Procuring for Carbon Reduction (P4CR) P4CR Executive Summary

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2 Procuring for Carbon Reduction (P4CR) P4CR Executive Summary Almost 60% of the NHS England carbon footprint is associated with the products and services it buys. This is a massive proportion of the total footprint and is due to the extraction, processing, assembly, packaging, transport, storage and handling of products and materials that are consumed directly and indirectly by service providers. Graph to show the NHS Carbon Footprint breakdown of emissions associated with Procurement There is a close relationship between energy consumption and carbon emissions. Reducing carbon emissions through procurement can realise efficiencies and cost savings. Taking carbon into account should be seen as good procurement practice. This is reflected by the incorporation of the Procuring for Caron Reduction project within the NHS QIPP Procurement work-stream. This said, it needs to be recognised that the NHS does not have direct control over all the actions of its supply chains. While the overall expenditure of the NHS is large, the scope for improvement and influence is not uniform across all of the products and services procured. The NHS Carbon Reduction Strategy recognises these challenges in the area of procurement and committed the Department of Health and the NHS Sustainable Development Unit (SDU) to develop guidance for procurement professionals on how they can effectively consider and address carbon emissions through procurement. The Procuring for Carbon Reduction (P4CR) guidance was created to address this commitment. The guidance comprises of a workbook and a range of supporting 1

3 materials and tools. These materials were issued for comment to the NHS in January The Procuring for Carbon Reduction toolkit comprises: A Roadmap a PowerPoint slide pack setting out an overview of the P4CR programme and an indication of the carbon reduction required through procurement to keep the NHS in line with regulatory UK carbon emission reduction targets. These materials have been developed to help communicate the scale of the challenge and to identify what is being put in place to support the NHS in meeting this challenge. Guidance a workbook style set of practical guidance aimed at procurement practitioners. The guidance is structured around a procurement flexible framework. This is a maturity matrix (included separately) that has been tried and tested across the public sector. It sets out the steps recommended for organisations to consider the carbon impacts of their procurement decisions effectively and enable them to deliver quantifiable carbon emission reductions. SCO 2 PE supply prioritisation tool this excel based tool allows organisations to calculate approximate carbon footprint by inputting their expenditure data by category. The tool provides a further screening methodology that will help to prioritise which categories of spend offer the greatest potential for carbon emission reductions. Hierarchy of Interventions this simple concept is central to the P4CR guidance. It aims to assist procurers in identifying the most appropriate interventions to apply with key categories or specific procurement projects.. 2

4 The P4CR Hierarchy of Interventions In addition to these materials the P4CR programme will signpost case examples that illustrate key principles within the guidance. They also provide examples of good and best practice that others may find useful to adopt and deliver carbon emission reductions in their organisations. The P4CR project is always looking for examples of good and best practice from across the health sector in reducing carbon through procurement. Please let from the NHS Sustainable Development Unit know if you have any examples. The P4CR Roadmap and supporting materials are primarily designed as tools for procurement staff, however there is a wider message and opportunity that all NHS organisations should be aware of. Reducing carbon and procuring sustainably should be a corporate priority and included in your organisation s Sustainable Development Management Plan. It should have an assigned strategic and operational lead to ensure that progress is monitored and commitments/targets achieved. The need to address carbon associated with the goods and services we procure should be communicated to all staff and those who supply NHS organisations. The P4CR Roadmap provides an indication of the reduction in carbon emissions required through procurement to keep the NHS in line with the UK s carbon emission reduction targets. The chart below shows aspirational levels of reduction for the NHS 3

5 on a trajectory that is aligned with milestones set out under the Climate Change Act for 2020 and Overlaid on this are the estimated reductions that each of the interventions in the hierarchy could contribute. It is clear that this is a significant challenge. It will require everyone in the NHS to think creatively about how to deliver health and social care now and into the future with substitution, innovation and effective engagement with suppliers becoming important elements of carbon reduction strategies. The NHS has a responsibility, as the largest employer and public sector emitter of carbon, to take this issue seriously. It has a unique status, given its size and procurement budgets, to lead the change and drive the creation of low carbon markets. The relationship and collaboration with suppliers has the potential to provide the largest carbon savings. The NHS is not in this alone; all organisations are beginning to look at their carbon impacts and are addressing the same challenges. There will be more chance of success by working together. P4CR aims to provide procurement professionals, as well as other staff in the NHS, with guidance, methodologies and tools to identify and understand the carbon reduction opportunities for their organisation. It is recognised that the NHS does not have total control over what it procures and the supply chains associated with that activity. It is also clear that there are large gaps in our understanding about the root of carbon emissions associated with much of what is procured. The emissions reduction challenge means that no-one can 4

6 afford to sit back and wait for someone else to find the solution. Starting to take action today and learning on the way is important. The NHS is at the forefront of work on how to influence carbon emissions associated with procurement and in many cases leading the field but it is important we build on this momentum to realise real reductions in carbon emissions. The P4CR materials issued with this document are a first attempt at answering the questions of what to do and how to do it. Over time it is hoped that the materials will be enhanced as we learn from the experiences of practitioners across a range of NHS organisations. The practical application of this guidance represents the first steps on the journey to effectively addressing carbon emissions embedded in the products and services procured for the delivery of efficient and effective health care. Four things you can do to get started with Procuring for Carbon Reduction. Identify a champion to lead your work. Benchmark your organisation against the P4CR Flexible Framework (presented in the guidance). Use the SCO 2 PE tool to start identifying your carbon hotspots. Start to raise awareness of carbon and emissions and build confidence of key procurement staff on this issue. 5