Green Information and Communications Technology (ICT) Procurement Toolkit
June 2010
Introduction
Australian Government agencies are major consumers of information and communications technology (ICT) products and services. To better manage and reduce the environmental impacts from the use of ICT, the Australian Government encourages government agencies to consider the effect of ICT on the environment.
Under the Commonwealth Procurement Guidelines, agencies must make a whole-of-life assessment of the costs of alternative procurement processes or solutions. This includes consideration of all relevant direct and indirect benefits and costs over the whole procurement cycle and the anticipated price that could be obtained, or cost that may be incurred, at the point of disposal of the asset.
Australian Government policy requires agencies to consider relevant environmental costs and benefits, such as disposal costs or operating energy consumption, as part of the value-for-money equation in procurement decision-making.
The Energy Efficiency in Government Operations (EEGO) [
] policy, released by the Australian Government in 2006, seeks to improve energy efficiency and reduce the whole of life cost and environmental impact of government operations. The policy sets targets for reduction in energy intensity of government agency operations.
In 2008, the Review of the Australian Government's use of Information and Communication Technology, conducted by Sir Peter Gershon CBE FREng, recommended the development of an ICT sustainability plan to better align the Government’s overall sustainability agenda and its ability to understand its energy costs and the footprint of its ICT estate.
The Review also recommended the development of a green ICT procurement toolkit to support agencies when considering environmental issues in relation to ICT products and services, including raw materials acquisition, manufacture, distribution, use and disposal.
This Toolkit has been produced in response to that recommendation. It provides clauses which can be incorporated into Request for Tender (RFT) documents and in resultant contracts. Not all clauses will be applicable to a given procurement activity. The clauses cover many aspects of sustainability that may not be relevant to a particular circumstance.
This Toolkit can be used now, but should be read in conjunction with the Australian Government ICT Sustainability Plan 2010-2015[].
The Australian Government ICT Sustainability Plan
Government agencies can reduce the impact of their ICT activities on the environment by adopting sound operating principles and practices.
The Australian Government ICT Sustainability Plan 2010-2015[] complements the Government’s current policies, guidelines and infrastructure in relation to climate change and improved environmental performance. This plan also takes into account relevant Government and industry initiatives relating to product stewardship, including the National Packaging Covenant [] and the National Waste Policy [].
Why is it important to consider the impact of ICT on the environment?
In April 2007, Gartner estimated that the global ICT industry accounted for 2% of CO2 emissions, on a par with the aviation industry (1). Gartner also estimated (in November 2006) that large IT organisations spend between 4% and 10% of their total ICT budgets on energy and that this number may quadruple by the end of 2011 due to the twin factors of power-hungry hardware and rising energy costs (2).
Growth in the use of ICT has prompted government agencies to consider how to better manage and reduce the potential environmental impacts resulting from using ICT products and services.
Management of the environmental impact of ICT products and services within agencies should be an ongoing and evolving activity. It is anticipated that agencies’ approaches will vary depending on specific project requirements, their individual progress on the management of the environmental impact of ICT, resource availability, priorities and constituency expectations.
Through better purchasing, use, recycling and disposal of ICT products and services, agencies can reduce the Government’s carbon footprint. The benefits of environmentally responsible use of ICT will not only improve sustainability but will also allow agencies to reduce their costs.
How can I use the Toolkit?
This Toolkit has been developed in conjunction with the Australian Government ICT Sustainability Plan 2010-2015[] and is aimed at agency staff responsible for managing the procurement of ICT products and services.
Environmental issues in relation to ICT products and services may occur at any or all stages of the product’s life cycle. This includes during raw material acquisition, manufacture, distribution, use and disposal. When procuring new ICT products and services, it is important to consider their impact on the environment.
Agencies can use the Toolkit in the following manner:
- to add clauses to Request for Tender documentation to address management of the environmental impact when procuring ICT products and services
- to add clauses to subsequent contracts identifying priority areas for the environmental treatment of ICT
It should be noted that this Toolkit is not intended to be comprehensive and address every possible scenario for procuring ICT products and services. Rather, it highlights key issues for agencies to consider when managing the procurement of ICT resources. The Toolkit will be reviewed and updated to reflect developments in the area of environmental standards as they are developed and promulgated.
Procurement officers should also note that the Australian Government has established a coordinated procurement contracting framework to deliver efficiencies and savings from goods and services in common use by Australian Government departments and agencies who are subject to the Financial Management and Accountability Act 1997 (FMA Act) []. Coordinated contracting aims to obtain better pricing through aggregation of government purchasing power. In particular, coordinated contracting covers:
- telecommunications
- desktop computers
- major office machines
Products and services falling under those categories should be procured through the coordinated arrangements. Environmental considerations will be included as part of these arrangements. Procurement officers should refer to the Whole-of-Government Procurement Contracts, Arrangements and Initiatives for further details.
This flowchart illustrates the major considerations required prior to incorporating the clauses into any procurement documentation (link to text alternative follows).
Text Alternative for the Flowchart
Frequently Asked Questions
What environmental considerations should I undertake before I approach the market?
The environmental considerations when purchasing ICT products or services will depend on the department or agency involved. Agencies should manage and forecast demand of products or services so that procurement of ICT products or services should:
- entail a life-cycle costing approach, such as using total cost of ownership or whole‑of‑life methodologies
- involve ICT products or components that are reusable, recyclable and/or contain recycled content
- reduce the environmental impact of those goods and services where practicable
Agencies may wish to deal with ICT suppliers and manufacturers that:
- demonstrate a commitment to corporate social responsibility, ethical behaviour and sound governance structures
- have programs that:
- restrict the use of hazardous substances
- take back products at end-of-use or end-of-life for responsible reuse, recycling, remanufacture, and/or resource recovery
- minimise water use, waste and packaging in the production of the products or services
Why do I need to include these clauses in a Request for Tender / Contract?
The 2008 Review of the Australian Government's use of Information and Communication Technology found that the Australian Government should take a leading role in Green ICT and actively consider environmental factors as part of its ICT purchasing. The review recommended the use of mandatory environmental criteria during evaluation of ICT tenders by purchasing officers.
The Australian Government ICT Sustainability Plan 2010-2015[] identifies mandatory environmental standards for use in relevant ICT acquisitions. In addition to mandatory environmental criteria, agencies are required to adopt environmental sustainability principles and practices when procuring ICT equipment, software applications and consumables.
What are these clauses intended to cover?
These contract clauses have been developed to ensure that the environmental policies and criteria included in the approach to market for the ICT products and services are reinforced through any Contract entered into between the Contractor and the procuring agency. The clauses request prospective respondents to demonstrate their capability to meet and maintain excellent corporate environmental credentials when addressing the following elements:
- reducing carbon footprint
- recycling of equipment or parts
- disposal of packaging
The clauses enable all prospective respondents to identify where or how environmental impacts could be minimised in areas including, but not limited to, power consumption, cooling requirements and e-waste disposal.
Tenderers may also be asked to provide information on any other environmental benefits of their ICT products and services.
Do the clauses cover all possible situations regarding ICT sustainable procurement?
No. The clauses are not prescriptive but rather provide an overarching framework for individual agencies to incorporate into their existing procurement practices to the extent required. Please seek clearance from your lawyers/legal area before releasing terms and conditions in proposed Contracts to the market as part of the RFT documentation.
Utilisation of these clauses by agencies has the potential to contribute to improved whole of government environmental efficiency.
Are these clauses included in existing contracts such as SourceIT or Government Information Technology and Communications (GITC)?
The current versions of the SourceIT model contracts do not include any reference to environmental sustainability requirements. The user guides for these model contracts do however suggest reference to the Environmental Purchasing Guide [] and the Green Office Guide [] issued by the Department of Environment, Water, Heritage and the Arts and Measures to support Environmentally Friendly ICT published by the Department of Finance and Deregulation. Agencies should also consider these publications where they require removal of equipment to be specified in the contract.
Must I use these clauses in my Request for Tender / Contract?
The Australian Government requires departments and agencies to be aware of relevant government policy, including environment and whole-of-life issues when formulating purchasing requirements, specifications and requests for offer as part of the procurement process. For example, these may require that goods and services:
- comply with occupational health and safety requirements
- meet environmental best practices in energy efficiency and/or consumption
- are environmentally sound in manufacture, use and disposal
- are reusable or recyclable, designed for ease of recycling, re-manufacture or otherwise minimise waste
- are designed and made for reliability, long life and easy upgrading or updating
These clauses are designed to address these issues.
What do I do if the clauses refer to something my agency does not do or have?
The clauses are provided as an overarching framework that can be modified to suit an agency's needs as required. Clauses that are not applicable should be removed.
An agency’s Environmental Policy will influence its procurement activities. Environmental factors that should be considered by an agency include:
- use of materials and processes in manufacturing the ICT products
- energy consumption
- Greenhouse Gas emissions
- Restriction of Hazardous Substances (RoHS)
- reduction of waste
- packaging
- end-of-life recycling
Environmental Reporting Requirements
There are several mandatory reporting requirements of which agencies need to be aware:
- The Financial Management and Accountability (FMA) Act 1997 (Section 44) [] requires the Chief Executive of each department and agency to promote the efficient, effective and ethical use of resources for which they are responsible.
- The Environment Protection and Biodiversity Conservation Act 1999 (Section 516A (6)) [] sets out mandatory reporting requirements for Heads of Agencies and directors of any Commonwealth authorities, including reporting on measures that the agency is taking to minimise the impact of the agency's activities on the environment.
- The National Packaging Covenant[] sets out a range of actions including establishing purchasing policies to reduce waste the Australian Government has agreed to as a signatory to the Covenant.
- The 2006 Energy Efficiency in Government Operations (EEGO) Policy [] sets the strategy for Australian Government agencies to achieve revised energy intensity portfolio targets by the 2011-2012 financial year.
Key resources
- Green Office Guide [] (2001) Environment Australia.
- The Environmental Purchasing Checklist - Personal Computers and Monitors (2003) []
- Measures to Support Environmentally Friendly ICT (2005). Department of Finance and Deregulation.
- Cross Portfolio Audit of Green Office Procurement Report [] (2005-06). Australian National Audit Office
- 2006 e-Government Strategy, Responsive Government: A New Service Agenda (2006). Department of Finance and Deregulation.
- Australia State of the Environment Report 2006 []. Australian State of the Environment Committee.
- Energy Efficiency in Government Operations (EEGO) Policy [] (2006). Department of the Environment, Water, Heritage and the Arts.
- Australia's Environment: Issues and Trends 2010 []. Australian Bureau of Statistics.
- Review of the Australian Government's use of Information and Communication Technology [
2.56 MB] (2008). Department of Finance and Deregulation. - National Waste Policy [] (2009). Department of the Environment, Water, Heritage and the Arts
- Australian Government ICT Sustainability Plan 2010-2015 [] (2010). Department of the Environment, Water, Heritage and the Arts
Downloads
The Toolkit provides commentary and advice in relation to the use of the RFT and contractual clauses in 
<PDF> and 
<RTF> formats. The clauses without commentary are also available in <PDF> and <RTF> formats.
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RTF |
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Green ICT RFT Clauses |
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Green ICT RFT Clauses (with commentary) |
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Green ICT Contract Clauses |
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Green ICT Contract Clauses (with commentary) |
Footnotes:
1. Gartner Press Release (April 26, 2007), Gartner estimates ICT industry accounts for 2 percent of global CO2 emissions []
2. Gartner Press Release (November 7, 2006), Gartner says look beyond power issue as pressure mounts for 'greener' IT []
Comments
Comments about the Toolkit can be directed to:
Green ICT Team
Australian Government Information Management Office
Department of Finance and Deregulation
King Edward Terrace
Parkes ACT 2600
Email: greenict@finance.gov.au
Contact for information on this page: GreenICT@finance.gov.au