What You Procure Today, You Live with Tomorrow: Unlocking Sustainable Procurement

What is sustainable procurement, and why does it matter?

Infrastructure development carries a significant environmental footprint, driven largely by materials that are resource-intensive, carbon-intensive and usually locked in early on a project. Sustainable procurement builds environmental, social and governance considerations into every procurement decision- what to procure and who to procure it from- and its benefits go beyond emissions reduction, improving project efficiency and reducing ownership and operation costs over time.

Infrastructure Australia estimates the carbon embodied in extracting, transporting and manufacturing construction materials made up around 10% of Australia's total emissions in 2023, including 7% generated before construction was even complete. Once a material is specified and contracted, its embodied carbon can't be reversed; later efficiency measures don't undo emissions already locked in during production. That's why sustainable procurement belongs in early planning and design, while there's still time to test the market and build supplier relationships.

Why sustainable procurement is slowly becoming a requirement, not a choice

Rating schemes and delivery frameworks

Sustainable procurement gives a project a way of identifying which contractors and suppliers have built sustainability into how they manufacture and supply, enabling decisions based on broader value rather than price alone. The Infrastructure Sustainability Council’s (ISC) IS Rating Scheme and Transport for NSW’s Sustainable Design Guidelines (TfNSW SDGs) both incorporate sustainable procurement into their assessment and delivery requirements. Under the IS Rating Scheme, this sits within its own category assessed across procurement strategy, supplier selection, and contract and supplier management. TfNSW SDGs has a more specific criterion for procurement – contractors must meet steel and timber-specific procurement rules and deliver sustainability training to high-impact suppliers.

National policy landscape

Government policy is also moving towards more structured sustainable procurement through the Commonwealth’s Environmentally Sustainable Procurement Policy (ESP Policy). From 1 July 2024, it has applied to new construction-services procurements valued at $7.5 million or more, undertaken by covered Commonwealth entities. Administered by DCCEEW, it requires suppliers to submit a Supplier Environmental Sustainability Plan (SESP) and demonstrate outcomes through either a recognised sustainability rating or where no overall rating is set, through prescribed environmental metrics. From 1 July 2025, it also applies to ICT goods, textiles, furniture, fittings and equipment valued at $1 million or more. However, the policy does not automatically apply to privately procured or state-led infrastructure projects.

The National Sustainable Procurement in Infrastructure Guideline, released in 2025 for use by Australian Government, state and territory agencies, gives them a common approach to using procurement to cut carbon in infrastructure delivery. The guideline was developed to coordinate sustainable procurement approaches across land transport infrastructure, but it may also be applied to other infrastructure sectors. It should be noted that procurement is presented as one component of a broader carbon management approach.

Rating schemes define and verify best practice. Policies set minimum requirements. Together, they mean sustainable procurement is no longer a side consideration. It is becoming a defined project deliverable, supported by reporting requirements and evidence. Rating schemes and policies require sustainability commitments to be evaluated, monitored and demonstrated throughout delivery.

Where sustainable procurement gets stuck

Despite growing industry attention, turning sustainable procurement commitments into consistent project practice remains challenging. Some challenges that limit how effectively the commitments are applied across projects are identified below.

Lack of standardised metrics and uneven application: outside mandatory policy thresholds and project-specific rating requirements, sustainable procurement is often discretionary. This creates inconsistent application, particularly on smaller projects.

Short-term cost preference: the lowest priced tender is the easier option, while a thorough options assessment takes more time and internal support to progress. Costs avoided at tender may reappear later through construction delays, operational costs or supply chain risks.

Lack of awareness across the supply chain: many projects focus mainly on upfront costs. Sustainable procurement considers whole-of-life costs alongside the wider environmental, social and supply chain risks and benefits.

Australia has established transparent public procurement systems and is gradually strengthening its approach to sustainable procurement. However, the consistent application of sustainability requirements, particularly during early project planning, remains uneven.

What projects can do about it

Effective sustainable procurement starts before tenders are issued. Considering whole-of-life costs, supply chain risks and stakeholder input early helps projects make better-informed procurement decisions and avoid problems during construction and operation.

Whole-of-life costing: comparing total cost and impact across the asset’s life, rather than the lowest upfront cost, reframes sustainable procurement as a long-term financial decision. A material that costs more at tender may prove cheaper over time once maintenance, replacement, energy use and end-of-life are factored in.

Supply chain risk assessments: mapping supply chain vulnerabilities early lets a project put mitigation measures in place before they become a construction or operational problem. This gives projects time to diversify suppliers, adjust specifications or build in contingency, rather than reacting to a shortage or delay mid-delivery.

Early planning and workshops: bringing key stakeholders together early lets them agree on risks and mitigation options before key procurement decisions are locked in.

Supporting practical implementation

We help projects navigate the IS Rating Scheme, TfNSW SDGs and the Victorian Infrastructure Delivery Authority’s (VIDA) certification pathway. These frameworks provide structure and support projects in strengthening reporting and undertaking detailed assessment of material supply chain risks.

We also undertake these services as independent scopes of work, allowing projects to strengthen procurement practices even where a formal rating or certification is not being pursued.

We support projects through:

• Supply chain risk assessments

• Development of sustainable procurement strategies

• Supply chain sustainability workshops

• Procurement material compliance reviews

Embedding these actions early allows sustainability requirements to influence specifications, supplier engagement and procurement decisions before opportunities become limited. This can reduce exposure to supply chain disruption, avoid costs emerging later in delivery, improve material and supplier performance and support better whole-of-life value.

Infrastructure materials carry significant environmental and financial impacts, and many of these impacts are determined before construction begins. Sustainable procurement therefore belongs on every project, including those with modest budgets. Each project that applies it helps move the industry from treating sustainability as an additional requirement to making it a standard part of infrastructure delivery.

Interested in learning more about sustainable procurement? Reach out and chat to one of our team!