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Greenhouse Gas Footprint Analysis of Departmental Supply-Chains

Best Foot Forward A research report completed for the Department for Environment, Food and Rural Affairs

January 2011

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Published by the Department for Environment, Food and Rural Affairs

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Greenhouse Gas Footprint Analysis of Departmental Supply-Chains

5 January 2011

This research was commissioned and funded by Defra. The views expressed reflect the research findings and the authors‟ interpretation; they do not necessarily reflect Defra policy or opinions.

Best Foot Forward is an Oxford-based sustainability consultancy that primarily provides carbon and ecological footprinting services and toolkits for organisations. Best Foot Forward calculated its first footprint in 1998 for the European Commission (DG Environment) and has been closely involved with methodology and standards development ever since, having analysed more than 300 organisations and completing over 1,000 footprinting analyses. In 2005 Best Foot Forward was recognised by the UK Government, being awarded the distinguished Queen‟s Award for Enterprise: Sustainable Development.

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Greenhouse Gas Footprint Analysis of Departmental Supply-Chains Project Ref: SPMT09_83

Suggested citation for this report: Best Foot Forward (2011) Greenhouse Gas Footprint Analysis of Departmental Supply-Chains. Report to the UK Department for Environment, Food and Rural Affairs. Defra, London, UK. Prepared by:

Best Foot Forward Ltd. The Future Centre, 9 Newtec Place, Magdalen Road, Oxford, OX4 1RE. E-mail: [email protected] Web: www.bestfootforward.com Tel: 01865 250818 Fax: 01865 794586 Company Registration 3409491 Report by:

Paul Cooper Will Schreiber Rachel Hughes Analysis by:

Claire Stentiford Xana Villa Garcia

Quality Assurance:

Analysis: Xana Villa García 01.10.10; Claire Stentiford 07.10.2010 Report: Claire Stentiford 02.10.10, Rachel Hughes 04.10.10, 16.11.10

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TABLE OF CONTENTS

Executive Summary..............................................................................................................8

Background .............................................................................................................................. 8 Key Findings from the Study ...................................................................................................... 8

1 Context......................................................................................................................... 12

1.1 Assessing the Greenhouse Gas Emissions of Government Departments ......................... 12 1.2 The Aims of the Study .................................................................................................. 12 1.3 Government Policy....................................................................................................... 12 1.4 Department Policy........................................................................................................ 13

2 Conclusions................................................................................................................ 14

2.1 Findings ...................................................................................................................... 15 2.2 Policy Implications ....................................................................................................... 18 2.3 Recommendations ....................................................................................................... 19 2.4 Further Work ............................................................................................................... 20

3 Methods and Approach ........................................................................................... 21

3.1 Process vs. Input-Output Analyses ................................................................................ 21 3.2 Data Sources ............................................................................................................... 22 3.3 Methodology ................................................................................................................ 24

4 Results ......................................................................................................................... 26

4.1 High Level Results ....................................................................................................... 26 4.2 Department Results ..................................................................................................... 29

5 Application of Results ............................................................................................. 30

5.1 Methodology ................................................................................................................ 30 5.2 Data Quality................................................................................................................. 32 5.3 Reporting .................................................................................................................... 34

6 Additional Resources .............................................................................................. 35

Annex A: Department Graphs......................................................................................... 36

Annex B: PSPES Category Descriptions 2009/10 ..................................................... 44

Annex C: BFF PSPES Mapping ...................................................................................... 61

Annex D: Observations from Methodology and Process ....................................... 64

Annex E: Technical Notes ............................................................................................... 67

Annex F: Case Studies ..................................................................................................... 69

Energy & Utilities .................................................................................................................... 69 Fuels, Lubricants & Gases ....................................................................................................... 69 ICT......................................................................................................................................... 70 Professional Services .............................................................................................................. 70 Low Carbon Procurement ........................................................................................................ 71

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Figures Figure 1: Comparative Department footprint excluding MoD Defence .............................................. 9

Figure 2: Comparative Department Footprint excluding the MoD ..................................................... 9 Figure 3: GHG emissions of 3

rd party procurement expenditure by eight Government Departments,

excluding MoD Defence .............................................................................................................. 10

Figure 4: Proportional impacts of Departmental GHG emissions (Energy, Utilities and Fuel vs. Goods and Services) ............................................................................................................................. 10 Figure 5: Proportional Impacts of Departmental GHG emissions (Energy, Utilities and Fuel vs. Goods

and Services) ............................................................................................................................. 14 Figure 6: GHG emissions of 3

rd party procurement expenditure by eight Government Departments,

excluding MoD Defence. ............................................................................................................. 15

Figure 7: Process Analysis vs I/O Calculation Variables................................................................ 21 Figure 8: PSPES Boundaries and Categories of Information Reported .......................................... 22 Figure 9: Project Methodology .................................................................................................... 24

Figure 10: Footprint Calculation Process ..................................................................................... 24 Figure 11: Department Review Process ....................................................................................... 25 Figure 12: Comparative Department Footprint excluding MoD defence .......................................... 26

Figure 13: Comparative Department Footprint excluding the MoD ................................................. 27 Figure 14: Proportional Expenditure (Input) to Proportional Emissions (Output) of Pan-Departmental Procurement............................................................................................................................... 28

Figure 15: Methodology Selection ............................................................................................... 30 Figure 16: PSPES Reporting Category Levels ............................................................................. 32

Tables Table 1 GHG Emissions by Department ....................................................................................... 16

Table 2 Process vs Input-Output Analyses ................................................................................... 21 Table 3 SOGE v PSPES boundaries (Transportation Example) ..................................................... 25 Table 4 Application of Carbon Calculation Tools ........................................................................... 33

Table 5 Gas and Fuel Uplift Calculation Methods.......................................................................... 68

Boxes Box 1 GHG Protocol Scope Allocation ......................................................................................... 23

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Glossary

CESP Centre of Expertise in Sustainable Procurement

DCLG Department of Communities and Local Government

Defra Department for Environment, Food and Rural Affairs

DCSF Department for Children, Schools and Families

DfE Department for Education

DfT Department for Transport

DH Department of Health

I/O Input-Output

IOA Environmental economic input-output analysis

GHG Greenhouse Gas

HMRC HM Revenue and Customs

MoD Ministry of Defence

OGC Office of Government Commerce

ONS Office of National Statistics

PSPES Public Sector Procurement Expenditure Survey

SDC Sustainable Development Commission

SDiG Sustainable Development in Government

SOGE Sustainable Operations on the Government Estate

SPAP Sustainable Procurement Action Plan

UNSPSC United Nations Standard Products and Services Code

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Executive Summary

Background

This report summarises the results from a study calculating the greenhouse gas (GHG) emissions associated with departmental spending of eight central Government Departments. The study is one of the first to estimate the emissions associated with the total procurement activity of Departments. The brief was to use a methodology and data that was centrally available and enabled development of a departmental total carbon footprint, quickly and with limited resource required from the departments.

The aims of the study are to:

• Identify the most significant sources of GHG emissions for a selection of Government Departments;

• In particular, explain how procurement of goods and services contribute to overall emissions;

• Determine the availability, completeness and robustness of data available; • Propose measures for Government to improve their information gathering/collection

processes for measuring GHG emissions; • Suggest the most effective opportunities for Government to reduce emissions, both

for individual Departments and across particular product or service groups.

The study purposely used existing centrally reported data from the Public Sector Procurement Expenditure Survey (PSPES) reporting system, which captures expenditure with third parties, to provide a consistent comparable data source for multi-departmental analysis. The study uses a method of emissions calculation called Input Output Assessment (IOA) based on national industry sector level emission intensity factors (CO2e/£ expenditure).

This combination of IOA methodology and existing centrally reported spend data enabled a process to be developed and implemented that efficiently and consistently measured Departmental footprints with very limited incremental resource required from the Departments.

The top level IOA provides a sufficiently accurate Departmental carbon footprint to inform the development of a sustainable procurement strategy. IOA is not valid for operational monitoring. It is based on spend data and utilises national average industry sector emissions factors. This report provides a snapshot of Department emissions during the 2008/09 period but it does not set out to track or summarise the reductions achieved within individual Departments.

Key Findings from the Study

1. Comparative Footprint between the Departments: Figure 1 shows the comparative

footprint across the eight Government Departments included in this analysis. As would be expected, the Ministry of Defence has the largest expenditure of all Departments reviewed and its footprint is correspondingly higher.

Due to the disproportionate footprint of the MoD compared to the other seven Departments, Figure 2 shows the same comparative graph excluding the MoD. In this

context it is easier to see the differences between Departments.1

1 The DH* footprint does not include emissions associated with the National Health Service and the

DfE (formerly DCSF)** footprint does not include emissions associated with schools.

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Figure 1: Comparative Department footprint excluding MoD Defence

It should be noted that Defence equipment and services have been excluded from Figure 1.

This category includes vessels, aircraft and land equipment procured for the Armed Forces and is responsible for approximately 8,366 ktCO2e, which is around 43% of the MOD‟s total emissions. A detailed breakdown of the MOD‟s footprint is provided on page 43; however, as this category alone accounts for more emissions than the seven other Departments combined, it has been excluded, thereby allowing a direct comparison of Departmental footprints. For the purposes of this study, the Department of Health footprint does not include activities within the National Health Service (NHS).

As shown below, the Department for Transport is the largest contributor to the remaining footprint of the seven departments. Construction, principally from building, operating and maintaining the transportation network, equates to 1,105 ktCO2e, and 48% of the total footprint of the Department for Transport.

Figure 2: Comparative Department Footprint excluding the MoD2

2 ibid describes the scope of the DH and DfE (formerly DCSF) footprints.

0

2,000

4,000

6,000

8,000

10,000

12,000

Ministry of Defence (excl

defence)

Department of Health*

HM Revenue and Customs

Home Office Department for Transport

Department for Education

(formerly DCSF)**

Defra Communities and Local

Government

ktC

O2e

Waste Management Vehicles TravelSocial Care Professional Services Temporary Staff Professional Services OtherProfessional Services Consultancy Personnel Related Operational GoodsOffice Solutions Marketing & Media LogisticsICT Fuels Lubricants & Gases FacilitiesEngineering Goods Energy & Utilities DefenceConstruction Clinical & Medical

0

500

1,000

1,500

2,000

2,500




Department for Education (formerly DCSF)**


Government

ktC

O2e


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2. Procurement Emissions: In total, across the eight Departments studied, emissions from

Goods and Services represented around half of the emissions with Energy, Utilities and Fuels representing the remaining half of the combined Scope 1, 2 and 3 emissions.

The proportion of emissions from procurement of goods and services differed considerably by department, ranging from 38% for the MoD to 90% for the DH. See Figure 4 for a

breakdown of Energy, Utilities and Fuel compared with Procured Goods and Services by department.

0%

10%

20%

30%

40%

50%

60%

70%

80%

90%

100%

MOD (ex defence)

DH* HMRC Home Office

DfT DfE (formerly DCSF)**

Defra DCLG Total

Energy, Utilities and Fuel Procured Goods & Services

Figure 3: GHG emissions of 3rd

party procurement expenditure by eight Government Departments, excluding MoD Defence

Figure 4: Proportional impacts of Departmental GHG emissions (Energy, Utilities and Fuel vs. Goods and Services)

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3. Carbon intensity per £ of spend: There is considerable difference in the carbon

intensity per £ spent in different sectors. Energy and Utilities represents approximately 1.5% of total expenditure but accounts for 30.2% of total emissions. Construction represents 11.4% of total expenditure and 6.7% of emissions while ICT represents 13% of the combined expenditure but accounts for 4.5% of total emissions and professional services accounts for 21.1% of spend and 4.9% of emissions. This intensity ratio provides an indication of the scope for improvement in different categories of spend. More detail is provided in Figure 14 proportional expenditure (input) to proportional emissions (output)

of pan-departmental procurement.

Whilst Utilities remain significant because of their high carbon intensity and should continue to be reduced, focus also needs to be directed at high impact sectors in the procurements of goods and services such as construction, ICT and professional services where they account for a significant proportion of a department‟s total carbon footprint .

4. Value of Departmental IOA: There was broad agreement from the departments taking

part that their Departmental IOA analysis was a valuable tool to inform their sustainable procurement strategy. It efficiently identifies key areas of focus for emissions reduction. Armed with the analysis, Departments know where to target and follow up with direct activity data and measurement.

Departments also recognised that this approach can efficiently identify those suppliers who make a significant contribution to the Department's footprint, which in turn can be used to inform supplier engagement activity.

5. Validity of the Methodology: The top level IOA provides a sufficiently accurate

Departmental carbon footprint to inform sustainable procurement strategy. It provides a basis for the identification of sector priorities and the focus of Department efforts on „hot spot‟ areas. Consequently, it can help identify operational changes that need to be modelled, assessed and monitored using activity (non-financial) consumption data.

6. Operational Monitoring: IOA is not valid for operational monitoring. It is based on spend

data and utilises national average industry sector emissions factors. Specific operational actions to improve sustainability are unlikely to be reflected in an IOA. Operational targeting and monitoring will still require consumption data to be collected.

7. Data Quality: PSPES data was introduced in 2007 by the OGC. The study found that

2008/09 PSPES data categorisation was inconsistently applied across Government Departments. Discrepancies between Department reporting varied for a variety of reasons ranging from outsourced allocation of expenditure based on generic supplier activity to mapping errors between expenditure coding systems.

3

Departments do not currently track expenditure based on the services provided. During data classification most Departments will apply a general procurement category to a supplier, rather than applying the expenditure data directly to the service. This reduces the accuracy of mapping PSPES sectors to IOA sectors.

8. Procurement Challenges: Procurement teams consistently feedback that „green

procurement‟ remains a relatively new subject for many procurement professionals. Furthermore, buyers identified that in this area it is difficult to know if they are getting good price or purchasing products that comply with the sustainable procurement requirement. Most procurement standard compliance requires the inclusion of Government Buying Standards in tenders, without any further action being taken. Training and development activity that builds capability in sustainable procurement and carbon literacy will continue to be important.

3 Improved classification guidance has been provided for 2009/10 reporting.

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1 Context

1.1 Assessing the Greenhouse Gas Emissions of Government Departments Defra commissioned Best Foot Forward to assess the greenhouse gas (GHG) emissions associated with a selection of Government Departments.

1.2 The Aims of the Study

• Identify the most significant sources of GHG emissions for a selection of Government Departments;

• In particular, explain how procurement of goods and services contribute to overall emissions;

• Determine the availability, completeness and robustness of data available; • Propose measures for Government to improve their information gathering/collection

processes for measuring GHG emissions; • Suggest the most effective opportunities for Government to reduce emissions, both

for individual Departments and across particular product or service groups. The study is one of the first to quantify emissions from Government associated with the embodied energy of procured products and services. Its value is to inform the next stage of sustainability objectives and reporting, going beyond the direct operational emissions reporting associated with Sustainable Operations on Government Estate (SOGE) data through the introduction of the Sustainable Development in Government (SDiG) sustainable procurement targets in April 2011.

To minimise demands on Departments, the study is based on existing centrally reported Public Sector Procurement Expenditure Survey (PSPES) data reported to the Office of Government Commerce (OGC). Additional studies and data sources are included for referencing, but other calculations have not been included in the report to provide a consistent and reproducible analysis across Departments.

The following eight Government Departments have been included in this study:

Communities and Local Government;

Defra;

Department for Education (formerly DCSF);

Department for Transport;

Department of Health;

HM Revenue & Customs;

Home Office;

Ministry of Defence.

1.3 Government Policy The Government has set various targets for Department operations in order to reduce their environmental impacts. As the data source for the study was expenditure, particular attention was paid to Government and Department policies related to mitigating the environmental impacts of procurement. The following policies and targets are relevant for the 2008/09 data period presented in this report.4

4 In May 2010 a new Government coalition came to power. The policies and priorities described in this

study may not necessarily reflect those of the new Government. The policies that are discussed within

this report are present for the purpose of providing context to the way Department‟s were achieving their objectives in accordance with Government priorities in place during 2008/09.

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1.3.1 GHG Emissions Reduction

In accordance with the UK Climate Change Act of 2008, the UK Government has committed to reducing emissions by 80% by 2050, with at least a 34% reduction by 2020. There are a number of mandated policy targets, which all UK central Government Departments must adhere to and which are detailed in Sections 1.3.2 to 1.3.4.

1.3.2 Sustainable Operations on Government Estate (SOGE) Targets

To ensure that Government Departments themselves become leaders in Sustainable Development, the Prime Minister mandated in June 2006, a set of revised SOGE targets. Performance against these targets is sent to CESP (Centre of Expertise in Sustainable Procurement) and an annual report is published by the Sustainable Development Commission (SDC). It has not yet been confirmed with the new Government what the audit arrangements will be in the future, and in July 2010 Defra stated that it would no longer provide funding to the SDC.

Furthermore, the SOGE targets were revised in 2010, to align the carbon targets more closely with the requirements of the UK Climate Change Act. The new Government is reviewing its approach in line with its aspiration to be the “greenest government ever” and published an action plan in October with a view to publishing further targets by the end of 2010.

1.3.3 Other Mandated Mechanisms

In addition to the key „outcome driven‟ SOGE/SDIG targets, there are a number of mechanisms and supporting processes which the UK Government has mandated Departments to implement, in order to support delivery of sustainable operations targets which cover:

BREEAM - Application of BREEAM „excellent‟ standards or equivalent to all new buildings, and „very good‟ or „excellent‟ for major refurbishments;

Sustainability Appraisal – Conduct sustainability appraisals of all office relocations

Carbon Trust - Adopt Carbon Trust Management Programme;

Environmental Management Systems (EMS) - Departments to work towards an accredited, certified EMS i.e. ISO14001 or EMAS.

The OGC assesses the extent to which Government Departments utilise these mechanisms, gauges compliance with Government requirements and also establishes whether Departments are using tools to enable them to achieve future performance.

1.3.4 UK Government Sustainable Procurement Action Plan (SPAP)

The Sustainable Procurement Action Plan (SPAP) is Government‟s action plan for embedding sustainability in its procurement practices. The commitment covers leadership and accountability on sustainable procurement; budgeting and accounting practice; building capacity; raising standards; and supplier engagement. SPAPs are included as a mandatory requirement with departmental assessment undertaken by CESP at OGC and the Sustainable Development Commission. Each Government Department is assessed on its policies by means of a point scoring system with progress measured by a traffic light system of colour and rating.

1.4 Department Policy Government Departments have implemented policies and programmes to achieve the Government targets stipulated in Section 1.3 Government Policy. While this study maps emissions to Department activities over a one year period, it does not calculate, review or summarise participating Department work to reduce their carbon footprint over time.

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2 Conclusions

The Government Departments included in the study have a significant proportion of their total carbon footprint located within their supply-chain. In aggregate, across the eight Departments studied, procurement emissions represented around half of the emissions with Energy and Fuels representing the other half.

The proportion of emissions from procurement of goods and services differed considerably by Department ranging from 38% for the MoD to 90% for the Department of Health as shown in Figure 5.

Figure 5: Proportional Impacts of Departmental GHG emissions (Energy, Utilities and Fuel vs. Goods and Services)

Across the eight Departments studied using IOA, the major impacts (more than 5% of emissions) across Government Departments include the following procurement sectors, as illustrated in Figure 65:

Energy & Utilities, predominantly heating and lighting, Construction, such as main contractors, building repair and maintenance,

Fuels, Lubricants & Gases, predominantly petrol and diesel transport fuel,

ICT, such as outsourced ICT services, software, hardware and telecoms,

Vehicles, purchase, leasing and maintenance,

Professional Services covering outsourced business processes, finance and IT consultancy and temporary staff.

5 Third-party Defence expenditure by the Ministry of Defence is not included in this figure because its

scale would skew the analysis for all other departments.

0%

10%

20%

30%

40%

50%

60%

70%

80%

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100%

MOD (ex defence)

DH* HMRC Home Office

DfT DfE (formerly DCSF)**

Defra DCLG Total

Energy, Utilities and Fuel Procured Goods & Services

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This study is the first to use IOA as an analysis tool applied at a pan-departmental level and uses only procurement expenditure as the source of data. The findings therefore also review the completeness and accuracy of the data sources and assess the applicability of this data source for future assessments within other Government Departments. Despite the limitations of the methodology and PSPES expenditure categorisation, the findings from the study identify sufficiently large differences between the procurement categories to inform decision-making with regards to Government policy associated with sustainable procurement at a high level.

2.1 Findings

2.1.1 Major Impacts by Department

The breakdown of emissions by Department (see Annex A – Department Graphs) shows

how the major procurement categories contribute to the carbon footprint by Department. Energy & Utilities, ICT and Professional Services are consistently high categories. Fuel, Vehicles and Travel are high in specific departments. This suggests that those procurement categories that are significant across most departments would benefit from pan-governmental initiatives. Departments may also want to develop specific strategies for those categories that are significant at their departmental level only. Considerable progress has been made on reducing Scope 1 and 2 emissions, which represent around 52% of total impact across Departments. However, if the additional impacts associated with procurement are not addressed, then the UK indirect emissions,

Figure 6: GHG emissions of 3rd

party procurement expenditure by eight Government Departments, excluding MoD Defence.

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and thus global emissions, will continue to increase. This is particularly important in the context of increased outsourcing and the importation of products from around the world, both of which are two separate and distinct contributors to the growth of Scope 3 emissions. As these business practices continue to spread, there will be a corresponding reduction in the level of control and the capacity of Departments to implement sustainability practices if they are not taken into account during the procurement process. For instance, many Departments are currently operating within fixed-term ICT contracts and may find it difficult to implement energy efficiency improvements until the contract comes up for review.

As procurement represents a significant opportunity for carbon reduction, a hierarchical approach to purchasing is recommended, that reviews both the requirement and necessity for the item at the earliest stages of a procurement process (see Annex F Case Study:

Procuring for Carbon Reduction).

Table 1 lists the proportion of emissions related to procurement categories for each

Department. If a category contributes to more than 5% of a Department‟s footprint it has been highlighted in red. The table demonstrates that although some emission categories may contribute greatly to the pan-departmental footprint, only a few Departments are responsible for emissions in this category (e.g. construction is the second largest contributor to the pan-departmental footprint despite being only significant in three departments).

Table 1 GHG Emissions by Department

2.1.2 Methodology Application

IOA is a useful tool for providing a reasonably accurate and complete snapshot footprint of Department procurement emissions. To accurately apply a financial expenditure-based

Total proportions by department by category Red >5% department footprint

MOD (ex

defence) DH HMRC

Home

Office DfT

DfE (formerly

DCSF)** Defra DCLGTotal

Clinical & Medical 0.2% 5.2% 0.0% 0.3% 0.0% 0.0% 0.8% 0.2% 0.2%

Construction 3.0% 4.7% 0.0% 3.8% 47.6% 1.1% 21.1% 16.7% 10.0%

Defence 0.0% 0.0% 1.0% 0.7% 0.0% 0.0% 0.2% 0.0% 0.1%

Energy & Utilities 51.2% 10.9% 38.6% 26.4% 39.0% 16.3% 29.5% 27.9% 45.3%

Engineering Goods 3.1% 0.0% 0.1% 0.0% 0.1% 0.0% 0.7% 0.2% 2.1%

Facilities 3.6% 1.0% 19.2% 4.7% 1.4% 3.3% 2.7% 5.8% 4.2%

Fuels Lubricants & Gases 10.0% 0.0% 3.2% 0.1% 1.6% 0.0% 6.9% 3.7% 7.4%

ICT 4.4% 42.4% 19.6% 16.6% 4.5% 8.6% 9.0% 11.7% 6.8%

Logistics 1.2% 0.1% 0.2% 0.2% 0.0% 0.1% 0.4% 0.3% 0.9%

Marketing & Media 0.0% 4.3% 0.4% 1.3% 0.3% 4.8% 1.0% 2.6% 0.3%

Office Solutions 0.5% 2.1% 5.2% 3.8% 1.2% 2.2% 2.0% 2.1% 1.2%

Operational Goods 1.5% 0.1% 0.3% 0.1% 0.0% 1.6% 1.3% 1.0% 1.2%

Personnel Related 0.3% 0.0% 0.0% 0.1% 0.0% 1.3% 0.7% 0.4% 0.2%

Professional Services

Consultancy0.3% 12.3% 1.2% 2.0% 1.1% 12.9% 3.0% 11.1% 1.1%


Other6.2% 2.3% 2.3% 4.2% 1.8% 38.9% 10.9% 5.4% 5.7%


Temporary Staff0.1% 12.2% 0.5% 2.9% 0.1% 4.2% 3.6% 3.4% 0.7%

Social Care 0.1% 0.0% 1.6% 25.9% 0.6% 0.4% 0.1% 0.2% 1.8%

Travel 1.5% 2.3% 5.2% 5.7% 0.4% 3.9% 3.1% 3.5% 1.9%

Vehicles 10.6% 0.0% 0.5% 0.8% 0.1% 0.1% 2.1% 3.6% 7.3%

Waste Management 2.2% 0.0% 0.9% 0.5% 0.1% 0.4% 1.0% 0.2% 1.6%

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analysis tool for footprinting, all Departments need to record and classify financial expenditure in each respective I/O category.

A key requirement for the model is the presence of expenditure data for all department impacts. PSPES captures third-party expenditure information only. PSPES reporting does not capture expenditure in areas where there is inter-departmental expenditure (e.g. waste management, ICT) or when there is the provision of free services by the supplier. In these situations, whilst process-level data may be collected and available, the actual emissions would not show up through IOA due to the absence of financial expenditure. In addition, IOA uses national industry average expenditure; if discounts are obtained through the strong purchasing power of Government Departments, the lower prices paid, may distort the results of IOA. Conversely, if Departments are overpaying for services their footprint may be inflated. See Annex D – Observations from Methodology and Process for more detailed

explanations.

Most Departments confirmed that the principle of using a high-level analysis tool like IOA would help them target where process-based activity data needs to be collected (See Annex F for examples of how some Departments are already doing this). However, IOA needs to be

carried out by trained individuals who are familiar with the nuances of factor application. For instance, because the emission factors are based on 2004 economic data and UK-sector impacts measured during that time, IOA practitioners must revise their expenditure data to 2004 equivalencies and then adjust for distributor margins and taxes that have been applied. Changes to UK industry since 2004 (e.g. overseas outsourcing) are not reflected for in the current I/O factors. Furthermore, the 2008/09 recession coincides with the data period used within this analysis but the impact on industry emissions, and consequently the I/O factors they represent, is not reflected in the current Defra factors. Although a basic price adjustment has taken place in this study to account for inflation (see Section 3.2.1 Input Data), the I/O factors themselves have not been updated.

As a tool, IOA is very useful in providing the high level results needed to make strategic decisions about impact sources to focus on, but it should not be relied upon for ongoing measurement, because the only variable is expenditure. Thus emission reductions obtained through sustainable procurement policies would not be visible in subsequent analyses using this methodology unless prices are coincidentally lower. For instance, any increase in the cost of a category through „green premiums‟ or environmentally friendly materials will perversely increase the reported carbon footprint of the Department carrying out IOA, even although the actual footprint has decreased.

The most appropriate use of IOA, is in combination with process analysis, to create a hybrid footprinting model, with consumption data being collected for high impact categories. A hybrid model with significant consumption data would support target and baseline setting. Progress can only be measured against carbon baselines for emission categories calculated via process-based assessment of consumption data.

2.1.3 Data Quality and Availability

PSPES data provides an opportunity for the OGC and other interested bodies to understand broadly how Government Departments spend their budgets on third-party procurement. The launch of the system enabled the Government to view comparative expenditure details by procurement category with a consistent approach to data mapping. Based on the Department engagement that took place during this study, the following observations were made about the use of PSPES for IOA application:

2008/09 PSPES data mapping to internal accounting systems was inconsistently applied across Government Departments. The OGC has since issued new guidance on categorisation (see Annex B) and data mapping between United Nations

Standard Products and Services Code (UNSPSC) coding has been revised;

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PSPES Level 2 categories do not go to the level of detail necessary to ensure a robust IOA is possible. For example, some categories mix goods and services (e.g. “Airborne goods and services”);

The exclusion of inter-departmental expenditure is potentially a significant gap within individual Department footprints, due to the wide variety of services that may be obtained but not captured as third party expenditure. The emissions associated with activities would be visible in a total Department footprint, but they would only be attributed to the host Department.

Further descriptions of these findings are available in Section 5 – Application of Results and Annex D – Observations from Methodology and Process.

An aim of this study was to develop a practical analysis methodology using existing centrally reported data that could be consistently applied across all departments. Therefore, figures have been used directly and consistently from PSPES reporting. Several Departments had additional data on specific activities that were carried out in the process of implementing their internal carbon management strategies, but the study did not incorporate these figures.

2.2 Policy Implications

The analysis shows that there are significant emissions related to Department procurement activities. In most Departments, supply chain emissions exceed 50% of the total Department footprint and thus mitigation policies and reduction strategies need to be focused on mitigating these impacts, wherever possible. Despite the limitations of the study (see Section 5 – Application of Results), the high level results are capable of indicating where

these high impact areas are.

2.2.1 Policy Context

SOGE targets have been set for each Department and many are on track to reach them. Setting and monitoring these targets has raised sustainability as an operational priority and has resulted in many Departments reducing their direct impacts. In 2011, the SOGE targets will expire and will be replaced by “Greening Government Commitments”.

2.2.2 Government Priorities

In June 2010, the Cabinet Office published a Draft Structural Reform Plan6 highlighting the

need to centralise Government procurement to improve efficiency in Government operations. As these reforms are implemented, the ability of individual Department procurement teams to implement sustainable procurement criteria may be more limited, as the bulk of their purchasing will take place in sustainable centralised contracts. This study highlights the key areas that should be targeted, regardless of the body responsible for procurement, and a single body could enhance the consistency of policy application on a broad scale while achieving greater value for money.

The Government has stated that it will be the „greenest government ever‟ and Departments are ready to respond to the new environmental targets and initiatives that may accompany this declaration. Many of the Departments that participated in this study have implemented sustainability initiatives that go beyond the existing core Government requirements (e.g. total business travel reductions, behavioural change). Some of these measures have incurred zero cost to the Department but others remain dependent on initial efficiency investment (e.g. ICT consolidation) which is susceptible to budget cuts. While not all programmes may be impacted by individual Department budget reviews, several Departments indicated that key funding for some measures (e.g. server virtualisation) has been cut.

6 Cabinet Office (2010) Draft Structural Reform Plan. Available from http://www.cabinetoffice.gov.uk/media/414879/srp-cabinet-office.pdf

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2.3 Recommendations

Analysis

To ensure Government emissions are reduced, Government policy towards mitigating GHG emissions should generally be targeted towards the categories that contribute the most subject to consideration of other factors such as the scope for influence and improvement, criticality to operations and the level of key stakeholder interest. Due to the limitations of the methodology employed in the study, it is recommended that Government and Departments engage in a process-based analysis of significant categories to establish baselines against which improvements can be measured. Existing SOGE targets have required Departments to collect detailed consumption data on energy, fuels and certain categories of business travel for their estates, but activity data (e.g. number of computers acquired), as opposed to spend data, is generally not collected for the remaining procurement areas.

Process-based analysis, or direct activity data analysis, is needed to establish baselines against which Departments can be measured and Departments are familiar with this process from their existing SOGE work, in that they are identifying and tracking emission activities directly. The outcomes of this study provide Departments with an indication of which areas they should be targeting for further assessment.

Policy

Develop Pan-Government sustainable procurement strategies for those categories consistently representing a significant proportion of total emissions (Energy & Utilities, Fuel Lubricants and Gases, ICT and Professional Services)

Develop sustainable procurement policies for service sectors (e.g. consultancy). As professional services contribute approximately 8% of the pan-departmental footprint, this area should be reviewed and legal advice sought concerning the flexibility and appropriate nature of requirements that would not exclude small to medium enterprises (SMEs) in the process.

Extend central Government targets to encompass procurement activity that will remain the responsibility of individual Departments while the centralising of regular Government procurement is implemented.

Include low carbon lifecycle design and energy efficiency objectives in to the Cabinet Office priorities for reducing the cost structure of ICT in central Government.

Department Actions

Establish a threshold percentage of the total Department footprint at which Departments should develop a specific sustainable procurement strategy and identify and collect activity level data within the emissions category.

Implement procurement policies that promote desirable activities, such as:

o Increase carbon weighting in each target sector procurement profile;

o Establish whole life-cycle costing as a requirement for each target sector, where appropriate.

Target Areas The study indicates that the following six emission categories are significant components (>5%) of the pan-departmental footprint:

Energy & Utilities

Construction

Fuels, Lubricants & Gases

ICT

Vehicles

Professional Services Other

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Although the trial study is not capable of delivering precise footprints associated with these activities due to the limitations of the methodology and data sources (see Section 5 – Application of Results), the following actions and recommendations have been provided

from some of the included Departments.

Energy & Utilities Extend SOGE targets beyond the estate to encompass all areas where operational

or financial control influences the use of energy and utilities. The existing targets have resulted in progress being made in data collection and management for this emissions category, typically included in Scope 1 and 2 emission classifications. However, the study indicates that there are potentially further impacts associated with this category beyond the existing reporting boundaries.

Assessment of the benefits of site installation of AMR technology.

Construction No case studies were provided by participating Departments on how construction

impacts been managed beyond BREEAM certification and design considerations.

Fuels, Lubricants & Gases

Programmes have been adopted by the MoD to maximise resource efficiency and reduce emissions associated with operations by setting reduction targets for specific high impact areas (e.g. overseas campaign infrastructure). Additional work has been carried out in finding combined use for combustion sources, such as combined heat and power from diesel generators, and the development of renewable technologies for field deployment.

ICT Engage with suppliers to incorporate energy performance measurement and

reductions into delivery contracts. Defra is currently working with its supplier to receive monthly reports of ICT emissions and maximising on-site power and carbon savings.

Vehicles

No case studies were provided by participating Departments on how they have been managing embodied impacts from vehicle procurement beyond fuel emissions.


Use of standardised assessment tool for all suppliers to gauge actions taken to improve the sustainable delivery of goods and services. The Home Office and HMRC, as well as several other Departments, Executive Agencies and NDPBs, have taken action in this area to enable contract managers to work with suppliers to improve their scores between assessment periods.

2.4 Further Work

This trial has developed an approach that efficiently calculates a Department‟s footprint with limited resource required from the Department. This approach can be quickly and efficiently rolled out to other Departments to provide a similar high level analysis and initial prioritisation for those Departments;

With some limited refinement, the approach could be developed to assess the procurement from individual suppliers and if required the total footprint of chosen suppliers. This would then provide a means of engagement with the supplier base;

Refinement of key category footprints and prioritisation approach to understand opportunities better and inform future programmes work;

Develop the practical guidelines to link this to level IOA analysis with the collection of consumption data that is necessary for operational targeting and monitoring;

Develop methodology for „process measurement‟ to develop more accurate footprint information and baselines for performance monitoring.

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3 Methods and Approach

3.1 Process vs. Input-Output Analyses Footprinting methodologies can be broadly divided into two categories: „process lifecycle assessment‟ and „environmental extended input-output analysis‟. Process-based models require physical data (e.g. kWh of grid electricity, kg paper,

passenger km travelled by train) and calculate the carbon footprint by taking direct activity data and multiplying it by relevant emission factors. Environmental extended input-output analysis (IOA) is the extension of an economic technique which overlays carbon intensity

data to subsectors of the economy. This enables financial data (e.g. £M spent on computer services, SIC code 72) to be converted to a carbon footprint using average emissions data for the sector. There are pros and cons of each technique as presented below 7:

Table 2 Process vs Input-Output Analyses

Approach Pros Cons

Process lifecycle

assessment: primary data

Accuracy/certainty of real data Potential unavailability of data

Granularity of results Difficulty of data collection

Allows for consequential analysis

Time consuming and expensive Enables baseline measurement for reduction targets

Process lifecycle assessment: secondary data

Conversion of common data to

carbon figures Introduction of „average‟ data

Quick turnaround

Environmental

extended input-output analysis

Applicable when limited data available

Cannot measure changes in procurement practices

Applicable when only financial information is available

Inappropriate for baseline measurement

Limited disaggregation

Applicable for high level

analyses Technical expertise required

The figure below depicts the distinction between using these two methodologies:

7 Additional pros and cons between the two methods from a li fe -cycle assessment perspective are

presented in Hendrickson, C. T., Lave, L. B., Matthews, H. S. (2006). Environmental Life Cycle Assessment of Goods and Services: An Input -Output Approach. Resources for the Future Press.

Figure 7: Process Analysis vs I/O Calculation Variables

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3.2 Data Sources

3.2.1 Input Data

Defra requested that Department Public Sector Procurement Expenditure Survey (PSPES) data published by the OGC for the 2008/09 reporting year be used as the data source for this study. PSPES data captures total Department third-party expenditure and does not include inter-departmental expenditure (i.e. paying other Departments for services such as IT hosting) or staff remittances (which covers some business travel claimed back by employees). The scope and type of information included as part of PSPES is shown in Figure 8.

Figure 8: PSPES Boundaries and Categories of Information Reported8

PSPES was chosen by Defra as the sole data source for conducting this assessment, because it employs uniform categorisation and reporting systems. The outcome is therefore a set of comparable footprints based on a single set of accounting rules and guidelines. In accordance with IOA calculation methodology, raw PSPES expenditure for 2008/09 has been deflated to 2004 levels and adjusted by category to remove distributor margins and taxes before being applied to the relevant emission factor.

3.2.2 Emission Factors

Defra / DECC Greenhouse Gas Conversion Factors for Company Reporting 9 are used to calculate all Department emissions included in this report. Annex 13 – Indirect emissions from the supply chain contains UK I/O factors. Each factor is mapped to PSPES sectors based on the activities covered by the expenditure data (see Annex B). The supplied factors do not take account of „in use‟ emissions of natural gas and fuels and these have therefore been uplifted proportionally, based on Annex 1 of Defra / DECC Greenhouse Gas Conversion Factors for Company Reporting. Although process-based data has been captured for fuel and electricity consumption, the data boundaries between departments are different and a comparable pan-Departmental footprint necessitates consistent boundaries, factors and data sources.

8 Information obtained from the OGC. 9 Defra (2010) Guidelines to Defra / DECC‟s GHG Conversion Factors for Company Reporting, v. 1.1

(updated 06/08/2010). Available:

http://www.defra.gov.uk/environment/business/reporting/pdf/100805-guidelines-ghg-conversion-factors.xls



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The current I/O factors published by Defra are based on 2004 basic prices. In accordance with Defra guidance, these factors have been updated to take account of the 2008 consumer price index (CPI). The 2008 CPI is approximately 110% of the level it was during the development of the factors in 2004.

3.2.3 Accounting Principles

The approach and data review used within the analysis is based on the GHG Protocol Accounting Principles which underlie most existing, credible standards and guidelines (all extracts from The Greenhouse Gas Protocol: A Corporate Accounting and Reporting Standard: Revised Edition (2004):

Relevance - Contains the information that users, both internal and external, need for

their decision making. An important aspect of relevance is the selection of an appropriate boundary;

Completeness - All relevant emissions sources within the chosen inventory

boundary need to be accounted for, so that a comprehensive and meaningful inventory is compiled. In practice, a lack of data or the cost of gathering data may be a limiting factor;

Consistency - Users of GHG information will want to track and compare GHG

emissions information over time in order to identify trends and to assess performance;

Accuracy - Data should be sufficiently precise to enable intended users to make

decisions with reasonable assurance that the reported information is credible; Transparency - Transparency relates to the degree to which information on the

processes, procedures, assumptions, and limitations of the GHG inventory are disclosed in a clear, factual, neutral, and understandable manner.

The GHG Protocol defines three types of carbon emission categories associated with organisational impacts:

Scope 1 Direct emissions from sources that are owned or controlled by a Department. This includes emissions from boilers, fleet vehicles and other equipment owned or controlled by the Department.

Scope 2 Indirect (electricity) emissions from electricity use by the Department.

Scope 3 Indirect (other) emissions from remaining Government activities. This category is commonly viewed as an inclusive list that captures all emissions not categorised as Scope 1 or 2 that occur upstream (suppliers) or downstream (e.g. services, waste) from the Department. Procurement expenditure unrelated to direct fuel emissions or electricity is captured in Scope 3.

GHG Protocol Scope Allocation in Practice

A fleet vehicle is being considered for purchase by a Department. The vehicle in question is a hybrid-electric car that requires charging at night from mains electricity. When calculating the impact of the purchase on the Department’s carbon footprint the procurement team categorises the associated emissions into the GHG Protocol scope categories to consider the lifespan and life-cycle impacts of the purchase.

Scope 1: Petrol (litres) consumed Scope 2: Electricity from mains electricity consumed while charging Scope 3: Emissions associated with the production and delivery of the vehicle to the Department (upstream) and disposal at its end of life (downstream)

By separating the impacts into the GHG Protocol scopes the Department can understand and communicate the impacts that are within their control (Scope 1 and 2) versus what they can influence (Scope 3).

Box 1 GHG Protocol Scope Allocation

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Due to the limitations of IOA, the definitions provided in GHG Protocol cannot be applied due to necessary amalgamation of multiple scopes within the factors themselves. For instance, the electricity I/O factor includes electricity use (Scope 2) as well as raw material extraction, transportation, combustion and distribution (Scope 3). Therefore, the Defra I/O factor cannot be separated into the GHG Protocol emission categories. Section 5 – Application of Results provides further information regarding the boundaries, application and

recommended actions available.

3.3 Methodology Department footprints were calculated by applying Defra I/O emission factors to Department 2008/09 third-party expenditure. The process employed in the study is represented below:

Figure 9: Project Methodology

This section describes this process in greater detail and provides context for the analysis.

3.3.1 Footprint Calculation

Figure 10 describes the footprint calculation process; from the review of Department PSPES

data received from the OGC to the categorisation and analysis of the third-party expenditure to calculate the Department footprint.

Figure 10: Footprint Calculation Process

PSPES data is submitted to the OGC annually for review. The submitted data was then aggregated and categorised to I/O factors based on their most appropriate classification for the majority of expenditure (see Annex C).

3.3.2 Department Review

Footprint analyses produced in the first phase of the project highlighted a number of areas that required follow-up and assessment. Using the footprint as the basis for discussion, each Department was engaged directly to clarify impact targeting and to understand the limitations and use of PSPES classifications in assessing the carbon footprint of the Department. Each meeting aimed to:

PSPES Mapping

Footprint Analysis

Department Review

Defra Review

Report Revision

Publication

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Put the results in the context of Department sustainability priorities and focus;

Review the PSPES input data for completeness and consistency;

Identify whether more granular data exists;

Confirm reporting boundaries;

Compare economic impact and environmental impact;

Identify how current procurement strategies support sustainability.

Department engagement took place following the process described in Figure 11.

Figure 11: Department Review Process

Department reviews took place throughout August and the first week of September 2010. The purpose of these reviews was to conduct a face-to-face footprint and policy review with each Government Department to address data gaps, data availability, existing policies and general strategic approaches to sustainability. Prior to each meeting, draft Department footprints were transmitted with accompanying structured questionnaires providing a consistent methodology for each Department. Wherever possible, meetings were conducted with both sustainable operations and procurement teams. Within two days of each meeting, the Department‟s responses were sent back to the meeting attendees for review, comment and action (if applicable). Any issues that addressed data representation or allocation were reviewed with the BFF analyst team to determine if any reclassifications or adjustments were warranted. To maintain the consistency, transparency and reproducibility of the results, departmental specific data outside PSPES reporting was incorporated into the results. The outcomes of these meetings are documented in this report (see Section 4.2 and Annex A – Department Graphs).

3.3.3 SOGE Comparison

The Sustainable Operations on the Government Estate (SOGE) targets encompass the direct and indirect (energy) emissions associated with Government operations on owned estates. The carbon footprints associated with these targets are calculated using physical consumption data in a process-based method. This study is based on PSPES data, so covers a much broader area than SOGE. SOGE data has not been used directly in this study because it is not possible to reconcile the two reporting boundaries. A selection of the different items included in each method is shown in Table 3. Table 3 SOGE v PSPES boundaries (Transportation Example)

Activity Emissions Included in reporting?

SOGE PSPES

Executive Agencies Yes Yes

Non-Departmental Public Bodies No Yes Fleet vehicles Yes Yes

„Grey‟-fleet Yes No Hire vehicles Yes Yes

Air travel No Yes Rail travel No Yes

Vehicle procurement No Yes Booking agents No Yes

Draft FootprintStandardised

QuestionnaireFace-to-Face Interview Follow-up

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4 Results

4.1 High Level Results The graph below shows the comparative footprint across the eight Government Departments included in this analysis. As expected the Ministry of Defence has the largest expenditure of all the Departments reviewed and its footprint is correspondingly higher.

Figure 12 does not include emissions associated with MoD defence expenditure. The

category covering defence equipment and services is responsible for approximately 43% of the total MoD footprint and this equates to 8,366 ktCO2e; a sum larger than the seven other Department total emission footprints combined. Other major emission sources for the MoD are energy and utilities, fuels, vehicles and professional services. Due to the disproportionate footprint of the MoD compared to the other seven Departments, Figure 13 provides the same comparative graph excluding the MoD. In this context it is

easier to see the comparative differences between Departments.10 As shown below, the Department for Transport is the largest contributor to the remaining footprint of the seven departments. Construction, principally from building, operating and maintaining the transportation network, equates to 1,105 ktCO2e, and 48% of the total footprint of the Department for Transport. Construction in some Departments, such as DCLG, were a result of one-off projects, road building has been a regular occurrence. See Annex A for complete department footprints for each of the eight Departments

participating in the trial.

10

The Department of Health* footprint does not include emissions associated with the National Health Service and the DfE (formerly DCSF)** footprint does not include emissions associated with schools.

0

2,000

4,000

6,000

8,000

10,000

12,000

Ministry of Defence (excl

defence)




Department for Education (formerly DCSF)**


Government

ktC

O2e


Figure 12: Comparative Department Footprint excluding MoD defence

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For the seven Departments shown in Figure 13 the three largest emission sources are

Energy and Utilities, Construction and ICT. Although Energy and Utilities are the largest emissions source for four Departments, the significance of construction activities indicates that this is an area that should be considered when entering into PFI agreements or engaging in new building projects for all Departments. High level impact areas across all Departments are based on cumulative spend and impact; for specific Department impacts see Annex A.

The above footprints were calculated using the IOA model described in Section 3 - Methods and Approach. The relationship between inputs and outputs is provided overleaf in Figure 14. The left side of the figure indicates the percentage of expenditure spent in each emission category and the right side of the figure indicates the percentage contribution of the emissions category to the combined pan-departmental footprint. Visualising the analysis in this manner indicates the lack of correlation between expenditure and emissions. ICT, for example, represents 13% of the combined expenditure of the eight government departments but is just 4.5% of total emissions. Conversely, Energy and Utilities represents approximately 1.5% of total expenditure but accounts for 30.2% of total emissions. Across many Departments, energy represents the single emissions category in which the greatest carbon savings are possible for a small decrease in expenditure. This is due to the very high impacts associated with energy use. Although estate management targets within SOGE and SDiG focus on facility use reductions, these reductions can only take place if the energy demand, both from staff and products, is reduced through complementary programmes. Example: Emissions from ICT related energy consumption requires efficient equipment used for an appropriate period of time (product) and behavioural change to use equipment in an energy conscious manner.

0

500

1,000

1,500

2,000

2,500




Department for Education

(formerly DCSF)**


Government

ktC

O2e


Figure 13: Comparative Department Footprint excluding the MoD

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Figure 14: Proportional Expenditure (Input) to Proportional Emissions (Output) of Pan-Departmental Procurement

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4.2 Department Results Individual Department footprints are in Annex A - Department Graphs. The results of this

study were communicated in specific reports to each participating Department included in the study, to provide further detail on the various footprint components. If additional informational information has been supplied by the Department to explain any concerns encountered with the IOA-based footprint, this is presented next to the Department graph.

4.2.1 Explanatory Notes

Emission categories shown within Department reports do not necessarily correspond to activity footprints. Defra I/O factor boundaries extend to the point of purchase by a Department. This limitation is present to enable organisations to use activity data to increase the accuracy and relevance of associated emissions that occur during the use phase of their purchase. The emission categories relate to the „cradle to gate‟ impacts of procurement and not the full life-cycle. Example: Emissions associated with „vehicles‟ are those generated from raw material extraction, processing, manufacturing and delivery. In use emissions from fuel combustion are not associated with the „vehicles‟ footprint as these latter emissions are captured within fuel expenditure.

The footprints presented in the study represent a step forward in quantifying the relative emissions associated with Department procurement. The use of IOA for this trial study have shown that the application of expenditure-based footprints can help target the potential hot spots within a Department‟s total GHG footprint that may otherwise be hidden or difficult to obtain. As a starting point for further analysis, IOA is a useful tool; however, it is inappropriate for baseline measurement or category footprints. The data quality used within the study indicates that there are data categorisation and expenditure gaps between departments. Section 5 – Application of Results discusses the limitations of the study and provides a

further evaluation of the results in the context of this trial study.

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5 Application of Results

The study is reviewed against the following three broad categories to assess the limitations of the study:

Methodology

Data Quality

Reporting These categories are further explained below and Annex D provides a table of findings

related to each high level item related to the methodology and process.

5.1 Methodology Carbon footprint analyses can be done using either process-analysis or Input-Output Analysis (IOA) of activity data. The choice between these methodologies depends on the objectives and Figure 15 provides a decision-making tree describing the outcomes that are

provided through the use of each.

Figure 15: Methodology Selection

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IOA is a well researched and widely practised method of allocating the full life-cycle impacts of sectors to products. The methodology is relevant for establishing top level figures broken down by main sub-sector. It is useful for establishing strategy and informing policy, but it is less applicable for supporting more detailed operational work, such as setting baselines, establishing targets and monitoring performance. This is because the economic factor is the only variable and the costs of improved procurement practices that reduce a footprint could appear to increase a Department‟s emissions (e.g. recycled paper may cost more than virgin paper, but as the economic value is the only factor that enters the IOA calculation the resultant impact would be larger). Moreover, free services that may be provided to the Department, such as waste collection, will not be captured within an IOA study. As a methodology, IOA is inappropriate for measuring baselines or improvements for the following reasons:

1) The sole variable affecting the footprint is financial expenditure making process monitoring impossible. Example: IOA will not differentiate electricity usage between on-site renewable energy generation and standard grid electricity. If a Department pays more for their electricity then the IOA footprint would be higher regardless of the source despite the possibility that the increased costs could be due to renewable energy purchasing.

2) I/O factors are broad and are not able to account for low level product changes.

Example: The I/O factor for “Food and Drinks Products” includes prepared meat, fish, fruit, vegetables, etc. If a Department made a decision to source only vegetarian food, the carbon reductions could be significant, as livestock production accounts for approximately 18% of global greenhouse gases11. However, this switch from meat to vegetables would not be reflected in using Defra I/O factors due to the high level nature of the carbon factor.

The Defra I/O factors12 exclude „in use‟ allocation of emissions based on financial expenditure. Every Defra I/O conversion factor is presented in the context of providing the full life-cycle impact of a product or service up to the point it enters (i.e. cradle to gate) or leaves (i.e. end of life) a Department. The in-use period is not covered by Defra I/O factors as they recognise that process-based analysis is needed to capture these emissions. The primary categories that this impacts are electricity consumption and fuels. In these categories only Scope 3 emissions are captured for fuels and both Scope 2 and 3 emissions are combined for electricity. While this is a logical remedy to the limitations of IOA application, it may be confusing for practitioners when calculating a footprint. Defra 13 currently addresses this via a footnote attached to each relevant category, but this may not necessarily be sufficient for lay users. It is important that users of IOA understand the basis of assumptions and factors that underlie the top-level carbon figure so that correct interpretations are made. IOA facilitates identifying high-level areas for reductions, but cannot identify the specific processes below sector level. Thus it is not possible to establish specific reduction targets unless a sector is disaggregated using physical consumption data.

11

Steinfeld, H., et. al. (2006) Livestock ‟s long shadow: environmental issues and options. Food and Agriculture Organization of the United Nations. Available from: <http://ftp.fao.org/docrep/fao/010/A0701E/A0701E00.pdf> 12

Supra note 9 13

ibid.

http://ftp.fao.org/docrep/fao/010/A0701E/A0701E00.pdf

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5.1.1 Application

Using the analysis provided in this report, Departments can identify the strategic procurement areas that they should be targeting for activity measurement and broad strategy. Decisions related to specific targeting within Departments, or establishing reduction percentages, is possible, but it must be understood that the data needed to support measurement of progress against these targets cannot be provided through IOA.

5.1.2 Usefulness for operations and action planning

Through the IOA methodology used in this report, Departments can identify operational areas that require sustainability assessment and measurement. By using the outcomes of the study to target key suppliers in high impact sectors, Departments will be able to ensure that their time is prioritised in significant impact areas. The carbon footprint comparison to expenditure highlights the big differences in carbon intensity between categories, facilitating prioritisation of areas of higher intensity.

5.2 Data Quality

IOA requires accurate categorisation of expenditure data to produce a meaningful output. For the purposes of this study, PSPES data was used as the sole data source to enable uniform mapping across Departments.14

5.2.1 PSPES

PSPES reports are sent annually to the OGC by all Government Departments. Departments must classify all their expenditure into specified expenditure categories creating a uniform metric for comparison. All categories are broken down into data classification levels shown in Figure 16 and a complete list of PSPES categories is provided in Annex C.

14 PSPES data alone will not necessarily correct department variables as there are wide variances

between the costs that Departments source comparable products, as discussed in Green, P. (2010)

The Philip Green Review: key findings and recommendations. CAB 164-10, 11 October 2010. Available: http://download.cabinetoffice.gov.uk/efficiency/sirphilipgreenreview.pdf

Facilities

Building

Management

Food

Rent & Rates

Property

Management

Grounds

Maintenance

Beverages

Grocery

Meat

Temperature

Controlled

Level 1 Level 2 Level 3

Figure 16: PSPES Reporting Category Levels

Defence

Professional

Services

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The multi-level approach enables Departments to participate in a flexible reporting model, and the lower level data points can facilitate the appropriate mapping of expenditure into IOA categories (see Annex C).

Based on the Department engagement that took place during the course of this study, it appears that Departments have some reservations in using this data due to the limitations of the 2008/09 reporting year, and most Departments have only been able to produce reports to Level 2 (see Figure 16: PSPES Reporting Category Levels). In particular, 2008/09

expenditure data was prone to inaccurate categorisation due to the lack of external verification and internal expertise of accounting teams.15 In at least one Department, the entire PSPES categorisation was determined by classifying suppliers by type (e.g. construction firm), rather than actual procurement (e.g. design, build, materials), for expenditure classification. Example: Travel - Booking Services is defined for PSPES reporting as capturing expenditure related to fees associated with booking agents, not the travel arranged by the booking agent which would be reported separately in the relevant category. Department engagement has shown that for several Departments the data has not been broken down to this level and thus „Booking Services” expenditure includes the ticket costs for the mode of transport. The vast majority of booking agent services are used for air travel so the travel footprints may be significantly larger than currently shown. PSPES reporting and categorisation was not developed for use in IOA to determine carbon footprints. Although the system presents the benefit of providing uniform Department reporting, the 2008/09 data is not considered to be robust enough to reduce uncertainty. The data submitted is accurate enough to produce high level sector assessments of carbon impacts.

Table 4 Application of Carbon Calculation Tools

5.2.2 Other Sources

Alternative sources of expenditure and emissions were made available by Departments during the course of the assessment, often contrasting significantly with the IOA footprint.

15 In 2009/10 the OGC produced new detailed guidance on categorising PSPES data and revised

some of the mapping protocols to the UNSPSC coding structure.

Data Category Emissions Factor Justification

Master Category Defra Supply -Chain I/O Broad categorisation can show sectors with significant impact at a high level for strategic policy

consideration.

Category Limited Defra Supply-Chain I/O

Some categories may be correctly defined, but several assumptions may be necessary to ensure that the correct emissions factor is selected. The

Defra supply chain factors do not go to sufficient levels of detail to enable direct matching.

Sub-Category Process Analysis

I/O factors may be applied to broad product families, but the Defra supply chain factors do not

provide factors for this level of detail. For process analysis, Defra GHG factors are available for materials, fuels and other emissions.

Product comparison

Process Analysis

Product comparisons can only take place when

emissions are known for the two products. As IOA is based on industry level information, and consequently provided as cost-based figures, a

product level assessment is not possible without completing a process-based assessment.

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These sources included SOGE reports and internal measurements (e.g. travel). Although these data sources provided useful input into the process, and were considered accurate based on process measurements, the scope of the Department initiatives were necessarily more limited than the IOA approach and thus could not be included in this study. The absence of inter-departmental expenditure and staff reimbursements in the IOA footprint presents a gap that could be filled by the amalgamation of these specific data sets, but the inconsistency of collection and reporting of these figures across Departments would make it impossible to produce comparable footprints at a pan-governmental level. It is possible that Treasury data, rather than OGC data, could provide a fuller picture of departmental expenditure.

5.3 Reporting

The limitations in methodology and data quality described above restrict the ability of Departments to use IOA for ongoing reporting or targeting. Outcomes of the footprint analyses, at a strategic level, indicate key areas within each Department on which to focus future reporting and targeting, at a pan-departmental or internal Department level.

5.3.1 Communication

Communicating major impact areas within the Department, or amongst supply-chains, is possible by using this research as a qualitative informative document for setting strategic objectives. Specific footprint quantification (i.e. carbon footprint of travel is „x‟) is not possible because of the methodology and data quality concerns raised above. The focus of communications should be on sectors in the supply-chain and their associated impacts, as this is what IOA indicates; specific product impacts (e.g. laptop procurement) have not been measured because IOA cannot go to that level of detail.

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6 Additional Resources

For additional resources on the following topics, please see the recommended references below. Input Output

Defra (2010) Annex 13 Indirect Emissions from the Supply Chain in “2010 Guidelines for Company Reporting” http://www.defra.gov.uk/environment/business/reporting/pdf/101006-guidelines-ghg-conversion-factors.pdf Stockholm Environment Institute has a selection of publications on IOA on their website http://www.york.ac.uk/sei/publications/ Carnegie Mellon (2010) “A Primer on LCA” http://www.eiolca.net/Method/LCA_Primer.html Hendrickson, C. T., Lave, L. B., Matthews, H. S. (2006). Environmental Life Cycle Assessment of Goods and Services: An Input-Output Approach. Resources for the Future Press PSPES Data

OGC Efficiency and Reform Group (2010) “Public Spending” http://www.ogc.gov.uk/procurement_public_spending.asp Adjustment for Basic Prices

Office for National Statistics (2010) “Latest IO tables Detailed Data” http://www.statistics.gov.uk/about/methodology_by_theme/inputoutput/latestdata.asp Departmental SOGE Targets

OGC (2010) “Government Delivery” http://www.ogc.gov.uk/sustainability_programme_progress.asp#data OGC (2009) “Sustainable Procurement and Operations on the Government Estate Government Delivery Plan Update December 2009” http://www.ogc.gov.uk/documents/Delivery_plan_Dec09(1).pdf

SDC (2010) “Sustainable Operations on the Government Estate (SOGE) Assessment 2009” http://www.sd-commission.org.uk/soge2009 Departmental Environmental Actions

Defra (2010) “Sustainable Development” http://sd.defra.gov.uk/government/ NHS Sustainable Development Unit/(2010) “P4CR “Procuring for Carbon Reduction” http://www.sdu.nhs.uk/page.php?page_id=159 MOD (2009) “Climate Change Strategy 2009” http://www.mod.uk/NR/rdonlyres/73ED201B-CC03-41B4-8936-6BED49469D6E/0/ClimateChangeStrategy2009.pdf Standards

WRI and WBCSD (2004) The Greenhouse Gas Protocol - A Corporate Accounting and Reporting Standard. March 2004 http://www.ghgprotocol.org/standards/corporate-standard.

http://www.defra.gov.uk/environment/business/reporting/pdf/101006-guidelines-ghg-conversion-factors.pdf

http://www.defra.gov.uk/environment/business/reporting/pdf/101006-guidelines-ghg-conversion-factors.pdf

http://www.york.ac.uk/sei/publications/

http://www.eiolca.net/Method/LCA_Primer.html

http://www.ogc.gov.uk/procurement_public_spending.asp

http://www.statistics.gov.uk/about/methodology_by_theme/inputoutput/latestdata.asp

http://www.ogc.gov.uk/sustainability_programme_progress.asp#data

http://www.ogc.gov.uk/documents/Delivery_plan_Dec09(1).pdf

http://www.sd-commission.org.uk/soge2009

http://sd.defra.gov.uk/government/

http://www.sdu.nhs.uk/page.php?page_id=159

http://www.mod.uk/NR/rdonlyres/73ED201B-CC03-41B4-8936-6BED49469D6E/0/ClimateChangeStrategy2009.pdf

http://www.mod.uk/NR/rdonlyres/73ED201B-CC03-41B4-8936-6BED49469D6E/0/ClimateChangeStrategy2009.pdf

http://www.ghgprotocol.org/standards/corporate-standard

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Annex A: Department Graphs

Department Footprint 2008/09 Footprint Notes

The DCLG footprint includes the activity emissions associated with the following Executive Agencies and NDPBs:

Audit Commission

Communities and Local Government “Core” Fire Service College

Firebuy

Government Offices

Homes and Community Agency

Independent Housing Ombudsman

LEASE (The Lease Advisory Service) London Thames Gateway

Ordinance Survey

Planning Inspectorate

Queen Elizabeth II Conference Centre

Standards Bard for England

Tenant Services Authority

Thurrock Thames Gateway Valuation Tribunal Service

West Northamptonshire

Construction emissions are related to one-off construction of the new Department headquarters building.

Construction17%

Energy & Utilities28%

Facilities6%

Fuels Lubricants & Gases4%

ICT12%

Marketing & Media3%

Office Solutions2%

Operational Goods1%

Professional Services Consultancy

11%


5%

Professional Services Temporary Staff

3%

Travel3%

Vehicles4%

Total DCLG: 244.3 ktCO2e

Department for Communities and Local Government (DCLG)

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The Defra/DECC footprint includes the activity emissions associated with the following Executive Agencies and NDPBs:

Animal Health;

Centre for Environment, Fisheries and Aquaculture Science;

Civil Nuclear Constabulary; Coal Authority;

Defra “Core”;

Environment Agency;

Food and Environment Research Agency;

Government Decontamination Service;

Joint Nature Conservation Committee;

Marine and Fisheries Agency; Natural England;

Nuclear Decommissioning Authority;

Rural Payments Agency;

Veterinary Laboratories;

Veterinary Medicines Directorate.

Department construction is principally (21%) related to Environment Agency expenditure on flood defences.

Clinical & Medical1%

Construction21%


Engineering Goods1%

Facilities3%

Fuels Lubricants & Gases

7%

ICT9%Marketing & Media

1%

Office Solutions2%

Operational Goods1%

Personnel Related1%


3%

Professional Services Other11%


4%

Travel3%

Vehicles2%

Waste Management1%

Defra / DECC: 691.0 ktCO2e

Defra

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The Department for Education (formerly DCSF) footprint includes the activity emissions associated with the following Executive Agencies and NDPBs:

Becta

Children and Family Court Advisory Support Service

DCSF “Core”

National College for School Leadership Schools Foods Trust

Partnership for Schools

Training and Development Agency

Data clarifications:

The 2008/09 DCSF PSPES return was completed by the use of a third party. This organisation classified all expenditure into PSPES categories by researching the core function of the supplier‟s organisation. Actual services were not categorised within the report.

£100 million of expenditure classified as “Learning & Development” in the 2008/09 PSPES return related to grants provided to other organisations. This expenditure accounts for 25% of total expenditure in this category.

IT systems for finance and pensions are provided by the DWP and are not present in this report.

£5.3 million of „Travel - Booking Services‟ expenditure was incorrectly classified by the agent.

Construction1%


Facilities3%

ICT9%

Marketing & Media5%

Office Solutions2%

Operational Goods2%

Personnel Related1%


13%

Professional Services Other39%


4%

Social Care0.4% Travel

4%

Waste Management0.4%

Total DfE (formerly DCSF): 184.2 ktO2e

Department for Education (formerly Department for Children, Schools and Families)

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The Department for Transport and the Highways Agency have been working to reduce their emissions over the past few years through a variety of programmes. These have included being part of the road testing of the World Resource Institute/World Business Council for Sustainable Development Scope 3 Protocol and the identification and targetting of significant hot spots in their complete emissions inventory. Data clarifications:

Approximately 90-95% of construction impacts are due to building, operating and maintaining the transportation network.

The rail sector is only partially quantified in this footprint due to the unique expenditure and ownership structure due to part privatisation.

Rail franchises are not included.

Mapping documentation for internal systems and PSPES categories was not available.

Construction48%


Facilities1%


2%ICT5%

Office Solutions1%


Consultancy

1%Professional

Services Other2%

Social Care1%Travel

0.4%

Department for Transport : 1,486 ktCO2e

Department for Transport (DfT)

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Departmental ICT expenditure was abnormally high in 2007-08 due to activity on the NHS facing Connecting for Health programme. Expenditure in 2008-09 was £1.6 billion with further reduction in this figure evident in 2009-10;

Outsourced staffing is believed to contribute much less to the Department footprint than that encompassed within the IOA due to unique consultant relationships with the Department (i.e. specialists working within the Department for extended periods of time) meaning that these individuals will have a carbon impact much closer to that of a member of staff;

2008/09 PSPES report does not contain expenditure from the Department‟s executive agencies or arms length bodies.

Clinical & Medical5%

Construction5%


Facilities1%

ICT42%

Marketing & Media

4%

Office Solutions2%


Consultancy

12%


2%


Temporary Staff

12%

Travel2%

Department of Health: 173.9 ktCO2e

Department of Health (DH)

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Waste and recycling activities are not included separately in PSPES because they are services provided as part of facilities management contracts.

Vehicle hire, taxis and PFI expenditure were not categorised correctly in the 2008/09 PSPES report.

Staff travel is not captured by PSPES and represents an additional 4.3 ktCO2e, or less than 0.5% of the total footprint.

Booking services includes ticket costs, as well as the booking fee, and additional travel emissions are therefore hidden.

The 2008/09 PSPES report classified approximately £331 million as Construction – Main Contractors. The Department did not engage in any construction activities in 2008/09. As the expenditure relates to PFI facility management, the expenditure has been mapped to Facilities – Building Management for this study.

Defence and Social Care emissions are associated with Borders Agency activities during the 2008/09 period. The Borders Agency is now part of the Home Office.

Defence1%


Facilities19%


3%

ICT20%

Office Solutions5%


Consultancy

1%


2% Social Care2%

Travel5% Waste Management

1%

HM Revenue and Customs: 935.4 ktCO2e

HM Revenue and Customs (HMRC)

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Department expenditure includes NOMS Probation spend that is made by the Home Office on behalf of the Ministry of Justice.

UKBA Detention and Asylum are included within Department expenditure.

Significant services (e.g. facilities management, ICT) are provided by the Home Office to other Departments (e.g. Ministry of Justice). The emissions associated with these activities have been included in the Home Office footprint.

Construction4% Defence

1%

Energy & Utilities

26%

Facilities5%

ICT17%

Marketing & Media

1%

Office Solutions4%


Consultancy

2%


4%


Temporary Staff

3%

Social Care26%

Travel6%

Vehicles1%

Waste Management

0.5%

Home Office: 973.5 ktCO2e

Home Office

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The MoD footprint includes all third-party expenditure including spend related to:

Defence procurement (e.g. vessels, munitions);

Global operations. Data Clarifications:

The MoD have thoroughly reviewed the expenditure data and analysis presented in this study;

Any data queries have been discussed and resolved;

Construction2%

Defence43%


Engineering Goods

2%

Facilities2%


6%

ICT3%

Logistics1%

Operational Goods

1%


4%

Travel1%

Vehicles6%

Waste Management

1%

Ministry of Defence: 19,503 ktCO2e

Ministry of Defence (MoD)

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Annex B: PSPES Category Descriptions 2009/1016

Master Category (Level 1)

Category (Level 2)

Description Sub-Category (Level 3)


Business Process Outsourcing Services

Should include all costs related to Business Process Outsourcing (BPO) Services that cannot be categorised under a category specific BPO classification. Customer Contact, Procurement and associated Back Office services should be recorded against this category. If the contract involves working in a 'business-as-usual' function which has been outsourced then the spend should also be recorded in this category.

Customer Contact BPO Procurement BPO


Environmental Services

Should include all costs related to services within the environment. Materials should be recorded separately in the appropriate category where it is possible to identify them, however if the contract includes goods and services then record the entire spend against this category. If the service is providing advice then the spend should be recorded as consultancy.

Conservation & Efficiency

Environmental Monitoring Services

Funerals Land Management Landscaping Pest Control Traffic Management Veterinary Services


Interpretation & Translation Services

Should include all costs related to interpretation and translation services, both written and verbal. The production of communications should be recorded separately where it is possible to identify this. If the contract includes the production of written communications and translation then record the entire spend against printing.

Interpretation Translation


Operational Services

Should include all costs related to operations that are not detailed as a separate category and are provided externally as a complete service such as library services, market research and recruitment services but not as an outsourced function. The recorded spend should not include any materials. If the contract involves advice to internal staff then the spend should be reported as consultancy.

Library Services Market Research Recruitment Trade Services Writing Services Research


Clinical Support Services

Should include all spend on services used in diagnosis, treatment and rehabilitation, including medical practice provided through a third-party, repair and maintenance of equipment and research and medical science services.

Alternative & Holistic Medicine

Disease prevention & Control

Medical Equipment Repair & Maintenance

Pharmacy Storage and Distribution

Medical Science Research & Experimentation


Legal Services

Should include all costs related to legal services that are provided externally as a complete service. If the contract involves advice to internal staff then the spend should be reported as consultancy.

Business Law Civil Law Criminal Law

16 Table provided by the OGC.

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Category (Level 2)



Interim Managers

Should include all costs related to Interim Managers. Interim Managers are normally mid to senior grade roles working in an organisation concerned with the fulfilment of a particular professional function or senior management position within the organisational structure (covering Business as Usual activities or providing cover for a role) and ideally engaged on a short term basis. If the contract includes advisory services only, then the entire spend should be recorded as consultancy. If the contract includes a mixture of advisory and temporary management, and the different values can not be identified then the entire spend should be recorded in this category.

Professional Interim Staff

Senior Interim Managers


Temporary Workers

Should include all costs related to temporary workers within the department other than Interim Managers and Specialist Contractors. These are normally lower grade individuals who are filling in for a role within the organisational structure and ideally on a short term basis, typically a maximum of 3-9 months.

Administration Clerical Manual Education including

supply teachers Social Care


Specialist Contractors

Should include all costs related to temporary specialist contractors who are providing expertise that is not available in-house and who are working within the department. Specialist contractors and interim professionals are concerned with the fulfilment of a particular functional or senior management positions within the organisational structure and should ideally be contracted on a short term basis typically 3-9 months. If the contract includes advisory services only then the entire spend should be recorded as consultancy. If the contract includes a mixture of advisory and temporary specialist contractors, and the different values can not be identified then the entire spend should be recorded in this category.

Finance HR IT Legal Logistics Marketing Medical PPM Procurement Estates Technical Research – temp staff


Finance Consultancy

Should include all costs related to advisory services within Finance relating to corporate financing structures, accountancy, control mechanisms and systems. This includes both strategic and operational finance. If the contract includes both advisory and operations and the separate elements can not be identified (though good procurement practice would separate the elements) then the entire spend should be recorded against the dominant component or intent i.e. consultancy (provision of advice only), temporary staff (filling a skills or manpower gap which would normally be carried out in-house), or professional services financial services (providing an operational service which is not pure advice nor normally carried out in-house).

Accounting Financial Management Insurance, Investment &

Pensions


IT/IS Consultancy

Should include all costs related to advisory services within IT relating to systems and concepts, including strategic studies and development of specific projects. Defining information needs computer feasibility studies and making computer hardware evaluations and including consultancy related to e-business. If the contract includes mixtures of advisory, operational and implementation activity and the separate elements can not be identified (though good procurement practice would separate the elements) then the entire spend should be recorded against the dominant component or intent i.e. consultancy, temporary staff, or systems development.

Design & Planning Hardware Assessment

& Selection IT Management Software

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Category (Level 2)



Strategy Consultancy

Should include all costs related to advisory services within Strategy including the provision of objective advice and assistance relating to corporate strategies, appraising business structures, value for money reviews, business performance measurement, management services, product design and process and production management. If the contract includes both advisory and operations and the separate elements can not be identified (though good procurement practice would separate the elements) then the entire spend should be recorded against the dominant component or intent i.e. consultancy (provision of advice only), temporary staff (filling a skills or manpower gap which would normally be carried out in-house), or professional services financial services (providing an operational service which is not pure advice nor normally carried out in-house).

Analysis Planning


Legal Consultancy

Should include all costs related to advisory services within Legal including the provision of external specialist legal advice and opinion in connection with the policy formation and strategy development particularly on commercial and contractual matters. If the contract includes both advisory and operations and the separate elements can not be identified then the entire spend should be recorded against temporary staff or professional services other – legal services.

Business Law Civil Law Criminal Law


Property & Construction Consultancy

Should include all costs related to advisory services within Property Service & Estates including the provision of specialist advice relating to portfolio management, design, planning and construction, tenure, holding and disposal strategies. If the contract includes both advisory and operations and the separate elements can not be identified (though good procurement practice would separate the elements) then the entire spend should be recorded against the dominant component or intent i.e. consultancy (provision of advice only), temporary staff (filling a skills or manpower gap which would normally be carried out in-house), or professional services financial services (providing an operational service which is not pure advice nor normally carried out in-house).

Highways Construction Specialist

Advisors Property


Human Resource, Training & Education Consultancy

Should include all costs related to advisory services within HR including the provision of advice and assistance in the formulation of recruitment, retention, manpower planning and HR strategies, and advice and assistance relating to the development of training and education strategies. If the contract includes both advisory and operations and the separate elements can not be identified (though good procurement practice would separate the elements) then the entire spend should be recorded against the dominant component or intent i.e. consultancy (provision of advice only), temporary staff (filling a skills or manpower gap which would normally be carried out in-house), or professional services financial services (providing an operational service which is not pure advice nor normally carried out in-house).

HR Consultancy Training Education

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Category (Level 2)



Technical Consultancy

Should include all costs related to advisory services within Technical including the provision of technical studies, prototyping and technical demonstrators, concept development and in-service support activities for technical projects and engineering support including post design services. If the contract includes both advisory and operations and the separate elements can not be identified (though good procurement practice would separate the elements) then the entire spend should be recorded against the dominant component or intent i.e. consultancy (provision of advice only), temporary staff (filling a skills or manpower gap which would normally be carried out in-house), or professional services financial services (providing an operational service which is not pure advice nor normally carried out in-house).

Design Efficiency Technical Management


Marketing & Communications Consultancy

Should include all costs related to advisory services within Marketing including the provision of objective advice, assistance and support in the development of publicising and the promotion of the Departments Business Support programmes, including advice on design, programme branding, media handling and advertising. If the contract includes both advisory and operations and the separate elements can not be identified (though good procurement practice would separate the elements) then the entire spend should be recorded against the dominant component or intent i.e. consultancy (provision of advice only), temporary staff (filling a skills or manpower gap which would normally be carried out in-house), or professional services financial services (providing an operational service which is not pure advice nor normally carried out in-house).

Marketing & Comms Consultancy – Development

Marketing & Comms Consultancy – Research


Organisation & Change Management Consultancy

Should include all costs related to advisory services within Organisation Development including the provision of management advice and assistance relating it the strategy, structure management and operations of an organisation in pursuit of its purposes and objectives. Long range planning, re-organisation of structure, rationalisation of services and general business appraisal of organisations should also be included. If the contract includes both advisory and operations and the separate elements can not be identified (though good procurement practice would separate the elements) then the entire spend should be recorded against the dominant component or intent i.e. consultancy (provision of advice only), temporary staff (filling a skills or manpower gap which would normally be carried out in-house), or professional services financial services (providing an operational service which is not pure advice nor normally carried out in-house).

Business Organisation Strategic Change


Procurement Consultancy

Should include all costs related to advisory services within Procurement including advice and assistance in establishing procurement strategies. If the contract includes both advisory and operations and the separate elements can not be identified (though good procurement practice would separate the elements) then the entire spend should be recorded against the dominant component or intent i.e. consultancy (provision of advice only), temporary staff (filling a skills or manpower gap which would normally be carried out in-house), or professional services financial services (providing an operational service which is not pure advice nor normally carried out in-house).

Procurement Strategy Procurement

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Category (Level 2)



PPM Consultancy

Should include all costs related to advisory services within Programme and Project Management including the advice relating to ongoing programmes and one-off projects. Support in assessing, managing and / or mitigating the potential risks involved in a specific initiative and work to ensure expected benefits of a project are realised should also be included. PPM can be viewed as providing client-side assistance or be part of supply side delivery. If the former, it should be coded as consultancy. If the latter, it should be considered as part of an operational or implementation service or delivery. The test is usually to whom the project/programme manager reports.

Project Management Programme

Management

Professional Services Technical Services

Commercial Services

Should include all spend related to Technical Commercial Services such as financial/economic analysis of commercial technical services. Materials should be recorded separately in the appropriate category where it is possible to identify them, however if the contract includes goods and services then record the entire spend against this category. If the service is providing advice then the spend should be recorded as consultancy.

Transit Analysis Transport Economics

Analysis Transport Planning


Engineering Services

Should include all costs related to Technical Engineering Services, such as civil engineering and chemical engineering. Materials should be recorded separately in the appropriate Engineering Goods category where it is possible to identify them, however if the contract includes goods and services then record the entire spend against this category. If the service is providing advice then the spend should be recorded as consultancy.

Chemical Engineering Civil Engineering Electrical Engineering Mechanical Engineering Transportation

Engineering Coastal & Rivers

Engineering


Forensic & Laboratory Services

Should include all spend related to Forensic and Laboratory Services, including laboratory testing and laboratory equipment and furniture. Materials should be recorded separately in the appropriate category where it is possible to identify them, however if the contract includes goods and services then record the entire spend against this category. If the service is providing advice then the spend should be recorded as consultancy.

Forensic Services Laboratory Testing

Services


Industrial Services

Should include all costs related to Industrial Services, such as Biochemical & Biotechnology Production, Extraction Services and Petrochemical & Plastic Production. Materials should be recorded separately in the appropriate category where it is possible to identify them, however if the contract includes goods and services then record the entire spend against this category. If the service is providing advice then the spend should be recorded as consultancy.

Biochemical & Biotechnology Production

Chemical & Fertilizer Production

Extraction Services Manufacture of

Electrical Goods Oilfield Services Petrochemical & Plastic

Production


Marine, Coastal & Inland Waterways Services

Should include all spend related to Marine Services, including marine support and diving services. Materials should be recorded separately in the appropriate category where it is possible to identify them, however if the contract includes goods and services then record the entire spend against this category. If the service is providing advice then the spend should be recorded as consultancy.

Marine Support Services

Diving Services


Preservation Services

Should include all spend related to Preservation Services and conservation strategy planning services. Materials should be recorded separately in the appropriate category where it is possible to identify them, however if the contract includes goods and services then record the entire spend against this category. If the service is providing advice then the spend should be recorded as consultancy.

Preservation of Exhibits Preservation of

Specimens Preservation of

Historical Sites & Buildings

Conservation Strategy Planning Services

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Category (Level 2)


Professional Services Learning & Development

Staff Training & Development

Should include all costs related to Staff Training and Development including outsourced services. If the contract involves working in a 'business-as-usual' function which has been outsourced then the spend should be recorded in this category.

Training Needs Analysis Training Administration Training Management Training Delivery


Adult Education Services

Should include all costs other than consultancy related to Adult Education Services made available to the public, including personal training development services and the operation of an adult education centre Materials should be recorded separately in the appropriate category where it is possible to identify them, however if the contract includes goods and services then record the entire spend against this category. If the service is providing advice then the spend should be recorded as consultancy.

Computer Training Language Training Driver Training Operation of Adult

Education Centre


Careers Development Services

Should include all spend other than consultancy related to Career Development Services made available to the public. This category should include vocational training services such as electronics, scientific, medical, industrial and engineering vocational training. Materials should be recorded separately in the appropriate category where it is possible to identify them, however if the contract includes goods and services then record the entire spend against this category. If the service is providing advice then the spend should be recorded as consultancy. Staff career development services should be recorded under Staff Training & Development.

Vocational Training Services for Adults

Electronics Vocational Training

Medical Vocational Training

Engineering Vocational Training


Child Education Services

Should include all costs other than consultancy related to Child Education Services, including pre-school, primary, secondary and further education. Materials should be recorded separately in the appropriate category where it is possible to identify them, however if the contract includes goods and services then record the entire spend against this category. If the service is providing advice then the spend should be recorded as consultancy.

Primary Education Services

Pre-School Education Services

Technical Secondary & Further Education Services

Vocational Secondary & Further Education Services


Special Needs Education Services

Should include all spend other than consultancy related to Special Needs Education Centres including the operation of special needs education centre. Materials should be recorded separately in the appropriate category where it is possible to identify them, however if the contract includes goods and services then record the entire spend against this category. If the service is providing advice then the spend should be recorded as consultancy.

Operation of Special Needs Education Centre

Education Services for Special Needs

Professional Services Financial Services

Finance Business Process Outsourcing

Should include all costs related to outsourced Payroll, Finance and Accounting Outsourcing (BPO) Services. If the contract involves working in a 'business-as-usual' function which has been outsourced then the spend should be recorded in this category.

Outsourced Payroll Accounts Payable Accounts Receivable Accounts Reconciliation Financial &

Management Accounting


Accountancy Services

Should include all costs related to the provision of Accountancy Services. If the costs relate to a contract to provide a 'business-as-usual' function which has been outsourced then the spend should be recorded in the relevant Finance Business Process Outsourcing (BPO) category.

Accounting Services Book Keeping Services Payroll Services Payment & Billing

Services


Audit Services

Should include all costs related to the provision of Financial Audit Services. If the costs relate to a contract to provide a 'business-as-usual' function which has been outsourced then the spend should be recorded in the relevant Business Process Outsourcing (BPO) category.

Internal Audit Services Fraud Audit Services Year End Audit Services

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Category (Level 2)



Banking & Investment Services

Should include all costs related to banking services and management and administration of investments. If the costs relate to a contract to provide a 'business-as-usual' function which has been outsourced then the spend should be recorded in the relevant Business Process Outsourcing (BPO) category.

Commercial Banking Services

Portfolio Management Services

Financial Markets Administration

Foreign Exchange Services

Commodity Brokerage Services


Corporate Finance Services

Should include all spend related to Corporate Finance Services including Investor Relationship Services and Budget Preparation & Review Services. If the costs relate to a contract to provide a 'business-as-usual' function which has been outsourced then the spend should be recorded in the relevant Business Process Outsourcing (BPO) category.

Budget Preparation or Review Services

Investor Relationship Services

Treasury Services


Credit Services

Should include all costs related to Credit Services including loan brokerage and fund transfer services. If the costs relate to a contract to provide a 'business-as-usual' function which has been outsourced then the spend should be recorded in the relevant Business Process Outsourcing (BPO) category.

Credit Agency Services Credit Granting Fund Transfer Services Loan Brokerage

Services


Debt Recovery Services

Should include all costs related to Debt Recovery Services such as debt collection and debt re-organisation services. If the costs relate to a contract to provide a 'business -as-usual' function which has been outsourced then the spend should be recorded in the relevant Business Process Outsourcing (BPO) category.

Bailiff Services Debt Collection Debt Management Debt Re-organisation Repossession Services


Insurance Services

Should include all spend related to Insurance Services including brokerage and provision of the service. Direct costs relating to vehicle insurance cover and buildings insurance cover should be recorded under the Fleet Management and Building Management categories respectively. If the costs relate to a contract to provide a 'business-as-usual' function which has been outsourced then the spend should be recorded in the relevant Business Process Outsourcing (BPO) category.

Insurance Brokerage Services

Indemnity Insurance Liability Insurance Re-insurance


Pension Services

Should include all spend related to the administration and management of Pension Services. If the costs relate to a contract to provide a 'business-as-usual' function which has been outsourced then the spend should be recorded in the relevant Business Process Outsourcing (BPO) category.

Pension Fund Management

Pension Administration Services

Personnel Related

Staff Health & Safety

Should include all spend related to staff health and safety including goods and services, but not including fire extinguishers which should be recorded as Emergency Services within Social Care.

Prevention Products Training

Personnel Related

Staff Relocation Should include all spend related to staff relocation including goods and services.

Relocation Services Removal

Personnel Related

Staff Subscriptions Should include all spend related to staff subscriptions including publications and organisation subscription charges.

Subscriptions Environmental Org

Subs Human Rights Org Subs Professional Org Subs Religious Org Subs Social Org Subs Unions

Personnel Related

Staff Childcare Should include all spend related to childcare services provided for staff.

Personnel Related

Staff Medical Care Should include all spend related to healthcare provision for staff.

Counselling Eyesight Healthcare Voice care

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Category (Level 2)


Personnel Related

HR Business Process Outsourcing

Should include all costs related to HR Outsourcing (BPO) Services. If the contract involves working in a 'business-as-usual' function which has been outsourced then the spend should be recorded in this category.

Recruitment Personnel development Staff administration Benefits Administration

Personnel Related

Events Admissions Should include all spend related to admission charges for conferences and events.

Social Care Adult Social Care

Should include all spend related to social care for adults including community and environment development and support services as well as personal social care, but excluding welfare to work services that should be recorded separately in the welfare to work category

Community Environment

Development Personal

Social Care Child Social Care Should include all spend related to social care for children including foster and adoption services as well as personal social care.

Daycare Foster / Adoption

Services Special Needs Care Welfare Services

Social Care Transport Provision

Should include all spend related to service costs of transportation of staff or clients such as shuttle buses and transportation of prisoners and patients. If the transportation of staff is using public transport then the costs should be recorded as business travel.

Passenger Patient Prisoners and detainees School Overseas

Transportation Special Needs

Social Care Emergency Services

Should include all spend related to the provision of emergency services and related goods and services.

Ambulance Diplomatic Services Disaster Planning Emergency & Security

Equipment Fire Investigation Public Order Rescue

Social Care Welfare to Work Should include all spend related to the provision of welfare to work services.

Social Care Educational Programmes

Should include all spend related to the provision of educational programmes.

Social Care Community Entertainment Services

Should include all spend related to the provision of entertainment services for the community i.e. the elderly, people with special needs and children.

Art / Culture Leisure Performers

Social Care Legal Aid Should include all spend related to the provision of Legal Aid.

Marketing & Media

Advertising

Should include all spend related to the provision of advertising. The production of materials should be recorded separately where it is possible to identify this, however if the contract includes the goods and service then record the entire spend against this category.

Advertising Services Distribution Sponsorship

Marketing & Media

Marketing

Should include all spend related to the provision of marketing. The production of materials should be recorded separately where it is possible to identify this, however if the contract includes goods and services then record the entire spend against this category.

Customer Services Marketing Services

Marketing & Media

Promotion

Should include all spend on goods and services related to promotion. Where spend can be identified as printed promotional material, this should be recorded separately under Office Solutions – Print.

Promotional Goods Public Relations

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Category (Level 2)


Marketing & Media

Communication Services

Should included all spend related to mass communication services, such as television and radio broadcasts and internet. Materials and content generation should be recorded separately in the relevant category where it is possible to identify this. However if the contract includes goods and services then the entire spend should be recorded against this category. If the services is providing advice then the spend should be recorded as consultancy.

TV Services Radio Services Internet Services

Facilities Accommodation Services

Should include all spend related to the provision of accommodation for clients and staff.

Facilities Building Management

Should include all spend related to the provision and management of facilities including building insurance and taxes including parking costs. If the provision of additional services such as consumables, telephone call charges, secretarial services, and food and beverages can not be identified separately then record the entire spend in this category, but please include a note to the survey return indicating what the facilities contract spend includes.

Property Management Rent & Rates Grounds Maintenance

Facilities Office Furniture

Should include all spend related to the provision of office furniture and fixtures and fittings such as lighting, curtains and carpets for use within office, sales, production, storage, reception, workstation, meeting, training, boardroom, classroom and waiting room areas, but should not include spend on office machines or equipment.

Fixtures & Fittings Floor Coverings Furniture Medical Furniture Relamping

Facilities Security Should include all spend related to securing premises including all related goods and services.

Identification Documents

CCTV Maintenance and Equipment

Key Holding Service Locks and Lockers Facilities Security

Equipment Facilities Security

Services

Facilities Cleaning

Should include all spend related to cleaning goods and services. This should cover the cleaning costs of internal and external areas with both regular cleaning and specialist cleaning services such as acoustic ceilings and lighting, IT equipment, deep cleaning of carpets etc. The repair or replacement of defective parts should not be included.

Cleaning Products External Cleaning Internal Cleaning Window Cleaning

Facilities Catering

Should include all spend related to catering including goods and services, such as food preparation and service, catering equipment and vending services, but not the food. If the food element of spend can not be identified separately then the entire spend should be recorded in this category.

Catering Consumables Catering Equipment Catering Services Vending Outsourced Catering

Services

Facilities Food

Should include all spend related to food. This includes raw ingredients or complete meals. It will also include the provision of drinks. If the food has been provided as a meal and the food element can not be identified separately then record the entire spend in the catering category.

Beverages Grocery Meat Temperature Controlled

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Category (Level 2)


Clinical & Medical

Drugs & Biologicals Should include all spend related to pharmaceutical products used in the treatment of diseases.

Anaesthesia Anti Infective drugs Cardiovascular system

drugs Dialysis products Endocrine System

drugs Immunological products

and vaccines Malignant Disease

Immunosuppressive drugs

Medical Gases Nervous System and

Sensory Organs Nutrition and Blood

Drugs Radio Pharmaceuticals X-Ray Contrast Media

Clinical & Medical

Medical & Surgical Equipment

Should include spend related to medical equipment used in treatment or rehabilitation.

Dentistry Equipment Examination Equipment Medical Equipment Pharmacy Equipment Renal Equipment Surgical Equipment

Clinical & Medical

Patients Appliances Should include spend on goods used for corrective treatment and rehabilitation is the support or correction of human function.

Artificial Limbs Audiology Continence products Contraceptive Devices Optical Appliances Orthodontic Appliances Orthotics Patients Aids Rehabilitation and

support equipment Wigs

Clinical & Medical

Radiological & Diagnostic

Should include spend related to the diagnosis of conditions and diseases excluding equipment and consumables.

Clinical & Medical

Pathology Should include spend related to pathology and laboratory work and research.

Chemicals & Reagents Laboratory & Scientific

Consumables Laboratory & Scientific

Equipment Post-mortem Equipment

and supplies

Clinical & Medical

Medical & Surgical Consumables

Should include all spend on goods used in treatment and rehabilitation including first aid kits but excluding pharmaceutical goods.

Dental Consumables Dressings Examination

Consumables Optical Consumables Pharmacy

Consumables Radioactive

Consumables Renal Consumables Surgical Consumables First Aid Kits

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Category (Level 2)


Office Solutions

Print

Should include spend on all printed material including secure print, promotional print, documentation and leaflets etc. Which would also include spend on paper for Print/Reprographics rooms.

Printed Products Printer Paper Printing Services Pre and post press Marketing / promotional

print (leaflets, brochures etc)

Secure print (cheques, billings etc)

General office print (reports, annual accounts etc)

Direct Mail including personalisation and associated mailing and storage costs

Forms and continuous stationery

Office Solutions

Reprographics Should include all spend related to reprographics goods and services, excluding photocopiers, multi-functional devices and printers.

Repro Equipment Repro Service

Office Solutions

Office Supplies

Should include spend on all office supplies and consumables, excluding ICT consumables such as storage media, cut office paper for use in MFD/MFPs, photocopiers and desk top printers excluding printing papers, ink and toner.

Boards Calendars & Planners Desk Supplies Drafting Supplies Filing Mailing Supplies Money Handling

Supplies Office Paper Writing & Correction

Instruments

Office Solutions

Office Services Should include spend on all office services such as mail sorting and distribution.

Office Solutions

Records Storage Should include all spend related to records storage including physical and electronic storage of records, EDRM Digital Asset Management, Document and Records Management.

Archiving Computerised Storage

Office Solutions

Post & Courier Should include all spend related to post and courier services, but excluding mail sorting and franking machines.

Post Courier

Office Solutions

Office Machines Should include spend on office machines, excluding computers and directly related equipment, but including printers and multi-functional devices.

Accounting Equipment Audio Visual Laminating, Binding &

Shredding Mailing Equipment Photography Equipment Printing & Copying

Equipment Word Processing

equipment

Office Solutions

Office Consumables

Should include spend on ICT consumables such as ink and toner and storage media such as floppy discs, CD‟s and DVD‟s.

Ink & toner Other Consumables Storage Media

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Category (Level 2)


Construction Main Contractors

Should include all spend on first, second and third tier contractors engaged to undertake cons truction work only. Should include spend on specialist and framework contractors but exclude spend relating to design, development and management services.

Building Construction Excavation &

Earthmoving Infrastructure

Construction Roadway Construction Site Preparation Waterways Construction

Construction Construction Supplies

Should include spend on construction materials and products relating to any build environment project where the supplies are procured directly by the client but should exclude any Service Provider costs. Including construction equipment, cement & concrete, doors & windows, plastic, structural building materials and finishing materials.

Adhesives & Sealants Buildings Cement & Concrete Construction Equipment Doors & Windows Earth & Stone Electrical Finishing Materials Glass & Ceramic Hardware Lifts & Moving

Walkways Metal Nameplates and signs Paints and solvents Pipes, tubing and

related materials Plastic Plumbing and heating Refractories Road Materials Rubber & Latex Structural Building

Materials Timber Ventilation Waterways

Construction Prime Contractors

Should include all spend on construction contracts where the first tier contractor is responsible for providing and end to end service. This includes the ongoing maintenance and operation of the facility, which is not possible to break into its component parts and where the first tier contractor is responsible for all subsequent tier contractors. The construction elements of PFI Projects and the MOD‟s regional PRIME contracts would be examples of this.

Construction Design & Build

Should include all spend on construction contractors responsible for the design and build service element. Where the individual elements can not be identified separately, the entire spend should be recorded here.

Construction Building Repair & Maintenance

Should include all spend related to facilities repair and maintenance including the goods and service. This includes internal and external repairs and maintenance, machinery and equipment repairs and maintenance and minor improvements.

Exterior Maintenance Interior Maintenance

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Category (Level 2)


Construction Construction Service Providers

Should include all spend related to professional and support services relating to construction projects where the output is a deliverable. If the service is provision of advice then the spend should be recorded as consultancy.

Architects Construction Project

Management Engineering Design Interior Design Surveyors & Inspectors Electrical Construction Support

Services Plumbing & Heating

Services Masonry Carpentry Painting & Finishing General Building

Construction Refurbishment

ICT Managed / Outsourced Services

Should include all spend related to the provision of outsourced ICT services including the provision and management of computer networks and systems and the hosting of applications.

Hosting Implementation Managed Service Provider Service

ICT Networking Should include all spend relating to the provision of data and voice networks including the goods and services.

Network Cables Network Design Network Equipment

ICT Software Should include all spend relating to the provision of off the shelf software. This should not include the customisation and programming of software.

Operating System Software

Transactional Software Upgrades

ICT Maintenance & Support

Should include spend related to maintenance and support of computer networks and systems

Hardware Maintenance & repair

Software Maintenance & repair

Support Services

ICT Hardware Should include spend on computer equipment and components. This should not include printers (these are covered under Office Solutions - Office Machines).

Computer Accessories Computer Peripherals Hardware Components Processing Machines

ICT Telecoms

Should include all spend related to fixed and mobile telecoms including equipment and call charges, but excluding voice networks. Where voice networks can not be identified separately then include the entire spend in this category.

Call Charges Phones Telecoms Equipment

ICT Systems Delivery

Should include spend on systems delivery, design and development. Where the elements such as project management and materials can be identified separately the spend should be recorded under the relevant category.

Design Development

Logistics Supply Chain Business Process Outsourcing

Should include all costs related to Supply Chain Outsourcing (BPO) Services. If the contract involves working in a 'business-as-usual' function which has been outsourced then the spend should be recorded in this category.

Supply Chain management

Transport management Warehouse

management

Logistics Transport Should include spend related to transportation of goods.

Air Transportation Rail Transportation Road Transportation Transport Services Water Transportation

Logistics Warehousing & Storage

Should include spend related to warehousing and storage including equipment, packaging and charges for space. Should not include spend related to records storage (these are covered under Office Solutions – Records Storage).

Handling Equipment Packaging Storage Containers Warehousing

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Category (Level 2)


Travel & Events

Air Should include spend on business air travel. Aircraft Hire & Services Passenger Air Travel

Travel & Events

Booking Services

Should include spend related to booking and managing business travel such as management and transaction fees. The cost of the ticket/hotel room should be recorded under the relevant category.

Travel Agents/Management Companies

Travel Documentation Assistance

Tour Guides

Travel & Events

Taxi Should include spend on business taxi travel. Spend related to child taxi services for schools should be recorded under Transport Provision in the Social Care Category.

Travel & Events

Hotels Should include all spend on hotels and accommodation charges related to business travel.

Accommodation Lets & Rentals

Hotels Other Accommodation

Travel & Events

Vehicle Hire Should include spend on business vehicle hire charges, but exclude costs for vehicle leasing.

Car Hire Bus / Coach Hire Other Vehicle Hire

Travel & Events

Rail Should include spend on business rail travel. Rail Travel Underground

Travel & Events

Coach Should include spend on business coach travel on public services, excluding services provided through the department such as shuttle buses.

Chartered bus services Public bus services

Travel & Events

Ferry Should include spend on business ferry travel.

Travel & Events

Events Organisation

Should include spend related to hosting conferences such as organisation services and venue hire.

Exhibits and Entertainment

Organisation Services Venue Hire

Defence Wheeled / Tracked Goods and Services

Should include spend on military related wheeled or tracked goods and services.

Defence Airborne Goods and Services

Should include spend on military related airborne goods and services.

Defence Marine Goods and Services

Should include spend on military related marine goods and services.

Defence Military Systems Should include spend on military related systems.

Defence Munitions Should include spend on munitions.

Energy & Utilities

Electricity

Should include all spend related to the supply of electricity including Climate Change Levy, any premiums for "green" energy, and metering/AMR charges but not including the provision of infrastructure.

Metering/AMR Charges Electricity Distribution Electricity Generation Electricity Supply Energy Management

and Monitoring

Energy & Utilities

Gas Should include all spend related to the supply of natural gas, including metering/AMR charges but not including the provision of infrastructure.

Gas Distribution Gas Generation Gas Supply

Energy & Utilities

Solid Fuels Should include all spend related to the provision of solid fuels including supply and distribution.

Bio Mass Coal Other Solid Fuels

Energy & Utilities

Water Should include all spend related to the provision of water but not including the provision of infrastructure.

Control Distribution & Supply Water Supply


Fuels Should include spend related to fuels including aviation fuel, petrol, diesel and heating fuel, including expenditure on fuel cards such as Esso, BP and Monitor cards.

Automotive Aviation Heating Marine

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Category (Level 2)



Lubricants Should include spend related to lubricants and lubricant preparations.

Anti Corrosives Greases Lubricant Preparations Oils Waxes


Gases Should include spend related to non-medical gases.

Compressed Gases Gaseous Fuels Industrial Use Gases Noble Gases

Vehicles Purchase Should include spend related to the purchase of non-military vehicles including emergency vehicles and tractors.

Aircraft Bus / Coach Cars Cycles Emergency Vehicles Goods Vehicles Gritters Minibuses Motorbikes Railway Recreational Refuse Collections

Vehicles Road Sweepers Ships & Boats Tractors Vehicle Conversions Trailers

Vehicles Leasing Should include spend related to the leasing of non-military vehicles including emergency vehicles and tractors.

Aircraft Bus / Coach Cars Cycles Emergency Vehicles Goods Vehicles Gritters Minibuses Motorbikes Railway Recreational Refuse Collection

Vehicles Road Sweepers Ships & Boats Tractors Trailers

Vehicles Vehicle Disposal Should include all spend related to the disposal of vehicles.

Vehicles Vehicle Maintenance

Should include spend related to the repair and maintenance of non-military vehicles including emergency vehicles and tractors.

Bodywork Engines, Brakes,

Cooling, Suspension Servicing Equipment Vehicle Computer

Systems Vehicle Interiors Vehicle Support

Services Wheels, Tyres and

Related Windscreens and

Related

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Category (Level 2)


Vehicles Fleet Management Should include spend related to the management of fleet including insurance, parking, taxes, licenses, tolls and fines.

Fleet Management Services

Parking Fees Vehicle Insurance Vehicle Licenses and

MOT Vehicle Tolls and Fines

Operational Goods & Services

Clothing Should include spend related to the provision of clothing and textiles including footwear, uniforms and protective clothing and equipment.

Bags & leather Goods Footwear Medical Apparel and

Textiles Personal Adults Personal Childs Protective (PPE) Textiles Uniform


Environmental Materials

Should include spend related to the provision of materials used within the environment such as plants, flowers, traffic management materials and materials used in cemetery and crematorium.

Cemetery & Crematorium

Environmental Monitoring Equipment

Horticultural Livestock Minerals & Precious

Stones Traffic Management


Domestic Goods Should include spend related to the provision of materials used in a domestic environment including domestic white goods and personal goods.

Domestic Furniture Domestic White Goods Laundry Personal Goods


Non-Catering Vending Machines

Should include spend related to the provision of non-catering vending machines such as ATMs, stamp vending machines etc. This should not include vending machines for catering and food.


Learning & Development Materials

Should include spend related to the provision of materials used for education and training, but excluding computers and publications provided to staff through a subscription.

Arts & Crafts Musical Instruments Books and Publications Sports / Playground Teaching Aids Toys


Animal Related Goods

Should include spend related to the provision of materials required for the keep and care of animals.

Animal Accessories Animal Products Commercial Fishing

Equipment Containment & Habitats Feed Veterinary Equipment Animal Vaccines


Art & Exhibits Should include spend related to the provision of exhibits within Museums and places of interest.


Operation of Custodial Facilities

Should include spend related specifically to the operation of custodial facilities.


Operation of Asylum Facilities

Should include spend related specifically to the provision of asylum services for the accommodation of asylum seekers


World Programmes Should include all spend related to the provision of world programmes.

Food Human Rights International Relations

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Category (Level 2)



Electronic Monitoring Equipment and Services

Should include all expenditure related to electronic monitoring in the community.

Telecare/Telehealth Monitoring Offenders


Security services Should include spend related to providing operational security services (security guards should be recorded within the Facilities master category)

Bodyguards Counter Terrorism Military Services

Engineering Goods

Tools Should include the spend on tools including hand tools, mechanical tools and electrical tools.

Hand Tools Other Tools

Engineering Goods

Non-Medical Chemicals

Should include spend on non-medical chemicals

Engineering Goods

Industrial

Should include the spend on industrial equipment, machinery and processing including structural products and batteries. Including cranes, furnaces, incinerators & ovens, mining & quarrying and mass transfer equipment.

Cranes Dock Equipment Dyeing & tanning

materials Electromechanical Explosive Materials Filters & Purifiers Foundry supplies Furnaces, Incinerators

& Ovens Grinding & Polishing

Material Industrial lasers Industrial optics Machine Components Machines Magnets Measuring & testing

devices Mining & Quarrying Nuclear & Radiation

Equipment Production &

Manufacturing Structural products Batteries

Waste Management

Waste Management Materials

Should include spend related to materials required for waste management.

Scrap & Waste Materials

Waste Containers Waste Equipment

Waste Management

Waste Management Services

Should include spend related to the services required for waste management.

Refuse Site Operation Waste Disposal &

Treatment Waste Land

Reclamation

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Annex C: BFF PSPES Mapping

PSPES Category Defra I/O Category Factor

Accommodation Services 74 Legal, consultancy, other business activities

Admin & Clerical 74 Legal, consultancy, other business activities

Adult Social Care 85 Health and social work

Advertising 74 Legal, consultancy, other business activities

Air 62 Air transport

Airborne Goods and Services 62 Air transport

Animal Related Goods 85 Health and social work

Art & Exhibits 92 Recreational services

Booking Services 63 Ancillary transport services

Building Management 70 Real estate activities

Building Repair & Maintenance 45 Construction

Catering 55 Hotels, catering, pubs etc

Child Social Care 85 Health and social work

Cleaning 74 Legal, consultancy, other business activities

Clinical Support Services 74 Legal, consultancy, other business activities

Clothing 18 Wearing apparel

Coach 60.2 Road transport

Construction Service Providers 45 Construction

Construction Supplies 45 Construction

Design & Build 45 Construction

Domestic Goods

Average of 29 Machinery and equipment & 36, 37

Furniture, other manufactured goods, recycling services

Drugs & Biologicals 24.4 Pharmaceuticals

Educational Programmes 80 Education

Electricity 40.1 Mains electricity

Emergency Services 85 Health and social work

Entertainment Services 92 Recreational services

Environmental Materials 01 Agriculture products

Environmental Services 74 Legal, consultancy, other business activities

Events Admissions 73 Research and development

Events Organisation 74 Legal, consultancy, other business activities

Ferry 61 Water transport

Finance Consultancy 67 Auxiliary financial services

Financial Services 67 Auxiliary financial services

Fleet Management 74 Legal, consultancy, other business activities

Food 15 Food and drink products

Fuels 23 Refined petroleum, coke and other fuels

Gas 40.2,40.3 Mains gas

Gases 23 Refined petroleum, coke and other fuels

Hardware 30 Office machinery and computers

Hotels 55 Hotels, catering, pubs etc

Human Resource, Training & Education Consultancy

74 Legal, consultancy, other business activities

Industrial 29 Machinery and equipment

Interim Managers 74 Legal, consultancy, other business activities

Interpretation & Translation Services 74 Legal, consultancy, other business activities

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IT/IS Consultancy 72 Computer services

Learning & Development Materials 22 Printing matter and related services

Learning & Development Services 80 Education

Leasing 71 Renting of machinery etc

Legal Aid 74 Legal, consultancy, other business activities

Legal Consultancy 74 Legal, consultancy, other business activities

Legal Services 74 Legal, consultancy, other business activities

Lubricants 23 Refined petroleum, coke and other fuels

Main Contractors 45 Construction

Maintenance & Support 72 Computer services

Managed / Outsourced Services 72 Computer services

Marine Goods and Services 75 Public administration and defence

Marketing 74 Legal, consultancy, other business activities

Marketing & Communications Consultancy 74 Legal, consultancy, other business activities

Medical & Surgical Consumables 25.1 Rubber products

Medical & Surgical Equipment 33 Medical and precision instruments

Military Systems 75 Public administration and defence

Munitions 29 Machinery and equipment

Networking 30 Office machinery and computers

Non-Catering Vending Machines 31 Electrical machinery

Non-Medical Chemicals Average of 24.13 Inorganic chemicals & 24.14 Organic chemicals

Office Consumables 21 Pulp and paper, paper products

Office Furniture 36, 37 Furniture, other manufactured goods, recycling services

Office Machines 30 Office machinery and computers

Office Services 74 Legal, consultancy, other business activities

Office Supplies 25.2 Plastic products

Operation of Custodial Facilities 75 Public administration and defence

Operational Services 74 Legal, consultancy, other business activities

Org & Change Management Consultancy 74 Legal, consultancy, other business activities

Pathology 85 Health and social work

Patients Appliances 85 Health and social work

Post & Courier 64 Post and telecommunications

PPM Consultancy 74 Legal, consultancy, other business activities

Prime Contractors 45 Construction

Print 22 Printing matter and related services

Procurement Consultancy 74 Legal, consultancy, other business activities

Promotion 74 Legal, consultancy, other business activities

Property & Construction Consultancy 74 Legal, consultancy, other business activities

Purchase 34 Motor vehicles

Radiological & Diagnostic 85 Health and social work

Rail 60.1 Railway transport

Records Storage 30 Office machinery and computers

Reprographics 30 Office machinery and computers

Security 75 Public administration and defence

Software 72 Computer services

Solid Fuels 10 Coal, lignite, peat

Specialist Contractors 74 Legal, consultancy, other business activities

Staff Childcare 80 Education

Staff Health & Safety 85 Health and social work

Staff Medical Care 85 Health and social work

P a g e | 6 3

Staff Relocation 74 Legal, consultancy, other business activities

Staff Subscriptions 91 Services from membership organisations

Strategy Consultancy 74 Legal, consultancy, other business activities

Systems Delivery 74 Legal, consultancy, other business activities

Taxi 60.2 Road transport

Technical Consultancy 74 Legal, consultancy, other business activities

Technical Services 74 Legal, consultancy, other business activities

Telecoms 64 Post and telecommunications

Tools 29 Machinery and equipment

Transport 63 Ancillary transport services

Transport Provision Average of 60.1 Railway transport & 63 Ancillary

transport services

Uncategorised 75 Public administration and defence

Vehicle Disposal 50 Motor vehicle distribution and repair,

automotive fuel retail

Vehicle Hire 60.2 Road transport

Vehicle Maintenance 50 Motor vehicle distribution and repair,

automotive fuel retail

Warehousing & Storage 74 Legal, consultancy, other business activities

Waste Management Materials 90 Sewage and refuse services

Waste Management Services 90 Sewage and refuse services

Water 41 Mains water

Welfare to Work 74 Legal, consultancy, other business activities

Wheeled / Tracked Goods and Services 63 Ancillary transport services

World Programmes 85 Health and social work

Uncategorised CM 85 Health and social work

Uncategorised CONS 45 Construction

Uncategorised DEF 75 Public administration and defence

Uncategorised EG 29 Machinery and equipment

Uncategorised EN 40.2,40.3 Mains gas

Uncategorised FLG 23 Refined petroleum, coke and other fuels

Uncategorised FM 74 Legal, consultancy, other business activities

Uncategorised ICT 72 Computer services

Uncategorised LOG 63 Ancillary transport services

Uncategorised MM 74 Legal, consultancy, other business activities

Uncategorised OG 30 Office machinery and computers

Uncategorised OS 74 Legal, consultancy, other business activities

Uncategorised PR 74 Legal, consultancy, other business activities

Uncategorised PSC 74 Legal, consultancy, other business activities

Uncategorised PSTS 74 Legal, consultancy, other business activities

Uncategorised PSO 74 Legal, consultancy, other business activities

Uncategorised SC 85 Health and social work

Uncategorised TR Average of 60.1 Railway transport & 63 Ancillary transport services

Uncategorised V 50 Motor vehicle distribution and repair, automotive fuel retail

Uncategorised WM 90 Sewage and refuse services

P a g e | 6 4

Annex D: Observations from Methodology and Process Category Sub-category Finding Description/Example Recommendation

Value of IOA at

Departmental level

IOA validity IOA is useful for providing a reasonably accurate and complete

snapshot footprint to inform strategy

Most Departments agree that the principle of using a high-

level analysis tool like IOA will help them quickly identify key areas to target and follow up with direct activity data and measurement. From a procurement perspective, most

Departments were particularly enthusiastic about using the methodology to identify which suppliers they should be prioritising engagement with

IOA is a relevant part of a

toolkit to support sustainable procurement. It is valid at the start of the process to inform

policy and strategy. It is not valid for operational monitoring of progress.

Consumption data validity

Operational changes need to be

modelled and monitored using consumption data

A top level IOA supports identifying priorities, operational

changes need to modelled and assessed monitored using consumption data. London Olympics could present a good example, initial

“reference” footprint from IOA & consumption data, subsequent actions assessed using consumption data.

Individual action plans and

progress utilise consumption data

Consumption

data availability

Accurate and complete consumption data for procurement is currently not normally recorded

Procurement data is predominantly spend data. With the exception of SOGE reporting for utilities there is very little

actual consumption data available e.g. Kgs/units of product procured.

For focus areas, processes to capture consumption data will need to be implemented.

Methodological Limitations

I/O categories are very broad and may not

reflect the intensity of actual activity

The carbon intensity of industrial categories may not reflect the actual

type of expenditure/activity taking place

I/O factors are at broad industry category levels. Many categories, in particular ICT and consultancy, include

a wide range of consumption that may not be representative of the type of service actually being procured. For instance, „managed outsourced IT‟ includes

energy consumption and equipment in the I/O factor when the specific contract/service may only relate to service delivery of Department owned equipment (included in

Hardware expenditure) operated onsite (included in Energy).

Use and interpretation valid at strategic procurement policy level only

Sectoral

Inflation

Expenditure data needs to be deflated to 2004 values (or factors adjusted).

National Inflation rates are used (RPI) but category inflation is different

Inflation in different sectors such as IT or professional services will be very different to a broad inflation index such as RPI.

Interpret results carefully

Operational changes

Specific operational changes are not reflected in the analysis

IOA is by definition based upon expenditure. Changes is activity through sustainable procurement may reduce

carbon but not necessarily expenditure,

IOA is not valid for operational monitoring. IOA

is not valid for measuring the

P a g e | 6 5

Category Sub-category Finding Description/Example Recommendation

progress of sustainable procurement strategies

I/O factors are based on 2004

economic data

I/O factors are periodically updated from National Statistics Data

Current I/O factors are based on 2004 data and will not reflect subsequent national level changes to industrial

sectors within the UK economy

I/O factors are difficult to interpret

I/O factors represent a complex interaction of the energy intensity of industrial sectors

I/O factors change but it is difficult to interpret changes. e.g. Pharmaceuticals Defra 0.62 (CO2 only), NHS Study 2008 (0.54).

The Defra I/O factors do not cover Scope 1

The Defra published I/O factors for fuel are Scope 3, upstream emissions only. For electricity are scope 2&3.

Basing a footprint on expenditure data alone and using the

Defra I/O factors is not sufficient, because the fuel and gas I/O factors are upstream emissions only. For this study modified I/O factors were developed to cover

scope1 & 2

For an expenditure data

footprint (pure IOA), different factors are required covering combustion.

Base price

calculation

I/O factors require calculation of a base price

The current I/O factors require the subtraction of distributor margins to get to the “base” price, this in practice is complex. It would be simple to drive off net price (ex VAT)

available from the accounting systems.

Produce I/O factors for a net price

Government expenditure discounts

make calculating a consistent “base” price difficult.

I/O factors are based on raw industry-based footprints per £ spent, but Government Departments often receive large discounts from suppliers or pay little, if anything, for some

core services (e.g. recycling).

The costs of different items may not be

consistent between departments

It is difficult to compare departments using IOA if they are paying different prices for similar items. IOA drives all carbon calculations from spend.

Data Quality

Categorisation 2008/09 PSPES data categorisation was inconsistently applied across

Government Departments.

Mapping protocols and procedures within accounting teams

were different in each Department. While some outsourced the entire reporting process to third parties, others used their existing codes to match the PSPES categories.

Provide a consistent

mapping process from departmental accounts to PSPES categories

Categorisation

Department expenditure categorisation does not go to the level of detail necessary to apply appropriate I/O

factors.

Departments do not currently track expenditure based on

the services provided. During data classification most Departments will apply a general supplier category to a supplier, rather than applying the expenditure data directly

to the service, and this hinders appropriate I/O factor allocation.

Categorisation could be improved

Categorisation PFI contracts are applied and captured differently in PSPES Department

reports due to guidance interpretation,

PFIs may relate to construction, refurbishment or management services.

Provide clear mapping for the classification of PFI

expenditure

P a g e | 6 6

Category Sub-category Finding Description/Example Recommendation

often inflating the footprint of a single data category.

Validation PSPES reporting is the responsibility of each individual Department and limited data validation has taken place.

The lack of external validation of data inhibits the comparability of figures. The report generator is making key decisions on data classification and mapping.

Some reasonableness checks for completeness and

accuracy should be introduced

Completeness

PSPES does not capture inter-

departmental expenditure, or staff travel reimbursements for business travel, and these are potentially

significant impact areas.

PSPES explicitly only applies to 3rd

party expenditure. Even though most Departments do not source significant

services from other Departments, those services that are shared often apply to significant emission sources (e.g. ICT). Additionally, the lack of accounting for staff

reimbursements in PSPES eliminates the possibility of capturing accurate travel data.

Department Priorities Departments implement programmes to Government targets; there is limited

incentive to go further

Some Departments had programmes in place to implement sustainability initiatives beyond Government targets that

were dependent on funding (e.g. server virtualisation); there was some indication that these have now been cancelled. Other initiatives, such as life-cycle costing, have dropped in

procurement priorities due to austerity measures.

Procurement Challenges

Procurement teams consistently stress that a lack of experience and training

of procurement teams limits the ability of Departments to implement sustainable procurement systems.

Procurement teams have stressed that „green procurement‟ is new and that their lack of experience or training prevents the proper implementation of systems as buyers do not

know if they are getting good price points or products that comply. Most procurement systems are based on including Buying Standards in tenders without any further action

taken.

Monitoring and compliance with sustainable procurement policies is difficult and typically is not done.

Departments have faced difficulties in tracking behavioural change, as well as other procurement requirements, and this presents a challenge for measuring impact.

OGC Buying Standards are useful for

Departments to identify core requirements, but many procurement teams do not understand how to check

whether products or services comply.

Several Departments stated that they had difficulty

understanding or implementing the Buying Standards because they were too granular in detail and buyers were simply unaware of what they should be looking for with

suppliers.

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Annex E: Technical Notes

PSPES Data

PSPES data is published in 20 tabs, one for each PSPES major category with headings for PSPES minor categories plus an uncategorised for each category. Expenditure is reported by department and member of the organisational family. Use of Input-Output Emissions Factors

Indirect emissions from supply chain I/O factors were used in the study as published in Defra GHG Emission Factors, Annex 13. These factors are based on Supply tables from ONS, 2004, using basic prices.17 To apply these factors to expenditure in other years, it is necessary to make several adjustments:

The expenditure must be adjusted back to basic price, i.e. the price excluding all taxes, subsidies and distribution margins. The tax, subsidy and distribution components of price are published with the Supply tables by ONS, as above. The percentage of purchasers‟ price allocated to tax and distribution was calculated for each sector.

The expenditure must be adjusted for inflation to 2004 levels. This has been done using CPI, also published by ONS.18

Sector Mapping

PSPES categories were mapped to the sectors in Defra‟s I/O emissions factors.19 A Defra sector was selected for each PSPES minor category based on the PSPES guidance notes. In a few cases, several Defra sectors were combined to reflect the breadth of the PSPES category. See Appendix B for details.

The ONS sectors were aligned to the Defra I/O sectors to enable the expenditure adjustments described above. Calculations

All PSPES data was compiled into a table organised by category. Expenditure in each category for each organisation was multiplied by the appropriate I/O emissions factor to give the emissions associated with that expenditure. The selected departments and their organisations were extracted from the resultant table for reporting. Gas and Fuel Uplift Calculations

Defra supply chain emission factors20 for solid fuels, liquid fuels, and natural gas21 include only Scope 3 emissions; that is, GHG arising from the extraction and processing of the fuels before

17

Office for National Statistics, Economy Methodology, Latest I-O Data, Supply and Use Tables 2004-2008

http://www.statistics.gov.uk/downloads/theme_economy/supply -use-04-08-bb2010-final.xls 18

Office for National Statistics, Economic Time Series, Consumer Price Indices http://www.statistics.gov.uk/StatBase/TSDTimezone.asp?vlnk=et&Pos=&ColRank=1&Rank=272

19 Supra note 9 Annex 13

20 ibid.

http://www.statistics.gov.uk/downloads/theme_economy/supply-use-04-08-bb2010-final.xls

http://www.statistics.gov.uk/StatBase/TSDTimezone.asp?vlnk=et&Pos=&ColRank=1&Rank=272

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they reach the end-user, but not the GHG arising from burning the fuel (Scope 1). As the biggest climate impact from fossil fuel utilisation occurs at the use stage (burning), it was considered essential to include these emissions in the IOA study. Defra publishes a breakdown of GHG emissions arising from fossil fuel use by gas type and by scope in Annex 1 of the GHG Reporting Guidelines, so that it is possible to compare ratios of Scope 1 to Scope 3 emissions for all fossil fuels. In this analysis, average ratios of Scope 1 to Scope 3 emissions for three groups of fossil fuels were calculated and applied to the Scope 3 emissions reported in Annex 13 to obtain an emission factor which includes extraction, processing and burning of fuels.

Table 5 Gas and Fuel Uplift Calculation Methods

Fuel Type Uplift method

Solid Fuels

A simple average of the ratio of Scope 1 to Scope 3 emissions of Coal (industrial), Coal (electricity generation), Coal (domestic),

and Coking Coal was applied to the supply chain emission factor for “Coal, lignite, peat”.

Other Fuels

A simple average of the ratio of Scope 1 to Scope 3 emissions of Burning Oil, CNG, Fuel Oil, Gas Oil, LPG, Other Petroleum Gas,

Petrol and Petroleum Coke was applied to the supply chain emission factor for “Refined, petroleum, coke and other fuels”.

Natural Gas A simple average of the ratio of Scope 1 to Scope 3 emissions of Natural Gas was applied to the supply chain emission factor for

“Mains gas”.

21

In this study, solid fuels were considered “Annex 13: 10. Coal, lignite, peat”; other fuels were considered

“Annex 13: 23. Refined, petroleum, coke and other fuels”; and natural gas was considered “Annex 13: 40.2, 40.3. Mains gas”

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Annex F: Case Studies

Energy & Utilities

Implementing AMR Technology (DfT) During the financial year 2009/10, approximately 400 Automatic Meter Readers (AMR) were installed in DfT Headquarters, the Maritime & Coastguard Agency and the Vehicle and Operator Services Agency to measure and reduce energy consumption. In order to gauge where the most cost-effective use of AMRs can be installed, the department has applied a threshold of four-year period in which the initial investment is projected to pay for itself. By establishing this screening element the department ensures that the areas with the greatest risks for inaccurate utility use estimates and opportunities for operational management are given priority. As yet it has not been possible to quantify the scheme as the billing information is still catching up with the AMR data. However, initial billing reports have indicated that the installed AMR units are saving the department more than the estimates envisioned in their original decision making process. DfT plans for further gas AMR installations by the Maritime & Coastguard Agency and electricity AMRs will be installed in selected Welsh and Scottish sites of the Vehicle & Operating Services Agency with the latter agency striving to install AMRs on 85% of its estate.

Fuels, Lubricants & Gases Improving Energy Efficiency (MoD)

The DE&S Expeditionary Campaign Infrastructure (ECI) team has set a target of reducing the amount of fuel consumed by campaign infrastructure over the next 3 years. Two of the major focus areas for the MoD have been improving energy efficiency and expanding the use of renewables in the field. Not only does improving energy efficiency and increasing the use of renewables save both carbon and money, but the progress of soldiers in the field can be facilitated by using more portable and energy efficient equipment. Three current ECI projects are focusing on delivering savings in energy consumption through the use of combined generation, automation and research. Three distinct projects are detailed below:

1. Automatically turning off air conditioning in shelters, wherever possible, to reduce power consumption for Camp Bastion without impacting personnel comfort;

2. Running generators at maximum loading during periods when air conditioning is in use and storing excess power in batteries for later use. A positive by-product of this process is the generation of heat from the diesel generators that can be used to heat hot water and provide space heating;

3. Research into renewable energy solutions to ensure that, in the future, there is a greater uptake of renewable energy in the field.

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ICT

Outsourced ICT emissions management (Defra)

Defra have liaised with their supplier of IT services and assets, IBM, to measure, manage and reduce the impacts of ICT while working within their third party management contract. Outsourcing ICT brings considerable benefits to departments by reducing the operational management costs of hosting backend equipment (e.g. servers) while enabling centralisation and management of equipment. As an energy intensive resource, ICT presents many challenges to partially outsourced service departments as the maintaining organisation may lack incentives to reduce the operating energy as they are not responsible for the energy bill. Engaging with Defra‟s ICT supplier the following activities have been implemented to help enhance the delivery of these services while minimising their carbon impact:

1. Monthly measurement of ICT footprint Each month Defra receives a monthly carbon footprint based on the average power consumption ratings for laptops and servers.

2. Hardware Savings

In collaboration with Defra Estates, a programme has been set up to optimise efficiency within on-site server rooms by;

Consolidating servers into fewer rooms; Ensuring a better balance of cooling to demands;

Adopting the voluntary EU Code of Conduct on Data Centres.

3. Procurement

Defra follow the OGC Buying Solutions Catalogue and have created their own catalogue for business units to purchase approved ICT services.

Using ICT to Improve Efficiency (Department for Education (formerly DCSF)) Recognising that recruitment was an increasing cost in terms of money and carbon, the Department of Education (formerly DCSF) has implemented an online recruitment service. By doing so the Department of Education (formerly DCSF) have reduced both monetary and carbon costs associated with recruitment and the benefits are tangible across the education sector. For example, Hillingdon Local Authority, a frequent user of the system, has reduced its recruitment paper use by up to 70% and have also been able to streamline decision making. This e-recruitment service is operated by Tribal Resourcing. As of September 2010, the scheme had 13,000 job seekers and 64 local authorities, representing over 10,500 schools and 78 academies, as registered users. As users grow the savings in both cost and carbon increase. The tool was recognised by the Guardian Computing Awards in May 2010 when it received the award for shared services.

Professional Services Supplier Engagement (Home Office and HMRC)

CAESER (Corporate Assessment of Environmental, Social and Economic Responsibility) is an online engagement tool which helps to facilitate CSR initiatives and discussion. The Home Office first started using the tool in 2007 and the HMRC subsequently adopted the tool in 2009. Both departments have since made it a desirable requirement that all suppliers participate in CAESER

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to ensure that engagement remains a key component of being a department supplier. The Departments now work together with their supply-base to improve supplier relationships and to ensure that the same information that is requested by Departments can be shared with one another, thus reducing the number of times a supplier needs to respond to the same question. Collaboration has included hosting joint staff and supplier workshops. The system presents a series of questions and benchmarks for suppliers to complete. At the conclusion of the survey the supplier receives a report on their sustainability. The report highlights the key performance areas they are being measured against, and provides useful information on how they can improve their scoring in the future. If a supplier has scored low in one area, department contract managers will work with the supplier to ensure that the score is improved for the next assessment. Use of CAESER has resulted in both cost and carbon savings for the Home Office and HMRC as well as suppliers. Two examples of this success are below:

1. Rationalisation of the HMRC Self Assessment booklets resulting in a 300 tonne reduction in paper use and the removal of 12 trucks from the road, saving the department over £2.2 million in costs per year.

2. Trial of the first closed loop paper recycling solution for departments where over 8,000 tonnes of restricted paper waste is recycled to produce branded UK Government 100% recycled paper.

The system won the Civil Service Award for Sustainability and was a runner up at the 2010 Chartered Institute of Purchasing and Supply (CIPS) awards for the “Best Contribution to Corporate Responsibility” Award. CAESER is also used by other Government Departments including Defra, Natural England and various local authorities in England.

Low Carbon Procurement Procuring for Carbon Reduction (DH - NHS) With an expenditure budget of over £20 billion, procurement accounts for almost 60% of the carbon impact of the NHS (NHS England Carbon Emissions Carbon Footprinting Report 2009). The Department of Health, in partnership with the NHS Sustainable Development Unit, launched the Procurement for Carbon Reduction programme (P4CR) to provide guidance in this area in February 2010 with the following aims:

Identify and disseminate good practice guidance across the NHS

Test concepts through a series of focussed pilot projects with NHS organisations

Gather evidence of carbon reductions achieved as a result of procurement and supply chain management activity

The P4CR programme has drawn on experience from a range of stakeholders, active in the healthcare sector, to produce a roadmap, workbook supporting tools and training materials. A central principle of P4CR is a hierarchy of interventions that can be applied at a category strategy and procurement project level.

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The P4CR suite of materials includes a protocol on the assessment of energy performance of electrical medical devices which is supported with a tool for calculating and comparing whole life energy and carbon costs. The P4CR workbook also emphasises the importance of tracking carbon reductions resulting from procurement decisions which in turn will help NHS organisations demonstrate how local actions are delivering real carbon reductions and increased efficiencies.