how to successfully implement a sustainable procurement ... · how to successfully implement a...

Planet Procurement 2015 All rights reserved www.planetprocurement.com.au

How to successfully

implement a Sustainable

Procurement ProgramLessons learned from 6 Programs

around the world

Thursday 10 November 2016

Co-organised by

The 10YFP Sustainable Public Procurement Programme

Working together to achieve a collective impact

10/11/2016

• The 10YFP on SCP patterns was adopted at the Rio+20 Conference. It is a global framework of action to enhance international cooperation to accelerate the shift towards SCP patterns in both developed and developing countries.

• It supports capacity building and provides technical and financial assistance to developing countries for this shift.

The 6 programmes of the 10YFP:

• Consumer information

• Sustainable lifestyles and education

• Sustainable public procurement

• Sustainable buildings and construction

• Sustainable tourism, including ecotourism

• Sustainable food systems

1. Build the case for SPP:

improve knowledge on SPP andits effectiveness as a tool topromote greener economiesand sustainable development

2. Support the implementation of SPP on the ground:

increased collaboration andimproved coordination between SPPstakeholders

The 10YFP Sustainable

Public Procurement

ProgrammeObjectives:

Image Copyrights: Shutterstock

Working together to achieve a collective

impact

MAC Members

CO-LEADS

LEAD

10YFP SPP: Governance of the

programme

1. ChileCompra2. Eco Mark Office of Japan Environment Association3. Environmental Development Center of Ministry of

Environmental Protection (EDC)4. Forest Stewardship Council (FSC)5. Fundación Centro de Gestión Tecnológica e

Informática Industrial (CEGESTI)6. ICLEI – Local Governments for Sustainability (co-lead)7. Indian Railways8. Institut des Finances Basil Fuleihan-Lebanon9. International Green Purchasing Network (IGPN)10. International Institute for Sustainable Development

(IISD)11. ITC-ILO (Int. Training Center of the ILO)12. Korea Environmental Industry & Technology Institute

(co-lead)13. Mauritius Procurement Policy Office 14. Ministry of Infrastructure and the Environment 15. National Agency for Public Procurement16. NCPC Colombia (National Center for Cleaner

Production and Environmental Technologies/CNPMLTA)

17. Secretariat of the Convention on Biological Diversity18. SKL Kommentus19. Sustainable Purchasing Leadership Council (SPLC)20. Swiss Federal Office for the Environment (FOEN)21. United Nations Environment Programme, UNEP (lead)22. United States Environmental Protection Agency

ChileJapan

ChinaGlobal

Costa RicaGlobalIndiaLebanonGlobalGlobalGlobal

KoreaMauritiusNetherlandsSweden

ColombiaGlobalSwedenUnited StatesSwitzerlandGlobalUnited States

10YFP SPP: Regional distribution of the

programme’s partners

The network of the SPP programme counts 99 partners in more than 40 different countries and includes governments, international organizations,

NGOs, consultancies, private sector representatives and SPP expert.

100 AS OF NOVEMBER 2016

SPP: A Global review 2013

Using PSS to enhance SPP –technical report, 2015

Measuring & communicatingbenefits of SPP, 2015

Pre-study on the sustainability of supply chains, 2014

10YFP SPP: SPP Programme Outputs

Monitoring SPP Implementation, 2016

Global Review on SPP: Upcoming (Dec. 2016)

Why joining the Programme?

• Access a broad network of 100 organizations andindividuals working together to implement SPP

• Share your experience

• Benefit from advice and technical support on SPP implementation

• Apply for financial support for SPP activities in developing countries through the 10YFP Trust Fund

• Develop large scale SPP projects with diverse and skilled partners

And …it’s free!

• Farid Yaker, Programme Officer, UNEP

[email protected]

• Sophie Loueyraud, Consultant, UNEP

[email protected]

Join the 10YFP SPP Programme !

mailto:[email protected]


http://www.unep.org/10yfp/Programmes/ProgrammeConsultationandCurrentStatus/Sustainablepublicprocurement/tabid/106267/Default.aspx


12

Overview of the Benchmarking Study

• Commissioned by Sustainable Choiceo Membership-based program in New South Wales, Australia

o Assist local councils to implement Sustainable Procurement (SP)

o 74 members

• Identifying best practice as an input to new Program Strategy

o Overview and Beneficiaries

o Services to Members

o Funding model, governance and staff

o External collaborations

o Impacts and the future

Sustainable Choice


13

6 benchmarked programs

Program RegionWebinar

participantRole Email address

Tania LalorProgram Manager

[email protected]

Magali SilvaProgram

[email protected]

Cuchulain Kelly (not present)

CommsCoordinator

[email protected]

Philipp TepperProgram

[email protected]

LaurenceCesbron

Admin, Finance, European Relat.

Manager

[email protected]

Valeria Veglia(not present)

Agenda 21 Coordinator

[email protected]

Sustainable Choice

Acquisti Publici Ecologici (APE)

Benchmarking study manager: Jean-Louis Haie, Managing Director Planet Procurement [email protected]









14

Each SP Program is unique…

Sust. Choice 3AR SPLC Procura + RGO APE

Created in… 2006 2012 2013 2004 2006 2003

Current legal

status

Program owned by

Local Government –

No legal entity

Non-for-profit

organisation

Non-for-profit

organisation

Program owned by

ICLEI – No legal

entity

Non-for-profit

organisation

Program owned by

Province of Turin –

No legal entity

Geographical

coverage

NSW State

7.5M inhabitants

Mainly 1 Region

3.5M inhabitants

US: 85% - Rest: 15%

350M inhabitants

European Union

740M inhabitants

6 French Regions

13.5M inhabitants

Province of Turin

2.3M inhabitants

Outline of the

history and

evolution

Created through

partnership

State/Local

Government

Informal network in

2006, through

Government /

Regional Council

Built on 2 projects

in the field of green

products and SP

Started as a

‘campaign’ before

to become a

‘network’.

Created by 12

founding public

members

Created as part of

Province of Turin’s

Agenda 21 – Started

with 13 members.

Number and

range of

beneficiary

organisations

86 local councils

325 suppliers listed

50 members

including 87% of

councils.

154 members:

public, private, non

for profit

45 members: 40

government, RGO

and 5 strategic

partners

98 members:

councils, other

public authorities

since 2011

46 members: local

councils (40%) and

several others

(60%)

Key targeted

individuals

Procurement

Suppliers

Procurement, legal,

technical,

sustainability staff

Very diverse, with

Procurement strong

Mainly

Procurement

Mainly

Procurement +

Elected Reps

Procurement

Environment

Commitments

expected of

beneficiaries

SP policy in placeMembership fee

only

Membership fee

only

Membership fee

only

Membership fee +

Approve program

TOR

Sign agreement

protocol with

aspirational targets


15

Services: events and working groups first!

Organisation Essential services to Members

Sust Choice• 2 Regional Forums per year – Presentation + supplier speed dating

• Sustainable supplier and product database

3AR• Free training sessions - 300 participants per year

• Free technical half a day or one-day forums – Twice a year

SPLC• Principles, Guidance, Rating System through working groups

• Annual Summits – 350 participants in 2016.

Procura +• Seminars, webinars, Interest groups

• EcoProcura conference - Procura+ Awards

RGO• Working groups and guidance owned by members (17 so far!)

• Induction for elected rep. and staff (4/y) – 3-day training (2/y)

APE• Working group to develop tools to deliver agreement protocol

• Annual Monitoring of SP achievements for some categories


16

Funding model, governance and staff

Sust Choice 3AR SPLC Procura + RGO APE

Type of

funding

strategy

100% OEH grant

funded

60% member

funded

40% ad hoc

partnerships

80% member

funded, 20%

foundations

33% member

funded

67% EU grants

e.g. for events

70% member

funded

30% partnership

Resources provide

their time ‘for

free’.

Effectiveness

of funding

strategy

Need to reapply

annually.

Reporting burden

Ad hoc

partnership: key!

Founders Circle

enabled to get 3-

year forecast of

funds

Membership fees

provide cushion

but would not be

sufficient

After 10 years of

increase,

stabilisation due

to economic

constraints

No need for

funding: nimble

and flexible.

Governance Soft governanceStrong

governance

Strong

governanceSoft governance

Strong

governance

Strong

participation of

elected reps

Soft governance

Annual

budgetAUD 150K

AUD 125K + AUD

110K of ad hoc

partnerships

AUD 800K + AUD

200K from

subsidies

AUD 60K + AUD

130K from EU

subsidies

AUD 220K + AUD

90K from

subsidies

Btw 18-30K for

technical support

Number of

FTEs1 FTE 1 FTE

2 FTEs + 3 FT

contractors0.4 FTE 4 FTEs 1 FTE


17

External collaborations


Joint

initiatives and

partnerships

OEH for the

funding of the

program

7 partnerships

with a wide

variety of

organisations on

pilot projects

14 partnerships:

from sharing

complementary

resources to

collaborating on

some programs

5 Strategic

Partners that

support the

Network in 5

European

countries.

Participation to a

French and

European

Program to share

knowledge

Partnerships on

SPP at the (1)

regional, (2)

national and (3)

European level

(SPP regions).

Added value

to membersLow value

High value

Get free expert

support on

specific topics

Medium value

Partnerships

complement the

activities of the

program.

High value

Advise and

monitor progress.

Disseminate info

in their areas, in

local language

Low value

Medium value

Enable exchange

of good practices

and good vibes!

Contribution

to stability

and growth

High contribution

Allows for the

current funding of

the program,

High contribution

Partnership funds

account for 40%

of funds.

Medium

contribution

Partnerships

increase the

influence of the

program.

High contribution

Support

recruitment of

new members and

get 50% of their

fees in return.

Low contribution Low contribution


18

Impacts and the future


Cultural

impacts

Still perception

that SP is more

expensive

Increased

expertise among

members and

consultants

Increased visibility

given to SP across

the country

through program

Clear evolution in

terms of

perception and

influence

SP has become a

BAU topic in many

organisations

Difficult to

evaluate

Organisatio

nal impacts

Annual SP

scorecard shows

that some

members are

progressing.

Better

methodology to

make decisions

e.g. life cycle and

TCO approaches.

Not done yet. A

lot of debate on

types of metrics

Some

organisations

have now

individuals that

review each RFT

A working group

on evaluating SP

will be launched

soon.

Impacts in

organisations are

monitored

annually and

posted on the

program website

Macro-

economic

impacts

Not evaluated. Not evaluated.

Not done yet. A

lot of debate on

types of metrics

Not evaluated.

Not enough funds

to do it.

Not evaluated.

Evaluated with

details for 12

categories

Key success

factors for

the future

Securing a more

sustainable

funding model.

Keeping councils

engaged.

Appropriation by

elected

representatives

Increased number

and satisfaction of

members.

Keeping on

meeting and

knowing each

other.

Nurturing the

community

The duo made of

1 proactive

elected

representative

and 1 competent

staff.

Expand the scope

of the program by

including social

issues

Recruiting new

members.


19

Focus on 6 key lessons learned (LL)

1. SUSTAINABLE CHOICE - Get Members To Meet The Market

2. 3AR - Create Projects Through Partnerships

3. SPLC - Diversify Membership Base

4. PROCURA PLUS - Build The Sense Of Community/Family

5. RGO - Include Decision Makers In Governance

6. APE - Measure, Report And Communicate


20

Sustainable Choice

LL #1 – GET MEMBERS TO MEET THE MARKET

WHATProvide ‘safe’ opportunities to members to meet suppliers that offer ‘sustainable’ products and services

WHY

(1) Support supply market analysis

(2) Show that ‘sustainable’ suppliers are competitive

(3) Favour connections between buyers and suppliers

HOW

• Invite qualified suppliers to forums and events

• Organise speed dating sessions between buyers and suppliers

• Organise supplier market shows


21

Sustainable Choice


22

LL #2 – CREATE PROJECTS THROUGH PARTNERSHIPS

WHATDevelop projects with organisations interested in the power of SP to drive change in the value chain: expert support to members (pilots), training, best practice guidance, ‘meet the supplier’ events

WHY

(1) Complement membership funds (3AR: partnerships = 40% budget)

(2) Provide great value to members

(3) Develop ecosystem of partners around different topics and categories (we can’t be experts of everything!)

HOW

• Matching members’ expectations and sponsors’ policies – Being the intermediate that make things happen!

• Make the business case to sponsors (e.g. government) that procurement is a great tool to implement public policies

• True partnership: DUO 3AR + Expert working hand in hand


23

Category/Topic Sponsor Expert partner Project

Circular Economy Regional CouncilRegional association of eco-industries

Give visibility to eco-industries

Environmental Health

State Regional Agency -Health

Non for profit specialist of health issues

Connect health issues and sust proc

Organic food incanteens

State Regional Agencies –Environment, Agriculture and Forests

Non for profit supporting organic farmers/industry

Tailored support to members on sourcing + trainings

Furniture end of life management

Furniture industry body in charge of managing end-of-life

Federation of Furniture Manufacturer

Best practice guidance

Road worksFederation of the Road Construction Industry

Federation of the Road Construction Industry

Event: share best practice + stimulate members to do pilots

Meet the supplier Chamber of Commerce None‘Meet the supplier’ events


24

LL #3 - DIVERSIFY MEMBERSHIP BASE

WHATInclude multiple organisations such as hospitals, universities, technology parks, state-owned organisations, private companies

WHY

(1) Increase # of organisations that build/share knowledge – Learning from organizations in other regions/sectors has been eye-opening

(2) Improve visibility, credibility and budget of the program

HOW

• Define 3 Membership Roles for each staff: (1) Purchaser, (2) Supplier, (3) Public Interest Advocate. Example: Working Groups.

• Ensure that each of these three stakeholder groups has equal representation in all decision-making bodies of the Program.

• Make it flexible: 1 organisation can have different Membership Roles for his staff, e.g. government agency with related advocacy mission.


25

19

6658

12

Public interest Purchaser

Supplier Mix

Types of member organisations

0 5 10 15 20 25 30 35

22 other Industries

Association

Utilities

Energy

Information Services

Information Technology

Regional and National Government

Higher Education

Local Government

Manufacturing

Standards and Certification

Consulting

Non-profit

Industries represented


26

LL #4 – BUILD THE SENSE OF COMMUNITY/FAMILY

WHATSupport the development of strong and long-lasting relationships between members through regular meetings and events

WHY

(1) Reduce churn of members

(2) Enable stability of program

(3) Members sell the program themselves

HOW• Regularly organise free ‘events’ (training, conferences, forums

and/or working groups)


27


28

LL #5 – INCLUDE DECISION MAKERS IN GOVERNANCE

WHATInclude elected representatives in the governance and membership, right at the creation of the Program – ‘They are our decision makers’

WHY

(1) Increase commitment to the program (‘it belongs to us’)

(2) Secure political support

(3) Ensure that program’s directions respond to members’ needs e.g. public policies

HOW

• To become a member: DUO Elected Representative (political support) + Staff Member (internal implementation)

• Only Elected Representatives on the Board: only them can validate Program decisions

• Nurture the relationship with elected representatives, e.g. through sponsoring of working groups, induction sessions, etc.


29

2010 - Gilles Mahé, Vice President Angers Metropolis, introduces the outcome

report of the Organic Sourcing Group

2016 – Introduction of the RGO General Assembly by Didier Quéraud, Rezé City

Councillor and RGO President

2016 – Working group including two elected representatives

2013 - Laurent Martinez, Pays de la Loire Regional Council elected member, introduces the outcome

report of the Textile Working Group


30


LL #6 – MEASURE, REPORT AND COMMUNICATE

WHATTrack realistic performance indicators related to the program and communicate the results to partners, members and the wider audience.

WHY

(1) Justify existence of the program to funders and members

(2) Monitor progress and adjust program strategy

(3) Increase individuals self confidence /pride (‘what we do is great’)

HOW

• Strong commitment from APE’s members formalised in Agreement Protocol that is core to the program

• Identification of realistic KPIs for each category

• Support to members to collect and process data


31


‘Classical’ Procurement

‘Protocol compliant’ Procurement

Total expenditures: 145 millions

A.P.E. expenditures: 86,5 millions

59.6% in accordance with the A.P.E. Agreement!


32


17.731 tons of CO2 equivalentavoided for electric power,

vehicles and IT office equipment

585 tons of plastic avoided3.577 tons of CO2 equivalent avoided

for catering services

Total CO2 emissions avoided through APE

compliant procurement -View per spend category


We provide advisory services, training and tools to help your organisation deliver sustainability and social

responsibility through procurement and the supply chain.

M - +61(0)423 328 603W - www.planetprocurement.com.au@ - [email protected]

In partnership with

how to successfully implement a sustainable procurement ... · how to successfully implement a...

Documents