New procurement policy will drive “future remade in Australia”: Plibersek

The federal government has launched its Environmentally Sustainable Procurement Policy, which will be phased in from July and initially see companies bidding for government construction services contracts needing to meet agreed sustainability outcomes, including products with recycled content.

In an announcement from environment minister Tanya Plibersek (pictured on right) on Wednesday, two phases of the policy were mentioned:

• From July 1 this year, businesses bidding for construction services projects at or above $7.5 million will have to meet agreed sustainability outcomes, which could include “cutting or repurposing waste and replacing single-use materials with recycled materials.”
• From July 1, 2025, the policy will also apply to tenders for “textiles, ICT goods, and furniture, fittings and equipment above $1 million”, and may include requirements “to recover and recycle worn out uniforms that can be processed into new materials.”

(The Environmentally Sustainable Procurement Policy and Reporting Framework, including verification measures for the product categories, can be accessed here.)

The potential to deliver environmental and job-creation benefits were cited in selection of product categories. According to the statement, the first phase will apply to two per cent of construction services procurement contracts, but capture 50 per cent of the value of those contracts.

“This will deliver a future remade in Australia, creating opportunities and demand for goods to be recycled and remanufactured right here. It’s a win for business, and a win for the environment,” said Plibersek.

“Just as many Australians look for recycled content or environmentally friendly products at the supermarket, the Australian Government will use our purchasing power to back cleaner, smarter, more environmentally sustainable businesses.”

About 60 per cent of federal-level suppliers already collect sustainability data for their products.

Picture: Tanya Plibersek/X