Route 3 Sustainability Test

1. Route 3 Sustainability Test You can use this test to identify and prioritise the opportunities to address sustainability through your procurement. The key stages within the procurement process that relate to Sustainability are:

2. Using the Test • The sustainability test is in two parts: • Initial Options Analysis tables where your initial analysis of the options to address economic, social and environmental aspects through your procurement should be recorded • Sustainable Opportunities slide where details of which of the opportunities that were identified during the initial options analysis can feasibly be addressed through your procurement should be recorded. The Sustainable Opportunities slide should be included in the commodity strategy.

3. Initial Options Analysis Tables • The social, environmental and economic aspects tables should be used to identify opportunities to address sustainability through your procurement. This initial analysis of all options will inform the sustainable opportunities slide for inclusion within the commodity strategy. • In the Aspect column, click on the links for guidance and examples of sustainable procurement good practice • In the Opportunity column, insert details of the opportunities that exist to deliver positive sustainable outcomes through your procurement for each Aspect • In the Impact column, summarise any impacts these opportunities will have on the delivery of the organisations objectives or the delivery of the contract. You should arrange these impacts by order of priority, from highest to lowest impact • In the Recommendation column, if possible, provide details of what actions should be taken to address the opportunity through your procurement

4. Sustainable Opportunities Slide Details of the opportunities that were identified during the initial options analysis that can feasibly be addressed through your procurement and recommendations for how they are to be addressed should be included here. It is highly unlikely that you will be able to address every aspect of sustainability through every procurement. You should try to prioritise delivering those opportunities that have the highest positive impact on your organisation’s sustainable procurement objectives. You should also record details of how you propose to implement the recommendations to address each opportunity. Once completed, the sustainable opportunities slide can then be inserted into your commodity strategy in the appropriate place.

5. Managing Sustainability The requirements that you placed on contractors and their sub-contractors should be monitored once the contract is awarded through Contract & Supplier Management. Care should be taken to make sure the monitoring process does not place excessive burdens on contractors which could be a barrier to their participation in the competitive process. The balanced scorecard is a useful tool for ensuring that contract performance is consistent with the pre-determined measurements. Performance Review Meetings are an important part of the Contract & Supplier Management process. The meetings provide the Contract Manager and the Contractor with an opportunity to focus on what is going well, identify any problems at an early stage and agree opportunities for improvement and innovation.

6. Social Considerations • Promotion of: • Youth employment & older workers • Gender balance • Employment of persons from minority groups • Job skill development programmes • Inclusive and accessible work environments Employment Opportunities • Promotion of: • Access to training • Gender equality • Access to basic social protection • Diversity • Health and safety throughout the supply chain, including sub-contractors Equality & Human Rights • Promotion of: • Equal access to procurement opportunities of firms owned by/employing persons from ethnic/minority groups • Access to employment for persons with special needs to enhance their employability to secure decent work language/cultural skills & knowledge • Language/cultural skills & knowledge e.g. making information available in other languages, reflecting different cultural requirements in service provision • Documents written in simple language which is easy to understand • Use of reserved contracts to restrict the tendering process to supported businesses only Social Inclusion Accessibility & Design for All • Promotion of: • Mandatory requirements in technical specifications to ensure access by persons with disabilities

7. Examples of Procurement Activities with a Positive Social Impact

8. Environmental Considerations • Reduction in: • Emissions to air • Emissions to water • Impact on Climate Change • Impact on population’s health Emissions • Reduction in: • Solid waste • Liquid wastes • Hazardous wastes • Packaging • Landfill Waste Raw Materials • Promotion of: • Sustainable resources • Reduction in: • Energy use • Business travel • Promotion of: • Energy efficient products; • Renewable energy Energy Usage Habitat • Reduction in: • Impact on habitat • Loss of biodiversity

9. Environmental Purchasing Hierarchy Re-think e.g. service instead of product Eliminate e.g. hazardous material content Reduce e.g. emissions produced Re-use e.g. packaging Recycle e.g. paper, glass Dispose e.g. minimise quantities and therefore cost

10. Examples of Procurement Activities with a Positive Environmental Impact

11. Economic Considerations Supplier Diversity • Reducing the cost/burden of participation by: • Ensuring the requirements in the pre-qualification documents and tender documents are proportionate to the value and complexity of the contract • Using plain English and avoiding the use of jargon in documentation • Considering the use of lotting strategies • Enabling greater access for all suppliers by: • Engaging early with suppliers to advise of forthcoming opportunities • Advertising the requirement in easily accessible places e.g. Public Contracts Scotland • Ensuring sub-contracting opportunities are visible • Ensuring equal terms for sub-contractors • Encouraging supply base collaboration • Supporting suppliers’ competitiveness by considering: • Contract terms & conditions • Payment terms, including terms relating to payment to sub-contractors • Using output based specifications so the supplier can define the solution to your requirement Competitiveness • Providing economic benefits to the community by: • Using community benefit clauses • Using collaboration with other buying organisations to reduce cost disparities • Whole life costing to identify the most economic solution

12. Examples of Procurement Activities with a Positive Economic Impact