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www.sustainableprocurement.eu.com
Embedding Sustainability in the Supply Chain
Philip Duddell, Sustainable Procurement Limited10th September 2015
Conference On University Purchasing 2015
www.sustainableprocurement.eu.com
‘Golden Thread’ Clarity in Sustainable Outcomes and
Innovation Identifying priorities Procurement Strategy/Market
Engagement Strategy Mapping Risks and Opportunities to
Supply Chain
Embedding Sustainability in the Supply Chain
www.sustainableprocurement.eu.com
Scotland’s National PurposeHigh Level Purpose TargetsNational
Outcomes
National Indicators
Organisational Sustainable Outcomes
Organisational Procurement
OutcomesProcurement
Strategic Priorities
Frameworks/ Contracts
Sustainable Outcomes delivered
www.sustainableprocurement.eu.com
Sustainable Outcomes
Environmental
Climate Change
Socio-economic
Employment, skills and training
Materials Health and wellbeing
Waste Communities
Hazardous materials Ethical and fair trade
Biodiversity Equalities
Water
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Behind the headlines
Waste Waste - production
Is waste routinely produced from products procured or in service delivery AND/OR is there an opportunity to minimise waste/enhance high quality recycling/composting or recover value in some other way?
Waste - prevention/reuse/ recondition/ remanufacture
Are there opportunities to prevent waste/ extend products' (procured separately or used within service delivery) useful life, through reuse, repair, reconditioning or remanufacturing, internally or externally?
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Behind the headlinesFairly and Ethically Traded
Fairly and Ethically traded - Working conditions
Are there potential risks relating to working conditions and labour standards within the supply chain related to the delivery of a related service or products AND/OR are there potential opportunities to improve labour standards by working with the market?
Fairly and Ethically traded - Conflict Minerals
Are there potential risks regarding human rights abuses as a result of the use of minerals that are mined in areas of conflict AND/OR are there opportunities to ensure that these are verified as conflict free?
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Sustainable Outcome
Social Value Procurement Outcomes
Social Value Procurement Outputs
Realise relevant and proportionate Social Value from the procurement of services
Well trained and educated new entrants who are able to take advantage of employment opportunities
Increase in numbers of new entrants with sustainable local jobs that offer opportunities for progression
• Total number of new entrants recruited
• No. of new entrants recruited as apprentices
• No. of other new entrant trainees
• No. of new entrants recruited who have sustained their place for minimum 13 weeks
• No. of new entrants who have gone on to secure further employment on other contracts
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Suppliers control and manage many key impacts
Importance of selecting suppliers able to address sustainability
Many major life cycle impacts are found in the manufacturing and logistics stage and suppliers’ own procurement.
Supply Chain Risks & Opportunities
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Life Cycle Impacts
Impacts of obtaining raw materials
Impacts of manufacturing & logistics
Impacts during use of product/service
Impacts at end-of-life / disposal
www.sustainableprocurement.eu.com
Impacts of obtaining raw materials• Sourcing overseas if demand outstrips
supply – impact on carbon emissions• Wood should be sourced from legal,
sustainable forests/woodlands – forest management critical
• Potential impact on biodiversity of forests/ woodlands if focus is only on economic viability
• Support development of an immature supply chain through aggregated demand
• Opportunities for community woodland schemes to be integral to supply chain
Impacts of manufacturing & logistics• Carbon emissions from transportation,
particularly if local supply chains are inadequate
• Production of chips/pellets – is renewable energy used
• Sourcing overseas if demand outstrips supply – impact on carbon emissions
• Competition for raw materials e.g. chipboard manufacturers
• Waste products from pellet manufacturing process
Impacts during use of product/service• Emissions particularly in ‘Air Quality
Management Areas’• Shortage of qualified engineers/installers;
through aggregated demand an opportunity to influence recruitment and training
• Disposal of waste products e.g. ash
Impacts at end-of-life / disposal• Disposal of ash – use as a fertiliser • Disposal of boilers
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Devolved Centralised Hybrid Resource constraints Be clear what your intended sustainable outcomes
are: Legislation HEFCE University
Innovation and Universities – natural partners Focus on priorities
Within Universities
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Innovation and Sustainability
Value
Transformation
Innovation
Engagement
Compliance
Opportunity
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Focus effort according to balance between:
Spend Environmental Risks & Opps Socio-economic Risks & Opps Scope to improve Influence
Identifying priorities
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Clarify relevant Risks & Opps and where they are
Informs Procurement Strategy Identify key suppliers across
prioritised categories/commodities and priorities for market engagement.
Using results
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Key internal and external stakeholders engaged with on views on sustainable outcomes sought
Results of prioritisation cross-referenced with suppliers within prioritised categories/commodities
Targeted programme of stakeholder engagement, promoting continual improvement
Two way communication between procurer, key internal and external stakeholders
Key suppliers targeted for intensive engagement Supply chains mapped for prioritised spend areas Best practice shared with other/peer organisations locally,
nationally and internationally
Using results
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Can you map? When do you need to? Risks &
Opportunity based Resource constraints Importance of Contractor
Supply chain Sub-contractors
Mapping supply chains - sustainability
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The Contractor will be expected to maintain security of supply through appropriate and comprehensive supply chain management of risks, which are reasonably within their control, and which may arise due to availability of components, environmental, social or other relevant factors.
the Contractor will be required to demonstrate how they assess the likelihood of conflict minerals within products, and what measures they have undertaken to minimise and eliminate, where practical, such minerals. The Contractor will be required to comply with any new and emerging legislation and/or self-certification system.
The Contractor will be expected to have a comprehensive system which demonstrates an on-going and systematic approach to identifying and managing risks relating to labour standards, working conditions and use of child labour in the supply chains relevant to the Framework Agreement.
Relevant requirements
www.sustainableprocurement.eu.com
Prioritise
Clarity in intended outcomes Prioritisation and stakeholder
engagement key Can’t embed sustainability without
understanding of market possibilities Contractors aren’t necessarily focused
just on minimum compliance Bold, visionary and innovative can equal
relevant, proportionate and value for money
www.sustainableprocurement.eu.com
Philip Duddell, Director [email protected]+44(0)7796070228
Thank you