What if every purchasing decision you made could drive down costs, enhance productivity, boost your brand value, and provide a competitive advantage, all while protecting the environment and benefiting society? Regardless of the size of your business supply chain, developing a sustainable procurement strategy can deliver these benefits and more.

Sustainable procurement is geared to long-term value. Making the right choices today can unlock operational efficiency, improve employee satisfaction, and position your company as a leader in an increasingly conscious economy, both in Queensland and internationally.

What is sustainable procurement or purchasing?

Sustainable procurement or purchasing is about making smart buying decisions that balance cost-effectiveness with social and environmental responsibility. By considering a product’s entire lifecycle – from creation to disposal – you can maximise value, cut waste, and future-proof your investments. Integrating environmental factors into procurement decisions can also ensure your choices benefit both your business and the broader community.

Some examples of common sustainable procurement approaches include:

• Purchasing a greater proportion of recycled or renewable materials for product inputs or packaging,
• sourcing raw materials and services locally to support Queensland-based suppliers and communities, and reduce carbon emissions associated with transport and freight,
• sourcing and purchasing other organisations’ waste or byproducts to use as raw material inputs,
• using closed loop or circular economy purchasing arrangements to minimise waste generation,
• purchasing renewable energy and supporting clean energy sources to reduce carbon emissions,
• purchasing energy-efficient and water-efficient equipment and technologies,
• building supply relationships with First Nations communities and businesses to develop more inclusive and diverse product and supply opportunities, and
• engaging social enterprises to support the employment of people underrepresented in the workforce, people with a disability or people from a disadvantaged background.

The economic benefits of sustainable procurement practices

Typically, business sustainability efforts seek to deliver positive environmental impact and social outcomes, but sustainable procurement can also deliver an economic advantage, benefitting your business by:

Cutting costs and boosting efficiencies: Investing in durable, energy-efficient products reduces energy consumption and operational and disposal costs.

Enhancing brand reputation: Conscious customers and partners are eager to engage with or support businesses committed to sustainability. This is especially important for participating in the supply chains of large businesses who are required to report on scope 3 greenhouse gas emissions.

Increasing productivity and workforce wellbeing: Thoughtful purchasing decisions positively impact staff wellbeing, productivity, and workplace culture. It can also help your business attract and retain talent as employees increasingly seek responsible, forward-thinking employers that align with their values.

Strengthening supply chain partnerships: Collaborating with both suppliers, and those you supply to on sustainability encourages innovation, long-term cost savings and reduces supply chain risks.

Driving revenue growth and premium pricing: Strong sustainability credentials can open doors to new opportunities and allow for competitive pricing advantages.

Contributing to positive social impact: Supporting ethical sourcing benefits the communities businesses operate within and source from.

Smart buying: Key questions to answer before you make a business purchase

Before making a purchase, ask yourself the following questions to encourage more sustainable procurement processes. These questions will help ensure that your procurement decisions align with principles of sustainable development.

Is this purchase necessary?

• Can we reuse or repurpose existing resources?
• Is there benefit in leasing, sharing, or hiring instead of buying new?
• Can we implement strategies to reduce overall consumption?

Are there sustainable alternatives?

• Can we change practices and use smarter alternatives (such as online conferencing to replace travel procurement)?
• Can digital solutions and workflows be used replace physical products (such as paper)?
• Is there a more sustainable version available?

What’s the full impact of this product?

• Is it designed for long-term durability and easy repair?
• Does it come with an extended warranty or maintenance support?
• Can it be recycled or responsibly disposed of?

Can we reduce emissions?

• Can we prioritise buying locally and seasonally to minimise transport-related emissions?
• Can we choose suppliers that actively work to reduce their carbon footprint?
• Are there lower-emission alternatives for production, packaging, or delivery?

Can we support diverse and social enterprises?

• Can we diversify our supplier base to include local, First Nations and other SMEs?
• Are there opportunities to engage social enterprises for product and service procurement?
• Can we prioritise suppliers that create positive social impact through ethical and inclusive practices?

Building a more sustainable supply chain

When considering your business’s broader supply chain, explore options to use more sustainable products and services. Integrating sustainability into your procurement process can lead to innovative solutions and better outcomes.

Engage suppliers in sustainability goals:

Discussions with suppliers regarding your sustainability goals, and how your preferences could be met, can lead to innovative solutions you haven’t considered. All suppliers within supply chains have the ability to influence businesses around them by engaging in more sustainable behaviour, being curious about innovative new ways to do things, and working collaboratively to deliver better outcomes.

Look for ethical, responsible options:

Ensure your suppliers support their workforce with fair wages, safe working conditions, and promote inclusive and productive employment.

Reduce packaging waste:

Reduce the amount of packaging used on your purchases and work with your supplier to return excess packaging. Managing this waste can lead suppliers to explore recyclable or reusable packaging options. Similarly, review your supply chain to reduce the amount of packaging on your own products.

Streamline inventory management:

Bulk orders and smart logistics can cut costs and emissions. Through careful planning and inventory management, you can reduce deliveries to achieve positive financial impacts while contributing to emissions reductions through reduced fuel usage.

Small changes over time can lead to big impacts

Sustainable procurement is a smart business decision that drives profitability, innovation, and resilience, but you don’t need to change your supply chain overnight. Start by making one or two of the changes on this list and then gradually expand your sustainability efforts. Embracing sustainable procurement and reducing waste over time will lead to future cost reduction, but also a lasting impact on your workforce, community, and the environment.

If you need additional support to develop a sustainable procurement strategy, Business Chamber Queensland can help. Our sustainability experts offer consulting services, including strategy development, workplace training, and tools to help you unlock new opportunities through sustainable procurement. Reach out to us today to find out more.