Sustainable Procurement

Myths & Legends

www.actionsustainability.com

Shaun McCarthy

Director

Chair

www.actionsustainability.com

www.cslondon.org

What – Sustainability…?

• “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs”

- Brundtland Definition

Economic

EnvironmentalSocial

What – Sustainability?

• Living within environmental limits- 1.8 Global hectares per

capita- 2 Tonnes CO2 per capita

per year• Living in an equal world

- Gini coefficient 0.25 to 0.35

- Ratio of most advantaged to least advantaged

Inter-Governmental Panel on Climate Change

• CO2 levels highest for 650,000 years

• Climate change “unequivocally” happening

• Global temperature will rise between 1.8oC and 4oC in the next century, worst case 6.4oC

• In the worst case, Trafalgar Square would be under water

Stern Report

Stern Report

Stern Report

Stern Report

The challenge

0

2

4

6

8

10

12

ha per capita

World Share

USA

Germany

UK

Ceech Republic

World KenyaIndia

Ecological Footprint

Source www.nationmaster.com/index.php

It’s not just about carbon…!

• Resources- If the whole world lived like Western Europe we would need 3 planets

resources to sustain life • Inequality

- 25% of London’s Black Caribbean community is unemployed compared to 2.5% of the Indian community

- 25% of the UK population has a physical or mental disability- 3.8M children were living in poverty in the UK in 2005/6

• Health- UK childhood obesity is increasing at the same rate as the USA, we are

breeding a generation that will have a shorter life expectancy than their parents

- Average male life expectancy in Tower Hamlets is 7 years shorter than Kensington

• Waste- Landfill capacity is likely to be non-existent within 7 years

Sustainable Procurement

“Sustainable Procurement is a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits to society and the economy, whilst minimising damage to the environment”.Footnote:Sustainable Procurement should consider the environmental, social and economic consequences of:Design; non-renewable material use; manufacture and production methods; logistics; service delivery; use; operation; maintenance; reuse; recycling options; disposal; and suppliers' capabilities to address these consequences throughout the supply chain.”

Procuring the Future – June 2006

The challenge – to purchasers

“Using procurement to

support wider social,

economic and environmental

objectives, in ways that offer

real long-term benefits”.Sir Neville Simms ChairmanSustainable Procurement Task Force

Good Practice

• Flexible Framework

Time

Foundation

Embed

Practice

Enhance

Lead

www.actionsustainability.com/evaluation/

Myths…

Myths…

Which has the bigger

carbon footprint…?

Myths…

Which has the bigger

carbon footprint…?

From Kenya From Holland

14

Feb

Myths…

• How big is theirs…?

Myths…

• How big is his…?

Myths…

• How big is his…?- What proportion of

global emissions is the UK responsible for?

- 2%- 17%- Both- None of these- It depends

Myths…

How big is yours…?

Myths…

Why bother with social

issues? I can make no

difference as a buyer.

The great ROC n’ Roll Swindle

Buying “Green Energy” will make no difference to your carbon emissions.

Myths…

It’s all about risk. We don’t

want to end up here!

Myths…?

“Centre for Sustainable

Procurement Excellence”

Myths…

“The UK is already among the

EU leaders in sustainable

procurement”

Legends…

Legends…

• Swedish vehicle contract- Created a market for

bio-ethanol vehicles

Legends

• Zero waste prison mattress- Market leading

initiative

Legends

• M&S Plan A- Vision- Leadership- Research- Marketing led- Delivery?

Legends…

• Environment Agency- Want to know

everything- And check it- Concerned about

plastic membranes in Jiffy Bags (among other things)

Legends…

• Manchester City FC- Wind power- Biomass CHP- Local procurement

- Except the players- …and manager

Legends…

• Premier Farnell- 3 clear priorities with

plans and measures- Responded to jiffy bag

challenge- No more tungsten bulbs - Presentation to a major

global manufacturer resulted in objective to double turnover through this distributor

- Top 10 product hit list

On the horizon

• Water- The new carbon…?

• Social issues- Local- Fair partner/employee- Equalities/diversity

• Secondary impacts- Embodied carbon

• Food- Healthy- Organic- Sustainable

Statistics…

• We have a long way to go:- 83% buying

professionals “ill equipped” to deliver sustainability in 2006/7

- 55% in 2007/8- 550+ benchmarks,

average Level 1 against FFW

- BITC Index still recording low scores in this area

London 2012… Myth or Legend…?

• 3 different organisations procure (ODA, LOCOG, LDA)• ODA

- NDPB- Current bulk of procurement activity- Under review by CSL working with NAO- Process includes balanced scorecard with sustainability embedded- Contract specs include sustainability requirements (?)- Ground breaking work with concrete (forward commitment)- Local opportunities and support (?)

• LOCOG- Private company- Commercial sponsors provide free goods & services- Merchandising and promotions- Food

• LDA- RDA- Legacy owner- Procurement activity 2012 onwards

London 2012 – Sustainable…?

It could be said that building a lot of facilities and flying people round the globe to stage an event is inherently un-sustainable.

But…

London 2012 – Sustainable…?

• …it is possible to…- Create real, long term jobs for people in the UK and in

particular East London,- Use the power of sponsorship, media and communications

to change people’s behaviour across the world,- Develop a diverse and vibrant community in East London,- Set new standards of sustainability for the construction

industry,- Deliver a truly inclusive and accessible place,- Make all these things work together in a virtuous cycle,

• Then, the net effect of the London 2012 Games could be positive.

Thank you for your attention

www.actionsustainability.com

shaun@actionsustainability.com