June 2010

1. + First Steps in Sustainable Procurement EAUC CPD Michelle Dixon – Director June 2010

2. + Workshop Objectives + To gain an understanding of what sustainable procurement is and why it is important. + To help organisations achieve Levels 1&2 of the Flexible Framework and consider the wider agenda + To introduce tools and guidance to help you implement sustainable procurement

3. + Recap on sustainable procurement principles Minimising environmental and social impacts of purchases in balance with economic factors “Procurement to support wider economic, social and environmental objectives in ways that offer real long-term value”.UK Government Sustainable ProcurementTask force

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7. + Hidden costs • 240 kg (530 pounds) of fossil fuels • 22 kg (48 pounds) of chemicals • 1.5 tonnes of water • 60kg waste • 81% of the energy consumed during a computer’s life cycle is during production http://www.it-environment.org/

8. + Our society must adapt!

9. + Strategies and Targets “ A university’s procurement policy is one of its strongest ways of supporting sustainability” 2006 Sustainable Development Guidance “There are a number of ways in which sustainable procurement can lead to better environmental performance without increased cost – and in many cases create actual cost savings” “The UK should be a leader in sustainable public procurement in the EU by 2009 The Flexible Framework - Level 3 with area in level 5 by 2009

10. + Strategies and targets 50 % Green public procurement (GPP) to by 2010 Low carbon procurement a priority for delivering low carbon economic activity For English Universities: Scope 3 emissions baseline for HE by 2012, emissions reduction target by 2013

11. + Strategies and targets 80% of universities and colleges in Scotland have signed up - a 5-year Climate Change Action Plan, emissions reduction targets including sustainable procurement. Most Universities will have to buy carbon allowances and will be rewarded and penalised on performance. “All new non-domestic buildings should be zero carbon from 2019, with the public sector leading the way from 2018.”

12. + Sector Response EAUC Sustainable Procurement Project and EAUC CPD Training Build capacity , influence supply chains; address process issues; develop measurement and monitoring tools Sustainable Procurement Category Promoting Poverty Aware Procurement on Campus: Commodity information sheets, guidelines, videos, podcasts

13. + Sector Progress Sustainable Procurement Centre of Excellence Survey 130 Universities in UK 45% response rate Only English Universities responded

14. + Sector Progress

15. + Sector Progress

16. + Sector Progress

17. + Sector Progress

18. + Sector Progress

19. + Sector Progress

20. + Sector Progress

21. + Recent developments: Carbon Reduction Target and Strategy, England • Current target and strategy: • Outlines the carbon management plan requirement • Sets a sector wide carbon reduction target • Scope 1 and 2 emission targets required – result from energy use • Procurement target expected for 2013: • Possible links with capital funding • Sustainable procurement programmes will need to be in place – training, policy and strategy, formulated management actions, supplier engagement, KPI’s

22. + Legislation is emerging! Article 5 of the EU Energy Services Directive, May 2008 Requires the public sector to take an exemplary role and undertake two measures from a ‘shopping list’ of six including: (b) requirements to purchase equipment and vehicles based on lists of energy-efficient product specifications of different categories of equipment and vehicles (c) requirements to purchase equipment that has efficient energy consumption in all modes, including in standby mode(d) requirements to replace or retrofit existing equipment and vehicles with the equipment listed in points (b) and (c);

23. + Recent developments: BS8903 • First detailed guidance for implementing sustainability procurement programmes • Links directly to the Flexible Framework • Overcomes some interpretation issues with the Flexible Framework • Provides more in-depth guidance on basic and advanced principles with case studies • Assists with implementation of the Flexible Framework at more advanced levels

24. + Recent developments: BS8903

25. + The Flexible Framework – Building Blocks for Progress + Building blocks for progress – key behavioural and operational change programmes, the facets of good procurement across 5 levels People Policy, Strategy & Communications Procurement Process Engaging Suppliers Measurement & Results.

26. + The Flexible Framework – Building Blocks for Progress Where should we be? + Level One on their Flexible Framework by April 2007 + Level Three by April 2009, for the 2009 goal to be met. + Progress must extend beyond this

27. + Tips on getting started with the Flexible Framework + A ‘Flexible Framework’ – means of implementation not set in stone. + Interpretation and application to HE institutions required. + Don’t go it alone - make use of existing sector best practice, related guidance and tools. + Keep it simple! + Refer to BS8903 Build your own action plan! - You will be given a framework action plan including notes on group discussions from today

28. + Your roadmap through the Flexible Framework + Do not think of it as a linear action plan + Go straight to level two or three in some areas? + Complete several related or overlapping tasks at the same time. + Which tasks should be completed first? Road map exercise- create a action flow chart for the flexible framework requirements, Levels 1&2, taking into consideration the these points

29. + Identify sustainable procurement champions and key procurement staff People – Level 1 What are the roles and responsibilities of a sustainable procurement champion? Who are the best people in your organisation to act as sustainable procurement champions? Who else will play a key role in sustainable procurement?

30. + Staff training People Level 1 • + Suggestion - undertake this after you have identified impacts of procurement and produced a policy. • + Basic training and induction - use some of the introductory slides • What is sustainable procurement • Why does it matter • What are the social and environmental impacts of purchasing • Introduction to the Flexible Framework • + Also look at • Identifying need • University policy Forum for the Future, Sustainable Procurement tool. Demand Review. Tool available on request http://www.forumforthefuture.org/node/1407

31. + Staff training People Level 1 • + Suggestion - undertake this after you have identified impacts of procurement and produced a policy. • + Basic training and induction - use some of the introductory slides • What is sustainable procurement • Why does it matter • What are the social and environmental impacts of purchasing • Introduction to the Flexible Framework • + Also look at • Identifying need • University policy Forum for the Future, Sustainable Procurement tool. Demand Review. Tool available on request http://www.forumforthefuture.org/node/1407

32. + Staff training People Level 2 • + Advanced training for key procurement staff • Sustainability questions to ask at pqq stage • Integrating sustainability into contract specification • Applying and awarding sustainability criteria • Whole Life Costing • Contract management • Monitoring procurement activity EAUC Train the Trainer, http://www.eauc.org.uk/training_materials

33. + Policy EAUC, Developing a Sustainable Procurement Policy: http://www.eauc.org.uk/training_materials Policy, Strategy and Communications – Levels 1 and 2 Produce a comprehensive Policy and go straight to Level 2. What makes a good Policy? + Clear commitment communicated + Endorsed by senior management + Communicates intentions to a range of stakeholders – who is the audience? + Undergone consultation process – suppliers and staff + Links to key procurement sustainability impacts and procurement process + Regularly reviewed Review the example policies in your groups. Make a note of their strengths and weaknesses and produce an outline policy.

34. + Senior Management Endorsement Level 1 - Policy, Strategy and Communications Support and endorsement of your Policy and future related activities is perhaps the most crucial element of the programme. You need more than just a signature on your Policy. What else should you be asking for? You need to present a business case to your senior managers and get them to buy in to sustainable procurement – one page briefing and a presentation.

35. + The Business Case Level 1 - Policy, Strategy and Communications • Make your case by explaining the drivers for sustainable procurement in your organisation: • Compliance with legislation (specifically duty of care in the supply chain) • Cost reduction • Corporate Social Responsibility • Marketing and awards • Internal Policy commitments • External Policy and Strategy • The Sector response and a case study EAUC, Train the Trainer – Business Case http://www.eauc.org.uk/tools_resources

36. + Making links with the wider sustainable development strategy Level 2 - Policy, Strategy and Communications • Aim to embed sustainable procurement into the wider sustainability agenda: • Environmental Management Systems • Carbon Management Plans • Corporate Social Responsibility • Construction plans

37. + Communication Level 1-2 Policy, Strategy and Communications, Level 1 Suppliers • + A planned approach is necessary in planning communication activities with staff, students and suppliers • + How we behave is determined by many factors • + Information provision alone does not facilitate lasting change • + The Behaviour Change Diamond

38. + What behaviour change initiatives could be applied to Sustainable Procurement in FHE? UK Sustainable Development Strategy

39. + Key impacts of procurement activity Level 1 – Procurement process, Measurement and Results Think about impacts throughout the life cycle of a product. Aim to reduce these impacts through the tender process and ongoing supplier engagement.

40. + Key impacts of paper use Is anything missing here? GPP Product Sheet http://ec.europa.eu/environment/gpp/toolkit_en.htm

41. + Quick Wins Level 1 Procurement Process • + Identify a list of products/contracts that are commonly purchased and that have the potential to make good best practice projects. • + Refer to DEFRA’s quick win list 2007. A set of sustainability specification is provided on a range of products chosen for • Environmental Impacts • Financial Impact • Political/example setting function • + Also refer to The Buying Solutions Greenticks initiative

42. + University of Hertfordshire’s quick win’s Level 1 Procurement Process • Recycled paper • Purchase of renewable energy • Biodegradable catering disposables • e-procurement • Sustainable building materials • Fairtrade products and vending • Green stationary contract • Energy efficient computers

43. + Prioritisation and risk Level 1-2 Procurement Process, Level 1 Engaging suppliers, • + You need to assess the impact of your contracts in order to prioritise your efforts. • + Combine the expenditure and impact assessment to build a contract risk database • + Factors that should be considered: • Level of sustainability risk i.e legislation, pollution, climate change, social • Level of expenditure – per commodity and contract • + Also consider contract renewal activity – highlight contracts up for renewal in the next 12 months

44. + Assessing impacts Level 1 Engaging suppliers, Level 2 Procurement Process

45. Impact

46. + Risk assessment exercise Level 1-2 Procurement Process, Level 1 Engaging suppliers Start by assessing the risk of commodity groups. If the risk and expenditure of a commodity group is high also assess the expenditure only of each category. 1) Define high, medium and low impact criteria. Think about legislation, pollution, climate change, social issues. E.g: High - Legislation applicable, extensive natural resources use/ pollution/ transportation/ threat to habitats/human rights issues Med – No applicable legislation but some natural resources use/ pollution/ transportation/ threat to habitats/human rights issues 2) Assign high medium and low to expenditure category – categories suggested 3) Highlight contracts that are high risk, expenditure and that are alerted for renewal in the next 12 months

47. + Durham University’s High Risk Contracts • Hazardous waste; • Skip hire; • Asbestos Consultancy; • Uniforms; • Facilities Management; • Waste; • Food; • Car Rental; • Pest Control.

48. + Applying criteria Level 1 Procurement Process • Sustainability criteria can be awarded in the same way as any other technical specification. • Define the subject matter of a contract in relation to environmental issues. • You can: • Take production methods into account • Exclude any bidders that have been prosecuted under any environmental laws • You must: state the award of criteria on sustainability issues in the tender documents • You must not: act unfairly, including giving preference to a company that had a specific eco-label or EMS (this can however be evidence)

49. “Contract for catering services which supply organic food” “Contract for catering services which supply local produce” “Tender for Energy Star certified computers and laptops” “Tender for energy efficient computers and laptops” + Subject Matter: Examples Applying criteria GPP Toolkit: Legal Module

50. + Technical specification Technical Specifications: Examples “Certified Blue Angel paper” “Containing at least 80% of post-consumer waste content” “Totally chlorine free (TCF) paper” “Durability>100 years, according to ISO 9706 or DIN 6738” GPP Toolkit: Legal Module