Sustainable Procurement in Government: Guidance to the Flexible

Sustainable Procurement inGovernment: Guidance to theFlexible Framework

Revised 2011www.defra.gov.uk

www.defra.gov.uk

DEF-PB13423 09/11

ContentsIntroduction

People Introduction

People Level 1

People Level 2

People Level 3

People Level 4

People Level 5

Policy, Strategy and Communications Introduction

Policy, Strategy and Communications Level 1





Procurement Process Introduction

Procurement Process Level 1





Engaging Suppliers Introduction

Engaging Suppliers Level 1





Measurement and Results Introduction

Measurement and Results Level 1





Annexes

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29-33

Guidance to the Flexible Framework 1

2 Guidance to the Flexible Framework

Acronyms used in this documentBIS Department for Business, Innovation and Skills

EMS Environmental Management System

CESP Centre of Expertise in Sustainable Procurement

CSR Comprehensive Spending Review

GBS Government Buying Standards

GGC Greening Government Commitments

HMRC Her Majesty’s Revenue and Customs

ITT Invitation To Tender

LCA Life Cycle Analysis

MOD Ministry of Defence

NDPB Non Departmental Public Bodies

P4CR Procuring for Carbon Reduction

PtP Policy through Procurement

SDAP Sustainable Development Action Plan

SMEs Small and medium enterprises

SPAP Sustainable Procurement Action Plan

SPTF Sustainable Procurement Task Force

SRO Senior Responsible Owner

SVIAP Supplier Value and Innovation Award Programme

WLC Whole Life Cost

EA Environment Agency

FM Facilities Management

CEO Chief Executive Officer

CPD Continuous Professional Development

Defra Department for Environment Food and Rural Affairs

GPS Government Procurement Service

HMT Her Majesty’s Treasury

KPIs Key Performance Indicators

MEAT Most Economically Advantageous Tender

MTF Marrakesh Task Force

OGC Office of Government Commerce

PQQs Pre Qualification Questionnaire

SD Sustainable Development

SP Sustainable Procurement

SPS Sustainable Procurement Strategy

SRM Supplier Relationship Management

SVAP Supplier Value Award Programme

TNA Training Needs Analysis

Guidance to the Flexible Framework 3Foundation –Level 1

Embed

–Level 2

Practice –Level 3

Enhan

ce –Leve

l 4Lead

–Leve

l 5

People

Sustaina

ble Proc

urem

ent ch

ampion

iden

tified. K

ey procu

remen

t staff ha

verece

ived

bas

ic training in Sus

tainab

leProc

urem

ent pr

inciples

. Su

staina

ble

Proc

urem

ent is in

clud

ed as pa

rt of a

key em

ploy

ee in

duction prog

ramme.

All proc

urem

ent staff ha

ve rec

eive

dba

sic training

in sus

tainab

leproc

urem

ent pr

inciples

. Key

staff hav

erece

ived

adv

ance

d training

on

sustaina

ble proc

urem

ent pr

inciples

.

Targ

eted

refresh

er training on

latest

Sustaina

ble Proc

urem

ent pr

inciples

.Pe

rfor

man

ce objec

tives

and

app

raisal

includ

e Su

staina

ble Proc

urem

ent

factor

s. Sim

ple ince

ntive prog

ramme in

plac

e.

Sustaina

ble Proc

urem

ent includ

ed in

compe

tenc

ies an

d se

lection crite

ria.

Sustaina

ble Proc

urem

ent is in

clud

ed as

part of em

ploy

ee in

duction

prog

ramme.

Ach

ieve

men

ts are pub

licised

and

use

dto

attract procu

remen

t prof

ession

als.

Intern

al and

externa

l awards

are

rece

ived

for

ach

ieve

men

ts. Fo

cus is on

bene

fits ac

hiev

ed. Goo

d pr

actic

esh

ared

with

oth

er org

anisations

.

Policy, Strategy andCommunications

Agree

ove

rarching

Sus

tainab

ility

objectives

for

procu

remen

t. Sim

ple

Sustaina

ble Proc

urem

ent po

licy in place

endo

rsed

by CEO

. Com

mun

icate to

staff an

d ke

y su

pplie

rs.

Review

and

enh

ance

sus

tainab

leproc

urem

ent po

licy, in

partic

ular

cons

ider sup

plier en

gage

men

t. Ens

ure

it is part of

a w

ider Sus

tainab

leDev

elop

men

t strategy

. Com

mun

icate

to staff, su

pplie

rs and

key

stak

eholde

rs.

Aug

men

t th

e Su

staina

ble Proc

urem

ent

polic

y into

a strateg

y co

verin

g ris

k,proc

ess integr

ation, m

arke

ting,

supp

lier en

gage

men

t, m

easu

remen

tan

d a review

proce

ss. Strategy

endo

rsed

by CEO

.

Review

and

enh

ance

the

Sus

tainab

leProc

urem

ent strategy

, in partic

ular

reco

gnising th

e po

tent

ial o

f ne

wtech

nologies

. Try to

link

strateg

y to

EMS an

d includ

e in ove

rall co

rpor

ate

strategy

.

Strategy

is: review

ed reg

ularly,

extern

ally scrut

inised

and

dire

ctly

linke

d to

org

anisations

’ EM

S. The

Sustaina

ble Proc

urem

ent strategy

reco

gnised

by po

litical le

aders, is

commun

icated

widely. A

detailed

review

is und

ertake

n to

determine

futu

re prio

rities an

d a ne

w strateg

y is

prod

uced

bey

ond th

is framew

ork.

Procurement Process

Expe

nditu

re ana

lysis un

dertak

en and

key Su

staina

bility im

pacts iden

tified.

Key

con

trac

ts start to includ

e ge

neral

Sustaina

bility crite

ria. Con

trac

tsaw

arde

d on

the

bas

is of va

lue-fo

r-mon

ey, no

t lowes

t pr

ice. Procu

rers

adop

t Gov

ernm

ent Bu

ying

Stand

ards

.

Detailed ex

pend

iture ana

lysis

unde

rtak

en, ke

y Su

staina

bility ris

ksas

sessed

and

use

d fo

r pr

iorit

isation.

Sustaina

bility is con

side

red at an ea

rlystag

e in the

procu

remen

t proc

ess of

mos

t co

ntracts. W

hole-life C

ostin

gan

alysis ado

pted

.

All co

ntracts are as

sessed

for

gen

eral

Sustaina

bility ris

ks and

man

agem

ent

actio

ns id

entif

ied. Risks

man

aged

throug

hout

all stag

es of th

eproc

urem

ent proc

ess. Targe

ts to

improv

e Su

staina

bility are ag

reed

with

key su

pplie

rs.

Detailed Su

staina

bility ris

ks asses

sed

for high

impa

ct con

trac

ts.

Projec

t/co

ntract Sus

tainab

ility

gove

rnan

ce is

in place

. A life-cyc

leap

proa

ch to co

st/im

pact asses

smen

t is

applied.

Life-cycle ana

lysis ha

s be

en und

ertake

nfo

r ke

y co

mmod

ity areas

. Sus

tainab

ility

Key

Perfo

rman

ce In

dica

tors agree

d with

key su

pplie

rs. P

rogres

s is rew

arde

d or

pena

lised

bas

ed on pe

rfor

man

cereleva

nt to th

e co

ntract. B

arrie

rs to

Sustaina

ble Proc

urem

ent ha

ve bee

nremov

ed. B

est pr

actic

e sh

ared

with

othe

r or

ganisa

tions

.

Engaging Suppliers

Key

sup

plier sp

end an

alysis und

ertake

nan

d high

sus

tainab

ility im

pact sup

pliers

iden

tified. K

ey sup

pliers targe

ted fo

ren

gage

men

t an

d view

s on

proc

urem

ent po

licy so

ught

.

Detailed su

pplie

r sp

end an

alysis

unde

rtak

en. Gen

eral progr

amme of

supp

lier en

gage

men

t initiated

, with

senior

man

ager in

volvem

ent.

Targ

eted

sup

plier en

gage

men

tprog

ramme in place

, prom

oting

cont

inua

l Sus

tainab

ility im

prov

emen

t.Tw

o way

com

mun

ication be

twee

nproc

urer and

sup

plier ex

ists w

ithince

ntives

. Su

pply cha

ins fo

r ke

y sp

end

area

s ha

ve bee

n map

ped.

Key

sup

pliers targe

ted fo

r intens

ive

deve

lopm

ent. Sus

tainab

ility aud

its and

supp

ly cha

in im

prov

emen

tprog

rammes

in place

. Ach

ieve

men

tsare fo

rmally rec

orde

d. C

EO in

volved

inth

e su

pplie

r en

gage

men

t prog

ramme.

Supp

liers rec

ognise

d as

essen

tial

to delivery of

org

anisations

’su

staina

ble proc

urem

ent strategy

. CEO

enga

ges with

sup

pliers. Be

st practice

shared

with

oth

er/pee

r or

ganisa

tions

.Su

pplie

rs rec

ognise

the

y mus

tco

ntinua

lly im

prov

e th

eir Su

staina

bility

prof

ile to ke

ep the

clie

nt’s bu

sine

ss.

Measurements and Results

Key

Sus

tainab

ility im

pacts of

proc

urem

ent ac

tivity

hav

e be

eniden

tified. Sim

ple mea

sures ba

sed on

achiev

ing all a

spec

ts of th

e Fo

unda

tion

leve

l of th

e fle

xible fram

ewor

k are pu

tin place

and

delivered

.

Detailed ap

praisa

l of th

e Su

staina

bility

impa

cts of

the

procu

remen

t ac

tivity

has be

en und

ertake

n. M

easu

res

implem

ented to

man

age th

e iden

tified

high

risk im

pact areas

. Simple

mea

sures ba

sed on

ach

ieving

all

aspe

cts of

the

Embe

dding leve

l of th

efle

xible fram

ewor

k are pu

t in place

and

deliv

ered

.

Sustaina

bility mea

sur es refin

ed from

gene

ral d

epartm

ental m

easu

res to

includ

e individu

al procu

rers and

are

linke

d to

dev

elop

men

t ob

jectives

.Simple mea

sures ba

sed on

ach

ieving

all

aspe

cts of

the

Practicing leve

l of th

efle

xible fram

ewor

k are pu

t in place

and

deliv

ered

.

Mea

sures are integr

ated

into

aba

lanc

ed sco

re card ap

proa

chrefle

cting bo

th in

put an

d ou

tput

.Com

paris

on is

mad

e with

pee

ror

ganisa

tions

. Be

nefit

statemen

ts hav

ebe

en produ

ced. Sim

ple mea

sures

base

d on

ach

ieving

all as

pects of

the

Enha

ncing leve

l of th

e fle

xible

fram

ewor

k are pu

t in place

and

deliv

ered

.

Mea

sures us

ed to dr

ive or

ganisa

tiona

lsu

staina

ble de

velopm

ent strategy

direction. Progres

s fo

rmally ben

chmarke

dwith

pee

r or

ganisa

tions

. Ben

efits

from

Sustaina

ble Proc

urem

ent are clea

rlyev

iden

ced. In

depe

nden

t au

dit repo

rts

available in the

pub

lic dom

ain. Sim

ple

mea

sures ba

sed on

ach

ieving

all as

pects

of the

Lea

ding

leve

l of th

e fle

xible

fram

ewor

k are pu

t in place

and

delivered

.

Chapter 1

Introduction

Procurement is one of the key drivers of change in any organisation,whether public or private sector, and is increasingly becoming amechanism for policy delivery. All public procurement in the UK isrequired to achieve value for money and is governed by the publicprocurement rules1 to ensure that it is fair and open. Importantly, there is no legal barrier to embedding sustainability within publicprocurement2.

The Flexible Framework is a widely used self-assessment mechanism developed by thebusiness-led Sustainable Procurement TaskForce, which allows organisations to measureand monitor their progress on sustainableprocurement over time.

The framework was designed so that it couldbe used by all organisations: from those withsignificant levels of procurement expertise andresource to those with very limited resource attheir disposal. The recommended approach toimplementing the Flexible Framework is tosystematically work through each theme fromlevels one to five.

This guide to the Flexible Framework providesdefinitions of the terms used in the themesand sets out the activities that Departmentscan undertake in order to meet the outcomesin the Flexible Framework. It also supportsprogress against the Greening GovernmentCommitments. The examples of activitiesreferred to in this document are illustrativeonly and are meant to stimulate ideas ratherthan be used as they are.

1 i.e. the EU Procurement Directives which are implemented by UK legislation

2 This document does not deal expressly with the application of procurement law. All the guidance provided in the document shouldbe applied in a manner consistent with the requirements of procurement law including, without limitation, the Public Contracts Regulations 2006 (as amended) and the EC law principles of equal treatment, transparency and proportionality. In particular, sustainability requirements must berelevant to the subject-matter of the contract and in accordance with such principles. Guidance on procurement law should be sought from yourrelevant legal adviser.

This guide is a concise version of the FlexibleFramework Solution which is an electronicguidance package which supports theimplementation of the Flexible Frameworkacross the procurement cycle. You will findthat the Flexible Framework Solution expandson the suggested activities and providesfurther detail on the examples and definitions.It is also a project assessment tool that cansupport implementation of the FlexibleFramework in a structured and methodical wayand which enables you to assess and recordyour progress. We hope that this guide willlead you into the Flexible Framework Solutionwhich can be obtained from www.defra.gov.uk.See Annex for further information.

Whilst use of this guide and the FlexibleFramework Solution Package is voluntary,it covers activities and reporting requirementswhich are mandatory under the GreeningGovernment Commitments for centralGovernment (including compliance withGovernment Buying Standards). Therefore ifyour organisation is included in the scope ofthe Greening Government Commitments(GGC) and your organisation chooses not toadopt the FF Solution for either training orassessment you will need to ensure that yourperformance against the sustainableprocurement requirements in the GGC arerecorded elsewhere.


www.defra.gov.uk

Chapter 2

People

This theme focuses primarily on training and capacity building. Yourorganisation should try to have a mechanism in place to identify andaddress training needs for staff (e.g. Training Needs Analysis or TrainingPlan) which sets out which staff roles are defined as key and why andhow and when all relevant staff needs will be met. Training can beclassroom-based, online, as part of job-shadowing or desk training. Alltraining should be regularly reviewed and revised. It may be useful to“buddy up” with another organisation to jointly meet training needs.

Training should be made accessible andcommunicated to all staff; staff should beaware of their training requirements.You should consider baselining workingknowledge of sustainable procurementprinciples across the organisation; you canthen test progress through staff surveys. The different types of training covered in thistheme are summarised below:

Induction programme (Level 1)

• Should make clear how soon afternew staff arrive, the induction shouldbe delivered.

• Could be specific and tailor-madefor the procurement team, or generic andpart of a wider organisational inductionpackage.

• Should cover sustainability in as muchdepth as is appropriate.

Basic training (Level 1)

• Should explain how sustainability can betaken into account across the procurementcycle (within the public procurement rules).

• Can be classroom-based, online orcoaching and can vary in length.

• Should aim to include an evaluation andmonitoring process.

Advanced training (Level 2)

In addition to the requirements of basictraining, this should:


• Give key staff the confidence to embedsustainability considerations into their work(by informing them about tools andencouraging them to contribute ideas).

• Include references to key Governmentpolicy priorities (such as GBS) and anyrelevant EU initiatives.

• It is recommended that it be deliveredthrough classroom-based training with an evaluation mechanism.

It may also include separate sessions onspecific issues such as Equality ImpactAssessments. Training may be delivered byexternal providers or ‘in-house.’

Targeted refresher training (Level 3)

• For individuals whose areas have seen recentpolicy changes and to keep key staff up todate with sustainable procurement policy

• Part of Continuous ProfessionalDevelopment, be communicated to allpersonnel, and allow for feedback

• Could also be part of a wider trainingprogramme across the organisation, basedon the National Sustainable PublicProcurement training programme whichincludes a Train-the-Trainer approach.

People Level 1

Sustainable Procurement championidentified. Key procurement staff havereceived basic training in SustainableProcurement principles. SustainableProcurement is included as part of akey employee induction programme.

Sustainable Procurement championidentified.

The sustainable procurement champion:

• Should be a senior figure within theorganisation that can influence decisionmaking (e.g. a Management Boardmember or Procurement/CommercialDirector with responsibility forsustainable procurement).

• Should have their name andresponsibilities clearly documented.

• Could be more than one person – withan explanation of how responsibilitiesare split.

Key procurement staff have receivedbasic training in Sustainable Procurementprinciples.

Please see the Government ProcurementService’s definition of a ‘procurementprofessional’. Key procurement staff couldalso include staff from full time procurers withresponsibility for high impact procurements,sourcing managers to tactical sourcing staff.It could also be a member of staff in each unit,if your organisation’s procurement is dispersed.Key procurement staff do not necessarily haveto be defined by name; a list of key roles isequally appropriate.

Sustainable Procurement is includedas part of a key employee inductionprogramme.

It is important to ensure that you have aclear idea of who your key employees are.The definition of key employees goes beyondprocurement staff, for example to EstateManagers or major internal clients.

You can demonstrate achievement of thisrequirement by providing evidence that keyemployees joining the organisation during thereporting period have successfully completedthe induction programme, or that sustainableprocurement messages have been embedded inthe organisation-wide induction programme.

People Level 2

All procurement staff have receivedbasic training in sustainableprocurement principles. Key staff havereceived advanced training onsustainable procurement principles.

All procurement staff have received basictraining in sustainable procurementprinciples.

Procurement is a process that may involve the skill set of several people from beginningto end.

As well as key staff all procurement staffcould include: designers, budget holders,specifiers, internal clients, contract managers,and all other staff with responsibility forshaping procurement decisions.


Where possible it is recommended that allprocurement staff, in post for six months ormore, should have received basic sustainableprocurement training. Whilst there may beexceptions to this – i.e. staff that are critical toa high sustainability impact project – wheregood practice would be to ensure that theyreceive basic training immediately.

E-Learning

Training in sustainable procurement isnow available through the NationalSustainable Public ProcurementProgramme which explains how to embedsustainability throughout the procurementcycle. There are also specific modules forcarbon literacy and food. See:http://sd.defra.gov.uk/advice/public/buying/

The Department of Health has overallpolicy responsibility for sustainableprocurement within the NHS and hascommissioned an e-learning trainingpackage for the NHS. The training istargeted at initial awareness raising onenvironmental and social issues inprocurement. For further informationplease contact:[email protected]

For larger organisations it may be challengingto meet this requirement. It would beacceptable to ensure that basic training isaccessible by all procurement staff withevidence that the organisation is making acommitment to train as many as possible.Evidence in support of this requirement couldbe provided by: progress against commitmentsmade in the Training Plan (if in place); recordsof training sessions completed (includingnumbers and evidence of effectiveness oftraining); or personal development plans.In addition, you may wish to develop anapproach to raising awareness in sustainableprocurement across the whole organisation(not just for procurement staff), which willpave the way for reaching future levels in theFlexible Framework.

Key staff have received advanced trainingon sustainable procurement principles.

• target key procurement staff for advancedtraining.

• key staff to take responsibility fordevelopment of own knowledge.

The type of evidence that would demonstrateachievement of this requirement includes:progress against commitments made in theTraining Plan (or for key procurement staff intheir Continuous Professional DevelopmentLog) or records of training sessions completed,including numbers.

People Level 3

Targeted refresher training on latestsustainable procurement principles.Performance objectives and appraisalinclude sustainable procurement factors.Simple incentive programme in place.

Targeted refresher training on latestsustainable procurement principles.

• target key staff or those affected by recentpolicy changes, or

• part of a Continuous ProfessionalDevelopment (CPD) programme focussedon sustainable procurement

At this level staff training needs will have beenidentified and addressed on a regular basis,in line with the Training plan and staffrequiring refresher training will have beenidentified. Any description/documentation ofthe training programme (for instancepresentations or feedback forms), is usefulevidence to demonstrate achievement of thisrequirement. The training may only need to bea couple of hours long, delivered online or itcould be part of a wider training programmedelivered across functions.

Performance objectives and appraisalinclude Sustainable Procurement factors

• personal objectives include a reference tosustainability or sustainable procurementand the outcomes that need to beachieved. All procurement staff should aimto have generic personal developmentobjectives for sustainable procurement.

• sustainability achievements arereflected in the annual appraisal forprocurement staff.


Performance Objectives

Performance objectives, should be inplace for all staff in post for longer thansix months (permanent and interim).They should be SMART, with particularemphasis on ‘measurable’ so that staff candemonstrate (with evidence) that they haveachieved them. Please note that peoplecan refuse to have their performanceevaluated against an objective for whichthey have not received any form oftraining or support.

Simple incentive programme in place.

Staff should feel supported and rewarded.Staff incentives may be part of yourorganisation’s wider performance relatedreward scheme, or a specific scheme for theprocurement team3. The scheme may bespecifically related to sustainability.Success should be noted in appraisals.

A simple incentive programme could include:

• acknowledgement of success andaccomplishment e.g. performance relatedbonus or a thank you letter from seniormanagement.

• access to career opportunities.

Staff Incentivisation

See Flexible Framework Solution forexample.

People Level 4

Sustainable Procurement included incompetencies and selection criteria.Sustainable Procurement is included aspart of employee induction programme.

Sustainable Procurement included incompetencies and selection criteria.

• embed in the way existing staff aredeveloped.

• incorporate in recruitment of new staff.

Competencies

Sustainability or sustainable procurementconsiderations could be reflected in thecompetency framework for the wholeorganisation or specifically for posts inprocurement. You should be able to usethis framework to measure performance ofsecondees and interim staff. Sustainabilityissues could also be further integrated inHuman Resource policies, e.g. by linkingsustainability objectives to workforceskills planning.

Selection Criteria

Recruitment, for relevant staff, shouldreflect your organisation’s objectives withregard to sustainable procurement.The selection criteria may be genericsustainability selection criteria for thewhole organisation or job-specific.They should be part of the recruitmentprocess in procurement/commercial/financeteams and link to the organisation’s policyobjectives. It may be appropriate to explorenot only past experience but alsocommitment to improve understanding inthe future. For certain procurement roles(e.g. Head of Procurement) it could bedeemed an appropriate requirement thatthe applicant has prior experience insustainable procurement.

Sustainable Procurement is included aspart of employee induction programme.

• build capacity across the organisation.• incorporate in recruitment of new staff.

Almost every member of staff will at somepoint purchase something or ask theprocurement team to help them procure aservice. Your organisation should considerthat new staff, intending to be in post formore than twelve months, should undergoinduction within a set period of time fromjoining (e.g. one month).

3 For the Government Procurement Profession please also refer to the GPS Rewards Strategy.


People Level 5

Achievements are publicised and usedto attract procurement professionals.Internal and external awards arereceived for achievements. Focus ison benefits achieved. Good practiceshared with other organisations.

Achievements are publicised and used toattract procurement professionals.

You could:• share good practice externally –

e.g. through best practice groups andannual reporting.

• undertake benchmarking exercises –to baseline and plan improvement,with the aim of being recognised bypeers as a centre of good practice insustainable procurement.

• explore whether your organisation isattracting (or how it could attract)candidates with an interest in sustainableprocurement – develop approaches tocapture why people apply for posts.

• advertise job descriptions that specificallymention sustainable development andprocurement achievements.

Internal and external awards are receivedfor achievements.

Nominations may be for teams or individualsthat are recognised for, and assessed on thebenefits delivered in relation to sustainability(not just on good procurement case studies).

Focus is on benefits achieved.

Leading organisations should have highlevels of awareness across staff and roles:staff recognise the benefits of sustainableprocurement and proactively seek toimprove performance.

In addition to tracking the effectivenessof training and staff understanding ofsustainable procurement you could, forexample, also establish a system to captureprocurers contribution towards GGC targetsand wider sustainability objectives includingthe GBS and measuring supply chain impacts.

Good practice shared with otherorganisations.

You could share good practice with avariety of audiences through:

• workshops or conference seminars.

• developing good case studies (with anemphasis on people development andbehaviour change and long term costsavings).

• using a central hub for sharing goodpractice.

Chapter 3

Policy, Strategy and Communications

In this theme we address embedding sustainability into procurementthrough policy and strategy4, underpinned by good communications.The key milestones in doing this are summarised below.

The first step is setting overarchingsustainability objectives for procurementfor your organisation and ensuring yourprocurement/commercial team is fully awareof sustainable procurement policy. These maybe driven from key Government priorities(such as the Greening GovernmentCommitments framework) as well as areas ofimportance to your organisation’s outputs(such as Public Service Agreements).

These overarching sustainability objectives canthen be used to direct specific activities,through your sustainable procurement policyand strategy. The sustainable procurementpolicy may be generic or may refer to specificissues/initiatives (e.g. GGC). Alternatively,incorporating sustainability within the mainprocurement policy is an indicator of furtherintegration of sustainability within theorganisation’s procurement.

The sustainable procurement strategy(SPS) builds on, and goes beyond, the policyand it should include a mechanism for regularreview. The SPS need not be a separatestrategy if the organisation already has anadequate procurement or commercial strategyfor sustainability. The strategy has more “buyin” if developed with the involvement ofstakeholders. It should:

• Set out the overarching sustainabilityobjectives (and how these fit with widerorganisation objectives) and key objectivesof category strategies as appropriate.

• It should address: risk, process integration,marketing, supplier engagement andmeasurement.

• Be communicated widely within theorganisation and be available externally.

4 This guidance treats policy as the destination and strategy as the means of getting there


Communication is key for both policy andstrategy:

• Key staff, suppliers and stakeholders shouldbe aware of, and have been involved in thedevelopment of either documents.

• Use active and passive communicationchannels, potentially supported by acommunications strategy (different methodswill work for different stakeholders).

• Use (or establish) channels between theprocurement function and the rest ofthe organisation.

• Use a feedback loop to keep improvingyour communications.

Policy, Strategy andCommunications Level 1

Agree overarching sustainabilityobjectives for procurement. Simplesustainable procurement policy in placeendorsed by CEO. Communicate to staffand key suppliers.

Agree overarching sustainability objectivesfor procurement.

As evidence of meeting this requirement yourorganisation could provide their agreedsustainability objectives for procurement.

Simple sustainable procurement policy inplace endorsed by CEO.

• develop a sustainable procurementpolicy; or

• adapt an existing procurement policy thatincludes sustainability.

A simple sustainable procurement policy or aprocurement policy that incorporatessustainability considerations should be in placeand endorsed by the highest ranking officialwithin the organisation (equivalent to CEO).

Sustainable Procurement Policy

The North West Development Agency’sSustainable Procurement policy representsthe collaboration of a number of authoritiesin the region. It has senior levelendorsement, one main aim that is clearlystated, and five key principles that areimportant to the region. See FlexibleFramework Solution for further details.

You can also find useful information onhow to direct sustainable procurement in an organisation with Defra’s sustainableprocurement policyhttp://www.defra.gov.uk/corporate/about/procurement/

Communicate to staff and key suppliers.

• make key procurement staff aware of thesustainable procurement policy.

• use stakeholder analysis to identify theirkey players.

• develop a communications plan.• establish feedback loops.

Policies have to be actively communicated(in addition to being made public) to beeffectively implemented.


Review and enhance sustainableprocurement policy, in particularconsider supplier engagement. Ensureit is part of a wider SustainableDevelopment strategy. Communicate tostaff, suppliers and key stakeholders.

Review and enhance sustainableprocurement policy, in particular considersupplier engagement.

• engage with relevant stakeholders toreview your policy.

• integrate sustainability into yourorganisation’s main procurement policy.

Enhancing a simple policy will normally requireengaging with stakeholders to incorporatemore detail (e.g. on resource efficiency).Ideally, the revised policy should be signed offby a senior official such as the CEO orPermanent Secretary.

Ensure it is part of a wider SustainableDevelopment strategy.

• Sustainable Development strategyshould link to the role of procurement.

The sustainable procurement policy shouldform part of, or link with, a wider SustainableDevelopment Strategy. Your organisationshould have a documented approach todelivering sustainable development objectivesthat links to the role of procurement (such asa sustainable development strategy or aSustainable Development Action Plan).Alternatively, the organisation’s CorporateStrategy may incorporate sustainabilityconsiderations and links to the sustainableprocurement policy.

Communicate to staff, suppliers andkey stakeholders

The communication strategy should includeraising awareness on sustainable procurementacross the organisation through awarenessevents that are open to all staff. Surveys couldbe used to inform you of the effectiveness ofcommunications and assess levels of awarenessof sustainability objectives and targets.


Augment the Sustainable Procurementpolicy into a strategy covering risk,process integration, marketing,supplier engagement, measurementand a review process. Strategyendorsed by CEO.

Sustainable Procurement Strategy

MoD’s Sustainable Procurement Strategy isa useful example that relates operationalneeds with the concept of sustainability.See Flexible Framework Solution.

The Sustainable Procurement strategy shouldset out the overarching sustainabilityobjectives and describe how these fit withwider organisation objectives. Your PermanentSecretary or CEO should endorse yoursustainable procurement policy.


Review and enhance the SustainableProcurement strategy, in particularrecognising the potential of newtechnologies. Try to link strategy toEnvironmental Management System andinclude in overall corporate strategy.

Review and enhance the SustainableProcurement strategy (SPS), in particularrecognising the potential of newtechnologies.

• regular review and evaluationmechanism in place to measure progressagainst the SPS.

• link the strategy to innovation plans.

The review of the strategy should be informedby an evaluation of the organisation’s progressagainst its existing strategy and any revisedstrategy should be signed off by theCEO/Permanent Secretary. A process tocapture feedback from stakeholders shouldalso feed into the review.

The SPS should address new challenges (such as adaptation to climate change) and encourage innovation. You could alsoencourage the integration of sustainableprocurement within other organisationalstrategies such as innovation and cost effectiveness.

Try to link strategy to EnvironmentalManagement System and include inoverall corporate strategy.

Your organisation’s corporate strategy shouldset out the importance of sustainableprocurement. Further integration ofsustainable procurement with other policiesand strategies, or the EMS, is desirable (andrequired) for Central Government.



Communication to internal staff shouldbegin to describe tangible benefits (see themeasurement and results section). Yourorganisation could also explore the use ofCorporate Reporting to collate and presentbenefits of sustainable procurement.


Strategy is reviewed regularly,externally scrutinised and directlylinked to organisations’ EMS. TheSustainable Procurement strategyrecognised by political leaders, iscommunicated widely. A detailedreview is undertaken to determinefuture priorities and a new strategy isproduced beyond this framework.

Strategy is reviewed regularly, externallyscrutinised and directly linked toorganisations’ EMS.

• select number of relevant stakeholders toscrutinise the strategy (e.g. suppliers,peers, advisory committees).

• continue to identify and establishconnections with other policies.

Evidence of meeting this level could be thatprogress against the SPS is reported to theBoard, or by demonstrating that the Board iscommitted to continuously improving thesustainability of the organisation and itsprocurement. Your approach to improvementshould be open and transparent.

The Sustainable Procurement strategyrecognised by political leaders iscommunicated widely.

Recognition may come directly from your peergroup or leaders, or indirectly by similarorganisations using your strategy as anexample. Information on achievements andprogress should be made available externallyas an example of best practice.

You should continue to build on yourcommunications efforts through: regularstakeholder analysis, updating yourcommunications plans and making the mostof internal communications channels.Suppliers should be informed of all relevantpolicy changes and potential impacts within adefined number of weeks.

A detailed review is undertaken todetermine future priorities and a newstrategy is produced beyond thisframework.

The review should seek views from allstakeholders and should take into accountissues arising as a result of involvement incross-Departmental (or industry) groups. Thestrategy and supporting planning may set goalsbeyond the Flexible Framework and focus onprocurement delivery and compliance.

Chapter 4

Procurement Process

This theme focuses on embedding sustainability into the procurementprocess. The key ways in which this can be done are summarisedbelow.

Conducting expenditure analysis andprioritisation, including sustainabilityconsiderations, is the first stage. TheSustainable Procurement Task Forcemethodology (or similar) should be used todetermine priorities by commodity type.This is available on Defrawebhttp://sd.defra.gov.uk/advice/public/nsppp/prioritisation-tool/). These considerationswill inform the development of category andcommodity strategies. Prioritisation of spendshould be done on a regular basis in line withbudget cycles (Comprehensive SpendingReview) to inform future direction.

Sustainability risks are a list of possible impactsthat the organisation will be using as astarting point for a sustainability riskassessment. Another important element isconducting sustainability risk analysis forhigh profile contracts. Sustainability risksshould as a minimum include GGC, GBS andkey Government policy priorities, along withissues that may be specific to yourorganisation. As a starting point, you shoulddevelop a toolkit or methodology to evaluatepurchases against a set of policy areas.

A risk assessment will identify responsibleowners for managing the sustainability impactsof a purchase. Sustainability risk mitigationplans could be agreed with project managers,specifiers, and engineers etc to ensure thatthese risks are managed throughout theprocurement process. Contract managers couldalso be involved in the procurement of highimpact contracts.

You will also need to agree a suite of targetswith key suppliers. They should be bilaterallyagreed and aimed at improving performance.Ideally they should be embedded in contractsbut voluntary targets can be agreed withsuppliers. For example in an existing printmanagement contract the organisation hadnot specified GBS compliance but was nowworking with the supplier(s) on a voluntarybasis to achieve X% compliance.

With a view to the GGC a company couldprovide information on the carbon emissionsassociated with providing a product or serviceto your organisation. Defra/Decc Guidance onhow to measure and report greenhouse gasemissions is a useful introduction on how thiscan be achieved.


These can also be in the form of KeyPerformance Indicators (KPIs). Reportingagainst these can be incorporated withinsustainable category and commodityreporting. Some organisations may wish tocascade appropriate targets to Tier 1 and 2suppliers following supply chain mapping(covered under Engaging Suppliers). Targetscould monitor the performance of a supplier’sinternal practices, where appropriate, or of thewhole of the supply chain.

A whole-life cost (WLC) approach should beadopted for high impact purchases in line withpublic procurement rules. Wider costs andbenefits, including sustainability, should be partof the decision making process. Life-CycleAnalysis supports a WLC approach and life-cyclecosting should be used where appropriate,particularly for high impact procurements.Organisations may find the resource implicationof such approaches an opportunity to work andshare information with others.

Please note that suppliers and procurersshould be made aware that any agreementor activity which takes place outside theprocurement process to encourage moresustainable practices in the supply chain ison a voluntary basis.


Expenditure analysis undertaken andkey Sustainability impacts identified.Key contracts start to include generalSustainability criteria. Contractsawarded on the basis of value-for-money, not lowest price. Procurersadopt Government Buying Standards.

Expenditure analysis undertaken and keySustainability impacts identified.

• need good understanding of spend profile.• high level sustainability prioritisation of

spend.

Your organisation should have a good enoughunderstanding of its spend profile and be ableto provide information on the amount spentby category. Government Procurement Cardspend should be accounted for, although atthis stage it may not be possible to allocate itby commodity. The results of the spendanalysis should divide the overall spend intokey sectors/spend types and list these by levelof expenditure.

High level sustainability prioritisation of spendmay be done by (for example) evaluating thespend categories against key Governmentpolicy priorities or cross referencing betweenthe spend categories and the SustainableProcurement Task Force priority categories.As evidence of having achieved thisrequirement your organisation could present ahigh-level spend analysis and a high-levelsustainability assessment of spend.

Key contracts start to include generalsustainability criteria.

Your organisation should outline whichcontracts it defines as key and how thisselection was made. It could be those withhigh sustainability impacts, high cost orinvolving long-term agreements. Evidence forthis could be demonstrated by (for example) achecklist of environmental, social andeconomic considerations for each stage of theprocurement process and by contracts wherethis is reflected in Terms and Conditions.

Simple Risk Assessment

The Land Registry have developed a quick,Excel-based tool that calculates the overallrisk profile of a procurement. For furtherinformation please contact the LandRegistry Corporate Reporting Team.

Contracts awarded on the basis ofvalue-for-money5, not lowest price.

This requirement could be met through:reporting where Most EconomicallyAdvantageous Tender (MEAT) was not usedor through regular spot checks on the awardcriteria.

5 Defined by HMT securing the best mix of quality and effectiveness for the least outlay over the whole lifetime of the goods or services,from purchase through to disposal

Procurers adopt Government BuyingStandards (GBS).

This means specifying GBS in the ITT for allnew relevant contacts and updating existingcontracts to include GBS where possible. TheMeasurement and Results section of thisguidance and the Solution provides themandatory reporting requirements.


Detailed expenditure analysisundertaken, key Sustainability risksassessed and used for prioritisation.Sustainability is considered at an earlystage in the procurement process ofmost contracts. Whole Life Costinganalysis adopted.

Detailed expenditure analysis undertaken,key Sustainability risks assessed and usedfor prioritisation.

• provide a list of spend categories.• establish sustainable procurement priorities.

As a starting point for prioritisation yourorganisation should be able to provide a listof spend categories that are also brokendown to commodities and distinct purchases,if necessary.

You may wish to adapt the SPTF methodologyto align it with your sustainability policyobjectives. If you use a different approach itshould be based on risk assessment and takeinto account not only sustainability impactsbut also the opportunity to influence suppliers.The outcome of detailed prioritisation will bethat the detailed sustainability impacts ofspend are identified and priorities established.This would provide evidence of achievingthis requirement.

Sustainability is considered at an earlystage in the procurement process ofmost contracts.

• embedding sustainability into keycontracts.

Bespoke consideration of sustainabilityimpacts is more effective, and carries less risk,than a blanket approach for all procurements.Attention should be focused on categories,commodities or specific procurements thathave a high risk. It requires a strategicapproach and a shift from consideration ofsustainability impacts for selected purchases tocomprehensive coverage of most purchases.

Whole Life Cost analysis adopted.

• process for spot checking compliancewith Whole Life Cost (WLC).

High impact contracts or procurementdecisions6 should have their costs and benefitsanalysed over their lifetime before deciding onthe best approach. Where appropriate,monetised sustainability impacts may beconsidered in the financial evaluation oftenders, in line with public procurement rules.


All contracts are assessed for generalSustainability risks and managementactions identified. Risks managedthroughout all stages of theprocurement process. Targets toimprove Sustainability are agreed withkey suppliers.

All contracts are assessed for generalSustainability risks and managementactions identified.

• structured way of ensuring thatsustainability considerations are part ofeveryday practice (e.g. incorporating theminto category management, with regularprogress reporting).

• simple sustainability risk assessments forprocurements.

All relevant procurements should be assessedfor sustainability risks, scope and influencemanagement. Actions can then be identifiedto maximise sustainability performance andminimise sustainability risks for this activity atthe most affordable price. A way ofdemonstrating this is by having a categorymanagement approach in place with specific


6 For example, construction, owning or outsourcing fleet management, IT service or equipment procurement


sustainability impacts identified per categoryand an analysis conducted down to thecommodity level.

Risks managed throughout all stages ofthe procurement process.

• assessment of sustainability impacts as partof regular contract management.

Approaches to managing sustainabilityimpacts vary depending on the size and thetype of procurement. Possible ways todemonstrate risk management include:assessing and managing sustainability impactsas part of the regular contract managementprocess, or as embedding sustainability as partof normal risk management throughout theprocurement process.

Contract Management Roadmap

Defra’s Contract Management Roadmapprovides a useful guide to support contractmanagers. See www.defra.gov.uk or the Flexible Framework Solution.

Targets to improve Sustainability areagreed with key suppliers.

• embedding of targets/performanceindicators in new contracts

• seeking voluntary retrospectiveagreements with existing suppliers

This requirement builds on other activities thatyour organisation will be undertaking in otherparts of the Flexible Framework, especially onsupplier engagement. A suite of targets orperformance indicators could be agreed witheach supplier, i.e. embedded in new contracts,or voluntarily agreed with existing contracts.Alternatively you could agree voluntarysustainability action plans with key supplierswith regular progress reporting.

Sustainable Procurement charter

The sustainable procurement charterintroduced by the MOD commits theDepartment and its key suppliers to a jointprogramme of improvement, and hasachieved 100% sign up from key suppliers.See www.mod.uk or e-guidance for link.


Detailed Sustainability risks assessedfor high impact contracts.Project/contract Sustainabilitygovernance is in place. A Life-Cycleapproach to cost/impact assessment isapplied.

Detailed Sustainability risks assessed forhigh impact contracts.

• providing evidence of awareness ofsustainability risks

• risk assessments of procurements

There should be a toolkit or methodologydeveloped in previous levels to evaluatepurchases against a set of policy areas.Your organisation should be able to provideevidence of awareness of the sustainabilityrisks for high impact contracts anddemonstrate that these are being managed.Evidence could include early marketengagement and detailed sustainability criteriain the tendering process. Supporting evidencemay be in the shape of quantifiablesustainability impacts that are used in thedevelopment of the business case.

Detailed Risk Assessment

The Environment Agency has developed adetailed risk assessment process for theirprocurements. For further informationplease contact [email protected]

Project/contract Sustainability governanceis in place.

• risk assessments take place to managesustainability impacts and identifyresponsible owners.

• audits to check compliance withsustainable procurement policy.

Sustainable contract management may beestablished through the use of a distinctdocument that enables untrained contractmanagers to consider sustainability issues orthrough coaching from experienced contractmanagers. Another option could be to embed

sustainable contract management withincategory strategy development.

You could begin to report sustainabilitybenefits per category. For example for theenergy category this could be through tonnesof CO2 saved. Category-specific sustainabilityKey Performance Indicators (KPIs) can bereported on alongside efficiency savings.

Your organisation could conduct audits tocheck compliance with sustainableprocurement policy and strategy and assesshow far sustainable development is beingintegrated within procurement. Internal auditscould also review the robustness of informationcaptured by monitoring systems andrecommend areas for further development.

A life-cycle approach to cost/impactassessment is applied.

Appropriate weighting given to long termsustainability impacts, costs and opportunitieswhen evaluating options and makingprocurement and investment decisions, e.g.the relocation of offices to remote areas couldcontribute to an increased carbon footprintfrom commuting.


Life Cycle analysis has been undertakenfor key commodity areas. SustainabilityKey Performance Indicators agreedwith key suppliers. Progress isrewarded or penalised based onperformance relevant to the contract.Barriers to Sustainable Procurementhave been removed. Best practiceshared with other organisations.

Life Cycle analysis has been undertakenfor key commodity areas.

It is quite demanding on resources toundertake a Life Cycle Analysis (LCA) forkey commodity areas. Organisations can saveresources by sharing information and usingthe Impact Assessments covering the GBScriteria available on the Defra website(www.defra.gov.uk) for key contracts.

Sustainability Key Performance Indicatorsagreed with key suppliers.

This requirement builds on the previous level,as well as on-going activity at other themes ofthe Flexible Framework. You could cascadeappropriate targets to Tier 1 and Tier 2suppliers following supply chain mapping(an aspect of the Engaging Suppliers strand).Targets could monitor the performance of asupplier’s internal practices.

Progress is rewarded or penalised basedon performance relevant to the contract.

Incentives, such as gain-share mechanisms,could be included in relevant high impactcontracts and suppliers should have theopportunity to submit a case study for publicsector awards schemes. You should ensurethat such activities are in line with publicprocurement regulations.

Barriers to Sustainable Procurement have been removed.

This could be through 360º feedback withexisting suppliers or surveys with businessesthat have been unsuccessful in tenders, whichcould also help you understand whereimprovements need to be made.

Best practice shared with otherorganisations.

You can share best practice by:

• making good examples of sustainableprocurement publicly available.

• winning awards for specific sustainableprocurements.

• “buddying-up” with smallerorganisations to achieve FlexibleFramework objectives.


Chapter 5

Engaging Suppliers

This theme is all about communicating and engaging with yoursuppliers. It starts with making your organisation open and transparentto suppliers (e.g. through your website). This will also encourage arange of different types of suppliers to bid for contracts, such asSmall Medium Enterprises (a key Government policy priority).

A supplier engagement programme is agood way of co-ordinating your engagementactivities.

This programme should:• Be a formalised and co-ordinated range of

activities that has clear direction. • Be endorsed by senior management, who

are visible and interact with suppliers. • Involve a mixture of active and passive

engagement opportunities such as eventsand workshops, as well as informationsharing through emails and websites.

• Have a single point of contact for keyparticipating suppliers.

• Prioritise, but not be limited to, highsustainability impact and strategic suppliers.

• Be well-communicated to all relevantsuppliers.

By Level 3 this programme should:• Include the supply chain of key suppliers.• Encourage suppliers to adopt the Flexible

Framework.• Encourage suppliers to provide data on

impacts associated with providingproducts/services to your organisation.

It should be clear to suppliers that supplierengagement is a long-term commitment.There may be voluntary agreement by boththe organisation and participating suppliers onthe key impacts of common interest, themethods that will be used for monitoring andreporting progress, and the associatedtimescales.

There is no reason why supplier engagementcannot be a joint activity between two ormore organisations with a similar remit, orwithin a Departmental family.



Supply chain mapping is a good way ofworking out the sustainability impacts of yoursuppliers and their supply chains. You shouldprioritise engagement and focus on supplychains of particular products/services, or ofkey or high impact suppliers.

Communication should be two-way, and youcan build this approach by: sharing trainingevents, establishing mutual sustainabilityobjectives and/or raising awareness of (orsponsoring) awards for suppliers onsustainability. This gives you opportunities tolearn from each other. Feedback will help toshape this engagement further; it can besought through (for example): regular contract management meetings, supplierquestionnaires or procurement workshops.

Key supplier spend analysisundertaken and high sustainabilityimpact suppliers identified. Keysuppliers targeted for engagement andviews on procurement policy sought.

Key supplier spend analysis undertakenand high sustainability impact suppliersidentified.

At this level you should be able to mapsustainable development from your mainexpenditure to lists of key suppliers in this area.

• Identify percentage of spend tosuppliers, understand the sustainabilityimpact of goods/services provided.

• Mapping sustainable developmentimpacts to areas of high expenditure and/orhigh impact suppliers.

Key suppliers can be identified primarilythrough the impacts of their contracts.These can be identified through

• Business criticality (including reputationalrisk), for example electricity providers.

• Corresponding high-level spend areas,for example top 10 suppliers.

• Sustainability impact, for example travelmanagement company for highenvironmental impact.

Key suppliers targeted for engagementand views on procurement policy sought.

• Establishing two-way communication.• Making information on procurement

process available (preferably on-line).

It is important to engage with key suppliers asearly as possible. As a first step you shouldshare your procurement policy with them andseek their feedback.

In anticipating further levels, a supplierengagement strategy that outlines the methodand frequency of engagement could startbeing shaped. The organisation could alsoconsider the use of a supplier charter as anoverarching agreement to supportmanagement of suppliers’ impacts (in linewith key Government policy priorities).


Detailed supplier spend analysisundertaken. General programme ofsupplier engagement initiated, withsenior manager involvement.

Detailed supplier spend analysisundertaken.

You can prepare a detailed supplier spendanalysis by cross-referencing the detailedprocurement prioritisation list with the keysupplier list and identify not only high spendbut also high sustainability impact suppliers(see Procurement Levels 1 and 2). You shouldalso consider suppliers that are low onsustainability impacts or cost but which arecritical to business operation or delivery,or have a high potential reputational risk.


Achievement of this requirement could bedemonstrated by (any):• knowing the breakdown and

percentage of spend across suppliersand commodities.

• identifying high impact suppliersthrough a methodology such as SPTF.

Your organisation could consider agreeing anapproach to collate data on suppliers’ impactsin preparation for subsequent levels of theFlexible Framework.

General programme of supplierengagement initiated, with seniormanager involvement.

• Creating opportunities to buildrelationships with suppliers

• Regular communication with keysuppliers

Supplier relationship and category managersshould communicate with key suppliersregularly, for example on a quarterly basis, andmake sure that this is a long termcommitment. Communication with suppliersshould be approved by senior management.

Joint approach to supplier engagement

To be more efficient and to reduce theburden upon suppliers – Home Office andHer Majesty’s Revenue and Customs haveadopted a joint approach to supplierengagement. The Departments held aseries of workshops with key suppliers toexplore how they could deliversustainability initiatives in partnership.

Suppliers will be approached once forreporting and the results will be used byboth departments to identify suppliers thatshould be targeted for further engagement(e.g. to improve performance or highlightbest practice).


Targeted supplier engagementprogramme in place, promotingcontinual Sustainability improvement.Two-way communication betweenprocurer and supplier exists withincentives. Supply chains for key spendareas have been mapped.

Targeted supplier engagementprogramme in place, promoting continualsustainability improvement.

• Voluntary workshops and meetings heldwith suppliers.

• Learning from suppliers.

You will have identified key suppliers, primarilyon the impacts of the contract that they aredelivering. These suppliers should be targetedfor more intensive development andengagement, for example through specialisedworkshops and/or further developing yoursupplier engagement programme to includetheir supply chains; and cover how they aremanaging impacts outside the boundaries ofthe contracts.

Two-way communication betweenprocurer and supplier exists withincentives.

• Establish bilateral communication.• Shaping engagement through feedback

(as covered in the introduction).• Start developing a partnership approach.

Supply chains for key spend areas havebeen mapped.

• Exploring the impacts and sustainabilityrisks of key supply chains.

• Tracing products and services through thesupply chain.

• Supply chain mapping.

The aim of this requirement is to explore insome depth the impacts of key supply chains.In line with the GGC collecting data on supplychain impacts could focus initially on carbonand then include water and waste. It is thenpossible to agree baselines for reducing these


impacts with the supplier. Such analysis can bedone through interaction with the mainprovider first and subsequently with their Tier1 and 2 suppliers, as relevant. The aim is totrace risk as far down the supply chain asreasonable and agree mitigating actions. Theresults of this approach should include theidentification of suppliers’ key supply chainsand could lead to suppliers working with theirsupply chains on a voluntary basis to identifykey sustainability impacts.


Key suppliers targeted for intensivedevelopment. Sustainability auditsand supply chain improvementprogrammes in place. Achievementsare formally recorded. CEO involved inthe supplier engagement programme.

Key suppliers targeted for intensivedevelopment.

• Voluntary disclosure by suppliers of theirsustainability performance.

Intensive development may include invitingsuppliers to participate and report in relevantvoluntary supplier disclosure programmes.This will help you to collect data andinformation on key suppliers’ sustainabilityimpacts and therefore report on the benefitsof the supply chain improvement programme.To support this, the organisation shouldprovide a programme of further feedback andengagement.

You can also encourage suppliers to assess thesustainability impacts of their products andservices, and make commitments to improvetheir sustainability performance.

Waste and supply chain impacts

Emissions from the manufacture, use anddisposal of ICT equipment is expected toshortly overtake those of the airlineindustry. Your organisation could achievesubstantial benefits and cost savings byworking with suppliers to ensure that ICTequipment used to service your contract isre-used within the company or widersociety. This is mandated across centralgovernment under the GGC and leaddepartments will be able to advise yourorganisation on how this can be achieved.

Sustainability audits and supply chainimprovement programmes in place.

• Auditing of supply chains to controlsignificant risk

You should undertake audits to ensure thathigh-risk supply chains are not posing asignificant risk to your supplier and/or yourorganisation. Supply chain audits may bejointly commissioned or led by the supplier,or you can work with another organisationto audit a particular supplier together.Alternatively, you could conduct internalaudits into suppliers’ sustainabilityperformance.

Achievements are formally recorded.

Achievements in supporting sustainable supplychains are recognised by senior leaders in theorganisation and openly shared with others.

CEO involved in the supplier engagementprogramme.

The Permanent Secretary or CEO visiblysupports the supplier engagementprogramme, for example by attending eventsand workshops regularly. There is recognitionthat the organisation and suppliers havemutual interests and that procurementshould be part of a process to achieve truecost-effectiveness rather than simply anon-going commitment to drive down prices.


Suppliers recognised as essential todelivery of organisation’s sustainableprocurement strategy. CEO engageswith suppliers. Best practice sharedwith other/peer organisations.Suppliers recognise they mustcontinually improve their Sustainabilityprofile to keep the client’s business.

Suppliers recognised as essential to deliveryof organisation’s sustainable procurementstrategy. CEO engages with suppliers.

Your Permanent Secretary or the CEO ispersonally responsible for the supplierengagement programme and there is evidenceto demonstrate this commitment, for examplemeeting key suppliers’ CEOs biannually.Category managers, Supplier RelationshipManager or other relevant people are alsoactively and regularly engaged with supplierson sustainable development issues.

Best practice shared with other/peerorganisations.

Examples of best practice could include:• Sustainable Procurement performance

recorded and verified.• All high sustainability impact supply

chains have been mapped, understoodand programmes are in place to reducesustainability impacts and increasesustainability benefits.

Best practice examples on supplierengagement could be made publicly availableand receive external recognition.

Suppliers recognise they must continuallyimprove their Sustainability profile tokeep the client’s business.

N.B. Contracting authorities must neverpenalise suppliers for sustainabilityperformance where this would breach EUprocurement rules.

This requirement may be evidenced by:• externally verified audit that is

undertaken jointly with key suppliers fortheir key supply chains to ensure goodperformance and improvement.

• suppliers providing high qualityManagement Information relating totheir sustainable procurementperformance on a voluntary basis.


Chapter 6

Measurement and Results

The aim of this theme is not only to measure the impacts of actionstaken in support of procuring sustainability but also to demonstratethe results arising from these actions.

In this theme you will see how the FlexibleFramework can be used to deliver and recordactions in your sustainable procurementstrategy/business plan as well as keygovernment policies and priorities which areled by procurement.

Under the Greening GovernmentCommitments central GovernmentDepartments will be asked to report onactivities in procurement and operationsundertaken after March 2011. The reportingcycle will run quarterly from 2011/12 to2014/15 with 2011/12 as the first reportingyear. Although Departments are not requiredto establish a performance baseline againstthe metrics for sustainable procurement, theywill be required to submit delivery plans formeeting these outcomes, and datademonstrating progress in doing so, to theCabinet Office on a quarterly basis. The toolfor reporting will be ePims, the government’scentral property database.


Key Sustainability impacts ofprocurement activity have beenidentified. Simple measures based onachieving all aspects of the Foundationlevel of the flexible framework are putin place and delivered.

Key Sustainability impacts of procurementactivity have been identified.

This requirement is effectively met by havingachieved Level 1 of Process and Suppliers,i.e. a high level assessment of procurementand supplier spend has been undertaken andhigh sustainability impact areas have beenidentified. In addition, you could provideevidence of tools and processes that you havein place to assess individual procurements forsustainability impacts.


Simple measures based on achieving allaspects of the Foundation level of theflexible framework are put in place anddelivered.

Evidence could be provided by the existenceof a project management approach to ensurethat all aspects of Level 1 of the other themesare delivered. Your organisation could also setits own indicators to track performanceagainst the Flexible Framework, e.g. anindicator on training commitments.

Your sustainable procurementstrategy/policy/business plan should beused to deliver actions against the FlexibleFramework.


Detailed appraisal of the Sustainabilityimpacts of the procurement activityhas been undertaken. Measuresimplemented to manage the identifiedhigh risk impact areas. Simplemeasures based on achieving allaspects of the Embedding level of theflexible framework are put in placeand delivered.

Detailed appraisal of the Sustainabilityimpacts of the procurement activity hasbeen undertaken.

This requirement may be effectively met byhaving achieved Level 2 of Process andSuppliers, i.e. a detailed assessment ofprocurement and supplier spend has beenundertaken and high sustainability impactareas, and key suppliers, have been identified.In addition, Sustainability Appraisals,Environmental Impact Assessments etc, are routinely carried out for individualprocurements.

Measures implemented to manage theidentified high risk impact areas.

This may be evidenced by having a plan ofaction for high sustainability impactprocurements, identifying how the impactswill be minimised or specific programmes ofwork put in place (including with suppliers) to address specific high risk SustainableDevelopment (SD) impacts.

Simple measures based on achieving allaspects of the Embedding level of theflexible framework are put in place anddelivered.

This may be evidenced by the existence of aproject management approach to ensure thatall aspects of Level 2 of the other themes aredelivered.


Sustainability measures refined fromgeneral Departmental measures toinclude individual procurers and arelinked to development objectives.Simple measures based on achievingall aspects of the Practicing level of theflexible framework are put in placeand delivered.

Sustainability measures refined fromgeneral Departmental measures to includeindividual procurers and are linked todevelopment objectives.

This may involve aligning SD measures withoverall organisational targets, e.g. linkingenvironmental or social targets with aDepartment’s Public Service Agreements orDepartmental Strategic Objectives. Alternatively,it could mean linking sustainable procurementmeasures with the overall SD measures for theorganisation, e.g. GGC targets.

In agreement with People Level 3, personaldevelopment objectives should includesustainability factors, aims and commitments.

Individual procurers or procurement teamsshould recognise how their efforts to buysustainably contribute towards yourorganisation’s overarching sustainabilitytargets. For example, a procurer that hasspecified (or requested through post-awardsupplier engagement) lightweight or reusablepackaging for the delivery of appropriategoods can appreciate how their activitycontributes towards reducing wastegeneration on the estate, and consequently,helps towards the relevant GGC target.

Departmental measures start to assess thebenefits realised from sustainable procurementbeing applied (sometimes referred to asoperational performance indicators oroutcome indicators) rather than just the effortor activity to apply sustainable procurementprinciples (sometimes referred to asmanagement performance indicators orprocess indicators). An example of an‘outcome indicator’ might be Tonnes of CO2saved through the procurement and use ofenergy efficient equipment.

Supplier engagement activity is directlycontributing to the achievement of the toplevel sustainability targets and objectives suchas GGC targets, e.g. working, on a voluntarybasis, with an on-site catering provider toincrease the recyclability of food containers.

Simple measures based on achieving allaspects of the Practicing level of theflexible framework are put in place anddelivered.

Evidence could be provided through a projectmanagement approach to ensure that allaspects of Level 3 of the other themes aredelivered. Achievement of Level 3 by 2012marks the first sustainable procurement targetfor Departments. Performance will beindependently audited at this stage in order toensure consistency.


Measures are integrated into abalanced score card approach reflectingboth input and output. Comparison ismade with peer organisations. Benefitstatements have been produced.Simple measures based on achieving allaspects of the Enhancing level of theflexible framework are put in place anddelivered.

Measures are integrated into a balancedscore card approach reflecting both inputand output.

A balanced scorecard may be produced on aregular basis, for example annually,six-monthly or quarterly for review byPermanent Secretaries and Departmentalheads. Reporting should serve the purpose of

updating relevant senior officials, as requiredby circumstances, without creating anunnecessary burden to the organisation.The scorecard should address sustainableprocurement strategy commitments, keyGovernment priorities and category priorities.It should focus both on input/processmeasures (e.g. incorporation of sustainableprocurement criteria into 10% of PreQualification Questionnaires) as well asoutcomes (for example those PtP metrics thatrepresent outcomes). An approach existswhereby the organisation is collating evidencewith input from the procurement team,suppliers and feedback on the procurementactivities of staff and how these relate tooutcomes such as progress againstsustainability targets.

Comparison is made with peerorganisations.

Your organisation could undertake acomparative assessment of their FlexibleFramework performance with that of otherpublic sector organisations to establish goodpractice and areas of improvement. You couldalso arrange workshops/meetings with otherpublic sector organisations to share goodpractice and to acknowledge and establisheach other’s best performing areas.

Benefit statements have been produced.

Your organisation has developed an approachto capturing and reporting benefits fromsustainable procurement, for example througha sustainability report. Alternatively, yourorganisation can demonstrate that benefitsare being achieved through sustainableprocurement on a systematic basis.

Simple measures based on achieving allaspects of the Enhancing level of theflexible framework are put in place anddelivered.

This may be evidenced by the existence of aproject management approach to ensure thatall aspects of Level 4 of the other themes ofthe Flexible Framework are delivered.



Measures used to drive organisationalsustainable development strategydirection. Progress formallybenchmarked with peer organisations.Benefits from Sustainable Procurementare clearly evidenced. Independentaudit reports available in the publicdomain. Simple measures based onachieving all aspects of the Leadinglevel of the flexible framework are putin place and delivered.

Measures used to drive organisationalsustainable development strategydirection.

In order to maintain good performance, thesustainable procurement policy framework willneed to be revised regularly. Performanceagainst commitments can inform the directionof future sustainability policies, strategies andaction plans; weak areas will need to haveactions identified in order to be strengthened.

Progress formally benchmarked with peerorganisations.

An independent benchmarking exercise takesplace with other public sector organisationsor with a mixture of public and private sectororganisations. Benchmarking against privatesector organisations may help to developinnovative approaches to sustainableprocurement, but it should be done only ifappropriate and provided that the organisationconsiders this to be constructive. Sustainableprocurement performance may bebenchmarked internationally.

Benefits from Sustainable Procurementare clearly evidenced.

The benefits that arise from sustainableprocurement are systematically evidenced andare made available to the rest of theorganisation. Good practice examples, withquantified sustainability benefits, are published.

Independent audit reports available in thepublic domain.

An independent audit on performanceagainst the Flexible Framework is undertakenand results are made publicly available.

Simple measures based on achieving allaspects of the Leading level of the flexibleframework are put in place and delivered.

This may be evidenced by the existence of aproject management approach to ensure thatall aspects of Level 5 of the other themes aredelivered.


Chapter 7

Annexes

Annex A: Other Relevant Sustainability Frameworks

The Flexible Framework can support the delivery of key Governmentpolicies and an organisation's sustainable procurement strategy.

Sustainable Procurement Action Plancommitments

The SPAP published in 2007 outlined howGovernment could achieve leadership insustainable procurement. The SPAP

commitments are mandates against whichGovernment performance is assessed. Thesecommitments continue under GGC. The currentmandates for procurement are listed below.


Minimum sustainable procurement reporting requirements under the GGC.

Milestone/activity Detail Reporting requirement

Embed GovernmentBuying Standards indepartmental andcentralised procurementcontracts.

Applies to all new contractswhich are relevant to GBS,including frameworkcontracts. Additionally to allexisting long term relevantcontracts above the OJEUthreshold1.

Existing contracts should bereviewed at a suitable breakpoint and updated wherepossible to comply with thelatest GBS.

It is the department’sresponsibility to monitorcompliance with GBSirrespective of the extent towhich it uses centralised ordepartmental purchasingroutes.

Departments may need todevelop and improve theirGBS monitoring systems,including supporting theiragencies, in order to providethe information requiredthrough ePims. Over theperiod of time covered by theGGC, departments will beexpected to demonstrate thatGBS are embedded.

Departments are only required toreport annually on compliance withembedding GBS in new and existing(long term) contracts that are abovethe OJEU threshold. Data will becollected through the ePims survey.There will be an opportunity toexplain any non compliance and thequestions allow for “don’t know”and free text responses.

In addition to reporting throughePims, departments are required tomake the following informationavailable on their websites:

• a description of their GBSmonitoring systems andprocesses, including anyinternal/external audits and spotchecks

• steps being taken to improveGBS monitoring systems andprocesses

• plans for improving compliance,referring to specific GBScategories/products and widerdepartmental family asappropriate

Departments are also encouraged tomake available information on theextent to which best practice GBSspecifications are embedded inprocurements and the benefits ofdoing so.

For the Construction GBSspecifically, departments arerequired to report annually throughthe ePims survey the number ofnew builds and refurbishmentsrated with BREEAM standards ofOutstanding, Excellent, Good, etc.

7 http://www.ojec.com/Threshholds.aspx

http://www.ojec.com/Threshholds.aspx


Improve and publishdata on supply chainimpacts, initiallyfocussing on carbon,but also including waterand waste – settingdetailed baselines forreducing these impacts.

Departments should identifyand prioritise significantsupply chain impacts, andengage with key suppliers toreduce them. The initial focusof supply chain analysis andspecific projects shouldinclude contracts where thegreenhouse gas emissions aresignificant such as ICT, energyand utilities, vehicles. Actionto reduce impacts may bethrough contractualmechanisms and/or voluntaryapproaches as appropriate.

Longer term, as baseline databecomes clearer andgovernment’s capacity formanaging sustainability in thesupply chain improves, it maybe appropriate to set andmonitor specific targets forreducing supply chain impactsor other pan governmentsustainable procurementoutcome indicators.

Departments will be required toreport annually through the ePimssurvey. Information will be soughton the identification of keyimpacts/suppliers and the extent towhich key impact areas are beingaddressed. There will be a specificfocus on FM and ICT contracts.

In addition to reporting throughePims, departments are required tomake the following informationavailable on their websites:

• process for determiningprocurement sustainabilityimpacts

• up to date supply chain impactanalysis

• details of how you are engagingwith your key suppliers onsignificant impacts

Departments are also encouraged tomake the following informationavailable, in order to demonstrateleadership, share lessons learned,and support others to developeffective approaches:

• the use of tools to prioritise oraddress sustainability impacts

• examples of how tenders havebeen developed to inviteinnovative sustainable solutions(e.g. through outcome basedspecifications, award criteria orbest practice GBS)

• the results of projects withsuppliers, includingenvironmental, social oreconomic benefits


Annex B: Full Guidance Package

This guide is intended as a summary of the Flexible FrameworkSolution. It is hoped that this will encourage you to use the Solutionrather than serve as an alternative to it.

The Flexible Framework Solution providesmore detail on the activities that meet therequirements of the proficiency levels. It alsoexpands upon many of the examples and bestpractice cases and provides furthersuggestions for the activities. There are twoparts to the Flexible Framework Solutionwhich are fully integrated.

• Excel project assessment tool that providesa structured approach to compliance withthe Flexible Framework and which enablesparticipants to record their activities andprogress.

• A Word Guidance which describes theactivities and evidence necessary to fulfilthe specific requirements of the FlexibleFramework and definitions of the termsused in the five proficiency levels. You willsee that it is possible to access the Wordguide through the boxes in the Solution’sFlexible Framework tab as well as the Inputtabs of the Excel workbook.

The notes tab of the Flexible Framework Solution gives instructions on how touse the package. It is available through the Defra website.


Flexible Framework Solution

www.defra.gov.uk

www.defra.gov.uk

Documents

Sustainable Procurement in Government: Guidance to the Flexible