Through Welsh Government funded support for sustainable public sector procurement, WRAP Cymru has developed new guidance providing an overview of whole life costing (WLC) and how it can help public bodies in Wales achieve their sustainable procurement goals.

Public bodies are committed to achieving Net Zero targets and addressing the climate emergency. As conscientious procurers, the public sector strives to align purchasing decisions with procurement legislation. More than ever, there is a need for procurers to demonstrate how their purchase decisions consider the environmental impacts over the lifetime of a product or service and help to deliver Wales’ Well-being Goals.

Procurers are looking to adopt strategies that prioritise sustainable supply chains to reduce environmental impact. This involves re evaluating the necessity for new purchases, emphasising re-use, repair, and remanufacturing, and extending product lifetimes through leasing and maintenance. This shift not only reduces carbon emissions but also generates positive social outcomes and economic benefits.

This guidance provides an introduction to Whole Life Costing (WLC), also referred to as Life Cycle Costing (LCC), a process estimating costs over a product's entire lifespan. WLC incorporates externalities, such as carbon emissions, into the overall evaluated cost. In simple terms, WLC can include:

  • Purchase price and associated costs (delivery, installation, insurance, etc.)
  • Operating costs (energy, fuel, water use, spares, maintenance)
  • End-of-life costs or residual value (revenue from the sale of the product)
  • Externalities, such as carbon emissions generated throughout the product's lifecycle.

Discover how Whole Life Costing can strengthen the business case for sustainable purchasing practices. Download the guidance document below:

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  • An Introduction to Whole Life Costing

    PDF, 2.36 MB