Implementing Sustainable Development Sustainable Procurement & Corporate Social Responsibility...

Implementing Implementing Sustainable DevelopmentSustainable DevelopmentSustainable ProcurementSustainable Procurement

& Corporate Social & Corporate Social ResponsibilityResponsibility

Achieving Level 3 of the Flexible Achieving Level 3 of the Flexible FrameworkFramework

OutlineOutline

• Training objectives:Training objectives:– Help participants achieve Level 3 on the Help participants achieve Level 3 on the

Flexible Framework.Flexible Framework.– Support participants to develop a Support participants to develop a

sustainable procurement policy and strategysustainable procurement policy and strategy– Identify training needs and develop training Identify training needs and develop training

for key staff.for key staff.– Develop a supplier engagement programme Develop a supplier engagement programme

to reduce business risk on sustainabilityto reduce business risk on sustainability

OutlineOutline

• More specificallyMore specifically– How can I achieve Level 3 on the How can I achieve Level 3 on the

Flexible FrameworkFlexible Framework– How can I evidence it?How can I evidence it?

AgendaAgenda

10.0010.00 IntroductionsIntroductions

10.1510.15 Introduction to the Flexible Introduction to the Flexible Framework – Where are you Framework – Where are you

now?now?

11.1511.15 BreakBreak

11.3011.30 Strategy and Policy DevelopmentStrategy and Policy Development

12.4512.45 LunchLunch

AgendaAgenda

13.4513.45 Training and communications – Training and communications – developing key staffdeveloping key staff

14.4514.45 BreakBreak

15.0015.00 Supplier Engagement for Supplier Engagement for SustainabilitySustainability

16.0016.00 Finalising action plansFinalising action plans

16.3016.30 CloseClose

What is Sustainable Development?What is Sustainable Development?

What is sustainable development?What is sustainable development?

Reducing the negative and increase the positive

Long term view

United Nations

Sustainable ProcurementSustainable Procurement

• So what is sustainable So what is sustainable procurement?procurement?

Procuring the Future

Procuring the FutureProcuring the Future

• Launched on the 12Launched on the 12thth June 2006 June 2006

• Looking to embed sustainable Looking to embed sustainable development considerations into development considerations into procurement and investment procurement and investment decisions in the UK public sector to:decisions in the UK public sector to:


• Avoid adverse environmental impactsAvoid adverse environmental impacts

• Make more efficient use of public resourcesMake more efficient use of public resources

• Stimulate markets to innovate and to Stimulate markets to innovate and to produce more cost effective and produce more cost effective and sustainable optionssustainable options

• Set an example for business and the public Set an example for business and the public sector – we are serious!sector – we are serious!


• Six key recommendationsSix key recommendations– Lead by exampleLead by example– Set clear prioritiesSet clear priorities– Raise the barRaise the bar– Build capacityBuild capacity– Remove barriersRemove barriers– Capture opportunitiesCapture opportunities


• Specific actions identified in the Specific actions identified in the Flexible FrameworkFlexible Framework– PeoplePeople– Policy, Strategy and CommunicationsPolicy, Strategy and Communications– Procurement processProcurement process– Engaging suppliersEngaging suppliers– Measurements and resultsMeasurements and results

Level 1 Foundation

Level 2 Embed

Level 3 Practice

Level 4 Enhance

Level 5Lead

Procuring the Future


• For each priority area levels 1 – 5 have For each priority area levels 1 – 5 have been identifiedbeen identified

• The challenge is that all public sector The challenge is that all public sector bodies to be at level 1 by April 2007 and bodies to be at level 1 by April 2007 and Level 3 by April 2009Level 3 by April 2009

• Suggests that they should also be at least Suggests that they should also be at least at level 5 in one area (by April 2009)at level 5 in one area (by April 2009)

Exercise OneExercise One

• Discussion Discussion – Who is the Flexible Framework for?Who is the Flexible Framework for?– Do you have to do everything it Do you have to do everything it

suggests?suggests?– What issues can you see with the What issues can you see with the

framework?framework?

Exercise TwoExercise Two

• Using the paperwork provided Using the paperwork provided review where you are on the Flexible review where you are on the Flexible Framework?Framework?

Make notes!Make notes!

Developing a sustainable Developing a sustainable procurement policy and strategyprocurement policy and strategy

Developing policy and strategy?Developing policy and strategy?

• What do you do first?What do you do first?– Review institutions commitment – what Review institutions commitment – what

is important?is important?– Write a simple sustainable procurement Write a simple sustainable procurement

policy statement policy statement – Take a risk based approachTake a risk based approach


• What does a policy do?What does a policy do?– Sends a clear message that this is Sends a clear message that this is

importantimportant– Is a statement of intent – to Is a statement of intent – to

communicate something that is communicate something that is importantimportant

– Provide a mandate for further activity Provide a mandate for further activity and resourcesand resources


• What does a strategy do?What does a strategy do?– Shows how you are going to implement the Shows how you are going to implement the

policypolicy– Communicates where your priority areas for Communicates where your priority areas for

action areaction are– Identifies action areas to be picked up by Identifies action areas to be picked up by

individuals and departments (detailed action individuals and departments (detailed action plans fit below this)plans fit below this)

– Timescale of the strategy?Timescale of the strategy?

Starting pointStarting point

Take a risk based approachTake a risk based approach

Why take a risk based approach?Why take a risk based approach?

• Every product or service we buy has an Every product or service we buy has an environmental and social impactenvironmental and social impact

• You buy thousands of productsYou buy thousands of products

• You have limited resourcesYou have limited resources

• You have limited timeYou have limited time

• You are being asked to demonstrate how You are being asked to demonstrate how the work you do supports your institutionthe work you do supports your institution

A risk based approachA risk based approach

• Adopting the priorities identified by the Adopting the priorities identified by the task force in your university can help you task force in your university can help you achieve the 2009 target. achieve the 2009 target.

• Of the 174 spend areas identified the Of the 174 spend areas identified the following 10 were named as priorities for following 10 were named as priorities for sustainable procurement activity.sustainable procurement activity.

• This was based on a number of factors This was based on a number of factors including spend, environmental and social including spend, environmental and social impact and reputational risk.impact and reputational risk.


• Best practice on the development Best practice on the development and implementation of CSR, and implementation of CSR, sustainability and sustainable sustainability and sustainable procurement is based on riskprocurement is based on risk

• Materiality assessmentMateriality assessment


11 Construction (building and refit, highways and local roads, Construction (building and refit, highways and local roads, operations and maintenance)operations and maintenance)

22 Health and social work (operating costs of hospitals, care Health and social work (operating costs of hospitals, care homes, social care provision)homes, social care provision)

33 FoodFood44 Uniforms, clothing and other textilesUniforms, clothing and other textiles55 WasteWaste66 Pulp, paper and printingPulp, paper and printing77 EnergyEnergy88 Consumables – office machinery and computersConsumables – office machinery and computers99 FurnitureFurniture1010 Transport (business travel and motor vehicles)Transport (business travel and motor vehicles)


• Some simple stepsSome simple steps– Use the Procuring the Future priorities as a Use the Procuring the Future priorities as a

starting pointstarting point– Cross reference with high risk areas identified Cross reference with high risk areas identified

in the university specific commodity risk in the university specific commodity risk analysis?analysis?

– Cross reference with the priority areas Cross reference with the priority areas identified as important to your universityidentified as important to your university

– Horizon scan - priority projects or contractsHorizon scan - priority projects or contracts– Have any big spend or risk areas that you Have any big spend or risk areas that you

know of been missed?know of been missed?

Exercise ThreeExercise Three

• Using the list the Procuring the Using the list the Procuring the Future.Future.– Go through the process but do not use Go through the process but do not use

the university commodity risk analysis the university commodity risk analysis at this point.at this point.


• This process will allow you toThis process will allow you to– Have a list of priority areas to focus on and this Have a list of priority areas to focus on and this

will allow all of the other actions relating to the will allow all of the other actions relating to the Flexible Framework to flow from this point.Flexible Framework to flow from this point.

– Helps you define who is keyHelps you define who is key– Allows you to develop your strategyAllows you to develop your strategy– Helps you identify where to startHelps you identify where to start– Has a narrative flow which is easy to Has a narrative flow which is easy to

communicatecommunicate

Training and communications - Training and communications - developing key staffdeveloping key staff

Training and communicationsTraining and communications

• Why develop key staff?Why develop key staff?– Allows you to implement the policy and Allows you to implement the policy and

strategystrategy– Supports staff in what can be a strange Supports staff in what can be a strange

and new areaand new area– Is important if it is to workIs important if it is to work– Helps to achieve Level 3 of the Flexible Helps to achieve Level 3 of the Flexible

FrameworkFramework

Exercise FourExercise Four

• What do the following need to knowWhat do the following need to know– Key staffKey staff– All procurement staffAll procurement staff– Key employeesKey employees

– How is the training the same and how is How is the training the same and how is it different?it different?


• What should be included in training?What should be included in training?– A basic understanding of sustainable A basic understanding of sustainable

development and sustainable development and sustainable procurement.procurement.

– Introduction to the university policy and Introduction to the university policy and strategystrategy

– An understanding of the priority areas An understanding of the priority areas (based on risk)(based on risk)

– Confidence that they do not have to get Confidence that they do not have to get everything right the first timeeverything right the first time


• Induction (suggested actions)Induction (suggested actions)– Member of the procurement team or HR Member of the procurement team or HR

team includes the importance of team includes the importance of Sustainable Procurement in all staff Sustainable Procurement in all staff induction (policy)induction (policy)

– Member of the procurement team sits Member of the procurement team sits down with anyone with procurement down with anyone with procurement responsibility and introduces the new responsibility and introduces the new members of staff to the policy and strategymembers of staff to the policy and strategy


• Staff training (suggested actions)Staff training (suggested actions)– All procurement team undertake a ½ All procurement team undertake a ½

day training on sustainable procurement day training on sustainable procurement based on Level 1 slides.based on Level 1 slides.

– Procurement champion / lead builds in Procurement champion / lead builds in sustainable procurement refresher sustainable procurement refresher training into the personal develop plan training into the personal develop plan and attends and external course.and attends and external course.


• Staff training (suggested actions)Staff training (suggested actions)– All procurement staff have sustainable All procurement staff have sustainable

development and sustainable development and sustainable procurement objectives added to there procurement objectives added to there personal objectivespersonal objectives

– Ideal if it was added to job descriptions – Ideal if it was added to job descriptions – but this is not always possiblebut this is not always possible


• Staff training – example exerciseStaff training – example exercise– Choose a productChoose a product– In small groups discuss and identify the In small groups discuss and identify the

environmental and social impacts of the environmental and social impacts of the product (thinking about the whole life product (thinking about the whole life cycle)cycle)

– Ask them to take this list and then in their Ask them to take this list and then in their opinion identify the top 3 or 4 based on opinion identify the top 3 or 4 based on their understanding of the producttheir understanding of the product


• Staff training – What this does is.Staff training – What this does is.– Show them how easy it is to identify the Show them how easy it is to identify the

impactsimpacts– Show them it isn’t rocket scienceShow them it isn’t rocket science– Gives them ideas of questions to ask suppliers, Gives them ideas of questions to ask suppliers,

information to look for and possible issues to information to look for and possible issues to refer to in future specifications and to raise at refer to in future specifications and to raise at contract review stage.contract review stage.

– Start a dialogue and gives them a mental Start a dialogue and gives them a mental model, a simple processmodel, a simple process

Procurement process and Procurement process and monitoring and measuringmonitoring and measuring

Exercise FiveExercise Five

• Process, monitoring and measuringProcess, monitoring and measuring – If you have undertaken all we have If you have undertaken all we have

discussed to date.discussed to date.– What is still stopping you achieve Level What is still stopping you achieve Level

3?3?

Supplier EngagementSupplier Engagement

Why is it important?

Natural Resources

Transportation ManufacturingProduct

DistributionConsumers

Environmental Footprint

Impacts and Opportunities (Environment)

Low

Supply Chain

High


Natural Resources




Current Management Effort (Environment)

Low

Supply Chain

High


Natural Resources




Mismatch between the two

Low

Supply Chain

High

Exercise SixExercise Six

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


• Supplier engagementSupplier engagement– Views sought on procurement policy?Views sought on procurement policy?

– Or Or

– Contacted and informed of the policy and a Contacted and informed of the policy and a clear communication that this is an important clear communication that this is an important area for the university and environmental and area for the university and environmental and social criteria will be included in future social criteria will be included in future specifications and contractsspecifications and contracts

T op 20 c ountries by report output 1992-2008

0

500

1000

1500

2000

2500

3000

UK

US

A

Jap

an

Germ

any

Aust

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Canada

Italy

Spain

The N

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France

Sw

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Sw

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Fin

lan

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Norw

ay

Denm

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South

Afr

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Bra

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Belg

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Aust

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2008

1992-2007

G lobal report output by report 'type' 1992-2008

0%

20%

40%

60%

80%

100%

1992 1993 1994 1995 1996 1997 1998 1999 2000 2001 2002 2003 2004 2005 2006 2007 2008

Other

Social / Community

Philanthropy

Environment & Social

'Sustainable'(Environment/Social/Economic)

Corporate Responsibility'(EHS/Community/Social)

Environment, Health & Safety &Social/Community

Environment, Health & Safety

Environment

T op 20 s ec tors by report output 1992-2008

0

200

400

600

800

1000

1200

1400

Ch

em

icals

Ele

ctri

city

Ban

ks

Oil

& G

as

Tra

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Min

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Hard

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Wate

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Pro

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Mu

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2008

1992-2007


• Good practice reviewGood practice review– Where do you start!Where do you start!– Supplier credo’s and codes of conductSupplier credo’s and codes of conduct– Use of questionnairesUse of questionnaires– Supplier workshopsSupplier workshops– Guidance for suppliersGuidance for suppliers– Working with suppliersWorking with suppliers


• United UtilitiesUnited Utilities– Risk based approachRisk based approach– Identified key risks alongside priority Identified key risks alongside priority

environmental and social issues.environmental and social issues.– Prioritised supplies based on risk areasPrioritised supplies based on risk areas– Developed guidance for supplierDeveloped guidance for supplier– Delivered workshops for suppliersDelivered workshops for suppliers– Were seen as the lead on sustainable Were seen as the lead on sustainable

procurement by BITCprocurement by BITC

Contract managementContract management

• Continuous improvementContinuous improvement– Work with suppliers to improveWork with suppliers to improve– Set targets and monitor improvement Set targets and monitor improvement

through contract reviewthrough contract review– Allows organisations to accept issues are Allows organisations to accept issues are

apparent but are working to address themapparent but are working to address them– Train your suppliersTrain your suppliers– Provide guidanceProvide guidance– Give awards!!Give awards!!

Exercise SevenExercise Seven

• Action planningAction planning– Review the documentReview the document– Add new actionsAdd new actions

QuestionsQuestions

Contact DetailsContact Details

Jimmy BranniganJimmy Brannigan

[email protected]@esdconsulting.co.uko.uk

mailto:[email protected]

mailto:[email protected]

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