Sustainable Procurement Policy & Communications PROCURMENT POWER Tuesday 1 May 2007 Derby David Wright NE Centre of Excellence

Policy into Action WHY?

Sustainable Procurement Potential LSP’s and Sustainable Community Strategies LEGI’s Community Benefits & Enhancing Wellbeing Collaboration, Partnership & ‘Use of Resources’ Health’s ‘Corporate Citizen’ agenda Business Sector’s Corporate Social Responsibility Economic, Regeneration & Sustainability strategies Social Cohesion, Equality & Diversity 3 rd sector public service delivery Environmental, Spatial and Rural strategies Waste strategies Health Improvement strategies Public Sector Food Procurement Initiative

Why Sustainable Procurement in Local Government? £40bn LA sector annual procurement spend Corporate Procurement Strategy aligned to Sustainable Community Strategies National Procurement Strategy for LG 2003 Gershon efficiencies SPTF Action Plan 3 rd Sector – future public service delivery ONE PLANET!

Policy into Action WHY? WHO?

Harnessing Participants Public Sector – policy, strategy, service, procurers & scrutiny Professional organisations GO’s, Government departments and agencies RDA’s Environment Agency Procurement Consortia Business Sectors & 3 rd Sector Business Support Sector IDeA Audit Commission Academia RCE’s

Policy into Action WHY? WHO? WHAT?

National Procurement Strategy for LG Sustainability Drivers Corporate Procurement Strategy aligned to Sustainable Community Strategy Achieve community benefits Improve supplier engagement Establish agreements with the SME and 3 rd sectors Encourage effective supply chains development Assure equality & diversity Evaluate ‘whole life’ costs Stimulate markets

RCE National Strands Adult Care Services - SE Supporting People - NE Corporate & Transactional Services - YH Productive Time - London Social Housing - London Fire & Rescue Services - SW Waste & Environmental Services – SE Commodities, Goods & Services – National Construction (inc Housing, FM, Highways & civils) - EM Children’s Services - WM Education - NE Culture & Sport - NE Integrated Local Transport - NW

Value for Money, People & Place Social, Economic & Environment Wellbeing

Evidence from ‘pathfinders’ Commitment from the top and to sustainability generally. Corporate approach related to LA’s priorities and engaging range of services. Lead by example Use the SPTF Flexible Framework Plan, prioritise and set targets Be imaginative Build interest, capacity and enthusiasm Understand change management: –Identify and remove barriers –Emphasise the positive –Promote champions Engage with suppliers Provision of coordinator to unlock greater potential. Whole life costing/value but evidence shows short term costs also competitive! Kudos and improved reputation.

Importance

Policy into Action WHY? WHO? WHAT? WHERE? HOW? WHEN?

Issues for LG Response to SPTF (1 of 5) Councils, working with local partners, will pursue an integrated approach to the achievement of economic, social and environmental benefits through the Sustainable Community Strategy, Local Strategic Partnership and Local Area Agreements. This will include leveraging the purchasing power of the partners (sustainable procurement). Review and where necessary restate policy, strategy, standards, targets and information management for sustainable procurement. Encourage ownership of commitment by the political and managerial leadership of the council and engage scrutiny in the search for more sustainable solutions.

Issues for LG Response to SPTF (2 of 5) Secure appropriate training and development for councillors, senior managers, procurement staff and other professionals and service managers. Identify exemplars of good practice (against the flexible framework) and challenge to raise performance. Mainstream sustainable procurement into all activities including those carried out at arm’s length and through strategic partnerships. Collaborate regionally and nationally, using purchasing power to transform key markets including the promotion of innovation.

Issues for LG Response to SPTF (3 of 5) Prioritise action on construction and facilities management - the largest category of procurement expenditure in the sector – followed by energy, transport and food. Work together to agree a clear set of standards for the sector linked to corresponding standards under development for the rest of the public sector. Begin by making a commitment to using timber from sustainable forests: –From 1 April 2009 only timber and timber products originating either from independently verified legal and sustainable sources or from a licensed Forest Law Enforcement, Governance and Trade (FLEGT) partner will be demanded for use on the local government estate – appropriate documentation will be required to prove it. From 1 April 2015, only legal and sustainable timber would be demanded.

Issues for LG Response to SPTF (4 of 5) Expect achievements to be measured and recognised through the new performance management framework including use of resources. Look to Government to put enablers in place to help achieve the shared goal and welcome the proposal to develop a Sustainable Products Unit to develop evidence on the life cycle impacts of products and the possible use of Salix funding. Take the recommendations of LGA’s Climate Change Commission.

Issues for LG Response to SPTF (5 of 5) Joint National Improvement Strategy to mobilise sector resources in support of this agenda including through the regional Improvement Partnerships/ Regional Centres of Excellence. Look at how sustainability can be incorporated into the gateway review process for local government projects. Develop the national programme on third sector commissioning as an integral part of the sustainable procurement agenda. Develop practical guidance on whole life costs in the procurement process and investment appraisal guidance for local government. (This should be supported by worked examples that can be used to demonstrate pay back to members and senior managers).

LG Response – Next Steps 2 May – Draft for Consultation –LA’s –Professional bodies –Strategic partner sectors – 21 May – assess initial responses End of June – response period closes Early July – submit response to SPTF and Government