The Sustainable Purchasing and Supply Summit (UK)

1. The Sustainable Purchasing and Supply Summit (UK) November 2012

2. The Sustainable Purchasing and Supply Summit (UK) QEII Conference Centre, London, on the 26th of April 2012 Conference topics included: • A Balanced Approach to Sustainable Purchasing(Identifying & Refining the Right Objectives for your Organisation). • Turning Talk into Action (Embedding Sustainability within Core Purchasing Processes). • Supplier Engagement & Change Management (Engaging Suppliers & Other Stakeholders to Maximise Value). • Quantifying Direct & Indirect Impacts (Creating Effective Measurement, Benchmarking & Reporting Systems). • Realising the Extended Benefits (Understanding & Capitalising on Non-Financial Benefits).

3. The Sustainable Purchasing and Supply Summit (UK) The theme and purpose of the Sustainable Purchasing and Supply Summit was to explore key aspects of formulating and implementing effective strategies within the Procurement Function. Presenters were from leading global organisations such as: • Price Waterhouse Coopers • TNT Express • Tesco • UK Department of Health • Thames Water Managed Procurement Service • Marks and Spencer • Director – Centre for Corporate Responsibility, Cranfield University • Centrica • Astra Zeneca

4. The Sustainable Purchasing and Supply Summit (UK) The speakers varied in their approach to Sustainable Procurement in that each particular Business/Industry had its own set of requirements/parameters to work within which resulted in different approaches, for example: • Astra Zeneca had reduced its carbon footprint by shipping the majority of its products by sea as opposed to air freight • TNT Express rationalised its product portfolio i.e. standardised the packages options globally so that the number of SKU’s was reduced by 60% this in turn reduced the carbon footprint and increased revenue by this very simple approach although I hasten to add that this could not have been achieved unless there was a collaborative approach on a global level • Tesco have an ambitious goal of becoming carbon neutral within the next five years this they believe is achievable by building carbon neutral stores, changing the method of deliveries to their stores (i.e. utilising rail where possible as this in itself reduces the carbon footprint by a minimum of 60%) and recycling only and having no waste. Tesco’s ethos is to only procure ethically produced goods for example Tuna is sourced from companies that are using “pole” fishing and not commercial netting.

5. The Sustainable Purchasing and Supply Summit (UK) • All of the presenters backed up their Sustainable Procurement Programs by having a robust auditing system that required all of their suppliers (with the exception of a value under $16,000.00 per annum even these were randomly audited) to have documented evidence of their SOP’s to ensure that sustainable procurement practices and fair trade practices were being adhered to. • As such the prerequisite of sustainable/fair trade practices was a key element of ALL contracts that were entered into and as such is a major part of the Service Level Agreement contained within the contracts/agreements.

6. Embedding Sustainability within the core Procurement Process. Six conference speakers presented integrated automated systems which captured all carbon and energy consumption. • There were six conference speakers that presented various integrated automated systems so as to enable the capture of all carbon and energy consumption within an organisation. The topics covered varied depending on the individual company offerings however there were relevant common points raised and these were: • Sustainable product compliance/adherence/labelling IS a strategically important selling tool for all industries. • Truly sustainable procurement can be a very big pill to swallow. • Potential conflict between sustainability teams and purchasing. • Explosion of environmental and social risks. • Multiplicity of regulations (depending on country, region).

7. Conclusion The conference highlighted a number of areas that we as an organisation have to address in relation to Sustainable Procurement i.e. when the carbon tax becomes effective we will have to account for our carbon emissions as such this will impact on all areas of our business (especially budgeting). This in turn will require a “change management” process within UWS so as to capture and manage same.

8. Supplementary Information of Interest • Whilst in London I met with Andy Davies (Director of the LUPC) and Laura Compton (Head of membership) from the London Universities Purchasing Consortium. • One of the most interesting aspects was to learn that only approx 20% of the LUPC’s members utilise any form of electronic procurement practices.

9. Supplementary Information of Interest PURCHASING CONSORTIUM SOUTH AFRICA “PURCO” • In May and June 2010 the Global University Network for Innovation (GUNi), the International Association of Universities and the Association of African Universities jointly carried out a survey of higher education institutions in Sub-Saharan Africa. This was to determine what contribution the various institutions were making towards sustainable development. • This survey covered 73 higher education institutions in Sub-Saharan Africa. • However this by means could be regarded as comprehensive, and there is clearly a need for a more in-depth study. Nevertheless, it does give an indication of sustainability practices in African universities • The survey seems to indicate that private higher education institutions are not currently committed to promoting sustainable development and yet private higher education represents a large and rapidly growing sector in Africa.

10. Supplementary Information of Interest • Overall, there is some leadership commitment to sustainable development in African higher education institutions. • However, much more needs to be done. • There is a need to create a database of positive experiences and practices on sustainable development in African universities so that these can be shared by institutions across the continent. • More than half of the respondents are addressing sustainable development issues in a variety of ways through their teaching, research, outreach functions and operations. • The main barriers identified by the institutions in fully engaging in sustainability are lack of funds, lack of human resources, lack of awareness about sustainable development, and inadequate institutional policy on sustainable development.