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5 Contract Clauses

Overview

Recommended good practice is to include sustainability-specific clauses in ICT procurement contract documentation, including RFIs (requests for information), RFPs (request for proposals) and supply contracts. The overall weighting of sustainability issues in tender evaluation may differ from organisation to organisation, but given the increasing importance of sustainability to New Zealand (and the world), government agencies and businesses are encouraged to consider allocating a significant overall weighting to environmental considerations.

Specific guidance in this area will be considered as part of a broader sustainable procurement project for the Government, being led by the Ministry of Economic Development (MED). MED is preparing a government-wide toolkit for sustainable procurement, which is expected to incorporate the environmental considerations contained in these Guidelines.

In the meantime, the Ministry for the Environment recommends that all organisations buying ICT equipment take full account of the various environmental issues, and either set environmental performance standards as minimum qualifications for supply, or allocate a weighting of 10 per cent to 20 per cent to environmental impact reduction in their tender evaluation. This does not mean that organisations should necessarily pay a price premium for products that are more environmentally acceptable.

Given the relatively small market in New Zealand for ICT equipment, we should not expect that policies and practices in this country will have a huge effect on global manufacturing practices. However, New Zealand is far from being alone in giving more consideration to environmental issues for ICT equipment. As early as 2003 the European Union implemented a ban on certain hazardous substances through the EU RoHS Directive (see section 2). This came into effect last year, and New Zealand stands to benefit. The move away from CRT monitors to flat-screen LCD panels is another significant trend that New Zealand is benefiting from. If New Zealand moves in step with countries with a similar awareness of the environment, we can expect to reap similar benefits.

The other challenge that purchasing managers face is the level of effort required to verify suppliers’ claims. Suppliers can easily claim compliance with all the suggested contract clauses in this section but it would take considerable effort to verify all the claims. This is where a collaborative effort across government can provide benefits. Suppliers would be challenged to prove their claims by giving documented evidence, but this would only need to be validated by one agency, the results of which could be shared across government and (preferably) with the commercial sector as well. If some rigour is applied to the process (including, for example, validating the processes for recycling packaging materials), suppliers would quickly be prevented from making false claims.

Recommended clauses and discussion

Manufacturer commitment

Describe the manufacturer’s approach to sustainability, providing details on any specific steps taken in the design and manufacture of products to reduce any detrimental environmental impacts and facilitate the safe and efficient disposal of equipment at end-of-life.

Toxic materials reduction

RoHS compliance is required. Any variations should be stated.

Energy use

Energy Star compliance is required. Any variations, and which version, should be stated.

Product stewardship

A demonstrated commitment to product stewardship is required (eg, engagement with IT/TV Product Stewardship Working Group or commitment to another product stewardship scheme). This is expected to include a take-back, reuse and recycling service option with documented chain of custody through to recycling or safe disposal (including Basel Convention28 compliance). Special consideration should be given to how the safe disposal of refurbished equipment donated to schools and community groups can be supported when this reaches the end of its life.

Commitment to equipment maintenance

Suppliers are required to commit to maintenance support, including spares (if required), for the expected life of the equipment. Suppliers should state the expected life in years.

Resource efficiency

Describe features of the product that permit increased resource efficiency, including materials used in construction and the capability of upgrades for extending the replacement cycle to four or more years.

Reduced impacts over the whole of the product life cycle

Compliance with a recognised eco-label or recognised voluntary product declaration is preferred. Relevant labels are the EU Flower, Nordic Swan, TCO (Sweden), Eco Mark (Japan), Blue Angel (Germany), Greenmark (Taiwan), AELA (Australia) and Environmental Choice (New Zealand) as well as ENERGY STAR for power management. EPEAT and ECMA are examples of voluntary product declarations.

Packaging – removal and recycling

Packaging made from materials with reduced environmental impact is preferred. This includes bio-based and recyclable fill (eg, moulded paper or starch-based loose fill) packaging that is reusable by the supplier, and packaging of non-renewable origin but recyclable in New Zealand. Suppliers are also required to provide for the removal of all equipment packaging after delivery.

Process improvements

Suppliers are required to state compliance with any internationally recognised environmental management standards, such as the ISO 14000 / ISO 14001 series.

28 The Basel Convention is international legislation that New Zealand is a party to. Administered by the Ministry of Economic Development – www.med.govt.nz.

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