Record-breaking $1.1 billion social procurement spend in Australia

MELBOURNE, Australia, March 25, 2025 /PRNewswire/ -- Australian business and government are spending more with certified social enterprises than ever, with over 20 organisations each spending more than $1 million with certified social enterprises last financial year, according to Social Traders' Impact Report released today.

Social Traders has been reporting on the state of social procurement by tracking business and government members' spend with certified social enterprises since 2018. Social procurement spend has gone up every year, reaching a milestone $1.1 billion spent with social enterprises over the last seven years. This cumulative spend has created:

• 10,000 jobs and over 918,000 training hours for people otherwise shut out of work
• $88.1 million delivered in affordable and accessible community services
• 56,500 tonnes of waste diverted from landfill
• $13.1 million donated to charity partners

Social enterprises are businesses like any other, but they exist specifically to solve social and environmental challenges. There are over 12,000 social enterprises in Australia, contributing $21 billion to the economy every year.

Social procurement is when business and government choose to buy from social enterprises, using their purchasing power to generate social value beyond the value of goods and services.

"The beauty of social procurement is that it's simply a business doing what it would anyway – buying goods and services, but using different suppliers," Ms Anderson said.

"By adding social enterprises into a supply chain, a business gets the same quality goods and services but also gets social and environmental value in the same transaction. Switching to social procurement creates a fairer, more equitable and sustainable world."

ASX-listed infrastructure services provider Downer was named the FY24 Big Spender in social procurement having spent $12.5 million with social enterprises last financial year.

It topped a list of over 20 organisations who spent more than $1 million with certified social enterprises, including ANZ, Westpac, Australia Post, Charter Hall, John Holland Group, Lend Lease, Mirvac and Visy Industries.

"As a large organisation operating across Australia and New Zealand, we understand the significant impact our procurement practices have on our communities," said Fraser Stowers, Group General Manager Procurement and Property at Downer.

The Impact Report also reveals that social enterprise is gaining broader awareness among businesses and consumers. Social Enterprise Finder, a national online directory of certified social enterprises, was used on average 18,160 times per month in FY24.

"Despite business uncertainty and anti-DEI sentiment out there at the moment, we're seeing our business members sticking with their social and sustainability plans," Ms Anderson said.

"Not for compliance, but for competitive advantage. Most businesses recognise that commitments to doing good and advancing inclusion will earn staff and customer loyalty which supports business growth – especially in turbulent times."

Download a copy of the Social Traders FY24 Social Impact Report here