1. Sustainable Public Procurement Barbara Morton, Sustainable Procurement Ltd MTF Technical Advisor Port Louis, Mauritius 09 September 2009

2. Outline Sustainable Procurement: –Who, what, how and why? International activity on Sustainable Procurement Marrakech Task Force on Sustainable Public Procurement Key elements of MTF on SPP Approach Delivering sustainable outcomes through public procurement – opportunities for Mauritius

3. What is Sustainable Procurement?

4. International activity on Sustainable Procurement Governments –Central and local government / municipalities Europe – Green Public Procurement –Public procurement = 16% of GDP (can be up to 30%) –Target = 50% contracts to be ‘green’ by 2010 –Top 7 ‘Green’ countries Austria, Denmark, Finland, Germany, Netherlands, Sweden, UK –ITC-ILO to roll out GPP Toolkit in training to 10 Member States (plus 10) –Recent attention on social issues (e.g. Netherlands)

5. International activity on Sustainable Procurement SPP mainly in OECD countries (IISD study) –Brazil, India and China – laws in place Japan – Green Purchasing Law – IGPN and Green Purchasing Networks South Africa –Social agenda dominates - Preferential Procurement US –Women-owned businesses; veteran-owned businesses New Zealand and Australia (State level)

6. International activity on Sustainable Procurement Main drivers for companies and private sector: –Reputational risk issue, Customer and media interest –NGO interest e.g. illegal logging and sustainable forest management –Investor interest –Corporate (Social) Responsibility; benchmarking schemes –Environmental Management Systems e.g. ISO 14001 –Codes of Conduct for supply chain –Resource efficiency – doing more with less

7. UK Sustainable Procurement Task Force Business-led –Construction, ICT, telecomms, NGOs, small business, UK to be recognised as amongst the leaders in Europe in sustainable procurement by 2009 Procuring the Future – June 2006 Tools for implementation –Risk-based Prioritisation Methodology

8. United Nations Climate Change impacts almost all mandates of UN. More and more UN organizations are challenged by their governing bodies and member states Ban Ki-Moon UN SG UN SG pledged, on World Environment Day (5 June 2007) “…to explore ways of making the United Nations more climate friendly and environmentally sustainable, and to develop a climate-neutral approach to its premises and operations.”

9. International activity on Sustainable Procurement UN Secretary General’s commitment UN Global Compact Sustainable UN –Sustainable procurement training for UN Agencies: –Rome, Panama, Bangkok –IFAD, FAO, UNICEF, ESCAP, etc –Spring 2009 In line with UN principles

10. The Marrakech Task Force on Sustainable Public Procurement (1) Started in 2005 Supported and led by the Swiss Government (Swiss Federal Office for the Environment - FOEN) Participants include –Switzerland, USA, UK, Norway, Philippines, Argentina, Ghana, Mexico, China, Czech Republic, State of Sao Paolo (Brazil) –ICLEI, UNEP, IISD, International Labor Organization (ILO), European Commission (DG-Environment)

11. The Marrakech Task Force on Sustainable Public Procurement (2) Definition of SPP adopted by TF: “Sustainable Procurement is a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment.” Taken from ‘Procuring the Future’ - report of the UK Sustainable Procurement Task Force, June 2006

12. Definition of SPP Broader than Green Procurement –Footnote in definition reads: Sustainable Procurement should consider the environmental, social and economic consequences of: Design; non-renewable material use; manufacture and production methods; logistics; service delivery; use; operation; maintenance; reuse; recycling options; disposal; and suppliers' capabilities to address these consequences throughout the supply chain.

13. Capacity building for Sustainable Public Procurement (SPP) in developing countries European Commission funded project MTF-UNEP Promote the implementation of effective SPP policies in developing countries MTF on SPP target is to roll out to up to 14 countries –Pilot countries: Chile, Costa Rica, Mexico, Mauritius, Tunisia, Uruguay New Zealand Ghana proposal under consideration Interest from: Lebanon, League of Arab States

14. MTF on SPP Approach Country Implementation 14

15. Key outputs of MTF on SPP 1.SPP Approach 2.SPP Principles 3.Implementation Plan and role of National Focal Point 4.Status Assessment 5.Legal Review 6.Market Readiness Analysis 7.Training – including pilot training course 8.Building capability 9.Roll out and implementation 10.Plan for 2010-11 and beyond

16. SPP Principles Principles: 1.Good procurement is sustainable procurement 2.On leadership 3.On policy through procurement 4.On enabling delivery 5.On implementing Monitoring results and outcomes

17. SPP Principles: Policy through Procurement SPP can contribute, or be the main means, to the delivery of a wide range of organisational objectives, including: –efficiency –business strategy –sustainable development –sustainable consumption and production –Maurice Ile Durable

18. STEPS IN THE PROCESS

20. Monitoring results and outcomes: Outcomes delivered through SPP can include: 1.improved environmental performance, including reduced CO 2 emissions global and local environmental goals 2.cost savings including recognition of non- tangible benefits and costs

21. Financial impact of GPP PWC / Ecofys Study For European Commission January 2009

22. 2. Cost saving opportunities  Call for evidence to Westminster Sustainable Business Forum  ‘Costing the Future’ published June 2008  Securing Value for Money through Sustainable Procurement  Co-chairs: David Kidney MP and Barbara Morton How can budget allocation and accounting regimes foster environmental/social procurement?

23. Outcomes delivered through SPP can include: 3. job creation (including SMEs: environmental goods and services) 4. minority empowerment 5. poverty reduction 6. wealth creation 7. transfer of skills/technology 8. good governance (as part of public procurement reform, for example).

24. SPP can also be used to: stimulate “appropriate” competition create markets for appropriate technology (i.e. not necessarily high-tech solutions) drive markets for innovative and sustainable solutions encourage early engagement and dialogue with the market and enhance dialogue with civil society.

25. 2. Define the Specification and invite Bids 1. Evaluate and select suppliers 3. Evaluate Bids from suppliers and Award 4. Audit and improve supplier 5. Manage the contract and disposal Procurement Process Good procurement is sustainable procurement Identify need and Assess Risk

26. Challenges & Opportunities for SPP in Mauritius In times of international economic recession: –SPP offers resource efficiency –Employment and wealth creation through targeted efforts in key markets consistent with government policy priorities –Stimulating markets: step by step not three at once! –Economic stimulus packages worldwide – potential of environmental technologies

27. Challenges & Opportunities for SPP in Mauritius In line with: –Modernised, professional procurement –Sustainable development policy priorities –SCP priorities –Legal requirements of country –Drive to increase proportion of business with SMEs Potential contribution to Maurice Ile Durable  Mauritius as a leader and exemplar of good practice in the region and in the world

28. Good procurement is sustainable procurement! Barbara Morton 28 Barbm110@aol.com Merci Thank you