Implementing Sustainable Development Sustainable Procurement & Corporate Social Responsibility Achieving Level 3 of the Flexible Framework

Outline Training objectives: 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

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

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

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

What is Sustainable Development?

What is sustainable development? Reducing the negative and increase the positive Long term view United Nations

Sustainable Procurement So what is sustainable procurement? So what is sustainable procurement?

Procuring the Future

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

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

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

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

Level 1 Foundation Level 2 Embed Level 3 Practice Level 4 Enhance Level 5 Lead Procuring the Future

For each priority area levels 1 – 5 have been identified 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 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) Suggests that they should also be at least at level 5 in one area (by April 2009)

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

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

Developing a sustainable procurement policy and strategy

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

Developing policy and strategy? What does a policy do? 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

Developing policy and strategy? What does a strategy do? 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?

Starting point Take a risk based approach

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

A risk based approach Adopting the priorities identified by the task force in your university can help you achieve the 2009 target. 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. 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. This was based on a number of factors including spend, environmental and social impact and reputational risk.

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

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

A risk based approach Some simple steps 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?

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

A risk based approach This process will allow you to 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

Training and communications - developing key staff

Training and communications Why develop key staff? 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

Exercise Four What do the following need to know 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?

Training and communications What should be included in training? 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

Training and communications Induction (suggested actions) 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

Training and communications Staff training (suggested actions) 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.

Training and communications Staff training (suggested actions) 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

Training and communications Staff training – example exercise 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

Training and communications Staff training – What this does is. Staff training – What this does is. –Show them how easy it is to identify the impacts –Show them it isn’t 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

Procurement process and monitoring and measuring

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

Supplier Engagement

Why is it important? Natural Resources TransportationManufacturing Product Distribution Consumers Environmental Footprint Impacts and Opportunities (Environment) Low Supply Chain High

Why is it important? Natural Resources TransportationManufacturing Product Distribution Consumers Environmental Footprint Current Management Effort (Environment) Low Supply Chain High

Why is it important? Natural Resources TransportationManufacturing Product Distribution Consumers Environmental Footprint Mismatch between the two Low Supply Chain High

Exercise Six Supplier engagement Supplier engagement –What do you do already? –How engaged are they? –Who are your key suppliers?

Supplier Engagement 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

Supplier Engagement Good practice review Good practice review –Where do you start! –Supplier credo’s and codes of conduct –Use of questionnaires –Supplier workshops –Guidance for suppliers –Working with suppliers

Supplier Engagement United Utilities 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

Contract management Continuous improvement 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!!

Exercise Seven Action planning Action planning –Review the document –Add new actions

Questions

Contact Details Jimmy Brannigan