Delivering Sustainability through your Suppliers

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Delivering Sustainability through your Suppliers

• Jimmy Brannigan, ESD Consulting Ltd
• Laura Watson, Durham University
• Surrie Everett-Pascoe, Canon UK

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Delivering Sustainability through your Suppliers

• Drawing on learning and materials from the hugely
  successful ongoing sustainable procurement
  project this workshop will explore the huge
  potential offered by getting the client supplier
  relationship right.
• This workshop will help you to make better use of
  your suppliers to deliver your sustainability
  objectives.  

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Delivering Sustainability through your Suppliers

• Agenda
• 14.30 Background and introduction
• 14.35 Laura Watson, Durham University
• 14.55 Surrie Everett-Pascoe, Canon UK
• 15.15 Discussion and questions

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EAF Programme

• Background
• Three year project
• Reducing negative environmental and social
  impacts through purchasing
• Steering group, partners from Further Education
  and Higher Education
• Training
• Train the trainer
• Policy and strategy development
• Risk based approach to procurement
• Supplier engagement
• Social issues in procurement

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Delivering Sustainability through your Suppliers

• Opportunities exist at all stages of the
  procurement process
• Identifying the need
• The specification
• Supplier qualification and appraisal
• Tendering and tender evaluation
• Contract management and contract review
• Accounting

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Life cycle impacts of an organisation
Inputs
Outputs
Your Organisation

• Information
• Services
• Products
• Wastes

• Suppliers
• Energy
• Materials
• People

Environmental and social impacts
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Delivering Sustainability through your Suppliers
Impacts and Opportunities (Environment)
High
Environmental Footprint
Natural Resources
Transportation
Manufacturing
Product Distribution
Consumers
Low
Supply Chain
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Delivering Sustainability through your Suppliers
Current Management Effort (Environment)
High
Environmental Footprint
Natural Resources
Transportation
Manufacturing
Product Distribution
Consumers
Low
Supply Chain
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Delivering Sustainability through your Suppliers
Mismatch between the two
High
Environmental Footprint
Natural Resources
Transportation
Manufacturing
Product Distribution
Consumers
Low
Supply Chain
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Sustainable Procurement within Durham University

• Presented by
• Laura Watson MInstLM MCIPS
• Deputy Director of Procurement
• April 2007

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Barriers to Sustainable Procurement

• Whilst there is a high level of commitment to
  national targets, there is often a low level of
  understanding of the exact requirements,
  therefore creating an implementation gap the
  gap between policy and practice.
• Even with a high level commitment in the shape of
  policies and specific targets, this becomes
  heavily diluted by the time it reaches the buyer.
  A lot of the sustainability issues are lost and
  replaced instead by best value often easily
  translated to cheapest price.
• The link needs to be made between sustainability,
  efficiency and cost savings.

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Content

• University Strategy
• Sustainable Procurement Policy
• Corporate and Social Responsibility Policy
• Strategically Controlled Procurement
• Collaboration
• Communication
• The Way Forward
• Tender Evaluation
• Contract Management
• Supplier Engagement
• Supplier Issues.

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University Strategy

• The Universitys 5 year strategic plan has 5
  specific aims, which includes becoming a
  sustainable institution
• University Policy for Environmental
  Sustainability is overseen by an Environmental
  Sustainability Advisory Group (ESAG)
• The Procurement Policies were agreed by the
  Universitys Executive Committee (UEC) ensuring
  senior management buy in.

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Procurement Policies

• Sustainable Procurement Policy
• Sets out the principles, policies and procedures
  on which sustainable procurement activity within
  the University will be based
• Serves to prompt staff involved in the
  procurement of goods and services to use
  sustainability as a factor in their purchasing
  decisions
• Created November 2005, updated end 2006.
• www.dur.ac.uk/treasurer/suppliers/  

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Sustainable Procurement Policy

• The Universitys Procurement Service will
• Encourage suppliers to develop a proactive
  approach to equalities
• Ensure suppliers understand the key sustainable
  issues so that they can tailor their products
  accordingly
• Ensure that Small and Medium Sized Enterprises
  and Ethnic Minority Businesses can bid for the
  business
• Help in the development of sustainable products
• Monitor the response to sustainable issues within
  tender documents
• Assist businesses that wish to work for the
  University
• Carry out a sustainable risk / impact analysis of
  the products / services procured.

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Sustainable Procurement Policy

• Other University Staff will develop
  specifications that assist in ensuring that
• Goods that can be used and disposed of in an
  environmentally responsible way are considered
• Items with a high recycled content are used where
  there is little difference in cost
• Whole-life cost and energy usage and cost is
  considered prior to purchase
• Advice is sought from the Procurement Service.

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Corporate Social Responsibility (CSR) Policy in
Procurement

• Impacts on the way in which we procure, thus
  improving our
• social, environmental and local economic impact
• influence on society, social cohesion and human
  rights
• fair trade and the ways in which fairness can be
  corrupted.
• Implemented January 2007.
• Sustainable Procurement is not just being
  environmentally friendly.

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Corporate Social Responsibility (CSR) Policy in
Procurement

• The CSR policy addresses our commitment to the
  way we
• Encourage our business partners to strive at
  matching our performance
• Act in a socially responsible way
• Continue to improving our performance and comply
  with all relevant legislation
• Encourage our staff to be mindful of the effect
  of their actions on any natural resource
• Monitor and improve our performance in these
  areas.

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Strategically Controlled Procurement
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Faculty / Divisional Purchasing Teams

• Ensure that approved suppliers are used (using
  sustainable and environmental issues as one of
  the criteria).
• Identify the need
• What do we want to buy?
• Why do we need this product or service?
• Can the need be met another way?
• Is a suitable product available elsewhere in the
  University?
• Can the requirement be met by renting, sharing
  rather than purchasing?
• Is the quantity requested essential?
• Is the specification currently used the correct
  one for the purpose?
• Can the product serve a useful purpose after its
  initial use?

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Faculty / Divisional Purchasing Teams

• Challenge repeat purchases
• Assess if there are more suitable options
• The more ambitious the environmental objective
  the more fundamental the re-examination needs to
  be
• Good purchasing practice requires that
  fundamental questions are routinely asked about
  the value being delivered.
• Increased demand drives the price down!

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Collaboration

• Durham County Council reviewed their
  sustainable policy and fair trade status.
• Durham City Council set up a working party to
  review sustainability across Durham with the aim
  of becoming a Fair Trade city.
• EAUC Durham University became a key partner of
  EAUC working group and created a detailed Action
  Plan.
• Key contacts have been made and we can benchmark
  against similar institutions and local
  organisations.

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Communication

• Currently communicating initiatives with rest of
  University staff and students.
• Discussions with end-users to understand
• What pressures they are under
• What are their concerns
• What we want them to do differently
• How we can help.
• Presentations to highlight the importance of
  sustainability.

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The Way Forward

• Continue to build upon current working practices.
• Individuals need to focus on what they control
  sphere of control.

If everyone makes changes then we will have an
impact.
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Tender Evaluation

• Detailed evaluation as part of tender process on
  CSR issues
• Evaluation on environmental issues (e.g.
  ISO14001) and working towards future legislation
• Evaluation provides the opportunity to apply
  weighting to environmental criteria
• Award criteria is linked to the subject matter
• Working on creating a balanced score-card.

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Contract Management

• Set targets related to the Universitys
  objectives and relevant to the contract Key
  Performance Indicators (KPIs)
• Encourage innovation around reducing
  environmental and social impacts
• Use past performance in award of new contracts
• Discuss alternative products and services with
  suppliers
• Joint improvement targets
• Reducing packaging weights and volumes
• Introducing reusable and returnable packaging
• Examining purchase order quantities and delivery
  frequency
• Improving delivery scheduling to reduce
  transports impacts.

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Supplier Engagement

• Recycling initiatives
• Waste disposal
• Food contracts
• Delivery schedules and packaging
• Now a Fair Trade University.
• Travel
• Campus bus service
• Agents promote rail travel
• New contract looking at carbon offsetting.
• Stationery
• Sole supplier
• Price parity
• Environmental alternative displayed online.

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Supplier Engagement

• Print and Multi-Functional Devices (MFD)
• Recycled ink cartridges and paper
• Reduced density print
• Networking MFDs
• Printing double-sided as standard
• Saves paper and energy
• Faxes will be received and sent electronically,
  it may not be necessary to print them
• There is a scanning function on the MFD to
  convert paper files into electronic ones
• Poster campaign.

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Supplier Issues

• What issues do we have with existing / new
  suppliers?

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Supplier Issues

• We want suppliers to
• Be more proactive and voluntarily tell us what
  they are doing on CSR issues
• Provide up to date information as things change
  rather than when we ask for it
• Prove that what they say they are doing is true
• Provide accreditations for products that they say
  are green
• Consider the packaging they use for products
• Inform us of how they are complying with the WEEE
  directive, even when they are not manufacturers
• Maintain ongoing dialogue.