The roles of procurement and operations in achieving the SOGE targets John Cole – Defra

1. Procurement and Operations Practitioner’s Forum – Energy 7th March Manchester Civil Justice Centre The roles of procurement and operations in achieving the SOGE targets John Cole – Defra Richard Fountain – DWP

2. The task ahead… • What are we trying to achieve? • SOGE targets & mandates; • Policy initiatives; • Support available; • Case studies; • The task today.

3. What are we trying to achieve? • Ambition to be recognised among the EU leaders in Sustainable Procurement by 2009; • A low-carbon more resource efficient public sector; • Government Departments visibly ‘walking the talk’; • Ensure public sector purchasing power is used to achieve market transformation, c. £130B, 10% GDP! • Deliver SOGE targets & mandates. UK Government Sustainable Procurement Action Plan designed to support delivery of these goals underpinned by Local Gov. Sustainable Procurement Action Plan Health Sustainable Procurement Action Plan Energy White Paper 2007 Waste Strategy 2007 Sustainable Products and Materials Strategy HMT Transforming Government Procurement Water Strategy 2008

4. SOGE office carbon reduction targets • The Targets • To reduce carbon emissions from offices by 12.5% by 2010-11, relative to 1999/2000 levels; • To reduce carbon emissions from offices by 30% by 2020, relative to 1999/2000 levels. • How are we doing? • 631,000 tonnes carbon (2.3 million tonnes CO2). MOD accounts for 72%; • Some progress; 4% reduction against 1999/2000 baseline; • 22% increase without MOD; • Off-track; SDC: “Carbon and energy continue to be poor performing target areas for most departments”.

5. 72% of Government office Estate emissions come from the MoD 20% per cent of Government office Estate emissions come from DWP, HMRC & DCA combined 15 departments with the lowest emissions account for 8% of the total each less than 1.5% of total Reduction required between 2007/08 and 2010/11 to meet carbon emissions target 2010/11 (ranked by scale of emissions from left to right) The three main carbon emitting civil departments require a reduction of between 25% to 30% to meet target; Government Office estate as a whole requires an 8% reduction to meet target. Source: provisional 2006/07 data for the office estate, BRE. Weather-adjusted. Includes illustrative baseline adjustment for transfer of magistrates’ courts to DCA. Excludes MoD PJHQ. Lead departments shown by bold outline.

6. SOGE energy efficiency targets • The Targets • To increase energy efficiency per m² by 15% by 2010, relative to 1999/2000 levels; • To increase energy efficiency per m² by 30% by 2020, relative to 1999/2000 levels. • How are we doing? • Excellent progress; • Over 21% improvement against 1999/2000 baseline; • Overall energy efficiency for the civil estate without MOD over 3% increase in energy use per m2.

7. Existing renewables targets The Targets To source at least 10% of electricity from renewables (31 March 2008); To source at least 15% of electricity from Combined Heat and Power (2010). How are we doing? • Renewables good progress: Current data from departments indicates 28% of electricity consumed in 06/07 was provided from renewable sources. • CHP some progress: 5.7 % of electricity sourced from Combined Heat and Power.

8. SOGE carbon neutrality target • The Target • Central Government’s office estate to be carbon neutral by 2012 • How are we doing? • Will not be reported on until 2012; • Departmental focus should remain on carbon reduction targets; • SDC recommend Government produce guidance to help Departments comply – this is now happening, Defra leading, with a first draft to be sent to OGD’s for comment by end of March.

9. 7TH SDiG Report 18 March & the Government Response Cabinet Secretary Sir Gus O’Donnell has set up a working group of senior officials to examine how performance against the Sustainable Operations Government Estate’s (SOGE) target can be improved. This group will report shortly and is currently looking to propose a much stronger role for the Office of Government Commerce - making them accountable for the delivery of the SOGE targets.

10. Major Policy initiatives Climate Change Bill puts into statute the UK’s targets to reduce carbon dioxide emissions through domestic and international action by 60% by 2050 and 26-32% by 2020, against a 1990 baseline. Binding public sector targets are likely to be established. Energy End Use and Energy Services Directive Article 5 requires the public sector to fulfil an exemplary role in the context of the Directive. It must introduce cost effective energy efficiency measures focusing on the greatest improvements in the shortest time e.g. reporting on energy efficiency goods. Display Energy Certificates (DECs) will be required in most public buildings to show the actual energy usage of a building. Carbon Reduction Commitment (CRC) is a domestic cap and trade scheme requiring the up front purchase of emission allowances, with revenues recycled back to particpiants depending on position in a league table. Will appy to Departments.

11. Other initiatives which will improve carbon performance • Estate rationalisation; • Construction etc. BREEAM, CLG Strategy; • Minimum standards for products (“quick wins”) aka “Buy sustainable”; • CO Green IT Summer 2008; • Calculating carbon footprints to identify emissions & prioritise actions; • OGC Projects – xGovernment Collaborative Procurement: ICT, energy & metering (AMR); • Forward Commitment Programme for ultra low energy office lighting using LEDs.

12. What support is available? • Carbon Trust Carbon Management Programme; • Salix Finance interest free loans; • Low Carbon Buildings Programme; • Bio-energy capital grants; • Proposed Centre of Excellence for Sustainable Procurement (& Ops); • Carbon Trust Guidance (existing and new) & SOGE Target Explanatory note.

13. There are many success stories in need of further promotion… • DWP estimating10% energy reduction in 07/08; • Alnwick ‘carbon-neutral’ Government office; • Defra use of voltage optimisation technology reducing electricity use by 15%; • Installation of photo-voltaics and LEDs in BERR premises; Defra’s office in Alnwick, Northumberland, which will replace its existing Lion House offices. A carbon neutral building with a BREEAM Excellent rating. • And many more examples from across public sector…

14. …Procurement Cupboard • Material now uploaded from CO, CPS, Defra, DWP, MOD, DCMS, DCLG and LG; • Practitioner’ Forum material – Proposed EMS National Conference Thursday 10th July 2008; • Presentations, Green Pages, Contact list, ToRs etc http://www.procurementcupboard.org/

15. Buy Sustainable – the new “Quick Wins” • “Quick Wins” currently comprise the minimum environmental specifications for a wide range of 54 commonly purchased products. Originally based on energy using products – they were expanded to include products such as paper and clothing • Poor awareness and accessibility have meant that many procurers are unaware and not using these specifications even though they are mandatory • We are reviewing and updating the list to ensure that product specifications are at the market average for that particular products. All minimum specifications are based on robust evidence as compiled by the Market Transformation Programme and in many cases include a market evaluation.

16. Log into the Procurement Cupboard and send your comments please… • Buy Sustainable aims to introduce best practice specifications that are more stretching than the minimum for those that wish to purchase the “best in class” products in a certain area. These will eventually become the minimum over different time period depending on the product or product group. • We’d like to pilot the new approach with you. Please give as much feedback as possible: • What do you think of the specifications? • Can you understand the language? Is it too technical? • How accessible is the format? • How should products be organised – i.e. categories – if so which ones? • Where would you expect the document to be hosted? Kay.Williams@defra.gsi.gov.uk

17. Task for today • Bring together procurement and operations (with common aim of meeting SOGE targets); • Practical - not theoretical; • Explore how can work together to reduce carbon; • Facilitated discussion; • Identify new ideas, and re-invigorate some old ones; • Consider priorities; • Develop initial ideas for implementation of priorities.