Ethical trade and public procurementLondon, 8 December 2010

Sustainable public procurement in the Netherlands

Dr. Frans Papma, former advisor of the Dutch governement on sustainable public procurement

Summary:

1. Short overview of Dutch policy making

Focus on international supply chains:2. What is “sustainable” in international supply chains?3. How can (public) buyers tell whether products are sustainable?

The Dutch answer is:work with “supply chain initiatives”.

Aims of Dutch sustainable public procurement policies by 2010

• State: 100% sustainable

• Provinces & water boards: > 50%

• Communities: 75% , and 100% in 2015

“Sustainable” = respect for:

Environmental criteria• Manufacturing it

– Base material consumption– Landscape & nature– Emissions to air and water

• Using it– Energy consumption– Pollution– Recycling

Social criteria• Labour: ILO Conventions• Other Human Rights,

including rights of local communities

Focus on international supply chains

Executive challenges1. When is a product “good” or “sustainable”

(enough)?2. How can public authorities verify this?

1. When is a product “good” or “sustainable”?

Example: migrant workers in natural stone

Legal issues (China):•No access to public health care•No access to age pension

Migrants work in gangs,on piece-rate basis:•no contract, •no legal protection as employees •no records,•no over time payment

Housing for migrants (India):•Below standards•No access to education for children

1. When is a product “good” or “sustainanable”?

Conclusion• We are talking structural problems with long term

solutions• Embedded in national politics, local social structures and

industrial culture• Cannot be solved in the time frame of any buying

contracts, nor do buyers have the leverage to change all this

SolutionDutch government recognises supply chain initiatives. Such as

ETI, FSC, WGDN • Long term approach, process approach• Management system requirements

2. How can public authorities verify that products from far away are sustainable?

Don’ts for buyers• Do not include ILO standards (child labour)

in your tender, without ….• Do not require social audits, unless ….

Same solution: sector approach, “supply chain initiatives”

• Can work with effective process approach• Can deal with complex supply chains

Quality requirement for supply chain initiatives:

• Multi stakeholder governance• Internationally accepted sustainability

standards, such as ILO• Capacity to effectively work with industry in

the supply chain on social and environmental compliance

• Public reporting

Information on Dutch sustainable procurement policies:• www.senternovem.nl/duurzaaminkopen

Thank you,

Frans Papma