The use of bio-renewable resources, such as glycerol, a by-product from bio-diesel manufacture, can provide a viable way to make valuable products using greener technology. In particular, glycerol can be reduced to give 1,2-propanediol that can then be selectively oxidised to lactate, which has immense potential as a monomer for the synthesis of biodegradable polymers. We show that gold-palladium alloy catalysts can be very effective for the selective oxidation of 1,2-propanediol to lactate. Two supports, TiO₂ and carbon, and two preparation methods, wet impregnation and sol-immobilisation, are contrasted. The addition of palladium to gold significantly enhances the activity and retains the high selectivity to lactate using O₂ as oxidant (we observe 96% lactate selectivity at 94% conversion). Use of hydrogen peroxide is also possible but lower activities are observed as a result of the reaction conditions, but in this case no marked enhancement is observed on addition of palladium to gold. Comparison of the activity for C₃ alcohols shows that the reactivity decreases in the order: glycerol > 1,2-propanediol > 1,3-propanediol ∼ 1-propanol > 2-propanol. The use of a sol-immobilisation preparation method as compared to impregnation leads to alloy catalysts with the highest activity for lactate formation from the oxidation of 1,2-propanediol; the origins of these activity trends are discussed.