Sustainable Supply Chain

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1 Sustainable Supply Chain Name of presenters: Dave Evans BSc (hons) MSc MBA Jacqueline Gibson BSc (hons) 1

2 Definitions Sustainable the capacity to continue indefinitely or being able to do what we are doing now, forever. Unsustainable not being able to do what we are doing now, for very much longer. 2

3 Sustainability 3

4 Sustainable Curious Unsustainable Complacent Sustainability Future-proofing 4

5 Future proofing Understand what is happening Drivers Key drivers Compliance Competition Value of spend Important sustainability issues Supply chain security 5

6 Key drivers Compliance Competition Value of spend Important sustainability issues Supply chain security ISO 14001:2015 Environmental Management Systems Key changes ISO 14001:2015 External factors Uncertainty (risk or opportunity) Needs of interested parties Life cycle perspective 6

7 Life cycle assessment Sustainable procurement Procurement that has the most positive environmental, social & economic impacts possible over the entire life cycle. Source ISO Sustainable Procurement Standard. 7

8 Three pillars of sustainability Key drivers Compliance Competition Value of spend Important sustainability issues Supply chain security Competition Who are your competitors? Where are they? What are they doing different? 8

9 CIEH Level 2 Award in Environmental Principles and Best Practice: slide 25 CIEH 2009 iema.net CIEH Level 2 Award in Environmental Principles and Best Practice: slide 26 CIEH 2009 iema.net CIEH Level 2 Award in Environmental Principles and Best Practice: slide 27 CIEH 2009 iema.net 9

10 CIEH Level 2 Award in Environmental Principles and Best Practice: slide 28 CIEH 2009 iema.net CIEH Level 2 Award in Environmental Principles and Best Practice: slide 29 CIEH 2009 iema.net 10

11 Key drivers Compliance Competition Value of spend Important sustainability issues Supply chain security Key drivers Compliance Competition Value of spend Important sustainability issues Supply chain security 11

12 Important issues Waste Energy and carbon Biodiversity Water Climate change Health & safety Diversity Job creation Local economic development Crime & safety Fair pay Key drivers Compliance Competition Value of spend Important sustainability issues Supply chain security 12

13 Risk to supply chain or reputation Local National International Energy Energy Capacity Margin? 13

14 -55% within 10 years 14

15 Of which 23% is wasted Energy 3% or less of total costs The key issue Cost Security of supply 15

16 E One of the aims of the Global Risks Report is to encourage individuals and organizations to think critically and creatively about how they can respond to a rapidly evolving risks landscape. 16

17 Environmental Extreme weather Natural disasters Climate change Biodiversity loss Man-made disasters Social Water crisis Involuntary migration 17

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20 Process 20

21 The process Sustainable procurement has 4 key themes; people and communications policy & strategy procurement process measurement and results. The process Sustainable procurement has 4 key themes; people and communications policy & strategy procurement process measurement and results. The process Sustainable procurement has 4 key themes; people and communications policy & strategy procurement process measurement and results. 21

22 Communications The process Sustainable procurement has 4 key themes; people and communications policy & strategy procurement process measurement and results. Sustainability requirements Physical Performance Functional 22

23 Physical requirements Specify a characteristic of goods or services. recycled content reusable reduced packaging Performance requirements Define the performance standards to be met by the goods or services. delivery time waste reduction carbon emissions reduction Functional requirements Define the proposed function to be fulfilled by the goods or services required. strength durability energy/fuel efficiency. 23

24 The process Sustainable procurement has 4 key themes; people and communications policy & strategy procurement process measurement and results. Measurement and results (performance indicators) Process Output Outcome Impact Process indicators Good for the early stages of development to create a direction of travel and momentum how many people trained how many suppliers engaged 24

25 Output indicators Useful to monitor suppliers performance, carbon emissions waste volumes number of local employees local spend Outcome indicators Help to understand the contribution of the supply chain to overall organisational objectives carbon footprint (CO 2e ) workforce diversity Impact indicators Help to understand the wider impact on the environment or society, or externalities. the impact on local unemployment figures air quality 25

26 Implementation Implementation Key areas of spend Risk assess critical spends Assess importance Filter and prioritise Communicate the benefits 26

27 Communicate the benefits Environmental Economic Social Environmental Resource conservation Climate change mitigation & adaptation Enhanced biodiversity Reduced pollution Reduced nuisance Social Reduced inequality Enhanced local economy Fair pay Fair terms and conditions Reduced conflict More stable economy Improved health & well-being 27

28 Economic Enhanced reputation Increased sales Reduced costs Increased profits Security of supply Increased staff pride Reduced staff turnover Improved staff performance Compliance with legislation Reduced risks Communicate effectively Gleicher change formula Gleicher Change Formula D x V x F > R D = dissatisfaction V = vision F = easy first steps and R = resistance to change The 3 factors multiply each other thus low or zero score in any means resistance is not overcome 28

29 Can we help? Auditing Consultancy Training ISO Environmental ISO Energy ISO Sustainable procurement Communication Sustainable Development Implementation: Sustainable Procurement? Organisations practicing Sustainable Procurement meet their needs for goods, services, utilities and works not only at cost benefit to selves but benefits to the wider world. Ethical consumerism is the intentional purchase of products and services that the customer considers to be made ethically. This may mean with minimal harm to or exploitation of humans, animals and/or the natural environment..taking into account social, economic and environmental impact purchasing has on people and communities... Built Environment Sector: Building, Civils, FM (MOD, Public Sector Education and Healthcare, Highways Agency) 29

30 Public Sector Client Government Drivers Recent Pre- Qualification Question for University of Sheffield to Build a New Wing 30

31 GRAHAM Response Sustainable Supply Chain What products are made from Where have they come from Who has made them Under what conditions How they are transported How they are disposed of CIEH Level 2 Award in Environmental Principles and Best Practice: slide 91 CIEH GRAHAM Response Sharing Success Switch to Fairtrade It s Simple 31

32 Project Specific Success Celebrating Success Silverburn Shopping Centre, Glasgow (1million sq ft) WWF sustainable Timber Trail 100% Recycled Aggregates 100% Recyclable Aluminium glazing FSC Certified Timber Low Carbon Concrete (60% lower CO2) Kooltherm eco insulation Fairtrade during construction CIEH Level 2 Award in Environmental Principles and Best Practice: slide 94 CIEH 2009 A precious time, every time, For ALL time. Britain s Greenest Palace. Mixed Sector: Visitor Attractions: Retail, Agri (Farming/ Forestry), Property Maintenance, Events, Eateries, Construction 300 Homes. 32

33 Drivers: Customer trends, Increase Visitor Numbers/Profits Local / Responsible / Sustainable Procurement CIEH Level 2 Award in Environmental Principles and Best Practice: slide 97 CIEH 2009 Initiatives, Innovations, Collaborations & Partnerships Let s talk Dave Evans Dave.evans@actsustainably.com

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