Environmental Purchasing: Within the Rules

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Environmental Purchasing Within the Rules!

• Gordon Murray
• IPF Procurement Adviser

2
Green Purchasing options

• Use less
• Green specifications
• Product design process (LCA)
• Supplier Development
• Supplier process improvement (EMS)
• Supplier evaluation
• Tender evaluation (WLC)
• Transaction processes

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Where should attention be focused?
Environmental Risk
Profile Risk
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Environmental Purchasing Strategies
Priority 2
Priority 1
Environmental Risk
Priority 4
Priority 3
Profile Risk
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Environmental Purchasing Strategies
Priority 1
Priority 2
Reduce consumption Green supplier appraisal Green
specs. Green options sought Cost/benefits
evaluated WLC Ensure issues included in
consultancy Briefs Preference to Green
Supplier Gain commitment to future action
Reduce consumption Green supplier appraisal Green
specs. Green options sought Cost/benefits
evaluated WLC Preference to Green Supplier
Environmental Risk
Priority 4
Priority 3
Reduce consumption Green specs. only on basis of
cost/benefits Increase supplier awareness
of Policy through questionnaire Notional
preference to green suppliers Minimal green
supplier appraisal 3rd party
Reduce consumption Increase awareness encourage
via questionnaire referral to
Policy Exercise caution re Green Mktg. Nominal
preference to green suppliers
Profile Risk
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The legal position below the threshold

• Treaty of Rome applies
• non-discrimination
• freedom of movement
• equal treatment
• There must be a direct link between criteria
  the subject matter of the contract.
• Criteria must be objectively measurable

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The Legal position Above the threshold?

• Do not confuse Supplier Selection with Contract
  Award
• If you are out, you are out!
• Supplier selection - exhaustive criteria led down
  in Reg. 16
• You can consider a suppliers ability technical
  capacity incl. those for ensuring quality
  16(1)(b) quality systems 16(1)(e)
• Specifying
• fine to specify green provided in line with
  principles
• Award criteria - Most economically advantageous
  Reg 2(a), not exhaustive ....
• running costs
• quality
• aesthetic functional characteristics
• technical merit
• Secondary criteria - environmental social
  issues?

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Generalities

• Works
• Define the execution of works
• A green process!
• Environmental impact assessments
• Services
• Define the execution
• Supplies
• Environmentally sound option can be specified

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Green Supplier Appraisal
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Green supplier appraisal

• Do not confuse Supplier Selection with Contract
  Award
• If you are out, you are out!
• Supplier selection - exhaustive criteria led down
  in Reg. 16
• You can consider a suppliers ability technical
  capacity incl. those for ensuring quality
  16(1)(b) quality systems 16(1)(e)

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Supplier appraisalWhat can you look at?

• A statement of the tools, plant technical
  equipment available for executing the contract
• A description of the suppliers technical
  facilities, its measures for ensuring quality and
  its study research facilities
• A statement of the technicians or technical
  bodies which the candidate can call upon fro
  executing the contract

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What is the appropriate method?
Minimise cost of evaluation while promoting
creating greater awareness of the environmental
message.
Minimise environment risk by supplementing
existing supplier appraisal tools.
Financial Cost
Create environmental awareness at lowest cost
Minimise environmental risk at minimal cost
Environmental Cost
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What is the appropriate method?

• Questionnaire
• Checking references
• Speaking to customers
• 1st Party accreditation
• Visit supplier
• Testing samples

• Questionnaire
• Checking references
• 1st Party accreditation
• Visit supplier
• Testing samples
• Analysis of trading a/cs

Financial Cost

• Questionnaire
• 3rd Party accreditation

• Questionnaire
• Checking references
• Speaking to customers
• 1st Party accreditation

Environmental Cost
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Green specs.

• Fine to specify green provided in line with
  principles

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Specifying green

• or equivalent

16
Specifying Green

• Outcome
• Performance
• Functional
• Technical

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Greening specifications

• For stationery items
• many suppliers have work already done
• Existing specifications
• e.g. SOPO guidelines, DETR
• Eco Labels
• Switch to Functional Performance based
  specifications
• Expertise probably with the supplier
• earlier supplier involvement
• green teams

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Eco-labels (a type of Tech Spec.)

• EU Flower http//europa.eu.int.ecolabel
• Nordic Swan
• http//www.ecolabel.no/english
• Blue Angel
• www.ecomarket.org/lebel/bengel.html

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The Award

• Principles
• Non-discriminatory
• Generate an economic advantage

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The Award

• Award criteria - Most economically advantageous
  Reg 2(a), not exhaustive ....
• running costs(spending to save, maintenance,
  costs of treatment eg waste or recycling)
• quality
• aesthetic functional characteristics
• technical merit
• Additional criteria?