Implementing Sustainable Development Sustainable Procurement

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Implementing Sustainable DevelopmentSustainable
Procurement Corporate Social ResponsibilityAch
ieving Level 3 of the Flexible Framework

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Outline

• Training objectives
• Help participants achieve Level 3 on the Flexible
  Framework.
• Support participants to develop a sustainable
  procurement policy and strategy
• Identify training needs and develop training for
  key staff.
• Develop a supplier engagement programme to reduce
  business risk on sustainability

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Outline

• More specifically
• How can I achieve Level 3 on the Flexible
  Framework
• How can I evidence it?

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Agenda

• 10.00 Introductions
• 10.15 Introduction to the Flexible Framework
  Where are you now?
• 11.15 Break
• 11.30 Strategy and Policy Development
• 12.45 Lunch

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Agenda

• 13.45 Training and communications developing
  key staff
• 14.45 Break
• 15.00 Supplier Engagement for Sustainability
• 16.00 Finalising action plans
• 16.30 Close

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What is Sustainable Development?
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What is sustainable development?
Long term view
United Nations
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Sustainable Procurement

• So what is sustainable procurement?

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Procuring the Future
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Procuring the Future

• Launched on the 12th June 2006
• Looking to embed sustainable development
  considerations into procurement and investment
  decisions in the UK public sector to

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Procuring the Future

• Avoid adverse environmental impacts
• Make more efficient use of public resources
• Stimulate markets to innovate and to produce more
  cost effective and sustainable options
• Set an example for business and the public sector
  we are serious!

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Procuring the Future

• Six key recommendations
• Lead by example
• Set clear priorities
• Raise the bar
• Build capacity
• Remove barriers
• Capture opportunities

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Procuring the Future

• Specific actions identified in the Flexible
  Framework
• People
• Policy, Strategy and Communications
• Procurement process
• Engaging suppliers
• Measurements and results

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Procuring the Future
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Procuring the Future

• For each priority area levels 1 5 have been
  identified
• The challenge is that all public sector bodies to
  be at level 1 by April 2007 and Level 3 by April
  2009
• Suggests that they should also be at least at
  level 5 in one area (by April 2009)

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Exercise One

• Discussion
• Who is the Flexible Framework for?
• Do you have to do everything it suggests?
• What issues can you see with the framework?

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Exercise Two

• Using the paperwork provided review where you
  are on the Flexible Framework?
• Make notes!

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Developing a sustainable procurement policy and
strategy

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Developing policy and strategy?

• What do you do first?
• Review institutions commitment what is
  important?
• Write a simple sustainable procurement policy
  statement
• Take a risk based approach

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Developing policy and strategy?

• What does a policy do?
• Sends a clear message that this is important
• Is a statement of intent to communicate
  something that is important
• Provide a mandate for further activity and
  resources

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Developing policy and strategy?

• What does a strategy do?
• Shows how you are going to implement the policy
• Communicates where your priority areas for action
  are
• Identifies action areas to be picked up by
  individuals and departments (detailed action
  plans fit below this)
• Timescale of the strategy?

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Starting pointTake a risk based approach

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Why take a risk based approach?

• Every product or service we buy has an
  environmental and social impact
• You buy thousands of products
• You have limited resources
• You have limited time
• You are being asked to demonstrate how the work
  you do supports your institution

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A risk based approach

• Adopting the priorities identified by the task
  force in your university can help you achieve the
  2009 target.
• Of the 174 spend areas identified the following
  10 were named as priorities for sustainable
  procurement activity.
• This was based on a number of factors including
  spend, environmental and social impact and
  reputational risk.

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A risk based approach

• Best practice on the development and
  implementation of CSR, sustainability and
  sustainable procurement is based on risk
• Materiality assessment

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A risk based approach

• 1 Construction (building and refit, highways and
  local roads, operations and maintenance)
• 2 Health and social work (operating costs of
  hospitals, care homes, social care provision)
• 3 Food
• 4 Uniforms, clothing and other textiles
• 5 Waste
• 6 Pulp, paper and printing
• 7 Energy
• 8 Consumables office machinery and computers
• 9 Furniture
• 10 Transport (business travel and motor vehicles)

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A risk based approach

• Some simple steps
• Use the Procuring the Future priorities as a
  starting point
• Cross reference with high risk areas identified
  in the university specific commodity risk
  analysis?
• Cross reference with the priority areas
  identified as important to your university
• Horizon scan - priority projects or contracts
• Have any big spend or risk areas that you know of
  been missed?

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Exercise Three

• Using the list the Procuring the Future.
• Go through the process but do not use the
  university commodity risk analysis at this point.

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A risk based approach

• This process will allow you to
• Have a list of priority areas to focus on and
  this will allow all of the other actions relating
  to the Flexible Framework to flow from this
  point.
• Helps you define who is key
• Allows you to develop your strategy
• Helps you identify where to start
• Has a narrative flow which is easy to communicate

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Training and communications - developing key
staff

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Training and communications

• Why develop key staff?
• Allows you to implement the policy and strategy
• Supports staff in what can be a strange and new
  area
• Is important if it is to work
• Helps to achieve Level 3 of the Flexible
  Framework

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Exercise Four

• What do the following need to know
• Key staff
• All procurement staff
• Key employees
• How is the training the same and how is it
  different?

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Training and communications

• What should be included in training?
• A basic understanding of sustainable development
  and sustainable procurement.
• Introduction to the university policy and
  strategy
• An understanding of the priority areas (based on
  risk)
• Confidence that they do not have to get
  everything right the first time

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Training and communications

• Induction (suggested actions)
• Member of the procurement team or HR team
  includes the importance of Sustainable
  Procurement in all staff induction (policy)
• Member of the procurement team sits down with
  anyone with procurement responsibility and
  introduces the new members of staff to the policy
  and strategy

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Training and communications

• Staff training (suggested actions)
• All procurement team undertake a ½ day training
  on sustainable procurement based on Level 1
  slides.
• Procurement champion / lead builds in sustainable
  procurement refresher training into the personal
  develop plan and attends and external course.

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Training and communications

• Staff training (suggested actions)
• All procurement staff have sustainable
  development and sustainable procurement
  objectives added to there personal objectives
• Ideal if it was added to job descriptions but
  this is not always possible

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Training and communications

• Staff training example exercise
• Choose a product
• In small groups discuss and identify the
  environmental and social impacts of the product
  (thinking about the whole life cycle)
• Ask them to take this list and then in their
  opinion identify the top 3 or 4 based on their
  understanding of the product

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Training and communications

• Staff training What this does is.
• Show them how easy it is to identify the impacts
• Show them it isnt rocket science
• Gives them ideas of questions to ask suppliers,
  information to look for and possible issues to
  refer to in future specifications and to raise at
  contract review stage.
• Start a dialogue and gives them a mental model, a
  simple process

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Procurement process and monitoring and
measuring

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Exercise Five

• Process, monitoring and measuring
• If you have undertaken all we have discussed to
  date.
• What is still stopping you achieve Level 3?

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Supplier Engagement

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Why is it important?
Impacts and Opportunities (Environment)
High
Environmental Footprint
Natural Resources
Transportation
Manufacturing
Product Distribution
Consumers
Low
Supply Chain
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Why is it important?
Current Management Effort (Environment)
High
Environmental Footprint
Natural Resources
Transportation
Manufacturing
Product Distribution
Consumers
Low
Supply Chain
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Why is it important?
Mismatch between the two
High
Environmental Footprint
Natural Resources
Transportation
Manufacturing
Product Distribution
Consumers
Low
Supply Chain
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Exercise Six

• Supplier engagement
• What do you do already?
• How engaged are they?
• Who are your key suppliers?

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Supplier Engagement

• Supplier engagement
• Views sought on procurement policy?
• Or
• Contacted and informed of the policy and a clear
  communication that this is an important area for
  the university and environmental and social
  criteria will be included in future
  specifications and contracts

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Supplier Engagement

• Good practice review
• Where do you start!
• Supplier credos and codes of conduct
• Use of questionnaires
• Supplier workshops
• Guidance for suppliers
• Working with suppliers

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Supplier Engagement

• United Utilities
• Risk based approach
• Identified key risks alongside priority
  environmental and social issues.
• Prioritised supplies based on risk areas
• Developed guidance for supplier
• Delivered workshops for suppliers
• Were seen as the lead on sustainable procurement
  by BITC

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Contract management

• Continuous improvement
• Work with suppliers to improve
• Set targets and monitor improvement through
  contract review
• Allows organisations to accept issues are
  apparent but are working to address them
• Train your suppliers
• Provide guidance
• Give awards!!

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Exercise Seven

• Action planning
• Review the document
• Add new actions

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Questions
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Contact Details

• Jimmy Brannigan
• jbrannigan_at_esdconsulting.co.uk