Developing a Sustainability Integration Strategy

GHD was engaged to develop a strategy for the New Zealand Ministry of the Environment (MfE) to facilitate the integration of sustainability into local government procurement.

Local government in New Zealand has a significant impact on the economy, contributing 3.5 percent of GDP and employing around 40,000 people.

Most councils outsource infrastructure construction and maintenance activities and so the introduction of sustainability into council procurement processes presents a unique opportunity to positively influence the many thousands of suppliers to local government.  In turn, this will lead to sustainability principles being developed and incorporated into a wide range of suppliers and activities and affords councils the opportunity to meet their own sustainability objectives.

The GHD-developed strategy focuses on developing sustainability as a point of competitive advantage for the supply market and to normalise sustainable procurement as best value procurement by:

• The identification of existing tools and resources, (including integration of Government resources) that can be adapted and utilised
• The development of practical tools and resources that address any gaps not filled through the utilisation of existing material
• Accessible and effective guidance
• Reporting practices that both build council and business capability in this field and incorporate the concepts of whole of life costing and outcomes contracting into the procurement process

Although the proposed strategy’s major benefit is the potential impact on all council activity, there are subsidiary benefits. For example:

• Asset management – supporting development of a deeper understanding of how to value and manage the whole of life cost and impact of an asset through its natural cycle of creation, utilisation, and disposal or renewal.
• Workplace management – outcome based management of suppliers will support development of better workplace management for affected council and supplier staff and other stakeholders (eg: retailers in a street upgrade environment, or sports teams in a park).
• Environmental impacts – the program supports effective management of environmental impacts developing into a point of competitive advantage for suppliers targeting council work and thereby allowing market behaviour to drive improvement in sustainable delivery of projects, works and services.

In simple terms, this sustainability integration strategy will deliver increasing value for clients and suppliers as they continue to create, build, manage and use local government assets.