Sustainable Procurement Fundamentals

Transcription

1 Sustainable Procurement Fundamentals 25 September 2014 Lilli McCubbin ECO-Buy Program Manager ECO-Buy

2 Workshop outline What is ECO-Buy? 9.00am-10.45am: What is & why do sustainable procurement? What makes a product environmentally or socially preferable? Understanding impacts through the life cycle 10.45am-11.05am morning tea 11.05am-1.00pm: Deciphering eco-labels and greenwash 10 steps to implementing sustainable procurement Best practice approach to embedding sustainability Action planning Lunch! 2

3 Workshop objectives What is ECO-Buy? Understand what sustainable procurement is and its drivers Understand what attributes make a product/service socially or environmentally preferable, including energy efficient products Identify significant sustainability impacts & risks Understand how effective sustainable procurement practice can be put in place Understand where to find tools, case studies and supporting information Identify next steps for your organisation 3

4 What is ECO-Buy? Introductions 4

5 Not-for-profit organisation with a mission to increase procurement of more sustainable products and services Over 13 years experience in sustainable procurement with government and business clients Capacity Building Peer Learning & Networks Tools & Resources Knowledge Base & Advisory Training & Events 5

6 What is ECO-Buy? Why embed sustainability into procurement? 6

7 Global context 7

8 Benefits of sustainable procurement British Standard says: Financial benefits BS8903:2010 Principles and framework for procuring sustainably 8

9 Sustainable products cost more myth What is ECO-Buy? LCC = initial cost plus all other/ future costs, including: - installation and training - lease / contract-out charges - insurance costs - energy costs - maintenance - disposal 9

10 Example of lifecycle costing 10

11 Example of savings through lifecycle costing - Glen Eira City Council s Sports and Aquatic Centre Workshop Title Presenter: NAME 11

12 Benefits of sustainable procurement British Standard says: Financial benefits Reduces risk 12

13 Risk What is ECO-Buy? 13

14 Benefits of sustainable procurement British Standard says: Financial benefits Reduces risk Policy commitments and targets 14

15 Summary of benefits of sustainable procurement British Standard says: Financial benefits Reduces risk Policy commitments and targets Stakeholder expectations Leadership 15

16 What is ECO-Buy? What is sustainable procurement? 16

17 Sustainable procurement is... What is ECO-Buy?... a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole of life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment. United Nations Environment Program 17

18 In other words Workshop Title Sustainability Presenter: NAME 18

19 What are environmentally preferable products? Recycled Energy saving Water saving Low toxicity Other significant attribute 19

20 What are socially preferable products/services? Ethical sourcing Supplier diversity & equal opportunity Local economy 20

21 Services Use of green products / approach Business applies extensive sustainability practices and has comprehensive environmental management system 21

22 Australian Government - sustainable services guide What is ECO-Buy? stainable-procurement-services.html

23 Demand management strategies What is ECO-Buy? 1. Establishing the aim 2. Investigating the need Demand management strategies: - Is the purchase needed? - How much of this product service do we need? - Can existing equipment be re-used/repaired/refurbished? - Can existing product be shared with current user? - Can a second-hand purchase be made? - Can demand amongst multiple users be aggregated to achieve better usage of assets? - Can this product be hired/delivered as a service? - Are sustainable alternatives available? 23

24 Example of demand management InterfaceFlor carpets 24

25 What is ECO-Buy? How can I tell if a product has genuine sustainability attributes? 25

26 Determining a product s sustainability attributes Apply a green screen Identifying lifecycle impacts Environmental claims Eco-labels Greenwash Research Product databases Category guides 26

27 Consider the life cycle What is ECO-Buy?

28 Activity 1 - product assessment What is ECO-Buy? For a particular product, investigate: What are the impacts? List on the life cycle diagram Then complete the rating tool on your Quick Guide What could you do to avoid/reduce them? 28

29 Assessing a purchase Apply a green screen Identifying lifecycle impacts Environmental claims Eco-labels Greenwash Research Product databases Category guides 29

30 Eco-labels and certifications 30

31 Greenwash 31

32 Assessing a purchase Apply a green screen Identifying lifecycle impacts Environmental claims Eco-labels Greenwash Research Product databases Category guides 32

33 Product databases my.socialenterprisefinder.com.au/ 33

34 Product category guides Australian Procurement and Construction Council (APCC) European Commission ICLEI Procura+ < ECO-Buy < 34

35 Review What is ECO-Buy? Benefits of sustainable procurement Environmental attributes of a purchase x 5 Social attributes of a purchase x 4 Key ways to assess a purchase 35

36 What is ECO-Buy? Integrating sustainability into procurement 36

37 BS

38 How to get started (& keep going) Commitment Policy Assess purchases What is ECO-Buy? Action plan Educate staff Engage suppliers Review Plan Track Do Track improvements Report & publicise Tender evaluation Contract specification 38

39 Ten steps to effectively implement a sustainable procurement program Review: 1. Confirm organisational commitment 2. Create the policy framework 39

40 Policy typical content Intent/purpose Policy statement Scope Principles/objectives Actions Definitions References to related policies and procedures 40

41 Example of policy commitment 41

42 Ten steps to effectively implement a sustainable procurement program Review 1. Confirm organisational commitment 2. Create the policy framework 3. Assess risks in key spend areas 42

43 Supply chain risk assessment 43

44 Supply chain risk assessment 44

45 Activity 2 - prioritisation 1. Assess the overall impact/risk 2. Add a mock overall spend 3. Plot on the chart 4. Outline your procurement approach Critical: These categories have the highest spend and highest inherent risk. Typically critical to the business and should be a top priority demanding further risk analysis and close management. There should be a focus on driving value and opportunity, minimising risk & building an effective relationship. Secure: Lower spend, but high inherent sustainability risk. Should be prioritised and risks closely managed. Should consider paying a cost premium if appropriate to manage risks associated with these purchases to ensure achievement of an organisations goals. Acquisition: Lower inherent sustainability risk and spend. Focus should be more on efficient buying techniques. Cost driven: Lower inherent sustainability risk, but higher spend. Buyers can adopt a more cost driven approach, leveraging savings from suppliers. 45

46 Ten steps to effectively implement a green purchasing program Review 1. Confirm organisational commitment 2. Create the policy framework 3. Assess risks in key spend areas Plan 4. Develop your action plan 46

47 Sample action plan 47

48 Ten steps to effectively implement a sustainable procurement program Review 1. Confirm organisational commitment 2. Create the policy framework 3. Assess risks in key spend areas Plan 4. Develop your action plan 5. Educate staff 48

49 Moonee Valley City Council staff engagement through case studies 49

50 Ten steps to effectively implement a sustainable procurement program Review 1. Confirm organisational commitment 2. Create the policy framework 3. Assess risks in key spend areas Plan 4. Develop your action plan 5. Educate staff 6. Engage with your suppliers 50

51 Example: NAB working with Staples to reduce packaging What is ECO-Buy? e-study-7--staples.pdf 51

52 Signalling DPTI recycled asphalt product Introduced Recycled Asphalt Pavement (RAP) materials in major road resurfacing projects, in partnership with industry, to: reduce carbon foot print lower the environmental impact in hot mix asphalt production Discussion with asphalt producers encouraged investment in new technology to incorporate RAP Application of RAP has been successful Now higher percentages of RAP used since modifying asphalt plants and/or constructing new asphalt plants 52

53 Ten steps to effectively implement a sustainable procurement program Review 1. Confirm organisational commitment 2. Create the policy framework 3. Assess risks in key spend areas Plan 4. Develop your action plan 5. Educate staff 6. Engage with your suppliers Do 7. Tender specifications and evaluations 8. Contract requirements and KPIs 53

54 Procurement process What can we do better next time? Do we need it? How can we buy something with less environmental or social impact? Sustainability KPIs and SRM Value for money consideration Establish sustainability specifications & evaluation criteria 54

55 Procurement process Source: Forum for the Future

56 Melton City Council 5 Star Green Star What Library is ECO-Buy? and Learning Hub Worked closely with suppliers Used new materials and products, e.g. geopolymer concrete Financial savings and environmental and social outcomes

57 Ten steps to effectively implement a sustainable procurement program Review 1. Confirm organisational commitment 2. Create the policy framework 3. Assess risks in key spend areas Plan 4. Develop your action plan 5. Educate staff 6. Engage with your suppliers Do 7. Tender specifications and evaluations 8. Contract requirements and KPIs Track 9. Track improvements 57

58 Measurement Examples of process implementation measures: % of spend on contracts awarded based on sustainability % of contracts with sustainability criteria included (or % value of contracts) Number of supply chain staff trained in sustainable procurement Sustainable Procurement Assessment Tool rating Examples of outcome measures: reduction in waste sent to landfill reduction in carbon emissions increases in recycled content $ dollar spend on sustainable purchases spend on sustainable purchases as % of total available expenditure 58

59 Sustainable purchasing results 59

60 Ten steps to effectively implement a sustainable procurement program Review 1. Confirm organisational commitment 2. Create the policy framework 3. Assess risks in key spend areas Plan 4. Develop your action plan 5. Educate staff 6. Engage with your suppliers Do 7. Tender specifications and evaluations 8. Contract requirements and KPIs Track 9. Track improvements 10. Report and publicise 60

61 What is ECO-Buy? 61

62 Ten steps to effectively implement a sustainable procurement program Review 1. Confirm organisational commitment 2. Create the policy framework 3. Assess risks in key spend areas Plan 4. Develop your action plan 5. Educate staff 6. Engage with your suppliers Do 7. Tender specifications and evaluations 8. Contract requirements and KPIs Track 9. Track improvements 10. Report and publicise 62

63 Questions? 63

64 Summary What is & why do sustainable procurement What classifies a product as sustainable Assessing product sustainability attributes How to embed sustainability into the procurement process Enabling best practice through BS8903 Next steps 64

65 Activity - Your next steps What are is some ECO-Buy? quick wins? What are some long term actions? 65

66 Check out our website for loads of resources /ECOBuy Quick Guide to BS8903 Lilli McCubbin Program Manager