The untapped potential of sustainable public procurement – our NDC2 submission - Eco Choice Aotearoa

Our recent submission for Aotearoa New Zealand’s second Nationally Determined Contributions (NDC2) highlighted the critical role Sustainable Public Procurement (SPP) can play as a high-impact, emissions reduction tool.

What is Sustainable Public Procurement?

SPP focuses on leveraging government purchasing power to prioritise environmentally and socially responsible products and services—a strategy that is not only cost-effective but also proven to generate significant climate and economic benefits.

As global examples show, Sustainable Public Procurement is a transformative tool. Korea, for instance, reduced emissions by 665,000 tonnes in one year through ecolabel procurement, saving $60 million and creating over 4,000 green jobs.

Similarly, the US mandates sustainable environmental practices in 95% of its federal contracts. These models demonstrate the power of SPP in aligning economic development with climate action, a path New Zealand is uniquely positioned to follow.

Why focus on SPP?

New Zealand is lagging behind in implementing sustainable public procurement. According to the United Nations, we currently have a low level of alignment with Sustainable Development Goal 12.7, which calls for sustainable public procurement. This presents a major opportunity for the Government to step up and lead by example.

Currently, the Government Procurement Charter provides vague advice on sustainable purchasing, encouraging buyers to “Undertake initiatives to contribute to a low emissions economy and promote greater environmental responsibility” and to “check for labels and certifications.” This is grossly inadequate, and fails to leverage the existence, expertise, rigour and independence, offered by Eco Choice Aotearoa, the Minister for the Environment’s own ecolabel.

Our specific recommendations include:

• Integrate Sustainable Public Procurement as a key strategy within New Zealand’s Nationally Determined Contributions.

• Develop a comprehensive Sustainable Public Procurement policy that outlines clear objectives, % targets, and implementation strategies.

• All Ministries/Departments to create annual SPP plans and submit performance reports (see UNEP’s Sustainable Public Procurement Implementation Guidelines)

• Work with Eco Choice Aotearoa and One Planet Network to establish context specific learning modules and guidance materials for Government Procurement teams.

• All procurement guidance should state a clear preference for Eco Choice Aotearoa certified products and services, or those certified by its members of the Global Ecolabelling Network.

• On an bi-annual basis, Government Procurement must communicate whether it requires Eco Choice Aotearoa to create standards for any additional product/ service categories.

• Should the Government wish to recognise other environmental labelling schemes, it should mirror the approach taken by the US Environmentally Preferable Federal Purchasing Program to establish the independence and rigour of certification schemes, to avoid greenwashing.

What factors must be considered?

The Government must consider how to support, incentivise and reward business and industry when it comes to adopting sustainable operating models.

It can do this by:

• Ensuring adequate funding for organisations like the Sustainable Business Network who provide valuable education and tools to businesses.

• Using SPP as an incentive/ reward.

While SPP is a crucial tool, it must be part of a broader strategy that ensures a just transition to a low-emissions economy. In our submission, we also emphasised the need to:

• Enabling projects such as the Hinemoana Halo Ocean Initiative

• Passing modern slavery legislation

• Improving pathways for climate-induced migration

Abandoning crucial climate policies or failing to take ambitious action, may provide a short-term financial reprieve, but will ultimately cause irreparable harm. SPP provides a valuable incentive for businesses and industries to continue sustainability efforts, even when economies falter.

The Government intends to review its Procurement Rules in the New Year, and we will be advocating strongly for the explicit inclusion of Eco Choice Aotearoa in the rules, to ensure ecolabelled products receive the market advantage they deserve. We are stronger together, so if you would like to do more to support our efforts, please register your interest with our Engagement Manager, Prasanna.

In the meantime, if you’re a business or government organisation wanting to learn more about SPP, check out our Sustainable Procurement Toolkit made in partnership with the Procurement Excellence Forum.