Sustainable Procurement - Taking your first steps 2 nd October 2007 University of Reading

2 Sustainable Procurement The workshop will  Provide practical guidance on how to take sustainable procurement forward in your university or college  Share best practice with sector case studies  Focus on the key elements of sustainable procurement within a university and college environment  Discuss sustainable procurement from a supplier perspective

3 Sustainable Procurement Agenda 09.15Registration 09.45Welcome and Introductions 10.00Structure of the Day and Objective Setting 10.30Selling Sustainable Procurement to Your Institution 11.00Tea / Coffee 11.15Sustainable Procurement Policies and Risk Based Approaches

4 Sustainable Procurement Agenda 12.15Networking Lunch 13.15Sector Case Study Michelle Dixon, University of Hertfordshire 13.45Sector Case Study Pat Condon, Blackpool and Fylde College 14.15Supplier Engagement and Contract Management 14.45Supplier Case Study Surrie Everett-Pascoe, Canon UK 15.15What Do I Do Now? 16.00Close

5 Environment Action Fund 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

Structure of the day & Objective setting Introductions

What is Sustainable Development?

8 What is sustainable development? What is Sustainable Development?  Defined by the Bruntdland Commission in 1987 “development which meets the needs of the present without compromising the ability of future generations to meet their own needs”

9 What is sustainable development? Society EconomyEnvironment

10 What is sustainable development? Reduce the negative and increase the positive Long term view

What is Sustainable Procurement?

12 Definition “Sustainable purchasing is all about taking environmental and social factors into account in purchasing decisions. It’s about looking at what your products are made of, where they come from and who has made them” HEPS Sustainable Purchasing Guidance – Section 1

Selling Sustainable Procurement to your Institution! Exercise

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16 Global Footprint A Light Touch?

17 Every seven weeks, we each generate our own body weight in rubbish Three quarters of that is sent to landfill

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

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

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

21 Selling Sustainable Procurement? Sustainable Procurement Brand Licence to Operate PerformanceReputation Customer requirements Stakeholder demands Employee expectations Benchmarking Legislation & Standards Impact Reduction (environmental) Business efficiencies Risk management

22 Selling Sustainable Procurement Selling sustainable procurement  Who are our audience?  What pressures are they under?  What are their concerns?  What do you want them to do differently?  How can you help them?

Sustainable Procurement Policies & Risk Based Approaches Exercise

24 Sustainable Procurement Policies Sustainable Procurement Policy  Who is the audience?  What does it do?  What does it look like?

25 Sustainable Procurement Policies Who is the audience?  Senior management  Suppliers and contractors  Internal customers (of purchasing) e.g. budget holders  Employees (within purchasing & outside)  Any other stakeholder

26 Sustainable Procurement Policies What does it do? Reflects key impacts Reflects business priorities Shows intent Gets buy In and support Stimulates action Informs targets and strategy

27 Sustainable Procurement Policies Using your skills, knowledge and experience  Read and review 3 of the example policies  Highlight key content and themes  Produce a checklist to complete a high quality policy  Be prepared to report back

28 Sustainable Procurement Policies Putting the policy into practice  Supported / signed off at the highest possible level  Regularly revisited and updated as the institution becomes more experienced  Should be widely disseminated

29 Sustainable Procurement Policies Putting the policy into practice  Those involved in procurement should have an in depth introduction to the policy  Supporting information should be made available to help implementation  Progress should be monitored, how are people using the policy? Can it be improved?

30 Sustainable Procurement Policies Summary  Develop one or reflect the objectives in existing policy  Get buy in and commitment  Communicate it  Support staff implement, with guidance and workshops  Review and update with experience

How do I prioritise? Take a risk based approach

32 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

33 Why take a risk based approach? We need a way to prioritise our activity Risk as a concept resonates with institutions and senior management Ensures we are not wasting our efforts – we are looking to implement sustainable development which is about reducing impact Tried and tested approach

34 Why take a risk based approach? Helps focus activity on main impacts Involves stakeholders internal customers – helps get buy in for implementation Demonstrates that high risks do not only come from high value purchases

What guidance exists?

36 What guidance exists? The approach we use is adapted from  Sustainability and Local Government Procurement – IDeA (November 2003)  An approach used by Belfast City Council  The Environment Agency

37 Implementing a risk based approach Identify products / services you routinely buy as an organisation Consider the environmental impacts / risks associated with the products or service Using a simple matrix provided identify whether you perceive the product to be a high or low environmental risk and high or low profile risk

38 Implementing a risk based approach Low High Environmental Risk Profile Risk

39 Implementing a risk based approach Priority 2Priority 1 Priority 4Priority 3 Low High Environmental Risk Profile Risk

40 Implementing a risk based approach In the recent publication ‘Procuring the Future, Sustainable Procurement National Action Plan: Recommendations from the Sustainable Procurement Task Force’ a risk- based approach is widely promoted. To determine priorities for the public sector the task force “developed an expenditure prioritisation methodology” which uses “an approach based on risk, scope to do more and procurer influence”.

41 Implementing a risk based approach Adopting the priorities identified by the task force in your university or college can help you achieve the 2009 target. Of the 174 spend areas identified the following 10 were named as priorities for sustainable procurement activity.

42 Implementing 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)

43 Implementing a risk based approach A good starting point could be to look at the list of commodity areas compiled and coded by NEUPG and identify which of these are relevant to you.

44 Risk Analysis by NEUPG Comm CodeCommodity Code Description Relevance /risk Equality Relevance/ risk Environmental Relevance/ risk WEEE/ disposal Relevance / risk Social issues AThe Arts, Audio-Visual & Multimedia Supplies and Services AA Audio Visual Equipment, incl video conferencing, Televisions, Videos, sound recorders, incl maintenance, repair and hireLMHM ABDisplay and Projection Equipment and ConsumablesLMHM ACLearning and Training Packs and Pre-recorded MediaMLLL AD Music, Instruments, Scores, Purchase, Maintenance, Conductors and ArtistesLLLL AEPhotographic Equipment Supplies and ServicesLMHM AFStudio Hire and Running CostsHLLL AGTheatre Production Costs (scenery, lighting, props, costumes)HLLL AJAudio Visual Consumables, Accessories, Cassettes etcLMLM AKPhotographic Consumables, Accessories etcLMMM

45 Summary of the process Review / Identify environmental and social priorities for your institution Identify a group of individuals within your institution from different backgrounds and experiences Compile a list of all the products and services you purchase (as comprehensive as possible) Spend as long as it takes prioritising using the matrix (1 – 2 days)

46 Summary of the process This means you have undertaken an environmental risk analysis of all the products and services you purchase!! Identify the suppliers related to those products or services Prioritise management response Communicate it to staff and suppliers

Networking Lunch

Sector Case Study Michelle Dixon University of Hertfordshire

Sector Case Study Pat Condon Blackpool & Fylde College

Supplier engagement? On sustainability What is it? What do you already do? Why is it important?

51 Supplier Engagement Good practice review  Where do you start! Based on risk  Use of questionnaires  Supplier workshops  Guidance for suppliers  Working with suppliers

Supplier Case Study Surrie Everett-Pascoe Canon UK

What do I do now? Exercise

54 What do I do now? What steps do you need to take?  Get high level support and commitment  Put a team together – cross functional  Resources in place  Analyse purchasing practice Baseline audit should do this Evaluate supplier base  Risk analysis of the goods and services you procure  Develop guidance to support implementation – to integrate into procurement process  Communicate it internally and externally  Monitor and review

55 Environment Action Fund Programme Further support is available Train the trainer Policy and strategy development Risk based approach to procurement Supplier engagement Social issues in procurement Experience built up as part of the EAF project within EAUC Speak to Iain Patton for further information and support

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