sustainable procurement train the trainer jimmy brannigan
TRANSCRIPT
Sustainable procurement
Train the Trainer
Jimmy Brannigan
EAF Programme
Background Three year project Reducing negative environmental and social impacts
through purchasing Steering group, partners from Further Education and
Higher Education Training
Train the trainer Policy and strategy development Risk based approach to procurement Supplier engagement Social issues in procurement
Sustainable procurement
Agenda
09.00 Registration
09.30 Introductions and objectives
10.00 What is sustainable procurement?
10.20 Barriers to sustainable procurement
10.45 Break
11.00 The business case – Presentations
12.00 Networking Lunch
Sustainable procurement
12.45 Where are the opportunities?
Review the latest guidance on implementing sustainable procurement
14.15 Break
14.30 What can we do now?
How can we use the latest guidance on implementing sustainable procurement?
Sustainable procurement
15.15 Report back and prioritisation – Including communication styles
15.45 Action planning
16.00 Close
Style of the day
Challenging Practical Dialogue based Interactive
Objectives
Develop a shared understanding of what we mean by sustainable procurement
Develop a thorough understanding of the business case for sustainable procurement
Support participants communicate sustainable procurement to key players within their organisation
Objectives
Develop participants confidence when implementing sustainable procurement within their institution
Introduce participants to the latest guidance materials and support when implementing sustainable procurement
Introductions
Briefly You and your organisation Why you are here
What is sustainable development?
What is sustainable procurement?
Definition for a non procurement professional
Definition
“Sustainable purchasing is all about taking environmental and social factors into account in purchasing decisions. It’s about looking at what your products are made of, where they come from and who has made them”
HEPS Sustainable Purchasing Guidance – Section 1
Definition
“Sustainability in the supply chain is fundamentally about identifying problematic social, environmental and H&S issues throughout the supply chain. Assessing their impact and risks, and then trying to improve them”
www.nordicpartnership.org
What are the barriers to sustainable procurement within your institution?
Barriers to Sustainable ProcurementNational Audit Office Whist there is a high level of commitment to national targets; there is
often a low level of understanding of the exact requirements, therefore creating an ‘implementation gap’ – the gap between policy and practice.
Even with a high level commitment in the shape of policies and specific targets, this becomes heavily diluted by the time it reaches the Procurement Departments. A lot of the sustainability issues are lost and replaced instead by ‘best value’ often easily translated to cheapest price.
The link needs to be made between sustainability, efficiency and cost savings.
Barriers to Sustainable ProcurementNational Audit Office Procurement staff are often not trained in sustainability issues and
do not understand how to achieve the targets. It is often the case that the will to procure in a sustainable manner is strong, yet the procurement teams are unable to complete the task. This often includes a basic misunderstanding of the term ‘sustainable procurement’.
Lack of knowledge in this area has often resulted of the seeming lack of understanding of the role of sustainability in risk assessments.
Barriers to Sustainable ProcurementNational Audit Office In Summary
Lack of sustainable procurement training and guidance
Poor understanding of targets and requirements Taking a short term view.
Presenting the business case
Presentations
Presenting the business case
Read through the summary document of all of the reasons and explanations as to why this is a good thing ‘the business case’ and prepare 8 minute presentation to convince one of the following Finance manager Devolved purchaser Estates manger / project manager construction
project A student
Presenting the business case
De-brief
The business case – why do it?
Reputation
Performance
Licence to Operate
Brand
Sustainable Procurement
Customerrequirements
Stakeholderdemands
Employee expectations
Benchmarking
Legislation &Standards
Impact Reduction(environmental)
Business efficiencies
Risk management
Current management focus
Natural Resources
Transportation ManufacturingProduct
DistributionConsumers
Environmental Footprint
Impacts and Opportunities (Environment)
Low
Supply Chain
High
Current management focus
Natural Resources
Transportation ManufacturingProduct
DistributionConsumers
Environmental Footprint
Current Management Effort (Environment)
Low
Supply Chain
High
Current management focus
Natural Resources
Transportation ManufacturingProduct
DistributionConsumers
Environmental Footprint
Mismatch between the two
Low
Supply Chain
High
Where are the opportunities?
Review of the latest guidance
Review of the latest guidance
What guidance exists? What does it say? How do you use it?
Review of the latest guidance
What guidance exists? Sustainability and Local Government
Procurement
November 2003 - IDeA Environmental Purchasing in Practice
September 2002 – iema HEPS Purchasing for Sustainability: Guidance for
Higher Education Institutions – Forum for the Future
Procuring the future
Review of the latest guidance
What guidance exists? Develop Ethical Purchasing Practice, 2001 –
CIPS The ethical decisions – An executive guide to
corporate social responsibility, 2004 – CIPS Social issues in purchasing, February 2006 –
Office of Government Commerce
Review of the latest guidance
What does it say? Understanding of the environmental and social
impacts Risk based approach Opportunities throughout the procurement
process Identification of need Specification Supplier selection Evaluating tenders Contract management and supplier development
How do you use it?
Contract management
Contract management
Tender evaluation
Tender evaluation
Supplier Selection
Supplier Selection
The specification
The specification
What are the impacts?
What are the impacts?
Identifying the need
Identifying the need
A simplified approach
A simplified approach
Identifying need
What do we want to buy? Why do we need this product or service?
Can the need be met another way? Is a suitable product available elsewhere in the institution? Can the requirement be met by renting, sharing rather than
purchasing? Is the quantity requested essential? Is the specification currently used the correct one for the
purpose? Can the product serve a useful purpose after its initial use?
Identifying need
Challenge repeat purchases! Important as it can free up thinking to look for
more sustainable options The more ambitious the environmental objective
the more fundamental the re-examination needs to be
Good purchasing practice requires fundamental questions are routinely asked about the value being delivered
Identifying need
Copyright
Barbara Morton
Replace
Reduce
Re-use
Recycle and return
Re-think
Increasing orderofPriority
What are the impacts?
In groups identify the environmental impacts and the social considerations related to the goods or service being purchased Moves IT
What are the impacts?
This exercise is an essential part of the process
Can been done as an individual but is better in small groups
Encourage devolved purchasers do this with colleagues / environmental professionals This can feed into specification, award criteria,
tender evaluation, supplier appraisal
The specification
Defined as a “statement of needs to be satisfied by the procurement of external resources”
Or
What the purchaser wishes to buy and what the supplier is expected to supply
As discussed in ‘Modern Procurement Practice’ 3 types of specification are generally used Functional – defines function and duty of the
product or service Performance – defines performance (output
specification) Technical – physical characteristics on an item
The specification
The specification
By placing the emphasis on the functional and performance based specifications this provides an opportunity for the supply market to innovate including reducing environmental and social impact
Also key as this indicates to suppliers that environmental and social considerations are important to the client
The specification
Fitness for purpose and value for money Resource, energy and water efficiency Minimum use of virgin and non-renewable
materials Maximum use of post consumer materials Non (or reduced) polluting with minimum use
of toxic chemicals, CFC’c ozone and other pollutants
The specification
Maximum durability, reparability, reusability, recyclability and upgradability
Minimum packaging Design for disassembly Fault controls to prevent unnecessary waste Health and safety standards Biodegradability
The specification
Eco-labels Used by supplier to demonstrate the
environmental credentials of goods and services Widely recognised and on the whole very robust DEFRA’s Green Claims Code is a good source of
advice on misleading labels Achieving the standard can be costly and time
consuming
ECO-labels
The specification
Under the procurement regulations you can use eco-label criteria to help determine environmental specifications
Can accept eco-labels as proof of compliance – but other proof must also be accepted
You cannot stipulate that products must have an eco-label certificate
ICLEI guide recommends you always add the words ‘or similar requirements’ and attach the criteria of the relevant eco-label
Supplier selection
Pre-qualification Vetting potential suppliers of goods and services
to ensure they meet the required standard Environmental Management Systems – if relevant
to the subject matter of the contract A simple starting point is to include environmental
and social considerations as part of the process Policy’s in place / management commitment H&S record Environmental incidents
Supplier selection
Supplier appraisal Used to assess the suppliers environmental and
social impacts More important for high risk goods or services or
on strategically important contracts
Supplier selection
Using questionnaires They are a familiar tool Can be cost effective way of gathering information Can produce a lot of data quickly Can be used at pre-contract to influence the
tendering process or post contract as part of contract management
Supplier selection
What are the potential pitfalls of questionnaires?
Exercise
Sphere of Control
Sphere of concern
Sphere of influence
Sphere of control
Tender evaluation
Opportunity to incorporate your priorities into tender for goods and services
Helps integrate into an essential part of business operations
Need to set out contract award criteria at an early stage
Opportunity to apply weighting to environmental criteria
Award criteria must be linked to the subject matter of the contract
Contract management
What can you do? Set target related to your own organisational
objectives and relevant to the contract – KPI’s Encourage innovation around reducing
environmental and social impacts This sends out a clear message to the market that
this is on the agenda and will develop further Use past performance in award of new contracts Discuss alternative products & services with
suppliers
Contract management
What can you do? Work with your suppliers to stimulate innovation, a
better product and service with reduced impact Joint improvement targets often include
Reducing packaging weights and volumes Introducing reusable and returnable packaging Reducing hazardous material content in products Examining purchase order quantities and delivery
frequency Improving delivery scheduling to reduce transport
impacts
Contract management
Continuous improvement Work with suppliers to improve Set targets and monitor improvement through
contract review Allows organisations to accept issues are
apparent but are working to address them Train your suppliers Provide guidance Give awards!!
What can we do now?
What do we communicate?
Action Planning
What can we do now?
Communicating sustainable procurement Who are our audience? What pressures are they under? What are their concerns? What do we want them to do differrently? How can we help them?
What can we do now?
Learning styles Activists: here and now, gregarious, seek challenge and
immediate experience, open-minded, bored with implementation
Reflectors: stand back, gather data, ponder and analyse, delay reaching conclusions, listen before speaking, thoughtful
Theorists: think things through in logical steps, assimilate disparate facts into coherent theories, rationally objective, reject subjectivity and flippancy
Pragmatists: seek and try out new ideas, practical, down-to-earth, enjoy problem solving and decision-making quickly, bored with long discussions