Victorian utility commits to 8% Aboriginal and Torres Strait Islander procurement by 2030

Yarra Valley Water has pledged to spend over $16 million with Aboriginal and Torres Strait Islander suppliers and certified social enterprises over the next six years, with the utility aiming to ensure that 8% of its active suppliers are certified First Peoples-owned businesses by 2030.

Yarra Valley Water Managing Director Pat McCafferty said the pledge is an acknowledgement that water businesses are not only positioned to create economic value, but also to build economic capacity within Aboriginal and Torres Strait Islander suppliers and social enterprises.
 
“Empowering individuals, families and communities economically is one of the most effective ways to create opportunities that lead to real, meaningful and lasting change,” he said.
 
“We believe that our spending decisions can drive significant social and environmental outcomes. This is just one example of how we plan to make a real difference in the communities we serve.
 
“Achieving these targets involves a lot of hard work, tough questions and ongoing improvement. It gives us an objective view about what we are doing well and where we need to improve in terms of social and environmental impact.”
 
Yarra Valley Water has also committed to increasing its active suppliers who are certified social enterprises to 5% by 2030, with current procurement sitting at 3%.
 
Yarra Valley Water Chief Financial Officer Natalie Foeng said environmental, social and governance (ESG) principles are now central to Yarra Valley Water’s operations and procurement, with the latest procurement targets showcasing this commitment.
 
“We’ve journeyed through ESG principles and have tried to embed them into our day-to-day operations, but also our procurement strategies. Coupled with these efforts, we're also developing our third Reconciliation Action Plan (RAP) now, which includes training, employment and procurement targets and actions to ensure First Peoples are actively involved in planning and managing water resources,” she said.
 
“We wanted to find a way to challenge ourselves further in this space. Putting forward this pledge to spend $16 million in the next six years towards engaging Aboriginal and Torres Strait Islander suppliers and certified social enterprises is a very deliberate step.
 
“We have been on this journey for some time, it's not a new thing. But we want to step up and play a bigger role in deliberate procurement. Our customers are telling us they want us to do more in this space.
 
“The core of our business is really about the health and wellbeing of the community, but we have heard from our customers and the community that they expect businesses to step up and play a bigger role for the environment and in supporting a thriving community. We believe our procurement approach can play an important role in achieving that.”

Ripple effect

Yarra Valley Water Aboriginal Partnerships Manager Nina Braid said the utility’s pledge to increase spending with Aboriginal and Torres Strait Islander businesses is about investing in and committing to partnerships to create lasting value.
 
“One of the best outcomes for this type of pledge is the future value of every dollar that we spend today. We know from the Supply Nation’s Sleeping Giant report that every dollar we spend today creates $4.10 worth of value in the future,” she said.
 
“When we invest in Aboriginal and Torres Strait Islander enterprises, they invest back into their communities. Aboriginal businesses are more likely to employ Aboriginal people, some who might be highly marginalised.
 
“We are also dedicated to working with contractors to make sure the workplace they are managing is culturally appropriate and culturally safe for Aboriginal and Torres Strait Islander businesses. It’s about creating opportunities within our sphere of influence.”
 
As a large water utility, Yarra Valley Water spends a lot of money delivering community services and working with partners, Foeng said, and the new pledge is also about leaning into the ongoing, widespread value created through strong procurement partnerships.
 
“Importantly, it's not just the direct influences that we can have through spending and direct partnerships, it is also the ripple effect,” she said.
 
“By bringing suppliers together, we're connecting people and we're building capacity. We are creating a space where our partners are learning from one another. They're all at different stages of maturity.
 
“But, before you know it, they're all building similar cultural safety practices and mindsets within their own organisations. Those ripple effects are really powerful.
 
“We’re not only delivering financial, productivity or value benefits at Yarra Valley Water, but our partners are learning and doing the same thing within their own organisations. It multiplies the value of our work.”

Two-way growth

While the investment pledge is an important step, Braid said it’s also crucial to approach partnerships with Aboriginal and Torres Strait Islander businesses within a two-way growth model.
 
“At Yarra Valley Water, we need to grow, particularly in terms of how we operate on Wurundjeri Woiwurrung Country, as well as providing opportunities for other Aboriginal and Torres Strait Islander businesses to operate here, also,” she said.
 
“One of our current partnerships is with Aboriginal-owned company, Have a Dig Excavations. This partnership is called Gama Dji Balit (Emerge Strongly), and involves Jaydo and Ventia.
 
“Have a Dig do cultural excavations and other heritage work. They want to develop their skill set and learn about directional drilling to really uplift what they do as a Wurundjeri business.
 
“But they also want to learn more about onboarding, operational tasks and what’s involved with contracting. They’re also learning about capability statements, so that they are prepared to work with other water businesses, too.”
 
At the same time, Have a Dig has been teaching Yarra Valley Water about working with Aboriginal businesses, as well as how to approach cultural heritage excavation works in a way that is respectful and appropriate. 
 
“We have a very large growth corridor here in Melbourne that requires a lot of cultural heritage excavation. We know it's going to require us to really think carefully about how we do that in the most sensitive way,” Braid said.

Working together

In preparing for increased spending with Aboriginal and Torres Strait Islander businesses and social enterprises, Yarra Valley Water has received support from Kinaway Chamber of Commerce, as well as Social Traders and Supply Nation.
 
“We can't do it alone. What we have found really helpful is partnering with Kinaway and Social Traders. Supply Nation has also been a really excellent partner,” Foeng said.
 
“These organisations often join us on our supply chain forums. But they’ve also helped us embed this new approach to procurement into our systems.
 
“As our people are procuring, they're able to use the new references within our system to reflect on whether there is an opportunity to approach Aboriginal and Torres Strait partners.
 
“At the end of the day, we all want our communities to thrive. And, as a water corporation, it's a privilege to serve the community, and having the opportunity to partner more with Aboriginal and Torres Strait Islander businesses is a really positive thing.”
 
Braid said having ambitious targets is important, not only to move the dial on commitments, but also to help motivate the learning and understanding required to partner with Aboriginal and Torres Strait Islander businesses successfully.
 
“Ambitious targets force us not to sit on our laurels. As an organisation, everyone has a role to play in this work. It's not just one person's job,” she said.
 
“Social procurement is really about getting the best bang for buck. It's how we have the biggest impact with the money that we spend. It’s planting seeds, and letting those relationships grow in different areas of the business.”