South Australian government can help to create viable markets for these products and foster the growth of climate-smart businesses in South Australia.”

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