Environmental and Sustainable Procurement Policy
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1 Environmental and Sustainable Procurement Policy Graham Beck FlnstLM, MCIPS February 2015
2 Contents 1. General Policy Statement 2. Aims of the Policy 3. Strategic Objectives 4. Trust Responsibility 5. Delegated Responsibilities 6. Legislation 7. Procurement 8. Instructions and Training 9. Reporting 10. Action Plan Appendices 1 Substances & Products to be avoided Promoted and Preferred
3 1. General Policy Statement Airedale NHS Trust accepts its responsibility to reduce the adverse, and increase the beneficial, environmental impacts of its purchasing and supply activities in recognition and support of:- The key and influential role of purchasing and supply activities in environmental management, risk management and patient care. The link between environmental quality, public health and patient episodes. Legislative expectations in particular, to work towards achieving compliance with government publications Procuring for carbon reduction and the procurement element of Defra s sustainable flexible framework. 2. Aim of the Policy Airedale NHS Foundation Trust s overarching aim is to ensure that the goods, works and services we purchase are manufactured, delivered, used and managed at endof-life in a safe and socially and environmentally responsible manner and that the associated risks are appropriately managed. 3. Strategic Objectives We will produce a workplan detailing objectives and targets to achieve the following:- Integrate environmental considerations into our procurement strategy, purchasing procedures and, in accordance with Government and EU guidelines, into our procurement process in general. Continually improve our environmental purchasing and supply performance through the setting and annual review of relevant objectives and targets, that are identified through the conduct of an environmental risk assessment and agreed through consultation with stakeholders. Specify and exercise a preference for environmentally preferable products that offer demonstrable value for money. Take account of whole-life costs in the evaluation of tenders, wherever practical. Maintain an environmental supply-chain programme that engages suppliers in a programme to improve their environmental awareness and the environmental performance of their activities and products.
4 Promote, monitor and report on environmental legislative compliance and pollution prevention within the supply-chain. Reduce the environmental impact of purchasing and supply activities by reducing paper flow through the procurement process, avoiding replication and minimising the administrative burden on suppliers. Provide sufficient resource for successful implementation of this policy and ensure employees engaged in purchasing activities have access to appropriate guidance and training. Work in partnership with other public sector purchasing organisations and service providers, especially those operating within our local community. Communicate this policy widely to suppliers, employees and other key stakeholders and periodically report on progress in the public domain. 4. Trust Responsibility Responsibility for ensuring the guidelines of this policy are followed lies with the Head of Supplies and the Director of Pharmacy. 5. Delegated Responsibilities 5.1 Delegated responsibility for implementing this policy rests with the Divisional and Service Managers and Heads/Directors of Services who in turn may charge each of their Managers with responsibility for making adequate arrangements to ensure the environmental policy is implemented and followed. 6. Legislation This policy is based on the guidance produced jointly by the Sustainable Development Unit and the Department for Environment Food & Rural Affairs. 7. Procurement 7.1 Procurement of goods and services is to be based on value for money (VFM), having due regard to propriety and regularity. Value for money in procurement is defined as the optimum combination of whole life cost and quality (or fit for purpose) to meet the customer s requirements. 7.2 Airedale NHS Trust will endeavour to follow Government Guidance and avoid those substances, products and product types at all costs where value for money can be demonstrated (see Appendix 1).
5 7.3 The Trust will ensure that the standard NHS Terms and Conditions of Contract (which includes specific reference to environmental issues) are incorporated in all procurement of goods and services. 7.4 The procurement functions role is to respond to the end users needs in the normal way, mainly:- To be fully aware of the Trust s Environmental Procurement Policy. To be able to challenge the end users specifying requirements to ensure a full account of the Government s Environmental Policies are understood. To ensure that where EU Procurement Directives apply, they are followed appropriately, for example in framing the specification, in selecting tenders and in awarding contracts. 7.5 Procurement must adopt a whole life cost approach by assessing the products environmental impact from its production to its disposal costs. As per the following evaluation example for the procurement of equipment:- Criteria Weight Evaluation Detail Financial Choose % Financial risk assessments and score according to offer value, i.e. cheapest achieves highest score Environmental Choose % Carbon footprint; mileage, energy, consumables, life of product etc Social Choose % Consideration of local supply or Voluntary / social enterprise or SME suppliers Technical Choose % Evaluation of the product Totals 100% 7.6 Ensure suppliers can demonstrate that they have action plans and results in terms of environmental improvements rather that those that merely have an environmental policy without any strategy for applying it. 7.7 Continue to collect environmental information on products and services and work with suppliers. 7.8 Continue to liaise with and support environmental groups which can provide further ideas, an enhanced environmental purchasing strategy. 8. Instructions and Training
6 The Head of Supplies and the Director of Pharmacy will ensure that all staff that may have a significant influence on procurement of goods and services will receive relevant training and made aware of any necessary guidance. 9. Reporting Environmental Procurement Policy will be reviewed by the Procurement Advisory Group. 10. Action Plan The Trust will devise and publicise its progress with regards to the following actions as defined within the recommended sustainable procurement models: Agree new objectives Adapt and review sustainable policy Identify key stake holders - Communicate with staff and suppliers Develop a communications plan Integrate sustainability into current procurement policy Incorporate sustainable KPI s Incorporate WLC Whole Life Cost analysis Prioritise spend analysis according to sustainability impacts Incorporate Sustainability risk assessment Review VFM Value for money analysis Regular contract management reviews Life cycle analysis
7 Appendix 1 Substances & Products to be Avoided, Promoted and Preferred Airedale NHS Foundation Trust will endeavour to:- Only purchase:- Timber and timber products that have independent evidence that they have originated from sustainable and legal sources, in accordance with Government Guidelines. The most energy efficient, and where applicable water efficient, electrical domestic appliances (energy efficiency rated A or above). Recycled paper products, where virgin pulp is not essential to the performance of the product. Wherever possible, avoid the purchase of:- Products or equipment containing/using/manufactured with ozone depleting substances such as CFCs and HCFCs. Products or equipment containing/using/manufactured with substances with a high global warming potential such as HFCs, PFCs etc. Products containing toxic substances such as mercury, etc. Products with excessive packaging where a packaging recovery scheme is not offered by the supplier. Batteries and products containing batteries, especially where they are nonrechargeable. Where value for money can be demonstrated, show a preference for:- Substances and/or products with proven reduced toxicity compared with the alternatives. Products containing recycled content. Products that are designed for re-use and/or recycling at end-of-life. Energy efficient electrical and electronic appliances. Energy and material that derive from sustainably managed renewable resources.
8 Low emission vehicles. Products that have otherwise been purposefully designed to reduce their environmental impact or with improved environmental performance that are accompanied by appropriate evidence.
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