IMPORTANCE OF SUSTAINABLE PROCUREMENT

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IMPORTANCE OF SUSTAINABLE PROCUREMENT

• STEPHEN HEARD
• DIRECTOR OF CUSTOMER SERVICES

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What is Sustainable Development?
To enable all people throughout the world to
satisfy their basic needs to enjoy a better
quality of life without compromising the
quality of life of future generations

• Securing the Future, UK's Sustainable
  Development Strategy,
• HM Government 2005

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What is Sustainable Procurement?

• Acquiring goods services that
• Meet users needs
• Deliver long term Value for Money
• Maximise social and economic benefits
• Minimise damage to the environment and health

UK Public Sector Spend 125bn
Of which 40bn is spent by UK Local Authorities
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• Sustainable Procurement National Action Plan

• UK to be recognised as amongst the leaders
  across EU Member States by 2009
• Business led Task Force set up May 2005
• Launch of Task Force report - 12th June 2006
• Govt response included in UK SP Action Plan -
  5th March 2007

Task Force report and supporting material
available at www.sustainable-development.gov.uk/g
overnment/task-forces/procurement/index.htm Sustai
nable Procurement Action Plan at
www.sustainable-development.gov.uk/index.asp
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Sustainable Operations Targets

• Carbon
• Government office estate carbon neutral by 2012.
• Carbon emissions down 12.5 by 2010 (30 by
  2020).
• Carbon emissions from vehicles down 15 by 2010/11

• Waste
• Waste arisings down 5 by 2010 (25 by 2020).
• Waste recycled up 40 by 2010 (75 by 2020).

• Energy
• Energy efficiency/m2 up 15 by 2010 (30 by
  2020).
• 10 of electricity from renewables by 31 March
  2008
• 15 of electricity from CHP by 2010

• Water
• Water consumption down 25 by 2020.

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Local Government Action Plan

• The local government action plan has been drawn
  up in response to the recommendations of the
  Sustainable Procurement Taskforce delivered in
  June 2006 and in the light of the Government
  response and national action plan published in
  March 2007.

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Commitment To The Following Actions

• Partnerships
• Whole life costs
• Review by April 08
• Ownership
• Training and development
• Mainstream sustainable procurement

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Acting Collectively

• Prioritise
• Collaborate
• Standards
• Exemplars of good practice
• Measurement and recognition
• LGAs Climate Change Recommendations

• Central Government enablers
• National Improvement Strategy
• CIPFA
• LG Task Force
• 4Ps
• IDeA

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The Business Case

• Financial benefits for the council
• Reduction in C0²
• Socio-economic benefits
• Stimulate innovation
• Engagement of SMEs
• Engagement of Third Sector

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Some Real Examples

• Antrim Area Hospital
• City of Plymouth
• Wakefield Council
• Stockport Council
• Leicester City Council
• Oxford City Council
• Bristol City Council

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Wind Powers Antrim Area Hospital to Huge Savings

• Since installing a 40 metre wind turbine, the
  largest of any UK hospital, Antrim Area Hospital
  are well on track to make energy savings of
  90,000 pa

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Green Energy

• LESSONS LEARNT
• Current documents and procedures are adequate
• The addition of a request for renewable
  electricity in addition to standard tariffs will
  provide the options needed
• Be flexible about the amount of renewable
  electricity purchased
• Use the term renewable as opposed to green

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Wakefield CouncilSupplier engagement small
businesses and the third sector

• Wakefield Council has developed a comprehensive
  supplier engagement programme focused on all
  sectors of the business community including small
  and medium sized enterprises (SMEs) and voluntary
  and community sector organisations (VCOs).

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Stockport CouncilPure Innovations Limited

• Pure Innovations Limited, a Social Enterprise
  company, in recognition of both the need and
  market for high quality employment services to
  combat social exclusion. The Council now uses
  Pure Innovations to provide a number of services.
  With its foundations in the former Employment
  Services of the Council, Pure Innovations
  develops a varied range of services to combat
  social exclusion and encourage diverse
  communities.

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Leicester City CouncilEnvironmental purchasing
policy

• The City Council is committed to the following
  policy We intend, wherever possible, to make
  continual, measurable progress in our
  environmental performance and to reduce our
  environmental impact, whilst maintaining the
  citys economic viability

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Oxford City CouncilA district council
committed to sustainable procurement

• Initiatives such as the Meet the Buyer events
  bringing public sector buyers and local small
  businesses face-to-face in an informal but
  structured environment were successfully
  introduced last year.

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Bristol City CouncilIncreasing recycled
content in construction projects

• First Building Schools for the Future project to
  reach financial close. The project to build 4
  new schools was worth around 120m and the
  Council was keen to push for higher levels of
  recycled content as a demonstration of
  sustainable construction.

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Guidance Documents

• Joint Note on Environmental Issues in Purchasing
  OGC/DEFRA (Oct. 2003)
• Note on Social Issues in Purchasing - OGC/
  Sustainable Procurement Group (Feb 2006)
• Fair Trade and Ethical Trading - OGC (Mar 2004)
• Integrating sustainable development into public
  procurement for food and catering - DEFRA (Nov.
  2003)
• The Central Point of Expertise on Timber
  Procurement's (CPET) website www.proforest.net/cpe
  t
• Environmental Purchasing in Practice
  CIPS/IEMA/NHS PASA (Sept. 2002)
• Greening Public Private Partnerships ODPM, OGC,
  DfT, DEFRA (July 2002)