Executive summary

The focus of our audit

The Waste Reduction and Purchasing Policy (WRAPP) was introduced in September 1997 to encourage NSW Government agencies to minimise waste generation and reduce the amounts of waste going to landfill.

Specifically, the policy required each government agency to minimise, reuse and recycle generated wastes and to give priority to buying materials with recycled content where they are cost and performance competitive. The policy was the first of its kind in Australia and other governments now have similar policies.

The policy applies to four key areas: paper products; office equipment and components; vegetation materials such as leaves, tree clippings and prunings; and construction, demolition and excavated materials.

The Department of Environment and Climate Change (DECC) collects and analyses individual agency results and prepares a whole-of-government performance report every two years. DECC assists agencies with WRAPP Plans, reviews performance, identifies and promotes best practice and provides some training. The Department also manages the WRAPP website for information sharing between agencies and the public.

This audit assesses whether DECC has successfully supported the policy and whether its implementation has been effective in reducing waste and improving recycling and reuse. This audit did not focus on individual agency performance on waste reduction, but rather the results achieved across the public sector.

Statewide targets for waste reduction were introduced as part of the Waste Avoidance and Resource Recovery Strategy in 2003. This Strategy applies to business, government and the community and sets overall targets to work towards. The WRAPP program is an integral component of this strategy.

	Audit opinion
	The Government’s WRAPP initiative has achieved its intended outcome. The public sector has reduced the proportion of waste going to landfill from 27 per cent to eight per cent over the last six years, and has increased its use of recycled content materials.
	Most agencies have played their part, identifying how waste can be reduced and changing practices accordingly.
	Some of the success of this policy can be attributed to the approach taken to support it. DECC provided clear guidance and support to agencies to implement the policy. It has also routinely monitored and evaluated agency performance and published the results. It has even compared this program to similar programs elsewhere to see if changes were needed.
	However, the policy is now ten years old and much has changed in community expectations about reducing damage to the environment. For example, reducing an organisation’s carbon footprint is one of the latest initiatives where government intends to take a leading role. There have also been other changes in the quality and variety of recycled product available on the market that agencies may not be aware of.
	It is time to review the policy, both to renew its impetus and to ensure it remains relevant.
	Key findings
Chapter 1: Has WRAPP been implemented effectively?	The NSW public sector has effectively implemented the government’s waste reduction and purchasing policy. DECC has done a good job in promoting the implementation of WRAPP by public sector agencies. It: § developed a program to achieve the government’s policy objectives § communicated the program requirements to each agency § provided support to agencies through seminars, publications and contact officers § monitored, evaluated and reviewed progress at agency and whole‑of‑government levels § publicly reported whole-of-government progress and results in 2004 and 2006.
	For the most part, agencies have also done well in implementing WRAPP. Most of them have met program requirements to: § produce and implement plans to minimise waste and increase recycling § submit data and information to DECC on progress with WRAPP on a biennial basis § reported on WRAPP progress in their annual report.
	However, a recent change in WRAPP reporting requirements for small agencies, following a review of government reporting, is likely to have a negative impact on DECC’s ability to monitor WRAPP outcomes.
	We identified some opportunities to further improve the program.
	DECC reviewed and provided feedback to agencies on their initial WRAPP plans and reports, but regular review would provide more assurance that these are up-to-date.
	There are targets for waste reduction, reuse and recycling, but no targets for purchasing materials with recycled content.
	Some relevant State Contracts do not contain specific clauses to encourage the purchase of price and performance competitive recycled content products.
	The WRAPP program was the first of its kind in Australia when introduced in 1997, and DECC has expanded the range of materials covered by it since then. Given the increased opportunities for recycling and reuse which have emerged over the last decade, and the continued pressure on the public sector to reduce waste, DECC should undertake a review of WRAPP to determine appropriate improvements.
Chapter 2: Has the public sector reduced waste and increased recycling?	The WRAPP program has been successful. Public sector recycling and the use of materials with recycled content have both increased since the introduction of WRAPP. For example, the proportion of waste reused or recycled increased from 73 per cent in 2001 to 92 per cent in 2007. The proportion of paper purchased with recycled content increased from 27 per cent in 2001 to 35 per cent in 2007.
	Targets for recycling and reuse are contained in the Waste Avoidance and Resource Recovery Strategy. Whilst the public sector may not achieve the overall target to hold level the total waste generated between 2003 and 2008, it has largely achieved the recycling targets set for 2014.
	Recommendations
	In order to build on the Government’s current efforts to reduce waste and increase recycling, we made a number of recommendations in this report. These include: § introducing targets to encourage the purchase of recycled content materials § making it easier for agencies to buy recycled content goods such as recycled content paper and toner cartridges § identifying practices to reduce paper consumption such as greater use of electronic publishing and double-sided printing.
	Specifically, we recommend that DECC: § develop specific targets as part of WRAPP for purchasing materials with recycled content and report on performance in its biennial reports (page 12) § regularly review agency WRAPP plans, including plans prepared by state owned corporations, against policy requirements and provide feedback (page 14) § in consultation with the Department of Commerce, review relevant State Contracts to ensure they assist agencies to optimise WRAPP outcomes (page 14) § encourage and assist the large waste generators exempted from biennial reporting to continue to provide data on their WRAPP performance (page 14)
	§ in consultation with NSW Treasury, write to non-complying agencies and remind them of their WRAPP obligations under annual reporting legislation (page 15) § review the WRAPP program to: ú ensure it reflects current thinking in sustainable purchasing, recycling and reuse (page 16) ú recognise the important role of the Department of Commerce in the implementation of WRAPP (page 16) ú consider requiring large waste generating agencies to report performance against their own individual targets (page 17) ú identify further measures to reduce overall paper consumption and increase the use of recycled content paper (page 26) ú clarify the method to be used for assessing and reporting the amounts of construction waste generated, especially fill and virgin excavated natural material (page 28) ú consider introducing more challenging targets for recycling and reuse which are specific to WRAPP (page 28).
	Response from the Department of Environment and Climate Change
	Thank you for the opportunity to provide comments on the Performance Audit Report - Recycling and reuse of Waste by the NSW Public Sector. I am pleased to note that the report finds that the implementation of the Government’s Waste Reduction and Purchasing Policy (WRAPP) has been implemented effectively by the Department of Environment and Climate Change (DECC) and that this has assisted NSW government agencies to deliver substantial improvements in waste reduction, recycling and use of materials with recycled content by government agencies since the policy commenced in 1997. I am pleased that the report recognises the work that DECC has done over the last 10 years to support agencies to establish baseline performance and implement the policy through Action Plans and biennial reporting of data. The policy principles are now generally well integrated into agency purchasing and waste management decisions. To build the knowledge and skills of agency staff, DECC has developed guidelines, training courses, education resources, conducted information seminars and workshops and maintains a comprehensive WRAPP web site. I believe that the report’s recommendation’s will assist DECC and other agencies to continue to improve their waste reduction and purchasing performance. A number of these recommendations have already been addressed in the recent announcement by the Premier relating to a range of Government Agency Sustainability actions. These include a requirement for agencies to purchase 85 per cent of their copy paper with recycled content by 2014 and to specify inclusion of recycled content paper when seeking quotes for external printing of documents. DECC will incorporate the other recommendations in this Report into its ongoing work program commencing in 2008-9. Specifically, DECC will:
	§ Further review the WRAPP program to ensure it maximises opportunities to reduce waste and use recycled content products. In particular, DECC will explore synergies with other government initiatives and commitments including the NSW State Plan, the Climate Change Action Plan, the Sustainability Policy for NSW Government Agencies and Waste Avoidance and Resource Recovery Strategy; § Further review and monitor WRAPP agency plans, commencing with major generators and purchasers since these can provide a model to others as well as helping to drive market development for recycled materials; § Monitor progress against the recently established targets for recycled content paper purchase and examine opportunities to establish further specific targets; § Examine opportunities to further streamline agency reporting and encourage large exempted waste generators to continue to report data and encourage exempted agencies to report in their Annual reports; and § Continue to work closely with the Department of Commerce to ensure that relevant State Contracts optimise purchasing and recycling opportunities.
	The outcome of the audit is a positive one and I would extend my thanks to the audit team for the open and professional manner in which the audit was conducted. We look forward to meeting the challenges of improved resource recovery and the reduction of waste to landfill as we work together for a sustainable future for all.
	(signed) Lisa Corbyn Director General Dated: 28 May 2008