Delivering Sustainability Through Procurement

Stephen Connor

Development and Sustainability Manager

APUC

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What is Sustainability?

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Sustainability “meets the needs of the present without compromising the ability of future generations to meet their own needs”

- United Nations.

What is Procurement?

• “The acquisition [by contracting authorities], whether under formal contract or otherwise, of goods, services and works from third parties”

Procurement

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What impact can procurement have on Sustainability?

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What impact can procurement have on Sustainability?

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Benefits of Sustainable Procurement

Whole Life Cost benefit Minimisation of Risk ReputationInnovation in supply chainMeets the aims of Institution and Scottish

Government.

Sustainable Procurement is good procurement

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What’s stopping us?

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Public Sector Procurement

All public bodies have a legal requirement to obtain Best Value

EU Treaty Principles

Fundamental principles flowing from the Treaty include:

• Transparency - contract procedures must be transparent and contract opportunities should generally be publicised;

• Equal treatment and non-discrimination - potential suppliers must be treated equally;

• Proportionality - procurement procedures and decisions must be proportionate;

• Mutual recognition - giving equal validity to qualifications and standards from other Member States, where appropriate.

Sustainability and new legislation

• EU Commission: Public Procurement to play a key role in ‘Europe 2020, a strategy for smart, sustainable, and inclusive growth’

• One of main purposes of the new EU Directive: “…to enable procurers to make better use of public procurement in support of common societal goals”

Sustainability and new legislation

• Contract performance

– Contracting authorities may lay down special conditions relating to the performance of the contract, including economic, innovation-related, environmental, social or employment-related considerations

– E.g. packaging, training opportunities, production process without toxic chemicals, …

Sustainability—Example Measures

• Ask for certification/labels of social/environmental characteristics

• Reserve award of certain contracts to social enterprises

• Full life cycle costing encouraged.

• Level playing-field for SMEs

• Encourage Innovation – new procedure

Sustainability—Reform Act

• Sustainable procurement duty on all public bodies to consider how procurement process can;

(i) improve the economic, social, and environmental wellbeing of the authority's area,

(ii) facilitate the involvement of small and medium enterprises, third sector bodies; supported businesses in the process; and

(iii) promote innovation.

What is APUC’s Role?

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SUSTAINABLE PROCUREMENT AT APUC

Senior Level support

Embedded tools and templates

Maximising collaborative opportunity

Working Group

Code of Conduct

Contract clauses

Post Award / Contract Management steps

www.sustain.ac.uk

Training and Support

APUC and ELECTRONICS WATCH

Electronics Watch:“Independent Monitoring Organisation working to achieve respect for labour rights in the global electronics industry through socially responsible public procurement in Europe”

•Using the combined £ power of public bodies to drive change in labour conditions in ITC supply chains.

•Paying affiliates get contractual help, drafted clauses, monitoring of supply chains, reports on issues.

•Not one-off supplier auditing. In country monitoring and worker assistance/supplier improvement plans.

•Funded by paying affiliate members (public bodies). APUC is a Founding Member, as is another UK consortia – LUPC. University of Edinburgh, University of Leeds and University of Durham are also Founding Members.

•Affiliate members now also include University of Aberdeen and University of Leicester.

www.electronicswatch.org

ICT PROCUREMENT

APUC (IT related systems contracts including Blackboard, Student Records, Finance, HR and Payroll) (All have APUC Sustain wording).HEPCW: Apple Agreement Jan 16 (currently retendered with EW clauses)NEUPC: Data Centre Management (Equipment & Infrastructure) Sep 15 - Sep 17 (extensions)Network Equipment Dec 13 - Dec 15 (extensions)SUPC: ITRAP (IT Related Accessories & Parts) Jun 12 - May 16NSSA (National Server & Storage Agreement) Nov 12 - Jul 16LUPC: NDNA (National Desktop & Notebook Agreement) Aug 13 - Jul 16 (will be retendered with EW clauses)Office, Computer & Library Supplies Aug 15 - Jul 18CCS: Technology Products (Inc IT Hardware) Nov 14 - Nov 16 (extensions)Scottish Government: IT Consumables Sep 12 - Aug 16 (retender 2016)Tablet Devices Mar 13 - May 16 (retender 2016)IT Hardware (desktop and mobile) Nov 11 - Dec 15 Retender into - 1. Cloud and Proprietary devices2. Mobile devices3. Thin Client devices4. Workstation devices5. Desktop devicesAll in place end 2015. Do not have EW wording, but do have KPI's on Sustainability and clauses on social & ethical responsibility and conflict minerals.

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Sustain

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Sustain

Based on APUC Code of Conduct (in Social, Ethical & Economic and Environmental) and puts them into 13 ‘requirements’ for suppliers to assess themselves against.

Enables suppliers to easily select which statements apply to their company.

The statements are listed under Bronze, Silver and Gold levels.

Suppliers will gain recognition for all statements they meet – there is no requirement to ‘pass’ one level before achieving at the next level.

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Sustain

Why are we doing this•To deliver on APUC’s, and our client institutions’ desire to buy in a responsible manner •Risk mitigation•Institution reputation•Address gap in understanding of supply chain•Student group pressure

Where does Sustain ‘Fit’?

Pre-Award Post-Award

Strategy Contract Management

PQQ Supplier Relationship Management

ITT Sustain assessment

Summary•Procurement and Sustainability are inextricably linked.•Legislative landscape is changing•Some progress•Collaboration is key