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Sustainability in the MODIEMA Conference 2011
Dr Jon Freeman
Sustainable Procurement Strategy
If nothing else…
…sustainability must be MATERIAL to your business.
So…how is sustainability material to the MOD?
Structure of the presentation
• MOD context• Greening Government Commitments• Sustainable procurement in Defence• Operational energy• Critical materials
MOD Context
• Defence has two high-level outputs: – Defence policy– Military capability
• 2009/10 Defence spending was £39 bn• 178,000 personnel in Armed Forces (April 2010)• 86,000 civil servants (April 2010)
• Significant reductions in personnel over the next few years – Aim to reduce civil servants by 25,000 by 2015– Aim to reduce military by 17,000 by 2015
• Significant budgetary pressure
• So…what does sustainability mean for this particular organisation?
Sustainability context for the MOD
• MOD manages ~1% of UK land area, ~40,000 buildings, ~170 SSSIs
• Emits slightly less than 1% of UK greenhouse gases – 4.7 million tonnes (2009/10)
• Strategic Defence and Security Review (2010) highlighted concerns about energy and materials security
• SD Strategy published in 2011• MOD has already significantly reduced its impact on the
environment
Greening Government Commitments
• By 2015:• Reduce greenhouse gas emissions by 25% from a 09/10 baseline from the whole
estate and business related transport• Reduce waste by 25% from a 2009/10 baseline• Reduce water consumption from a 2009/10 baseline, and report on office water use
against best practice benchmarks
• Ensure government buys more sustainable and efficient products and engages with its suppliers to understand and reduce the impacts of its supply chain– Embed Government Buying Standards in procurement contracts– Improve and publish data on our supply chain impacts, initially
focussing on carbon, but also water and waste – setting detailed baselines for reducing these impacts
Sustainable Procurement for Defence
• Embedding sustainability in commercial processes and relations with industry
• Challenge – teams need to think about what sustainability means for them…can be hard work!
• Sustainable Procurement Assessment of Risk– Tool that is available on the Acquisition Operating Framework
www.aof.mod.uk • Operational Energy• Critical materials inc. REACH
Energy in theatre
Operational Energy
• 1.3 billion litres of fuel (2010/11) at a cost of ~£600 million• Challenge of getting an accurate baseline• Reducing fuel helps costs, operational effectiveness and energy
security
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Operational energy – what is the MOD doing?
• Developing an operational strategy to reduce our reliance on fossil fuel
• Certifying synthetic fuels for use aircraft• Research with Dstl• PowerFOB trial in Cyprus July 2011
– Intelligent power management– Low power accommodation (esp. shelter insulation)– Micro-power
• Future challenges – the power for our future equipment
Energy research at Dstl
Objectives:• To understand the supply, demand and vulnerability to operational energy
supply;• To identify energy technologies that could be matured for exploitation in
defence; • To identify new ways of using capabilities through-life that reduces the
energy used to deliver operational effect;• To assist in developing energy requirements and assessment criteria for
capability acquisition
PowerFOB
GeneratorManagement
Energy Storage
Demand Management
Renewables Integration
Intelligent Power Management
Management of in-service
generators to work with storage or renewable
power solutions
Controlling the power demands
in a base through
scheduling and shedding
Capturing ‘spare’ power produced by generators or renewables to
use when needed
Integrating the power from
wind or solar solutions into the base-wide
network
Power Architecture
Critical materials
• Scarcity of natural resources much discussed in the media• The effects of REACH…scarcity through legislation• Does this affect defence and, if so, what should we do about it?• Potential benefits – cost, operational effectiveness, materials
security• Working with industry is important as we need to understand
what materials are in the MOD supply chain
Critical Materials – research objectives
• To understand the supply and defence demand for certain critical materials
• To understand the vulnerabilities of MOD capabilities to shortages of supply in certain critical materials
• To identify and, where appropriate, classify possible sustainable alternative materials
Summary
• MOD “mainstreaming” sustainable development in its management processes and has had some successes in reducing our impact on the environment
• As complexity increases (e.g. systems, legislation etc) it gets harder to be sustainable and to manage risks. We must, wherever possible, make sustainability the easy option – need to develop tools and training that help our staff work out what sustainability means for them
• Energy and materials challenges are particularly important sustainability issues in the procurement of military capability. We are using research to help us develop the tools and options to address these