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Sustainable, Environmental & Ethical Procurement Policy (SEEPP). Purchasing Logistics Network Inc. Agenda. Introduction Corporate Directive Policy Supplier Code of Conduct Business Values Project Implementation Next Steps Why?. Corporate Directive.
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Sustainable, Environmental & Ethical Procurement Policy (SEEPP) Purchasing Logistics Network Inc.
Agenda • Introduction • Corporate Directive • Policy • Supplier Code of Conduct • Business Values • Project • Implementation • Next Steps • Why?
Corporate Directive • 2004 Council directive to report on policy development and engagement strategy • 2005 Council directive to proceed with plan to develop, implement and sustain an Environmental and Ethical procurement policy • 2007 Council approval of SEEPP in principle on pilot implementation basis on apparel, food, and chemicals in 2007 • 2008 Council approved SEEPP and its continued implementation to all products and services.
Policy Purpose: • Develop a supplier community that exhibits leadership in CSR • Embed Environmental, Ethical and Economic performance in all supply chains • Support products and services that enhance and protect environment workers and value. • Advance a corporate culture at the City that recognizes and places a priority on sustainability
Policy Principles: • Legal compliance • Promote the use of sustainable products and services • Work cooperatively • Accountability • Transparency • Recognizing excellence • Total cost management • Continual improvement
Policy • Scope - applies to all goods and services • Encourages supplier excellence • Procedure - Responsibilities • Finance Supply, Environmental Management & Community and Neighborhood Services • City of Calgary business units • Exemptions - performance at a commercially competitive cost • Scope of pilot – apparel, food, chemicals, janitorial
Supplier Code • Compliance requirements • Minimum performance standards • Working conditions • Human rights • Health and Safety • Environment • Compliance and implementation • If Canada – local laws apply • If outside Canada – national or international laws (ILO), whichever is higher. • Supplier responsible for validation • Supplier Code is a procedural document
Supplier Code Welfare of workers: • Working Conditions • Child labour • Forced labour • Hours of work • Remuneration • Human rights • Freedom of association • Discrimination • Health and Safety
Supplier Code Welfare of the Environment: • Permits and reporting • Pollution prevention & resource reduction • Hazardous substances • Wastewater & solid waste • Air emissions • Product content restrictions
Business Values Council Priorities • Building a great city • Improving mobility • Enhancing, protecting and respecting our environment • Delivering accessible City services • Strengthening Calgary’s voice
Business Values • Environmental Policy (2001) • Green Procurement Policy (2002) • Triple Bottom Line (2005) Council and staff will consider and address social, economic, environmental and smart growth impacts in all City business. • Eco Footprint Reduction (2005) • ISO 14000 Certification • ImagineCalgary – one hundred year vision
Spend Analysis Corporate 2007 Spend – Approx. $1.2 billion
Social Impacts Child Labour International Labor Organization (ILO) has estimated that 250 million children between the ages of five and fourteen work in developing countries Poverty World Bank estimates that today, 1/5th of human beings live under the international poverty line
Social Impacts Working Conditions • Sweatshop - a manufacturing facility that is physically or mentally abusive, or that crowds, confines, or compels workers, or forces them to work long and unreasonable hours, and very little or no pay.
Environmental Impacts • Over 360 chemical compounds that have been identified in the Great Lakes. • Close to eight per cent of all non-traumatic mortality in Canadian cities is attributable to air pollution. Government of Canada
Environmental Impacts Life Cycle Management • Where does our waste go?
Calgary Ecological Impacts • Calgary’s current Footprint is 9.86 gha per capita. The earth can sustain 1.9 gha per capita. • If people around the world had Calgary’s Ecological Footprint, it would take five earth-sized planets to support all of us.
Comparatives • City of Vancouver • 2010 Olympic Committee • City of Toronto • City of Ottawa • U.S. Municipalities • Universities • GAP, Nike, Mountain Equipment Co-op • Shell • Nexen
Engagement Strategy • Internal stakeholders – 24 • External stakeholders • Interest groups • Resource groups • Municipalities • Governments • Private companies • City suppliers
Key Decisions Policy Development (2006) • Control scope • Encourage supplier excellence • Engage stakeholders – control statements • Policy and Supplier Code of Conduct approach • Suppliers responsible for validation • Apply to subcontractors as required • Pilot implementation to understand impacts • Disclosure of factory locations • Living Wage
Implementation (2007) • Process and Implementation Tool Box • Contract terms - Evaluation process • Complaint process - Supplier Pre-qualification • Validation resources - Activities tracking database • Stakeholder Engagement Strategy • Pilot Implementation – Food, Apparel, Chemicals, Custodial Care • Research • Municipal Scan - Supplier Interviews • Supplier Survey • Communication • Report to Standing Policy Committee – March 2008 – Policy approved
Next Steps • Finalize and implement processes • Secure validation resources • Set performance targets • Communications – Raise Awareness • Training Programs • Supply staff • Suppliers • City staff • Educate Civic Partners • Apply SEEPP to additional purchase groups • Report to SPC January 2009
Why? A better world for our children