Sustainable Procurement - Taking your first steps 2 nd October 2007 University of Reading

Sustainable Procurement - Taking your first steps

2nd October 2007

University of Reading

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Sustainable Procurement

The workshop will Provide practical guidance on how to take

sustainable procurement forward in your university or college

Share best practice with sector case studies Focus on the key elements of sustainable

procurement within a university and college environment

Discuss sustainable procurement from a supplier perspective

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Sustainable Procurement

Agenda

09.15 Registration09.45 Welcome and Introductions10.00 Structure of the Day and Objective Setting10.30 Selling Sustainable Procurement to Your

Institution11.00 Tea / Coffee11.15 Sustainable Procurement Policies and Risk

Based Approaches

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Sustainable Procurement

Agenda

12.15 Networking Lunch13.15 Sector Case Study

Michelle Dixon, University of Hertfordshire13.45 Sector Case Study

Pat Condon, Blackpool and Fylde College 14.15 Supplier Engagement and Contract Management14.45 Supplier Case Study

Surrie Everett-Pascoe, Canon UK15.15 What Do I Do Now?16.00 Close

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Environment Action Fund Programme Background

Three year project Reducing negative environmental and social impacts

through purchasing Steering group, partners from Further Education and

Higher Education Training

Train the trainer Policy and strategy development Risk based approach to procurement Supplier engagement Social issues in procurement

Structure of the day & Objective setting

Introductions

What is Sustainable Development?

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What is sustainable development? What is Sustainable Development?

Defined by the Bruntdland Commission in 1987

“development which meets the needs of the present without compromising the ability of future generations to meet their own needs”

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What is sustainable development?

Society

EconomyEnvironment

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What is sustainable development?

Society

EconomyEnvironment

Reduce the negative and increase the positive

Long term view

What is Sustainable Procurement?

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Definition

“Sustainable purchasing is all about taking environmental and social factors into account in purchasing decisions. It’s about looking at what your products are made of, where they come from and who has made them”

HEPS Sustainable Purchasing Guidance – Section 1

Selling Sustainable Procurement to your Institution!

Exercise

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15

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Global FootprintGlobal FootprintA Light Touch?A Light Touch?

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Every seven weeks, we each generate our own body weight in rubbish

Three quarters of that is sent to landfill

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Why is sustainable procurement important?

Natural Resources

Transportation ManufacturingProduct

DistributionConsumers

Environmental Footprint

Impacts and Opportunities (Environment)

Low

Supply Chain

High

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Why is sustainable procurement important?

Natural Resources

Transportation ManufacturingProduct

DistributionConsumers

Environmental Footprint

Current Management Effort (Environment)

Low

Supply Chain

High

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Why is sustainable procurement important?

Natural Resources

Transportation ManufacturingProduct

DistributionConsumers

Environmental Footprint

Mismatch between the two

Low

Supply Chain

High

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Selling Sustainable Procurement?

Reputation

Performance

Licence to Operate

Brand

Sustainable Procurement

Customerrequirements

Stakeholderdemands

Employee expectations

Benchmarking

Legislation &Standards

Impact Reduction(environmental)

Business efficiencies

Risk management

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Selling Sustainable Procurement Selling sustainable procurement

Who are our audience? What pressures are they under? What are their concerns? What do you want them to do differently? How can you help them?

Sustainable Procurement Policies & Risk Based Approaches

Exercise

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Sustainable Procurement Policies Sustainable Procurement Policy

Who is the audience? What does it do? What does it look like?

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Sustainable Procurement Policies Who is the audience?

Senior management Suppliers and contractors Internal customers (of purchasing) e.g. budget

holders Employees (within purchasing & outside) Any other stakeholder

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Sustainable Procurement Policies What does it do?

Reflectskey

impacts

Reflectsbusinesspriorities

Showsintent

Gets buyIn and

support

Stimulates action

Informs targets

and strategy

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Sustainable Procurement Policies Using your skills, knowledge and experience

Read and review 3 of the example policies Highlight key content and themes Produce a checklist to complete a high quality

policy Be prepared to report back

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Sustainable Procurement Policies Putting the policy into practice

Supported / signed off at the highest possible level

Regularly revisited and updated as the institution becomes more experienced

Should be widely disseminated

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Sustainable Procurement Policies Putting the policy into practice

Those involved in procurement should have an in depth introduction to the policy

Supporting information should be made available to help implementation

Progress should be monitored, how are people using the policy? Can it be improved?

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Sustainable Procurement Policies Summary

Develop one or reflect the objectives in existing policy

Get buy in and commitment Communicate it Support staff implement, with guidance and

workshops Review and update with experience

How do I prioritise?

Take a risk based approach

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Why take a risk based approach? Every product or service we buy has an

environmental and social impact You buy thousands of products You have limited resources You have limited time You are being asked to demonstrate how the

work you do supports your institution

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Why take a risk based approach? We need a way to prioritise our activity Risk as a concept resonates with institutions

and senior management Ensures we are not wasting our efforts – we

are looking to implement sustainable development which is about reducing impact

Tried and tested approach

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Why take a risk based approach? Helps focus activity on main impacts Involves stakeholders internal customers –

helps get buy in for implementation Demonstrates that high risks do not only

come from high value purchases

What guidance exists?

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What guidance exists?

The approach we use is adapted from Sustainability and Local Government

Procurement – IDeA (November 2003) An approach used by Belfast City Council The Environment Agency

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Implementing a risk based approach Identify products / services you routinely buy

as an organisation Consider the environmental impacts / risks

associated with the products or service Using a simple matrix provided identify

whether you perceive the product to be a high or low environmental risk and high or low profile risk

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Implementing a risk based approach

Low

Low

High

High

En

viro

nm

enta

l R

isk

Profile Risk

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Implementing a risk based approach

Priority 2 Priority 1

Priority 4 Priority 3

Low

Low

High

High

En

viro

nm

enta

l R

isk

Profile Risk

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Implementing a risk based approach In the recent publication ‘Procuring the

Future, Sustainable Procurement National Action Plan: Recommendations from the Sustainable Procurement Task Force’ a risk-based approach is widely promoted.

To determine priorities for the public sector the task force “developed an expenditure prioritisation methodology” which uses “an approach based on risk, scope to do more and procurer influence”.

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Implementing a risk based approach Adopting the priorities identified by the task

force in your university or college can help you achieve the 2009 target.

Of the 174 spend areas identified the following 10 were named as priorities for sustainable procurement activity.

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Implementing a risk based approach1 Construction (building and refit, highways and local roads,

operations and maintenance)2 Health and social work (operating costs of hospitals, care

homes, social care provision)3 Food4 Uniforms, clothing and other textiles5 Waste6 Pulp, paper and printing7 Energy8 Consumables – office machinery and computers9 Furniture10 Transport (business travel and motor vehicles)

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Implementing a risk based approach A good starting point could be to look at the

list of commodity areas compiled and coded by NEUPG and identify which of these are relevant to you.

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Risk Analysis by NEUPG

Comm Code Commodity Code DescriptionRelevance /risk Equality

Relevance/ risk Environmental

Relevance/ risk

WEEE/ disposal

Relevance / risk Social issues

A The Arts, Audio-Visual & Multimedia Supplies and Services        

AAAudio Visual Equipment, incl video conferencing, Televisions, Videos,

sound recorders, incl maintenance, repair and hire L M H M

AB Display and Projection Equipment and Consumables L M H M

AC Learning and Training Packs and Pre-recorded Media M L L L

ADMusic, Instruments, Scores, Purchase, Maintenance, Conductors and

Artistes L L L L

AE Photographic Equipment Supplies and Services L M H M

AF Studio Hire and Running Costs H L L L

AG Theatre Production Costs (scenery, lighting, props, costumes) H L L L

AJ Audio Visual Consumables, Accessories, Cassettes etc L M L M

AK Photographic Consumables, Accessories etc L M M M

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Summary of the process

Review / Identify environmental and social priorities for your institution

Identify a group of individuals within your institution from different backgrounds and experiences

Compile a list of all the products and services you purchase (as comprehensive as possible)

Spend as long as it takes prioritising using the matrix (1 – 2 days)

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Summary of the process

This means you have undertaken an environmental risk analysis of all the products and services you purchase!!

Identify the suppliers related to those products or services

Prioritise management response Communicate it to staff and suppliers

Networking Lunch

Sector Case Study

Michelle Dixon

University of Hertfordshire

Sector Case Study

Pat Condon

Blackpool & Fylde College

Supplier engagement?

On sustainabilityWhat is it?

What do you already do?

Why is it important?

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Supplier Engagement

Good practice review Where do you start!

Based on risk Use of questionnaires Supplier workshops Guidance for suppliers Working with suppliers

Supplier Case Study

Surrie Everett-Pascoe

Canon UK

What do I do now?

Exercise

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What do I do now?

What steps do you need to take? Get high level support and commitment Put a team together – cross functional Resources in place Analyse purchasing practice

Baseline audit should do this Evaluate supplier base

Risk analysis of the goods and services you procure Develop guidance to support implementation – to integrate

into procurement process Communicate it internally and externally Monitor and review

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Environment Action Fund ProgrammeFurther support is available

Train the trainer Policy and strategy development Risk based approach to procurement Supplier engagement Social issues in procurement

Experience built up as part of the EAF project within EAUC

Speak to Iain Patton for further information and support

Close

jbrannigan@esdconsulting.co.uk