Supporting sustainable procurement - CIPS Speaker... · SUPPORTING SUSTAINABLE PROCUREMENT ......

SUPPORTING SUSTAINABLE

PROCUREMENT

CIPS Event – Basel, Switzerland, March 2014

Pierre Boccon-Gibod

Global Sustainability Services

Senior Sustainability Consultant

[email protected]

mailto:[email protected]




2 © SGS SA 2014 ALL RIGHTS RESERVED

AGENDA

Is Sustainable Procurement only about reducing

risk ?

Procurement and Sustainability

What type of requests I receive about

Sustainable Procurement

Minimum Level

Avoid Green/Social washing

Beyond the balance sheet

Take home message


SGS PRAGMATIC APPROACH,

THE GREEN FORWARD METHODOLOGY

DESIGN

LCA EHS Data

MARKET INFORMATION

Product Tests

Norms and Regulations

Environmental

Labeling

CARBON FOOTPRINT

Choosing Technologies

Functional Specifications

Quality

PROCUREMENT Select eco products

Supply specifications

SALES & COMMUNICATION Choice of subjects

Robust claims

REACH

GHOSH, PROP65

Corporate targets

WEEE, ROHS

Procurement policies

Procurement will be

today’s focus !


IS SUSTAINABLE PROCUREMENT ONLY

ABOUT REDUCING RISK ?

Sustainability emerged in a wide and wild world Economical, environmental and social crisis, raw material

fluctuations, increasing outsourcing to low cost countries,

Why is Sustainable Procurement implemented ? (survey)

Many decisions are about reducing direct cost

Sustainable Procurement is about understanding global cost

From Reducing Risk to Enabling Opportunities


PICTURE OF CSR AND PROCUREMENT TODAY

Procurement is most of the time involved in CSR Even sometimes at the origin of it !

Thus some CSR objectives are Procurement related

Some examples of KPIs tracked % of suppliers audited/answered/non-compliant

Number of buyers trained

Safety related

But …there are Obstacles…which are due to a lack of Clear objectives at the Procurement level (not pragmatic or

meaningful)

Resources with expertise

Clear objectives at the Corporate Level

Metrics and tools

Sometimes lead to « Green Projects » rather than deep implementation


SUSTAINABLE PROCUREMENT INSIGHT

Sales

Ecodesign

Audits LCA

Need

definition

Reverse

Marketing RFI/RFP

Contract

Delivery

Spec. Suppliers

selection Contracting

Supplier

Follow-up

Questionnaires Policy

Risks mapping Criteria KPIs

Procurement Design

Many actions : Focus on 2 sort. (green and blue)


TYPE A : MINIMUM REQUIREMENTS

Set the cursor between Regulatory and Corporate req. Social and Environment top-up the policy in place

– « Have a water meter » or « Be connected to public sewage »

But needs to be linked with clear and robust aspects related to the category of suppliers or products or geographical zone.

The « business enabler » for suppliers, most of the time Ex web based tools for social/Env., what about Metrics?

The « black box » for procurement managers

Time consuming if not correctly defined and when elements are needed afterwards Specific project requirements

Non-compliance on products supplied


TYPE 2 : AVOID SOCIAL/GREEN WASHING

Some of your suppliers have « green » or « social »

claims

Or your corporate guidelines expect « environment

friendly » products to be supplied

May be difficult to make the difference within all the

claims

Eco-label 1, 2, and 3 + site information/certification

May be difficult to identify the ones meaningful to

your sector (or different from minimum compliance…)

Eee


EXAMPLE : HOW MISLEADING ? / HOW

ROBUST ?

Think about a plastic container or element: Bioplastic made with sugarcane

With Greenclaims which are the following : Compatible with CSR Strategies Meaningless

Contributes to a reduced carbon footprint How much ? Only carbon ?

87% biobased content (proven with a lab test) What are the other 13%

Made out of renewable material Sustainably produced ?

Recyclable material Minimum expected, no? daz

How would you consider it ?

Think twice ! The elements above are not enough to qualify a product and/or are misleading. The products needs further investigation/verification (sustainable sugarcane production certification, functional analysis of the packaging, social conditions…)

Similar cases seen everyday, everywhere


PRODUCT FOOTPRINT OF A RETAILER

excluding


PRODUCT FOOTPRINT OF A RETAILER

The production, distribution and use of products

represents more than 90% of the total impacts of

the retailer, so are risks, and… opportunities !


TYPE C : BEYOND THE BALANCE SHEET

Considering the total “cost” of the product

Total Cost

Buying cost

Acquisition cost

Ownership cost

Possession cost

Use cost

Maintenance cost

End-of-life aspects

Legal aspects

Reputation aspects


WHAT IS INCREASING IN SUSTAINABLE

PROCUREMENT ?

Audits

Ecodesign

Pragmatic

=

Suppliers Improvement &

Environmental + Social

Ecodesign Audits

Criteria

GreenForward


8 ENVIRONMENTAL ITEMS –

GLOBAL COVERAGE

Environmental permit

Pollution control & Resource conservation

Water use

Energy use, Transport and Greenhouse Gases (GHGs)

Land use and biodiversity

Management system

Emergency Preparedness and Response

Contaminated Land / Soil and Groundwater Pollution Prevention

Nuisances

Waste Water

Waste gas, air emissions

Waste management

Hazardous substances (potentially)

Noise

Audits


IMPROVEMENT AND ENVIRONMENTAL AUDITS

2 days Compliance Environmental Assessment

Compliance and Continuous Improvement

Environmental Audit

Support your suppliers to achieve Conformity

level or Support your suppliers against their

Environmental Footprint Improvement, up to the

conformity scope.

Audits


IMPROVEMENT AND ENVIRONMENTAL AUDITS

ROADMAP

SGS supports and drives the supplier to awareness and understanding of local regulations. Training is adapted to their needs.

Not a “penalty” audit but a partnership that helps rebuilding the supplier’s processes.

Self Assessment questionnaire &

Preliminary Evaluation.

Initial On site Audit

Risk profiling and key conformity indicators

1 2 3 4 Training & Coaching C

ON

FO

RM

ITY

Audits


SGS UNIQUE POSITIONING

Our vision: LCA is just a eco-design tool and not the solution to any

ecodesign problems

Ecodesign should not only be understandable by eco-design experts. Ecodesign should speak to marketers, purchasers and R&D engineers

Ecodesign should be pragmatic

What are the needs of customers? Translate environmental complex data into easy to

understand information for buyers, R&D engineers and marketers.

Consider use phase and resource efficiency

Add environmental criteria into product functional specification

Build a straightforward communication

Offer a robust methodology

GreenForward


PRAGMATIC ECODESIGN AND CRITERIA

Purchasing Recommendations for hand-drying systems Which products to choose according Hygiene and

Environmental aspects

Experts based, time saving, updatable and expendable approach

Cnezui

Jcezio

Jceizop

Jcezop

Hczeio

Cejzio

Cjezio

Lab tests

Site tests

LCA approach

Specific equations

GreenForward


PRAGMATIC ECODESIGN AND CRITERIA

Procurement specifications for mattresses

Experts based, time saving, updatable and expendable

specifications

GreenForward


IT’S A GLOBAL WIN

Corporate level Reputation and public image

Company valorization on public markets

Better management of environmental and social risks

Additional revenue from diversification

Pragmatic Innovation

Stakeholder involvement

Procurement Reduction all along the life-cycle (energy, raw materials,

efficiency, …)

Increased quality and reliability of product/suppliers thanks to upstream involvement

Professionalization by homogenization of practices

Efficient tailoring between CSR, Corporate and Procurement targets


SGS PRAGMATIC APPROACH,

THE GREEN FORWARD METHODOLOGY

DESIGN

LCA EHS Data

MARKET INFORMATION

Product Tests

Norms and Regulations

Environmental

Labeling

CARBON FOOTPRINT

Choosing Technologies

Functional Specifications

Quality

PROCUREMENT Select eco products

Supply specifications

SALES & COMMUNICATION Choice of subjects

Robust claims

REACH

GHOSH, PROP65

Corporate targets

WEEE, ROHS

Procurement policies

WWW.SGS.COM/ECODESIGN

Supporting sustainable procurement - CIPS Speaker... · SUPPORTING SUSTAINABLE PROCUREMENT ......

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