Sustainable procurement Train the Trainer Jimmy Brannigan.

Sustainable procurement

Train the Trainer

Jimmy Brannigan

EAF Programme

Background Three year project Reducing negative environmental and social impacts

through purchasing Steering group, partners from Further Education and

Higher Education Training

Train the trainer Policy and strategy development Risk based approach to procurement Supplier engagement Social issues in procurement


Agenda

09.00 Registration

09.30 Introductions and objectives

10.00 What is sustainable procurement?

10.20 Barriers to sustainable procurement

10.45 Break

11.00 The business case – Presentations

12.00 Networking Lunch


12.45 Where are the opportunities?

Review the latest guidance on implementing sustainable procurement

14.15 Break

14.30 What can we do now?

How can we use the latest guidance on implementing sustainable procurement?


15.15 Report back and prioritisation – Including communication styles

15.45 Action planning

16.00 Close

Style of the day

Challenging Practical Dialogue based Interactive

Objectives

Develop a shared understanding of what we mean by sustainable procurement

Develop a thorough understanding of the business case for sustainable procurement

Support participants communicate sustainable procurement to key players within their organisation

Objectives

Develop participants confidence when implementing sustainable procurement within their institution

Introduce participants to the latest guidance materials and support when implementing sustainable procurement

Introductions

Briefly You and your organisation Why you are here

What is sustainable development?

What is sustainable procurement?

Definition for a non procurement professional

Definition

“Sustainable purchasing is all about taking environmental and social factors into account in purchasing decisions. It’s about looking at what your products are made of, where they come from and who has made them”

HEPS Sustainable Purchasing Guidance – Section 1

Definition

“Sustainability in the supply chain is fundamentally about identifying problematic social, environmental and H&S issues throughout the supply chain. Assessing their impact and risks, and then trying to improve them”

www.nordicpartnership.org

What are the barriers to sustainable procurement within your institution?

Barriers to Sustainable ProcurementNational Audit Office Whist there is a high level of commitment to national targets; there is

often a low level of understanding of the exact requirements, therefore creating an ‘implementation gap’ – the gap between policy and practice.

Even with a high level commitment in the shape of policies and specific targets, this becomes heavily diluted by the time it reaches the Procurement Departments. A lot of the sustainability issues are lost and replaced instead by ‘best value’ often easily translated to cheapest price.

The link needs to be made between sustainability, efficiency and cost savings.

Barriers to Sustainable ProcurementNational Audit Office Procurement staff are often not trained in sustainability issues and

do not understand how to achieve the targets. It is often the case that the will to procure in a sustainable manner is strong, yet the procurement teams are unable to complete the task. This often includes a basic misunderstanding of the term ‘sustainable procurement’.

Lack of knowledge in this area has often resulted of the seeming lack of understanding of the role of sustainability in risk assessments.

Barriers to Sustainable ProcurementNational Audit Office In Summary

Lack of sustainable procurement training and guidance

Poor understanding of targets and requirements Taking a short term view.

Presenting the business case

Presentations


Read through the summary document of all of the reasons and explanations as to why this is a good thing ‘the business case’ and prepare 8 minute presentation to convince one of the following Finance manager Devolved purchaser Estates manger / project manager construction

project A student


De-brief

The business case – why do it?

Reputation

Performance

Licence to Operate

Brand

Sustainable Procurement

Customerrequirements

Stakeholderdemands

Employee expectations

Benchmarking

Legislation &Standards

Impact Reduction(environmental)

Business efficiencies

Risk management

Current management focus

Natural Resources

Transportation ManufacturingProduct

DistributionConsumers

Environmental Footprint

Impacts and Opportunities (Environment)

Low

Supply Chain

High


Natural Resources




Current Management Effort (Environment)

Low

Supply Chain

High


Natural Resources




Mismatch between the two

Low

Supply Chain

High

Where are the opportunities?

Review of the latest guidance


What guidance exists? What does it say? How do you use it?


What guidance exists? Sustainability and Local Government

Procurement

November 2003 - IDeA Environmental Purchasing in Practice

September 2002 – iema HEPS Purchasing for Sustainability: Guidance for

Higher Education Institutions – Forum for the Future

Procuring the future


What guidance exists? Develop Ethical Purchasing Practice, 2001 –

CIPS The ethical decisions – An executive guide to

corporate social responsibility, 2004 – CIPS Social issues in purchasing, February 2006 –

Office of Government Commerce


What does it say? Understanding of the environmental and social

impacts Risk based approach Opportunities throughout the procurement

process Identification of need Specification Supplier selection Evaluating tenders Contract management and supplier development

How do you use it?

Contract management

Contract management

Tender evaluation

Tender evaluation

Supplier Selection

Supplier Selection

The specification

The specification

What are the impacts?


Identifying the need

Identifying the need

A simplified approach

A simplified approach

Identifying need

What do we want to buy? Why do we need this product or service?

Can the need be met another way? Is a suitable product available elsewhere in the institution? Can the requirement be met by renting, sharing rather than

purchasing? Is the quantity requested essential? Is the specification currently used the correct one for the

purpose? Can the product serve a useful purpose after its initial use?

Identifying need

Challenge repeat purchases! Important as it can free up thinking to look for

more sustainable options The more ambitious the environmental objective

the more fundamental the re-examination needs to be

Good purchasing practice requires fundamental questions are routinely asked about the value being delivered

Identifying need

Copyright

Barbara Morton

Replace

Reduce

Re-use

Recycle and return

Re-think

Increasing orderofPriority


In groups identify the environmental impacts and the social considerations related to the goods or service being purchased Moves IT


This exercise is an essential part of the process

Can been done as an individual but is better in small groups

Encourage devolved purchasers do this with colleagues / environmental professionals This can feed into specification, award criteria,

tender evaluation, supplier appraisal

The specification

Defined as a “statement of needs to be satisfied by the procurement of external resources”

Or

What the purchaser wishes to buy and what the supplier is expected to supply

As discussed in ‘Modern Procurement Practice’ 3 types of specification are generally used Functional – defines function and duty of the

product or service Performance – defines performance (output

specification) Technical – physical characteristics on an item

The specification

The specification

By placing the emphasis on the functional and performance based specifications this provides an opportunity for the supply market to innovate including reducing environmental and social impact

Also key as this indicates to suppliers that environmental and social considerations are important to the client

The specification

Fitness for purpose and value for money Resource, energy and water efficiency Minimum use of virgin and non-renewable

materials Maximum use of post consumer materials Non (or reduced) polluting with minimum use

of toxic chemicals, CFC’c ozone and other pollutants

The specification

Maximum durability, reparability, reusability, recyclability and upgradability

Minimum packaging Design for disassembly Fault controls to prevent unnecessary waste Health and safety standards Biodegradability

The specification

Eco-labels Used by supplier to demonstrate the

environmental credentials of goods and services Widely recognised and on the whole very robust DEFRA’s Green Claims Code is a good source of

advice on misleading labels Achieving the standard can be costly and time

consuming

ECO-labels

The specification

Under the procurement regulations you can use eco-label criteria to help determine environmental specifications

Can accept eco-labels as proof of compliance – but other proof must also be accepted

You cannot stipulate that products must have an eco-label certificate

ICLEI guide recommends you always add the words ‘or similar requirements’ and attach the criteria of the relevant eco-label

Supplier selection

Pre-qualification Vetting potential suppliers of goods and services

to ensure they meet the required standard Environmental Management Systems – if relevant

to the subject matter of the contract A simple starting point is to include environmental

and social considerations as part of the process Policy’s in place / management commitment H&S record Environmental incidents

Supplier selection

Supplier appraisal Used to assess the suppliers environmental and

social impacts More important for high risk goods or services or

on strategically important contracts

Supplier selection

Using questionnaires They are a familiar tool Can be cost effective way of gathering information Can produce a lot of data quickly Can be used at pre-contract to influence the

tendering process or post contract as part of contract management

Supplier selection

What are the potential pitfalls of questionnaires?

Exercise

Sphere of Control

Sphere of concern

Sphere of influence

Sphere of control

Tender evaluation

Opportunity to incorporate your priorities into tender for goods and services

Helps integrate into an essential part of business operations

Need to set out contract award criteria at an early stage

Opportunity to apply weighting to environmental criteria

Award criteria must be linked to the subject matter of the contract

Contract management

What can you do? Set target related to your own organisational

objectives and relevant to the contract – KPI’s Encourage innovation around reducing

environmental and social impacts This sends out a clear message to the market that

this is on the agenda and will develop further Use past performance in award of new contracts Discuss alternative products & services with

suppliers

Contract management

What can you do? Work with your suppliers to stimulate innovation, a

better product and service with reduced impact Joint improvement targets often include

Reducing packaging weights and volumes Introducing reusable and returnable packaging Reducing hazardous material content in products Examining purchase order quantities and delivery

frequency Improving delivery scheduling to reduce transport

impacts

Contract management

Continuous improvement Work with suppliers to improve Set targets and monitor improvement through

contract review Allows organisations to accept issues are

apparent but are working to address them Train your suppliers Provide guidance Give awards!!

What can we do now?

What do we communicate?

Action Planning

What can we do now?

Communicating sustainable procurement Who are our audience? What pressures are they under? What are their concerns? What do we want them to do differrently? How can we help them?

What can we do now?

Learning styles Activists: here and now, gregarious, seek challenge and

immediate experience, open-minded, bored with implementation

Reflectors: stand back, gather data, ponder and analyse, delay reaching conclusions, listen before speaking, thoughtful

Theorists: think things through in logical steps, assimilate disparate facts into coherent theories, rationally objective, reject subjectivity and flippancy

Pragmatists: seek and try out new ideas, practical, down-to-earth, enjoy problem solving and decision-making quickly, bored with long discussions

Many thanks

Jimmy Brannigan

[email protected]

Sustainable procurement Train the Trainer Jimmy Brannigan.

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