Sustainable Procurement for a Sustainable Development

Karin LonaeusSustainability Strategist

Welcome to Ansell Melaka, Malaysia

Audit: glove production Malaysia

Swedish County Councils and Regions

• 21 county councils• Responsible for

- healthcare- dental care- public transport

• 250 000 employees• Procures goods and services

to the amount of 13 billion euro

• Co-operation since 2010

Pharmaceuticals – India, China Surgical instruments – Pakistan Disposable surgical products – Thailand, Malaysia, South

America Gloves – Malaysia, Thailand, Sri Lanka Dressings – China Textiles – India, Bangladesh, Pakistan IT – China, Malaysia Foods – Thailand, Spain, Italy

Eight risk areas

Our way - Five steps to sustainable procurement

1. Code of Conduct

2. Contract Clauses

3. Desktop Follow-up

5. Corrective Action Plan

4. Audit

Our way - Five steps to sustainable procurement

1. Code of Conduct

2. Contract Clauses

3. Desktop Follow-up

5. Corrective Action Plan

4. Audit

Special contract terms for social demands

23-05-01 Stockholm County Council 8

The supplier must have procedures in order to ensure that the production is in compliance with the CoC. Routines must include:

•Policy commitment•Division of responsibilities at the supplier regarding social responsibility in the supply chain•Requirements on subcontractors in terms of social responsibility•Procedures for risk assessment in supply chain•Procedures for monitoring and verification of compliance •Procedure for handling non-compliance

The supplier is additionally obligated to make it possible for the purchaser, either

in person or by a representative, to conduct inspections at the premises of the

supplier and/or any of the supplier’s subcontractors in order to ensure that the

requirements of § 1 are being fulfilled.

Special contract terms for environmental demands

23-05-01 Stockholm County Council 9

The supplier must have procedures in order to ensure:

•Compliance with national legislation concerning the environment, safety and health•Monitoring and control of discharge/emissions (incl. API) to the ground, water and air from the production unit •That continuous dialogue is held with suppliers regarding their control of chemical discharges to land, water and air

Our way - Five steps to sustainable procurement

1. Code of Conduct

2. Contract Clauses

3. Desktop Follow-up

5. Corrective Action Plan

4. Audit

Swedish healthcare causing environmental and social harm in other countries

The challenges for sustainable public procurement

The challenges for sustainable public procurement

Stakeholder dialogue

Long-term vision & coherence

Internal coordination of activities

Strategy: vision- goal- criteria

Establishment of permanent platform for stakeholder dialogue to ensure accurate, relevant & realistic criteria(industry, international organizations, NGO’s)

Purpose of SPP Vision

Goals

Criteria

Follow-up

Based on risk assessment for

each product category

Communication

Coordination

Strategy for (how?)…

Communication

INTERNAL EXTERNAL

Strategy: Model and tools for follow-up

In dialogue with contracting party

Online tool to facilitate interaction & continuous improvements

Online tool to facilitate document review & risk assessment Desktop audit

On-site audit

Continuous Improvement Plan

Choice of site-Country risk

-Product/chain risk-Supplier risk (strength of risk management

systems of contracting party)

CriteriaCoordination/harmonization Establishment of permanent platform for stakeholder dialogue

Protocols for defecting scenarios

Capacity-building

INTERNAL EXTERNAL

Sharing of audit reports

Next steps…

Pre-requisites for successful SPP•Internal capacity-building•Internal resources•Transparency of industry & information accessibility•Clear legal framework

Next steps•Communicate goals and purpose of sustainable public procurement •Develop clear and shared criteria for SPP of pharmaceuticals •Platform for stakeholder dialogue and development •Online-tool for follow- up •Develop protocols for defecting scenarios •Internal and external capacity-building•Investigate the legal regulations regarding transparency & documentation •Clearly define and communicate the legal framework for sustainable procurement to procurers and practitioners

Public Procurement can make a difference!

Karin LonaeusSustainability Strategist

karin.lonaeus@sll.seMob. +46 70 737 58 93