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Details
- Otago
Deep dive
Background
The Dunedin City Council's (DCC) Procurement Emissions Standards is a framework that integrates emissions reduction targets into public procurement processes. Introduced in 2023, these standards are part of measures towards the achievement of carbon neutrality in Dunedin by 2030. The standards align with national mandates like the Emissions Reduction Plan, while complementing local initiatives such as the Zero Carbon Plan (2023). As stated in the DCC Procurement Strategy 2023-2026, procurement is a critical enabler of the council's net-zero ambitions, with the Zero Carbon team and Procurement unit collaborating to embed emissions targets into supplier contracts. The DCC is actively engaging key suppliers to establish emissions reporting baselines and develop reduction plans, supported by a new contract management system to track performance. This phased approach will culminate in the establishment of pre-qualification measures, ensuring future contracts are awarded only to suppliers meeting the DCC’s carbon reduction targets.
Supplier Reporting Requirements
As stated in the supplier guidance, suppliers bidding for DCC contracts valued over $100,000 (or any consultancy contract) must disclose emissions data tied to project delivery. Quantitative reporting covers waste diversion rates, fleet electrification percentages, stationary energy sources, refrigerant global warming potential (GWP), and air travel. Qualitative reporting requires methodologies to minimize embodied and operational emissions, such as low-carbon material selection or freight optimization. Data must be submitted periodically during contract execution via the DCC’s contract management system, with frequency determined by project scope. For transparency, suppliers are encouraged to use certified tools like ISO 14064 or the GHG Protocol, though smaller vendors may submit simplified documentation.
Affected Suppliers
The standards apply to all suppliers engaged in DCC contracts for goods, services (including consultancy), and physical works, with specific thresholds determining reporting rigor. For consultancy services, all contracts regardless of value must comply, while other contracts (e.g., construction, logistics) face requirements only if valued over $100,000. High-emission sectors like transport (34% of Dunedin’s emissions) and infrastructure are prioritized, with quantitative targets for fleet electrification (e.g., 100% light EVs by 2030) and waste diversion (70% by 2025). Suppliers using heavy machinery, refrigerants, or asphalt production must detail emission-reduction methodologies. While it is not certain how many companies will be affected by the standards, the DCC Procurement Strategy notes plans to engage "key suppliers" systematically, with smaller suppliers (sub-$100K contracts) exempt but encouraged to adopt standards voluntarily. The DCC also references the Long-Term Engineering and Specialist Support (LTES) Panel Contracts and Government Model Contracts as key vehicles for enforcement.
Enforcement and Non-Compliance
The DCC clarifies that while the standards are not yet "pre-conditions" for tender eligibility, non-compliance will impact evaluations under the Methodology Criteria and Sustainable Procurement Criteria, which include emissions performance. According to the DCC Procurement Strategy, the council plans to transition to mandatory pre-qualification, excluding suppliers failing to meet carbon targets. Contracts will embed emissions clauses, requiring periodic data submission to the DCC’s management system, with deviations potentially leading to contractual reviews or financial adjustments. Notably, the DCC rules out immediate penalties for transitional challenges, instead offering support via its Procurement Team and flexibility for innovation (e.g., alternative bids). However, the DCC Procurement Strategy suggests stricter enforcement in the future, stating the intent to "only work with suppliers who have met our pre-set carbon emissions reduction targets" by 2026, establishing clear expectations for supplier sustainability performance
