Sustainable Procurement - Taking your first steps

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Sustainable Procurement - Taking your first
steps

• 2nd October 2007
• University of Reading

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Sustainable Procurement

• The workshop will
• Provide practical guidance on how to take
  sustainable procurement forward in your
  university or college
• Share best practice with sector case studies
• Focus on the key elements of sustainable
  procurement within a university and college
  environment
• Discuss sustainable procurement from a supplier
  perspective

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Sustainable Procurement

• Agenda
• 09.15 Registration
• 09.45 Welcome and Introductions
• 10.00 Structure of the Day and Objective Setting
• 10.30 Selling Sustainable Procurement to Your
  Institution
• 11.00 Tea / Coffee
• 11.15 Sustainable Procurement Policies and Risk
  Based Approaches

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Sustainable Procurement

• Agenda
• 12.15 Networking Lunch
• 13.15 Sector Case Study
• Michelle Dixon, University of Hertfordshire
• 13.45 Sector Case Study
• Pat Condon, Blackpool and Fylde College
• 14.15 Supplier Engagement and Contract
  Management
• 14.45 Supplier Case Study
• Surrie Everett-Pascoe, Canon UK
• 15.15 What Do I Do Now?
• 16.00 Close

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Environment Action Fund 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

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Structure of the day Objective setting

• Introductions

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What is Sustainable Development?
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What is sustainable development?

• What is Sustainable Development?
• Defined by the Bruntdland Commission in 1987
• development which meets the needs of the present
  without compromising the ability of future
  generations to meet their own needs

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What is sustainable development?
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What is sustainable development?
Long term view
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What is Sustainable Procurement?
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Definition

• Sustainable purchasing is all about taking
  environmental and social factors into account in
  purchasing decisions. Its about looking at what
  your products are made of, where they come from
  and who has made them
• HEPS Sustainable Purchasing Guidance Section 1

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Selling Sustainable Procurement to your
Institution!

• Exercise

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Global FootprintA Light Touch?
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Every seven weeks, we each generate our own
body weight in rubbish
Three quarters of that is sent to landfill
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Why is sustainable procurement important?
Impacts and Opportunities (Environment)
High
Environmental Footprint
Natural Resources
Transportation
Manufacturing
Product Distribution
Consumers
Low
Supply Chain
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Why is sustainable procurement important?
Current Management Effort (Environment)
High
Environmental Footprint
Natural Resources
Transportation
Manufacturing
Product Distribution
Consumers
Low
Supply Chain
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Why is sustainable procurement important?
Mismatch between the two
High
Environmental Footprint
Natural Resources
Transportation
Manufacturing
Product Distribution
Consumers
Low
Supply Chain
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Selling Sustainable Procurement?
Stakeholder demands
Employee expectations
Benchmarking
Customer requirements
Risk management
Legislation Standards
Business efficiencies
Impact Reduction (environmental)
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Selling Sustainable Procurement

• Selling sustainable procurement
• Who are our audience?
• What pressures are they under?
• What are their concerns?
• What do you want them to do differently?
• How can you help them?

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Sustainable Procurement Policies Risk Based
Approaches

• Exercise

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Sustainable Procurement Policies

• Sustainable Procurement Policy
• Who is the audience?
• What does it do?
• What does it look like?

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Sustainable Procurement Policies

• Who is the audience?
• Senior management
• Suppliers and contractors
• Internal customers (of purchasing) e.g. budget
  holders
• Employees (within purchasing outside)
• Any other stakeholder

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Sustainable Procurement Policies

• What does it do?

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Sustainable Procurement Policies

• Using your skills, knowledge and experience
• Read and review 3 of the example policies
• Highlight key content and themes
• Produce a checklist to complete a high quality
  policy
• Be prepared to report back

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Sustainable Procurement Policies

• Putting the policy into practice
• Supported / signed off at the highest possible
  level
• Regularly revisited and updated as the
  institution becomes more experienced
• Should be widely disseminated

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Sustainable Procurement Policies

• Putting the policy into practice
• Those involved in procurement should have an in
  depth introduction to the policy
• Supporting information should be made available
  to help implementation
• Progress should be monitored, how are people
  using the policy? Can it be improved?

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Sustainable Procurement Policies

• Summary
• Develop one or reflect the objectives in existing
  policy
• Get buy in and commitment
• Communicate it
• Support staff implement, with guidance and
  workshops
• Review and update with experience

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How do I prioritise?

• Take a risk based approach

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Why take a risk based approach?

• Every product or service we buy has an
  environmental and social impact
• You buy thousands of products
• You have limited resources
• You have limited time
• You are being asked to demonstrate how the work
  you do supports your institution

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Why take a risk based approach?

• We need a way to prioritise our activity
• Risk as a concept resonates with institutions and
  senior management
• Ensures we are not wasting our efforts we are
  looking to implement sustainable development
  which is about reducing impact
• Tried and tested approach

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Why take a risk based approach?

• Helps focus activity on main impacts
• Involves stakeholders internal customers helps
  get buy in for implementation
• Demonstrates that high risks do not only come
  from high value purchases

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What guidance exists?
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What guidance exists?

• The approach we use is adapted from
• Sustainability and Local Government Procurement
  IDeA (November 2003)
• An approach used by Belfast City Council
• The Environment Agency

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Implementing a risk based approach

• Identify products / services you routinely buy as
  an organisation
• Consider the environmental impacts / risks
  associated with the products or service
• Using a simple matrix provided identify whether
  you perceive the product to be a high or low
  environmental risk and high or low profile risk

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Implementing a risk based approach
High


Environmental Risk
Low
Profile Risk
Low
High
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Implementing a risk based approach
High
Priority 2 Priority 1
Priority 4 Priority 3
Environmental Risk
Low
Profile Risk
Low
High
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Implementing a risk based approach

• In the recent publication Procuring the Future,
  Sustainable Procurement National Action Plan
  Recommendations from the Sustainable Procurement
  Task Force a risk-based approach is widely
  promoted.
• To determine priorities for the public sector the
  task force developed an expenditure
  prioritisation methodology which uses an
  approach based on risk, scope to do more and
  procurer influence.

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Implementing a risk based approach

• Adopting the priorities identified by the task
  force in your university or college can help you
  achieve the 2009 target.
• Of the 174 spend areas identified the following
  10 were named as priorities for sustainable
  procurement activity.

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Implementing a risk based approach

• 1 Construction (building and refit, highways and
  local roads, operations and maintenance)
• 2 Health and social work (operating costs of
  hospitals, care homes, social care provision)
• 3 Food
• 4 Uniforms, clothing and other textiles
• 5 Waste
• 6 Pulp, paper and printing
• 7 Energy
• 8 Consumables office machinery and computers
• 9 Furniture
• 10 Transport (business travel and motor vehicles)

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Implementing a risk based approach

• A good starting point could be to look at the
  list of commodity areas compiled and coded by
  NEUPG and identify which of these are relevant to
  you.

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Risk Analysis by NEUPG
Comm Code Commodity Code Description Relevance /risk Equality Relevance/ risk Environmental Relevance/ risk WEEE/ disposal Relevance / risk Social issues
A The Arts, Audio-Visual Multimedia Supplies and Services        
AA Audio Visual Equipment, incl video conferencing, Televisions, Videos, sound recorders, incl maintenance, repair and hire L M H M
AB Display and Projection Equipment and Consumables L M H M
AC Learning and Training Packs and Pre-recorded Media M L L L
AD Music, Instruments, Scores, Purchase, Maintenance, Conductors and Artistes L L L L
AE Photographic Equipment Supplies and Services L M H M
AF Studio Hire and Running Costs H L L L
AG Theatre Production Costs (scenery, lighting, props, costumes) H L L L
AJ Audio Visual Consumables, Accessories, Cassettes etc L M L M
AK Photographic Consumables, Accessories etc L M M M
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Summary of the process

• Review / Identify environmental and social
  priorities for your institution
• Identify a group of individuals within your
  institution from different backgrounds and
  experiences
• Compile a list of all the products and services
  you purchase (as comprehensive as possible)
• Spend as long as it takes prioritising using the
  matrix (1 2 days)

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Summary of the process

• This means you have undertaken an environmental
  risk analysis of all the products and services
  you purchase!!
• Identify the suppliers related to those products
  or services
• Prioritise management response
• Communicate it to staff and suppliers

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Networking Lunch
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Sector Case Study

• Michelle Dixon
• University of Hertfordshire

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Sector Case Study

• Pat Condon
• Blackpool Fylde College

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Supplier engagement?On sustainability

• What is it?
• What do you already do?
• Why is it important?

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Supplier Engagement

• Good practice review
• Where do you start!
• Based on risk
• Use of questionnaires
• Supplier workshops
• Guidance for suppliers
• Working with suppliers

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Supplier Case Study

• Surrie Everett-Pascoe
• Canon UK

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What do I do now?

• Exercise

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What do I do now?

• What steps do you need to take?
• Get high level support and commitment
• Put a team together cross functional
• Resources in place
• Analyse purchasing practice
• Baseline audit should do this
• Evaluate supplier base
• Risk analysis of the goods and services you
  procure
• Develop guidance to support implementation to
  integrate into procurement process
• Communicate it internally and externally
• Monitor and review

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Environment Action Fund Programme

• Further support is available
• Train the trainer
• Policy and strategy development
• Risk based approach to procurement
• Supplier engagement
• Social issues in procurement
• Experience built up as part of the EAF project
  within EAUC
• Speak to Iain Patton for further information and
  support

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Close

• jbrannigan_at_esdconsulting.co.uk