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1 Nutrition Supplier Meeting June 2017, Copenhagen Greening the Blue: Framework of Sustainable Procurement Alison Fleet & Miho Abe UNICEF/simonlister 1
2 Objectives of Session Provide an overview of sustainable procurement in UNICEF Provide how UNICEF apply sustainable procurement in Ready to Use Therapeutic Food UNICEF/NYHQ /NOORANI 2
3 Overview of Sustainable Procurement in UNICEF 3
4 Development that meets the needs of the present without compromising the ability of future generations to meet their own needs 4
5 The Three Pillars of Sustainability 5
6 UNICEF overarching principles UN procurement principles UN Supplier Code of Conduct All UN and UNICEF registered suppliers sign on to the UN Code of Conduct. Based on the UN charter, the UN Global Compact and ILO standards. The code addresses: Labour conditions Human Rights Environment Ethical conduct Children s Rights and Business Principles Developed by UNICEF, UN Global Compact and Save the Children. Guide companies on actions they can take to support children s rights in the workplace, marketplace & community. 6
7 Sustainable Procurement help amplify outcomes for children Input: Selecting products in favour of the protection of environment Outcome: Securing healthier and cleaner future for children Input: Developing local supplier base Outcome: Promoting fair labour conditions and human rights, equitable resource distribution Input: Seeking resource efficiency, improving the quality of products Outcome: VfM for governments and more resources for children Input: Ethical & responsible procurement Outcome: Preventing exploitation of children, violation of human rights and environmental damage in the supply chain 7
8 Examples of Sustainable Procurement in UNICEF Economic Social Environmental Vaccines Cumulative saving of US$ 2 billion since 2012 RUTF 56% of total quantity supplied from programme countries in 2016 WASH & Education Reducing 100 tons of CO2 per annum. LLIN(Long Lasting Insecticidal Net) 40% price reduction from US$ 4.20 (2011) to US$ 2.40 (2015) SIE (Safe Injection Equipment) 20% of contract award made to local suppliers in Africa by SIE (Safe Injection Equipment) 30% of commercial evaluation is environmental criteria. 8
9 Examples of Sustainable Procurement in UNICEF (cont.) Safe Injection Equipment (SIE) tender Environmental score makes up thirty (30) percent of the overall commercial score. Focus on two components : The volume of the product The weight of the product (and packaging) Both impact shipment, fuel consumption, carbon footprint and waste to be disposed of. 9
10 Applying the Sustainable Procurement framework to Nutrition Products 10
11 Rolling out the Green Carpet 11
12 From 2018 Sustainability of local markets will be an area of increased focus Sustainable sources of RUTF in LICs/MICs UNICEF s Target Greater visibility of the three pillars of Sustainability for each supplier 12
13 1 st phase 2 nd phase 3 rd phase Living and breathing SP Future State UNICEF as a leading contributor to UN SP implementation Frameworks Develop strategy and road map SP policy framework and SD procedures adapted to RUTF supply SP embedded in all offshore and local procurement SUSTAINABLE PROCUREMENT Map current status of suppliers for RUTF SP embedded in all key stages of Nutrition supply and procurement Measure key areas of SP already occurring in RUTF production SP strategy communicated and promoted to partners and suppliers Expand Financing Partnership 13
14 Aspects of planning implementation of SP Status Quo Scope and Map current status of RUTF Conduct a sustainability risk assessment Life cycle costing Develop a whole life cycle costing for RUTF products Roadmap Develop minimum criteria for sustainability for nutrition supply 14
15 Aspects of planning implementation of SP Contractual Provisions Add minimum sustainability requirements to LTAs Evaluation Criteria Develop advanced criteria. Gradually introduce to product specifications Measure Develop a scoring system for the evaluation of suppliers during tenders 15
16 Resources and reference for UNICEF Nutrition Sustainability criteria FAO SAFA Guidelines (Sustainability Assessment of Food and Agriculture Systems) ISO standard 16
17 17
18 18
19 UNICEF/SUDA2014-XX228/Noorani 19 Thank You
20 20
21 SP priorities might include, for instance: GHG emissions reduction, Ozone depleting chemical eradication, Natural resource use optimization, Waste minimization, Prohibition of child and forced labour, Job creation, Non-discrimination in employment, Freedom of association for workers and the right to collective bargaining, Fair wages and conditions for workers in the supply chain, Economic development, Legal compliance, Enhancement of the reputation of the UN. 21
22 Life cycle of RUTF /whole life costing Economic factors, which include the costs of products and services over their entire life cycle, acquisition, maintenance, operations and end-of-life management costs (including waste disposal) in line with good financial management. 2. Social and labourfactors, which include recognizing equality and diversity; observing core labourstandards; ensuring fair working conditions; increasing employment and skills; developing local communities and their physical infrastructure. 3. Environmental factors, which include natural resource use and water scarcity, emissions to air, climate change and biodiversity over the whole product life cycle. Raw materials this stage should contain all impacts related to the main inputs of a product or service. 2. Manufacture/service delivery this stage covers the production phase -including an eventual supply chain -and the logistics associated with a product/service. 3. Use of the product/service impacts from the use phase are often those most evident from a consumer/procurer perspective. 4. Disposal of the product/conclusion of the service often overlooked, this stage deals with impacts taking place during the unavoidable final step of any product/service. a life cycle impact assessment of different products and services. 22
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