sustainable procurement - taking your first steps 2 nd october 2007 university of reading
TRANSCRIPT
Sustainable Procurement - Taking your first steps
2nd October 2007
University of Reading
2
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
3
Sustainable Procurement
Agenda
09.15 Registration09.45 Welcome and Introductions10.00 Structure of the Day and Objective Setting10.30 Selling Sustainable Procurement to Your
Institution11.00 Tea / Coffee11.15 Sustainable Procurement Policies and Risk
Based Approaches
4
Sustainable Procurement
Agenda
12.15 Networking Lunch13.15 Sector Case Study
Michelle Dixon, University of Hertfordshire13.45 Sector Case Study
Pat Condon, Blackpool and Fylde College 14.15 Supplier Engagement and Contract Management14.45 Supplier Case Study
Surrie Everett-Pascoe, Canon UK15.15 What Do I Do Now?16.00 Close
5
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
Structure of the day & Objective setting
Introductions
What is Sustainable Development?
8
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”
9
What is sustainable development?
Society
EconomyEnvironment
10
What is sustainable development?
Society
EconomyEnvironment
Reduce the negative and increase the positive
Long term view
What is Sustainable Procurement?
12
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
Selling Sustainable Procurement to your Institution!
Exercise
14
15
16
Global FootprintGlobal FootprintA Light Touch?A Light Touch?
17
Every seven weeks, we each generate our own body weight in rubbish
Three quarters of that is sent to landfill
18
Why is sustainable procurement important?
Natural Resources
Transportation ManufacturingProduct
DistributionConsumers
Environmental Footprint
Impacts and Opportunities (Environment)
Low
Supply Chain
High
19
Why is sustainable procurement important?
Natural Resources
Transportation ManufacturingProduct
DistributionConsumers
Environmental Footprint
Current Management Effort (Environment)
Low
Supply Chain
High
20
Why is sustainable procurement important?
Natural Resources
Transportation ManufacturingProduct
DistributionConsumers
Environmental Footprint
Mismatch between the two
Low
Supply Chain
High
21
Selling Sustainable Procurement?
Reputation
Performance
Licence to Operate
Brand
Sustainable Procurement
Customerrequirements
Stakeholderdemands
Employee expectations
Benchmarking
Legislation &Standards
Impact Reduction(environmental)
Business efficiencies
Risk management
22
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?
Sustainable Procurement Policies & Risk Based Approaches
Exercise
24
Sustainable Procurement Policies Sustainable Procurement Policy
Who is the audience? What does it do? What does it look like?
25
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
26
Sustainable Procurement Policies What does it do?
Reflectskey
impacts
Reflectsbusinesspriorities
Showsintent
Gets buyIn and
support
Stimulates action
Informs targets
and strategy
27
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
28
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
29
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?
30
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
How do I prioritise?
Take a risk based approach
32
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
33
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
34
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
What guidance exists?
36
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
37
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
38
Implementing a risk based approach
Low
Low
High
High
En
viro
nm
enta
l R
isk
Profile Risk
39
Implementing a risk based approach
Priority 2 Priority 1
Priority 4 Priority 3
Low
Low
High
High
En
viro
nm
enta
l R
isk
Profile Risk
40
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”.
41
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.
42
Implementing a risk based approach1 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 Food4 Uniforms, clothing and other textiles5 Waste6 Pulp, paper and printing7 Energy8 Consumables – office machinery and computers9 Furniture10 Transport (business travel and motor vehicles)
43
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.
44
Risk Analysis by NEUPG
Comm Code Commodity Code DescriptionRelevance /risk Equality
Relevance/ risk Environmental
Relevance/ risk
WEEE/ disposal
Relevance / risk Social issues
A The Arts, Audio-Visual & Multimedia Supplies and Services
AAAudio 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
ADMusic, 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
45
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)
46
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
Networking Lunch
Sector Case Study
Michelle Dixon
University of Hertfordshire
Sector Case Study
Pat Condon
Blackpool & Fylde College
Supplier engagement?
On sustainabilityWhat is it?
What do you already do?
Why is it important?
51
Supplier Engagement
Good practice review Where do you start!
Based on risk Use of questionnaires Supplier workshops Guidance for suppliers Working with suppliers
Supplier Case Study
Surrie Everett-Pascoe
Canon UK
What do I do now?
Exercise
54
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
55
Environment Action Fund ProgrammeFurther 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
