local government recycled procurement report
TRANSCRIPT
Local government recycled procurement report
April 2021
Table of contents
Executive summary 1
Background 2
Strategic policy context 2
Objectives 3
Methodology 3
Scope 4
Research method 4
Analysis of survey findings 4
Opportunities 16
Cover image courtesy of City of Stonnington.
1
Executive summary
Recent disruptions to global markets for recycling, including China’s National Sword Policy, have
highlighted the need for Victoria to have a more resilient local recycling sector. This includes
developing end use markets for recycled materials including glass, food and green waste, paper and
cardboard recovered via councils’ kerbside waste collections. Significant opportunities exist for
councils to increase their use of products containing recycled materials in infrastructure and urban
design projects.
To support councils to do this, the Metropolitan Waste and Resource Recovery Group (MWRRG), a
Victorian Government statutory body, undertook a survey on local government procurement of
products containing recycled materials and the barriers and opportunities to increase its use.
The survey found that 71% of the 119 council respondents already procured products containing
recycled materials including glass, food and green waste, paper cardboard, metals, rubber and
plastics. However, information on these purchases is limited and inconsistent, which may be a
barrier to further procurement. The top three drivers for purchasing products containing recycled
materials were:
• the suitability of the product for its application
• its environmental credentials
• the purchaser’s personal interest in sustainability.
Major barriers to selecting these products included:
• lack of specifications
• poor knowledge of products available
• insufficient information about the long term performance of products
• exclusion of recycled product clauses in tender specification and evaluation criteria.
Opportunities to increase procurement of products containing recycled materials included:
• providing more information about their quality and durability
• product specifications and standards
• recycled content clauses in tender and evaluation frameworks.
As a result of these findings, there are several recommendations to increase council procurement of
products containing recycled materials. These include provision of information, increasing
confidence and requiring procurement of products containing recycled materials in tender
specification and evaluation criteria.
This report is based on findings from the 2019 Local Government Recycled Procurement Survey
which was developed by MWRRG with support from the Department of Environment, Land, Water
and Planning (DELWP), Sustainability Victoria (SV), the Municipal Association of Victoria (MAV) and
Local Government Victoria (LGV). It supports councils to increase the procurement of products
containing recycled materials which could support the growth of local end markets, as identified in
the Metropolitan Waste and Resource Recovery Implementation Plan (Metropolitan Implementation
Plan). 1
2
Background
In early 2018, in response to its growing internal supply of recyclables and high contamination levels
from imported waste materials, China implemented its National Sword Policy, designed to restrict
the import of low quality recyclables, and stimulate development of its domestic recycling industry.
This impacted Victoria’s kerbside recycling system as a large proportion of household recyclables
such as mixed paper/cardboard and mixed plastics were previously exported to China.
These trade measures placed additional pressure on Victoria’s kerbside recycling system to continue
offering recyclables while also finding and building new local end use markets for recovered
materials. There are currently several local companies that use recyclables in product manufacturing
however there is insufficient demand for these products. Although some councils in metropolitan
Melbourne are procuring products made from recycled materials for road base and urban design
infrastructure, this is limited.
An action from the Metropolitan Implementation Plan identifies the need to support councils to
increase the procurement of products with recycled content that could support the growth of local
end use markets. However, to ensure any such projects were targeted and informed, further
information about the current barriers and opportunities to councils procuring these recycled
products was needed.
To inform this information gap, MWRRG conducted a survey of council officers responsible for
procurement decisions to identify the barriers and opportunities. The survey findings also provided
state agencies and associations guidance on opportunities to support councils to procure products
with recycled content.
Strategic policy context
There are several federal, state and local government policies and plans which support the increase
of government procurement of products containing recycled materials.
Recycling Industry Strategic Plan
The Recycling Industry Strategic Plan (RISP) is the Victorian Government’s response to China’s trade
restrictions and its implications on Australian recycling markets. It sets out the pathway to a safe,
resilient and efficient recycling system in Victoria, where kerbside recycling services continue to be
provided to households. In order to build resilience in the recycling sector, the government aims to
drive demand for products containing recycled materials through government procurement. 2
Social Procurement Framework
The Social Procurement Framework (SPF) seeks to streamline and embed social procurement within
ordinary government processes. Social procurement integrates sustainable procurement practices to
achieve positive environmental outcomes, which achieves value for money while minimising impact
to the environment. 3 According to the policy, sustainable practices include maximising
recyclable/recovered content and in accordance with the SPF, Victorian departments and agencies
are to consider recycled content when undertaking procurement activities.
3
Recycling Victoria
Recycling Victoria is the Victorian Government’s 10 year policy and action plan for waste and
recycling. It aims to reduce waste, increase recycling and create more value from resources. Key
goals of the policy is to keep resources in circulation for as long as possible, and to create products
which are sustainable. Recycling Victoria includes a commitment to increasing the use of recycled
materials, identifying new uses for recycled materials and making it easier for these products to be
procured.
Local government procurement policies
Some Victorian councils support recycled content procurement through their procurement policies.
For example, Nillumbik Shire Council is committed to purchasing products containing recycled
materials where practical to meet their new green procurement standards.4 Similarly, the City of
Stonnington’s Sustainable Environment Strategy includes corporate social responsibility.5 Other
councils such as Hobsons Bay, Darebin and Boroondara have also committed to buying recycled
products in the first instance.
Objectives
The objectives of the research were to:
• identify current drivers of council procurement of products containing recycled materials
• investigate what recycled products are currently being purchased
• understand what recycled procurement data collection methods are used by councils
• identify barriers to increasing procurement of products containing recycled materials
• identify opportunities to increase procurement of products containing recycled materials relating
to information, documentation and procurement
• identify current procurement barriers and opportunities to increase procurement of recycled
road base materials.
Methodology
The research methodology comprised:
• identifying council departments responsible for product selection and/or procurement decisions
• surveying council officers on current procurement and drivers, barriers and opportunities to
increasing procurement of products containing recycled materials
• conducting a review and gap analysis of the collected survey data
• providing a summary report analysing and identifying key barriers and opportunities to guide and
inform future projects.
4
Scope
The survey was distributed to council officers through MWRRG and environment portfolio partner
networks. Survey recipients were encouraged to complete and/or forward the survey to council
departments responsible for product selection and/or procurement decisions.
Council departments included:
• urban design
• open space
• parks
• engineering
• infrastructure
• major projects
• asset management
• sustainability
• waste and procurement.
The survey focused on:
• paper and cardboard
• plastics (soft and hard)
• glass
• printer cartridges
• metals
• food and green waste.
Research method
The survey contained qualitative and quantitative questions. This mixed methods approach allowed
for a greater depth of analysis of the trends in survey responses and an overarching narrative. The
qualitative component provided a platform for respondents who wanted to elaborate on their
response and explain why they selected their answer from available options.
Analysis of survey findings
There were 119 responses to the survey from 36 councils across Victoria, mostly in metropolitan
Melbourne. Most respondents were from sustainability, waste, parks, engineering, open space and
major project departments (Figure 1).
5
Figure 1 – Respondents were from a range of council departments
Respondents indicated most councils operate under decentralised procurement models, where the
responsibility and decision making for procurement is spread across the organisation (Figure 2).
Figure 2 – Council procurement models
However, respondents also indicated a centralised approach was used by most councils for all
procurements over $50,000.
A decentralised model (Figure 2) highlights the need for multiple departments across councils to be
targeted in recycled procurement initiatives, rather than one specific department e.g. procurement.
A varied approach may assist when targeting procurements above and below $50,000. The differing
models of procurement within councils may act as a barrier to officers’ abilities to procure products
containing recycled materials.
6
Council documents that refer to procurement of products
containing recycled materials
Most (71%) respondents have been involved in the procurement of products containing recycled
materials. They highlighted a range of council documentation that referred to procurement of
products containing recycled materials (Figure 3), including:
• general procurement policy
• tender/quotation evaluation criteria
• waste and sustainability strategies
• sustainable and green procurement policy
• endorsed council reports.
Figure 3 – Council documents referencing procurement of products containing recycled materials
Overall, council general procurement policies were the most likely to reference procurement of
products containing recycled materials (48%), with tender/evaluation criteria a close second (44%).
Thirty-eight per cent of respondents indicated their waste and sustainability strategies reference
procurement of products containing recycled materials. Of these, 82% also indicated they
included recycled procurement in tender quotation evaluation and council general procurement
policies.
Overall, a third of respondents had procurement of products containing recycled materials included
in their council general procurement policy, tender quotation evaluation criteria and waste and
sustainability strategies.
Findings revealed this documentation was not the sole driver for procurement of products
containing recycled materials. Other factors such as personal interest in sustainability and the
environmental credentials of a product were equally, if not more, influential.
7
Products containing recycled materials currently purchased
by councils
Councils procured a range of products containing recycled materials, with products made from
recycled plastics, paper and cardboard the most common (Table 1).
Table 1 – Current procurement of recycled products and the materials they contain
Product purchased containing
recycled material
Recycled
plastic
Recycled
glass
Recycled food
and green
waste
Recycled
printer
cartridges
Recycled
metals
Recycled
paper/
cardboard
Furniture (outdoor and indoor e.g.
seats, benches)
✓ ✓
Decking ✓
Bollards ✓
Edging (playgrounds and gardens) ✓
Asphalts (road resurfacing) ✓
✓
✓
Concrete ✓ ✓
Mulch and compost ✓
Residential kerbside bins ✓
Garden pots ✓
Office paper (and stationery:
notepads, sticky labels)
✓
Toilet paper ✓
Litter bins ✓
Compost bins and caddies ✓
Signage ✓
Brochures ✓
Food packaging ✓
Pit lids ✓
Bags ✓
Cigarette butt bins ✓
8
Recycled plastic products included furniture, decking, bollards, edging in playgrounds and gardens,
road asphalt and concrete. Other materials included glass in concrete, metals in cigarette butt bins
and furniture and food and green waste in mulch and compost.
Respondents also procured additional products containing recycled materials outside the scope of
this survey for use by council as part of urban design, capital works projects and office support
including:
• crushed rock aggregate in concrete
• tyres in asphalt
• timber
• carpet tiles
• cork flooring
• paint
• promotional merchandise (sustainability prizes e.g. reusable coffee cups)
• rubber in playground soft fall surfacing
• reclaimed asphalt pavement (RAP).
Influences of procurement of products containing recycling
materials
Council officers who have previously procured products containing recycled materials often
considered multiple factors before procuring these products (Figure 4).
Figure 4 – Influences for selection of products containing recycled materials
Seventy-two per cent of respondents indicated the biggest influence to purchasing products
containing recycled materials was the suitability of the product to its application. Sixty-four per cent
of respondents selected the products based on their environmental credentials. This highlights the
need for sustainable products containing recycled materials to be well designed and perform well to
cater to a wider audience.
9
A further 55% were driven to procure products based on their personal interest in sustainability.
These respondents could be perceived as the innovators and early adopters based on the Diffusion
of Innovation Theory which seeks to explain how an idea, behaviour or object is taken up in a
population (Figure 5).6 These respondents may have procured products containing recycled
materials for intrinsic and/or environmental reasons. It is important to note these reasons may not
motivate those on the less engaged sections of the Diffusion of Innovation Curve such as the ‘late
majority’ and ‘laggards.’
Figure 5 – Diffusion of Innovation Curve
Notably, those who didn’t select personal interest in sustainability were motivated by suitability of
the product for application, cost of the product, environmental credentials, durability of the product
and an awareness of the product. These could be perceived as less intrinsic reasons and more
practical reasons, suggesting programs to increase procurement by the late majority could focus on
the practical benefits of buying recycled.
Of those respondents whose councils referred to procurement of products containing recycled
materials in their waste and sustainability strategy, fewer than half indicated this influenced their
decision to buy recycled. They were more likely to procure products containing recycled materials
due to the environmental credentials of a product (82%) and the suitability of the product
(78%). Only 15% overall indicated that tender evaluation criteria influenced their purchasing
decisions.
Interestingly, survey results indicated that decisions to procure products containing recycled
materials were not driven by senior management or councillors. This suggests that recycled
procurement is currently being driven from the ‘bottom up.’
10
Barriers to procurement of products containing recycled
material
The main barriers to procuring products containing recycled materials were the lack of specifications
and standards for products and their use (38%) and not knowing which products were available
(38%) (Figure 6).
Figure 6 – Barriers to procurement of products containing recycled materials
A third of respondents said they had insufficient information on the durability of these products to
consider their use. Twenty-eight per cent had limited experience using these products and 19% had
low confidence in the quality of products. These barriers could be addressed through a targeted
program highlighting how these products have been used effectively over time.
Interestingly, 33% indicated that recycled content not being included in tender specification and
evaluation criteria was a barrier to its procurement. However, recycled content in tender criteria
was not listed as a key driver for those who currently procure products made from recycled material.
Tracking of products containing recycled materials
Tracking of recycled procurement information varies greatly between councils (Figure 7). This
information is useful to determine whether tracking information plays a role in ongoing
procurement of products containing recycled materials.
Figure 7 – Council tracking of procurement of products containing recycled materials
11
Thirty-seven per cent of survey respondents have tracked the procurement of products containing
recycled materials and 33% were unsure as to whether their council does. This indicates a lack of
clarity and understanding around the tracking of this data and that a significant proportion of
councils aren’t tracking this information.
Almost a third of respondents indicated the purpose of tracking recycled procurement of products
containing recycled materials was for annual reporting purposes. Those who were tracking
procurement information were mainly doing so manually, including excel spreadsheets and records
management or using the Authority Finance system. Those who used the systems reported they
were complicated, and it was difficult to capture this information, with some councils using two
different systems for procurement. It appears it is difficult for councils to track this data however
data capture did not appear to be a driver or barrier to the procurement of products with recycled
content.
There is a range of reasons that councils don’t track procurement information, such as lack of
systems, lack of resources and cost (Table 2).
Table 2 – Reasons for not tracking procurement of products containing recycled materials
Reasons Analysis
Lack of system Respondents said they were directionless with a lack of system set up to capture this
information easily.
Lack of resources Respondents identified a lack of staff time or dedicated budget for procurement of
products containing recycled materials.
Cost Respondents specifically listed expense as an issue with tracking systems and recording
procurement of products containing recycled materials.
Other priorities Respondents noted procurement of products containing recycled materials was a low
priority for councils that could be the reason behind a lack of time, resources and money.
Lack of legislation One respondent suggested their council was not tracking procurement of products
containing recycled materials due to a lack of legislation or organisational requirement to
do so.
12
Supporting councils to increase their procurement of
products containing recycled materials
Information to help councils procure products containing recycled materials
There was significant interest from respondents in a wide range of information that could help them
to increase procurement of products containing recycled materials. (Figure 8).
Figure 8 – Information that would assist councils to procure products containing recycled materials
Most (84%) respondents indicated they would benefit from receiving information about the quality
and durability of products. This would allow purchasers to feel confident about the products and
raise the profiles of suppliers.
At least half the respondents indicated the following information would encourage their council to
procure products containing recycled materials:
• The range of products and their application.
• The environmental credentials of the product, including energy and water used in their
production.
• The lifecycle cost compared with products made from virgin materials.
Respondents also identified educational collateral, such as case studies, as useful to understand the
procurement decisions of other councils and effective use of products containing recycled materials.
Respondents also wanted information for council staff on selecting and procuring these products.
Some suggested a database of available products would serve their needs to search and locate the
options available, along with a comparison tool which compared products against a range of criteria.
13
Procurement activities to help councils procure products containing recycled
materials
Respondents highlighted three main drivers to improve procurement of products containing
recycled materials which were consistent with other responses (Figure 9).
Most respondents wanted specifications and standards for products containing recycled materials
(64%), indicating these are currently lacking in the products available, possibly contributing to a lack
of confidence in the products. Product specifications and standards would allow users to feel
confident in the product.
Figure 9 – Procurement activities which would assist councils to procure of products containing
recycled materials
Sixty-two per cent of respondents said MAV supply panels showcasing suppliers of products
containing recycled materials would be an effective way to increase the procurement of these
products. Contracted suppliers of products containing recycled materials could be highlighted and
easily identifiable to councils.
Sixty per cent of respondents said that including recycled content specifications in tenders and
contracts would increase procurement of products containing recycled materials. Although earlier
findings indicate that tender evaluation criteria relating to recycled products did not necessarily
drive current procurement of products containing recycled materials in councils. However, it may be
a useful tool to support those who fall further along the diffusion of innovation curve, such as the
late majority.
Over half of respondents suggested a recognition program would incentivise the procurement of
products containing recycled materials. Some officers recalled a recognition based program they had
had previous involvement in.
Over 80% of survey participants agreed that products that aligned with council’s urban design
guidelines or precinct plans would encourage the procurement of products containing recycled
materials. Some commented that current barriers were specific limitations to the products available
and that the products appearance did not meet aesthetic expectations of the community, councillors
and landscape architects. Alignment with council urban design guidelines may particularly benefit
departments such as urban design and open space, who often make decisions based on the
aesthetic value of the product.
14
Documentation to help councils procure products containing recycled
materials
Councils would benefit from recycled content being included or recognised in a range of
documentation to assist with procuring recycled products (Figure 10).
Over two thirds of respondents said that recycled content included in tender/quotation frameworks
would assist their council to procure products containing recycled materials, which is consistent with
other survey findings. LGV issues procurement best practice guidance to councils, which informs
many councils’ procurement policies. Many respondents said including recycled content in these
guidelines would encourage the procurement of products containing recycled materials.
Figure 10 – Documentation to assist councils in procurement of products containing recycled
materials
There was also significant interest in councils’ procurement policies preferencing products
containing recycled materials. Earlier survey results indicated these policies and guidelines weren’t
necessarily key drivers for councils who currently procure products containing recycled materials.
However, collectively their impact may be more significant and provide council officers with
additional support to justify recycled procurement. Documentation may also motivate councils
further along the Diffusion of Innovation Curve (e.g. late majority), appealing to those less likely to
be influenced by a personal interest in sustainability or the environmental credentials of a product.
15
Products containing recycled materials currently used in
roads
Fifty seven per cent of survey respondents associated with road procurement were using recycled
glass, plastic or printer cartridges in roads (Figure 11).
Figure 11 – Council use of recycled glass, plastic or printer cartridges in roads
Only a third of respondents were motivated to use products containing recycled materials in roads
because of their personal interest in sustainability, with product environmental credentials,
suitability of product in application, durability and cost of the product being the main reason for
their decision.
Most councils use VicRoads specifications for local roads, some of which they have written
themselves (Figure 12). These specifications have been designed for state roads and are used by
councils in the absence of council road specifications.
Figure 12 – Current road specifications used by councils
Councils not using recycled materials in roads are doing so for reasons including the lack of VicRoads
standards, and a lack of information and confidence in the durability and suitability of the product. A
specification could be developed and tailored to local roads, which are used differently to state
roads, to standardise the use of products containing recycled materials.
16
Opportunities
The survey findings highlighted opportunities to support councils procure more products containing
recycled materials.
1. Provide more information about products containing recycled materials
Recommended approach
• Promote SV’s Recycled Product Directory, which features Victorian products containing recycled
materials, to council officers responsible for product selection and their business networks.
• Support the establishment of council recycled procurement working groups for a co-ordinated
approach to increasing use of recycled products.
• Participate in Australian Packaging Covenant Organisation’s 2020 Materials Circularity Working
Group, focusing on the development of Planet Ark’s Circular Economy Hub.
• Encourage MAV to include suppliers of products containing recycled materials in their supply
panels.
2. Confidence in products containing recycled materials
Recommended approach
• Support initiatives to remove barriers to procurement of products containing recycled materials.
For example, to increase confidence in recycled road base, officers could organise tours for
council road engineers.
• Facilitate sharing between councils through co-ordination of council recycled procurement
networks and promotion of council case studies online.
• Encourage councils and community groups to apply for grants to use recycled materials in
infrastructure projects through SV’s Sustainable Infrastructure Fund.
3. Specifications and standards for products containing recycled materials and
their use
Recommended approach
• Collaborate with Office of Projects Victoria and Major Transport Infrastructure Authority (MTIA)
to develop specifications and standards for councils to use e.g. recycled road base.
• Collaborate with MTIA to deliver a local government approach to the Victorian Government’s
Recycled First Initiative.
4. Products containing recycled materials included in tender specification and
evaluation criteria
Recommended approach
• Encourage councils to include recycled content procurement clauses in procurement policies, and
tender specification and evaluation criteria.
• Facilitate networks and workshops, showcasing best practice use of tender evaluation criteria
and progress development of clauses for councils use.
• Encourage MAV to include suppliers of products containing recycled materials in their supply
panels.
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Endnotes
1 Metropolitan Waste and Resource Recovery Group (MWRRG), Metropolitan Waste and Resource Recovery Implementation Plan, MWRRG, Melbourne, 2016 2 The State of Victoria Department of Environment, Land, Water and Planning, Recycling Industry Strategic Plan, DELWP, Melbourne 2018 3 The State of Victoria Department of Economic Development, Jobs, Transport and Resources, Victoria’s Social Procurement Framework, DEDJTR, 2018 4 Nillumbik Shire Council, Procurement Policy, 2016 5 City of Stonnington, Sustainable Environment Strategy, 2018 6 E. M. Rogers, Diffusions of Innovations, 1962