The roles of procurement and operations in achieving the SOGE targets

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Procurement and Operations Practitioners Forum
Energy 7th March Manchester Civil
Justice Centre
The roles of procurement and operations in
achieving the SOGE targets John Cole
Defra Richard Fountain DWP
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The task ahead

• What are we trying to achieve?
• SOGE targets mandates
• Policy initiatives
• Support available
• Case studies
• The task today.

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What are we trying to achieve?

• Ambition to be recognised among the EU leaders in
  Sustainable Procurement by 2009
• A low-carbon more resource efficient public
  sector
• Government Departments visibly walking the
  talk
• Ensure public sector purchasing power is used to
  achieve market transformation, c. 130B, 10 GDP!
• Deliver SOGE targets mandates.

UK Government Sustainable Procurement Action Plan
designed to support delivery of these goals
underpinned by
Energy White Paper 2007
Waste Strategy 2007
Health Sustainable Procurement Action Plan
Local Gov. Sustainable Procurement Action Plan
Sustainable Products and Materials Strategy
HMT Transforming Government Procurement
Water Strategy 2008
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SOGE office carbon reduction targets

• The Targets
• To reduce carbon emissions from offices by 12.5
  by 2010-11, relative to 1999/2000 levels
• To reduce carbon emissions from offices by 30 by
  2020, relative to 1999/2000 levels.
• How are we doing?
• 631,000 tonnes carbon (2.3 million tonnes CO2).
  MOD accounts for 72
• Some progress 4 reduction against 1999/2000
  baseline
• 22 increase without MOD
• Off-track SDC Carbon and energy continue to
  be poor performing target areas for most
  departments.

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Reduction required between 2007/08 and 2010/11 to
meet carbon emissions target 2010/11 (ranked by
scale of emissions from left to right)
72 of Government office Estate emissions come
from the MoD
20 per cent of Government office Estate
emissions come from DWP, HMRC DCA combined
15 departments with the lowest emissions account
for 8 of the total each less than 1.5 of total

• The three main carbon emitting civil departments
  require a reduction of between 25 to 30 to meet
  target Government Office estate as a whole
  requires an 8 reduction to meet target. Source
  provisional 2006/07 data for the office estate,
  BRE. Weather-adjusted. Includes illustrative
  baseline adjustment for transfer of magistrates
  courts to DCA. Excludes MoD PJHQ. Lead
  departments shown by bold outline.

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SOGE energy efficiency targets

• The Targets
• To increase energy efficiency per m² by 15 by
  2010, relative to 1999/2000 levels
• To increase energy efficiency per m² by 30 by
  2020, relative to 1999/2000 levels.
• How are we doing?
• Excellent progress
• Over 21 improvement against 1999/2000 baseline
• Overall energy efficiency for the civil estate
  without MOD over 3 increase in energy use per
  m2.

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Existing renewables targets
The Targets To source at least 10 of
electricity from renewables (31 March 2008) To
source at least 15 of electricity from Combined
Heat and Power (2010). How are we doing?

• Renewables good progress
• Current data from departments indicates 28 of
  electricity consumed in 06/07
• was provided from renewable sources.
• CHP some progress
• 5.7 of electricity sourced from Combined Heat
  and Power.

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SOGE carbon neutrality target

• The Target
• Central Governments office estate to be carbon
  neutral by 2012
• How are we doing?
• Will not be reported on until 2012
• Departmental focus should remain on carbon
  reduction targets
• SDC recommend Government produce guidance to help
  Departments comply this is now happening, Defra
  leading, with a first draft to be sent to OGDs
  for comment by end of March.

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7TH SDiG Report 18 March the Government Response
Cabinet Secretary Sir Gus ODonnell has set up a
working group of senior officials to examine how
performance against the Sustainable Operations
Government Estates (SOGE) target can be
improved. This group will report shortly and is
currently looking to propose a much stronger role
for the Office of Government Commerce - making
them accountable for the delivery of the SOGE
targets.
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Major Policy initiatives
Climate Change Bill puts into statute the UKs
targets to reduce carbon dioxide emissions
through domestic and international action by 60
by 2050 and 26-32 by 2020, against a 1990
baseline. Binding public sector targets are
likely to be established. Energy End Use and
Energy Services Directive Article 5 requires the
public sector to fulfil an exemplary role in the
context of the Directive. It must introduce cost
effective energy efficiency measures focusing on
the greatest improvements in the shortest time
e.g. reporting on energy efficiency
goods. Display Energy Certificates (DECs) will
be required in most public buildings to show the
actual energy usage of a building. Carbon
Reduction Commitment (CRC) is a domestic cap and
trade scheme requiring the up front purchase of
emission allowances, with revenues recycled back
to particpiants depending on position in a league
table. Will appy to Departments.
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Other initiatives which will improve carbon
performance

• Estate rationalisation
• Construction etc. BREEAM, CLG Strategy
• Minimum standards for products (quick wins) aka
  Buy sustainable
• CO Green IT Summer 2008
• Calculating carbon footprints to identify
  emissions prioritise actions
• OGC Projects xGovernment Collaborative
  Procurement ICT, energy metering (AMR)
• Forward Commitment Programme for ultra low energy
  office lighting using LEDs.

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What support is available?

• Carbon Trust Carbon Management Programme
• Salix Finance interest free loans
• Low Carbon Buildings Programme
• Bio-energy capital grants
• Proposed Centre of Excellence for Sustainable
  Procurement ( Ops)
• Carbon Trust Guidance (existing and new) SOGE
  Target Explanatory note.

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There are many success stories in need of further
promotion

• DWP estimating10 energy reduction in 07/08
• Alnwick carbon-neutral Government office
• Defra use of voltage optimisation technology
  reducing electricity use by 15
• Installation of photo-voltaics and LEDs in BERR
  premises

Defras office in Alnwick, Northumberland, which
will replace its existing Lion House offices. A
carbon neutral building with a BREEAM Excellent
rating.

• And many more examples from across public
  sector

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Procurement Cupboard

• Material now uploaded from CO, CPS, Defra, DWP,
  MOD, DCMS, DCLG and LG
• Practitioner Forum material Proposed EMS
  National Conference Thursday 10th July 2008
• Presentations, Green Pages, Contact list, ToRs etc

http//www.procurementcupboard.org/
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Buy Sustainable the new Quick Wins

• Quick Wins currently comprise the minimum
  environmental specifications for a wide range of
  54 commonly purchased products. Originally based
  on energy using products they were expanded to
  include products such as paper and clothing
• Poor awareness and accessibility have meant that
  many procurers are unaware and not using these
  specifications even though they are mandatory
• We are reviewing and updating the list to ensure
  that product specifications are at the market
  average for that particular products. All
  minimum specifications are based on robust
  evidence as compiled by the Market Transformation
  Programme and in many cases include a market
  evaluation.

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Log into the Procurement Cupboard and send your
comments please

• Buy Sustainable aims to introduce best practice
  specifications that are more stretching than the
  minimum for those that wish to purchase the best
  in class products in a certain area. These will
  eventually become the minimum over different time
  period depending on the product or product group.
  
• Wed like to pilot the new approach with you.
  Please give as much feedback as possible
• What do you think of the specifications?
• Can you understand the language? Is it too
  technical?
• How accessible is the format?
• How should products be organised i.e.
  categories if so which ones?
• Where would you expect the document to be hosted?
• Kay.Williams_at_defra.gsi.gov.uk

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Task for today

• Bring together procurement and operations (with
  common aim of meeting SOGE targets)
• Practical - not theoretical
• Explore how can work together to reduce carbon
• Facilitated discussion
• Identify new ideas, and re-invigorate some old
  ones
• Consider priorities
• Develop initial ideas for implementation of
  priorities.