Study Visit in VANTAA Global Public Procurement Strategy of Nantes May 2018

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1 Study Visit in VANTAA Global Public Procurement Strategy of Nantes May 2018 Florent SOLIER Head of public procurement Department Nicolas JOFFRAUD European Affairs and Public Policy Advisor

2 Context and objectives of the city Priorities of the political project for construction of a sustainable local area Employment Equality Local Development Transitions (ecological, energy, environmental) Political Request : to Encourage, to motivate businesses to design and develop new sustainable business models with socially and environmentally responsible solutions Public procurement, with 430 M per year is one of the main tools for public action with companies.

3 Context and objectives of the city Public procurement : To have a coherent practice with existing public policies 2 dimensions of sustainable procurement Act in support of and in line with public policies: to encourage the development of businesses, support actors for a sustainable territory Act as a responsible buyer: To integrate specific actions or clauses for the purpose of better sustainable performance of public procurement Overall performance of purchasing: legal, economic, consideration of sustainable development and the interests of businesses

4 Public Procurement Strategy of Nantes since 15 years Relevant Actions Public Policies Employment Economic local development Equalitiy To change internal practices of buyers Public Procurement Strategy News business models Corporate Societal Responsability Circular Economy Social and Solidarity Economy SMEs Fair Trade Social Aspects Inclusion Tackling discrimination / promoting equality Disability Ecological & energy transitions To change Companies practices Environmental Aspects Energy Transition Environment Organic & short chain

5 Purchasing in Nantes Operational Piloting of purchases Deconcentrated organization Piloting of public policies Public Procurement Department

6 Purchasing in Nantes Legal 14 staff Legal safe risk control Advice for best contract arrangements Co steering procurement procedure Purchase 4 staff Public Procurement Department Department manage purchase of the ciy of Nantes and Urban Community of Nantes since 2011 Strategic purchase : goods, services and maintenance works Advice and study for best performance Co-steering pruchase procedure Sustainable procurement 2 staff

7 Purchasing in Nantes Purchasers 300 staff Definition of need Technical documents for contracts Offers Analysis, negociation Choosing contractors Execution of contracts Operational Piloting of purchases Management Unit 90 staff Interface with procurement department Administrative documents for contracts Internal procedures control Payment and management of claims (interface if needed) Purchase programming

8 Purchasing in Nantes Pilot of actions 10 staff. Social inclusion (6 staff) Combatting discrimination Carbon footprint CSR local plateform Other devices are managed by procurement department Piloting of public policies Missions with procurement department Pilot definition of expectations for the public procurement in favour of their public policies objectives. Procurement Departement identify the relevant solutions Co-dissimination to operational departments Choosing of relevant contract (pilot) implementation of contracts (pilot) with procurement departement if needed.

9 Focus on experimentation about introduction of the Corporate Societal Responsability in public procurement

10 Sustainable Procurement: partial (or fragmented) integration VS global approach Combating discrimination Inclusion through work Posted workers Eco products: recycled paper, biodegradable & organic products... Certified sustainable wood Carbon footprint Disability Energy efficiency Fair trade Payment term ALTs Subdivision into lots "Corporate Societal Responsibility" experimentation

11 Positive developments in the regulatory framework? New European directive 2014 Objective stated in the Directive: "to enable procurers to make better use of public procurement in support of common societal goals"(second recital of directive) Communication by the European Commission in october 2017 strengthen this approach and alert public purchaser about : the lack of strategy of public procurement : the leverage effect of public procurement is not enough effective in favor of innovation, sustainable development, energetic transition, employment One of the reasons for the Commission is the risk aversion of public purchaser Scope for intervention precisely defined: the lifecycle; the production, manufacturing and marketing processes; the overall cost. The connection with the subject-matter of the contract is defined in terms of these broad areas, always excluding the company's general CSR policy Lifecycle: R&D up until recycling or disposal Production process: There si not a legal definition by directive. Stake of the new directive : does it content all factors/parameters involved in the process? So we have used this approach to translate Corporate Societal Responsibility (CSR) into a comprehensive approach to public procurement

12 Why a global approach? Global challenge - Global responsibility: French study proves that CSR companies had a better economic performance by about 13% than those without a CSR policy (France Stratégie survey January 2016) => impact on longevity of businesses, employment and quality of employment => strategic impact for a local area Mobilise Companies over an approach, a working method. Standardise and simplify the sustainable procurement approach for companies: no specific actions imposed, allow the company to carry out its strategy by asserting its global nature. Prioritise mobilisation on the widest possible scale in order to move as many local companies forward as possible. We have used this CSR experimentation mainly in tenders concerning local companies.

13 How does the CSR initiative work? A collaborative effort: Dialogue between companies and public buyers based on guidelines drafted by: Centre des Jeunes Dirigeants (CJD - Chamber of Young Entrepreneurs), Dirigeants Responsables de l'ouest (DRO - Responsible Chief Executive Officers of Western France), CGPME (SMEs' Organization) Audencia (Business School), Nantes Métropole, Ville de Nantes, the County (Partial) translation of CSR into procurement contracts: Choice of a benchmark rather than a label: accessible to all Objective criteria for the CSR benchmark through indicators and associated Evidence (35) divided into 5 key areas: economic, social, environmental, territorial and governance Used as an award criterion with a weighting of up to 15 % First tests (2011): cleaning of premises, printing Ongoing implementation: meal vouchers; business travel agency; call center; security services...

14 How to simplify the management of CSR indicators? Assessment audit "tell us once": Because of the ambition of this first benchmark, first of all we try to simplify the device for the companies. Our partner Planet'RSE is responsible for carrying out audits to verify the evidence provided by companies and issues the CSR rating (according to a predefined assessment chart and framed methodology) The rating is valided for 2 years and recognised in our procurement contracts Companies can respond directly without going through Planet'RSE Transparent and multi-partner operating method During 2018 we want to simplify this action and identify only 10/15 indicators Standardise the practices of public buyers: Then, we try to mobilize other public purchaser of our area Committed public buyers: Nantes Métropole, Ville de Nantes, Conseil Départemental 44 Other contacts: Nantes Métropole municipalities, private buyers, other cities

15 Legal stake of CSR : Issue of the link to the subject matter of the contract Global policy Other resources Legal uncertainty What is the authorized scope when the directive raises the factors of the production process? Dedicated What is achieved on the occasion of the contract resources Legal certainty of the company of the Company Prohibited reference