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Source: Auckland Council

A total of $37.2 million has been spent with Māori and Pasifika-owned businesses over the last three years according to Auckland Council’s first report on sustainable procurement.

Auckland Council’s Sustainable Procurement Framework was launched in 2018, with the Auckland Council Sustainable Procurement objectives coming into play in early 2019. The priorities identified in the framework related to improving Māori outcomes, creating new economic opportunities for Māori and Pasifika business and social enterprises, job creation for targeted communities and tackling climate change and waste.

Mayor Phil Goff says, “The council’s sustainable procurement programme aims to create job opportunities and career development paths for Māori and Pasifika workers, and support Māori and Pasifika-owned businesses. I’m pleased to see it having an impact.

“Despite the impacts of COVID-19, the programme has had some significant benefits for the communities, awarding more than 180 contracts worth over $13 million in total to Māori, Pasifika and social enterprise businesses and creating 258 jobs for people in these communities.”

Jazz Singh, Auckland Council’s General Manager Procurement, says, “Social and sustainable procurement has gained significant traction in recent years as a way of delivering multiple outcomes from our significant spend on goods and services.

“It’s exciting and empowering and we look forward to making procurement decisions which reflect Auckland Council’s commitment to sustainable and social procurement whilst meeting our obligations relating to transparent, robust and cost-effective procurement processes and providing additional benefits to our communities in the region.”

Auckland Council’s Sustainable Procurement objectives strive to achieve:

  • Supplier Diversity
    5 per cent of the value of all awarded contracts to be spent with Māori and/or Pasifika owned businesses or social enterprises
    15 per cent of the value of all targeted subcontract to be spent with Māori and/or Pasifika businesses or social enterprises
  • Quality employment
    100 quality job opportunities to be created for members of target communities through council contracts
  • Local supplier utilisation
    100 contracts to be awarded to local suppliers by 2022
  • Zero Waste
    100 per cent of contracts to incorporate waste considerations in all procurement processes to attain Zero Waste by 2040
  • Reducing carbon emissions
    100% of contracts to incorporate carbon emission reduction strategies in all procurement processes to achieve net zero emissions by 2050.

Despite a challenging COVID-19 affected year which saw a reduction in the council construction programme, 2021 has delivered significant results:

  • 186 contracts awarded to Māori, Pasifika and social enterprise businesses in FY21 with a total value of $13.3M (1.9 per cent)
  • 258 jobs created for targeted communities, exceeding target of 100 by over 250 per cent; key projects contributing to the success has been the establishment of the Nga Puna Pukenga – Skills for Industry partnership with the Ministry of Social Development
  • 525 contracted cleaners have received a pay increase to living wage, creating a significant positive social impact for them, their families and their local communities
  • 140 local contracts awarded– ‘local’ defined as a supplier based within the local board area where the contract is to be delivered.

MIL OSI