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Sustainable, Environmental & Ethical Procurement Policy (SEEPP). I Contact 3-1-1. Agenda. Introduction Corporate Directive Council Priorities Business Values Policy Supplier Code of Conduct Project Implementation Some Lessons Learned Why?. Introduction.
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Sustainable, Environmental & Ethical Procurement Policy (SEEPP) I Contact 3-1-1
Agenda • Introduction • Corporate Directive • Council Priorities • Business Values • Policy • Supplier Code of Conduct • Project • Implementation • Some Lessons Learned • Why?
Introduction • Population 956,000 people (2005) • Size 746 square kilometers • Structure Council: Mayor and 14 Aldermen City Manager, 7 departments & Police • 2006-08 Budgets $6.0 billion operating $3.7 billion capital • Employees (2006) 13,000 • Business units 28 • City Services 500+ • Challenges Resources, rapid growth, funding Transit – Bus & LRV Emergency Services Fire, Police, EMS Water Services Transportation Roads Corporate Properties Information Technology
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.
Council Priorities • Building a great city • Improving mobility • Enhancing, protecting and respecting our environment • Delivering accessible City services • Strengthening Calgary’s voice
Business Values • Triple Bottom Line (2005) Council and staff will consider and address social, economic, environmental and smart growth impacts in all City business. • Environmental Policy (2001) • Eco Footprint Reduction (2005) • Green Procurement Policy (2002) • ISO 14000 Certification • ImagineCalgary – one hundred year vision
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
Project 2006 Develop 2007 Implement 2008 Sustain
Project Resources Project Team – 6 members • Procurement, Environmental Management, Social Planning, Communications, Engagement • Consultant • Advisory Committee Estimated man hours – 1200 Funding • Develop – 2006 $250,000 • Implement – 2007 $100,000 • Sustain – 2008 $125,000 (includes 1 FTE)
Project Plan • Secure resources • Research (2005) • Situational analysis • Third party validation • Laws and legislation • Risk assessment • Stakeholder engagement • Policy and supplier code development • Communication & training plan • Report for Council approval – Jan 2007
Engagement Strategy • Internal stakeholders – 24 • External stakeholders • Interest groups • Resource groups • Municipalities • Governments • Private companies • Research support • First Sessions – issues and recommendations • Second session – document review and comments
Analysis Corporate 2006 Spend – Approx. $946 million
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
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.
Understanding Impacts Potential fall out • Stop buying products • Cost reduction initiatives • Increase Environmental and Ethical requirements Comparatives • City of Vancouver • 2010 Olympic Committee • City of Toronto • City of Ottawa • U.S. Municipalities • Universities • GAP, Nike, Mountain Equipment Co-op • Third Party validation
Key Decisions • Control scope • Protect worker welfare • Protect environment • Encourage supplier compliance • Engage stakeholders • Listen and Learn • 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 • Process and Implementation Tool Box • Contract terms - Evaluation process • Complaint process - Supplier Certification • Validation resources - Activities tracking database • Stakeholder Engagement Strategy • Cost analysis – market test • Municipal Scan • Communication and Training Programs • Performance Measurement • Policy review and Reporting • Report to Standing Policy Committee – March 2008
Some Lessons Learned • Ethical issues have many perspectives • Stakeholder engagement must be closely managed to maintain support • Manage project messages • Cost impacts can be difficult to track • Policy and SCC must be flexible to allow for change • Walk the talk • Manage the scope • We will all face similar issues
Why? A better world for our children