TRAINING ON INTRODUCTION TO SUSTAINABLE PUBLIC PROCUREMENT AND ECO-LABELS DAY II. Purchasing Planning and Supplier Selection

Transcription

1 TRAINING ON INTRODUCTION TO SUSTAINABLE PUBLIC PROCUREMENT AND ECO-LABELS DAY II Purchasing Planning and Supplier Selection THE SUSTAINABLE PUBLIC PROCUREMENT AND ECO LABELLING PROJECT (SPPEL) Funded by the EU Step 1 Management and monitoring Purchase Planning Contract performan ce clauses Good procurement is sustainable procurement Definition of specifications Award of contract Selection of supplier Step 1: Rethink the needs 1

2 The importance of this step It enables the introduction of sustainability from the start Promotes innovation Seeks the most beneficial alternatives for users and beneficiaries, and for the administration. How my organization meets these needs in a more sustainable way Communication with contracting parties Step 1: Rethink the needs The hierarchy for a more sustainable management of waste can also be seen as a hierarchy for a more sustainable procurement The Waste Hierarchy The Procurement Hierarchy Procuring the Future. Sustainable Procurement National Action Plan: Recommendations from the Sustainable Procurement Task Force. DEFRA (2006) Considering sustainability at an early stage of procurement decision-making can identify opportunities to: avoid or reduce consumption identify whether there is a more sustainable alternative readily available rethink and revise specifications in order to improve sustainability outcomes. 2

3 Influence 10/19/2017 Rethinking needs on environmental impacts Is it possible to do without or reduce the amount? Is it possible to repair, update or is it based on remanufacturing? Is it a closed loop solution? Is it an entirely different solution? Does it offer functions/service rather than products? Is it flexible with time? Step 1: Rethink the needs Procurement planning is a key stage to re-think your needs Can you... Re-think? Eliminate? Reduce? Re-use? Recycle? Dispose? Consider life cycle impacts and costs Think in terms of solutions to problems, not products Prioritise your intervention Procurement process Demand management starts here! Assessment of needs Specifications Selection of Assessment Management supplier of contract Time 3

4 Re-thinking your needs means thinking in terms of solutions to problems not products, prioritization and consideration of life cycle costs Waste management Negotiating waste management contracts for packaging waste or working with suppliers to introduce returnable packaging for delivery of the products supplies SMEs or set-asides Designing lots in tenders, even for the same commodity, to allow increased participation by SMEs or set-aside contracts for socially-inclusive businesses (e.g. disadvantaged groups) Photo: UNOPS/Jose Ubaldo Campos Photo: UNOPS Local community Strategically selecting location of the building or facility, resulting in a positive impact on the local community Reduce product purchase Purchase new fax machines or facilitate programs for users to send faxes from computers Photo: UNOPS Photo: UNOPS/ Ahed Izhiman Asking challenging questions gives focus on the required outcome sought from the procurement rather than stakeholders needs Defining the need: Ask challenging questions What is the procurement aiming to achieve? Do we really need the purchase or can the need be met in another way? (renounce, reduce, exchange, repair, update or remanufacture current products) Can alternative goods or services be used to meet the identified need? What performances are required? Do we need it to this specification? Can we hire functions rather than products (aka servicizing ) How long is the need going to last? What happens to the product at end-of-life? Change methods and practices (closed loop). How does this procurement impact upon our (environmental/ social) objectives and policies? 4

5 Product Sustainability Criteria Climate change Energy Water use and quality Waste Toxic substances/pollutants/emissions Resource use and intensity, including protecting natural habitats Social responsibility and ethical practices. Climate Change Have you measured the GHG impact associated with production of the product? What actions have been taken to reduce the greenhouse gas emissions during the product manufacture? Are any of the offered products carbon neutral? Provide evidence of any carbon neutral certification. What actions/initiatives have been taken to reduce the greenhouse gas emissions during product use? 5

6 Energy What actions/initiatives have been taken to address energy use during product manufacturing? What actions/initiatives have been taken to improve product water efficiency during use? Do the offered products qualify for energy efficiency rating labels (e.g. Energy Star label) or are they rated by the Energy Rating Scheme? Please provide details of the Energy Rating. Do the offered products meet the specifications provided by any independent labelling association? Please specify any energy consumption in the following three modes: on (normal/operating use) standby (sleep) off. Will the offered products be delivered with the Energy Star capability activated? What are the time options for the products to be move to low power, sleep and off modes? Are there any other energy-saving features associated with the offered products? Water use and Quality What actions/initiatives have been taken to address water use during product manufacture? What actions/initiatives have been taken to improve product water efficiency during use? What actions/initiates have been taken to address water pollution during manufacture and at the end of product life? Do the offered products qualify for a water efficiency scheme (e.g. Water Efficiency Labelling and Standards Scheme [WELS])? Please provide details of the Water Rating. 6

7 Waste What actions/initiatives have been implemented to reduce waste during manufacture of the offered products? Can the offered products be recycled at the end-of-life? Are the offered products manufactured to facilitate reuse or repair/replacement of components? Provide details on the dismantling and/or disassembling of the products (e.g. are plastic parts separable by hand, no mixed plastics, metals not mixed, etc.) Do you offer a take back service/scheme at the end of product life? Are there any special provisions/conditions/exclusions in this scheme? How does the offered scheme achieve highest and best value for its clients? For example, does it benchmark used market prices and return (trade-in) value to the client?) Waste (Cont) What happens to the products once they are returned? Is there an auditable process over the treatment of the returned products? Please provide evidence. Can the offered products be multi-packed (for example packed with up to six units in a single box, rather than each item being individually packaged)? Please list the types of packaging used in delivering the product and specify the following: the type of packaging (content) the proportion of recycled material used in the packaging whether the packaging can be reused or recycled locally whether the packaging includes any loose fill material. 7

8 Toxic substances/pollutants/emissions Specify the toxic content of your product. What targets are in place to reduce the hazardous substances in the offered products? What actions have you successfully implemented to achieve these targets? Do the offered products comply with comparable industry standards? Specify which industry standards are applicable and provide details of each aspect of these standards that the products comply with. Does your organization have a program in place that enables your products to meet industry standards in the future? Specify how this will be achieved. What actions are taken to reduce emissions to atmosphere during the product manufacture and during product use? Resource use and intensity, including protecting natural habitats Are raw materials used in the product or production sourced from legal and sustainably-managed sources? Please provide details/evidence including any certification schemes of the full chain of custody. Provide details of any environmentally-conscious design considerations that are incorporated into the offered products? (Considerations could include design for life, modular design with exchangeable parts, life extension considerations, recycle-ability of the materials in all component parts.) Do the offered products contain recycled content? Please specify the percentage of recycled content and specify the percentage of postconsumer recycled content. What types of post-consumer materials are used in the manufacture of the offered product? Provide details of the warranty provisions and how they contribute to life extension. Does the offered warranty incorporate a warranty for the spare parts? Provide details of the additional warranty provisions. 8

9 Step 3 Management and monitoring Identification of needs Contract performance clauses Good procurement is sustainable procurement Definition of specifications Award of contract Selection of suppliers Step 3: Selection of suppliers Definition of selection criteria Several models Depending on procurement procedure Direct Negotiated Open... Direct effect (especially in works and services) Reward for those who make an effort More limited impact on supplies (manufacturer vs. distributor) Very exclusive (passes, does not pass) Step 3: Selection of suppliers 9

10 Definition of selection criteria Two methods of selection (according to legal framework): Single phase In two phases with PQQ Step 3: Selection of suppliers Definition of selection criteria In two phases with PQQ Do you have a health and safety policy in place? If so, please provide a copy Do you have an environmental and/or green purchasing policy? If so, please provide a copy What environmental management system do you have implemented, ISO (or similar e.g. EMAS)? Is your environmental management system accredited? YES / NO YES / NO YES / NO Step 3: Selection of suppliers 10

11 Assessing supplier sustainability credentials Systems for Environmental Management Employment Practices Corporate Social Responsibility (CSR) Greenhouse Gas (GHG) Emissions Commitment to sustainability and demonstrated sustainability improvements Packaging Transport and logistics Green product reporting Systems for Environmental Management Describe the system, processes and practices that enable your organization to reduce your environmental impacts, meet your legal environmental requirements and achieve continual improvement of your environmental performance. Criteria that are to be commented on in responding to this requirement include the: Existence of an operational EMS. Please indicate whether this meets recognized standard, such as ISO 14001, European EMAS, or equivalent. Please provide evidence of certification. Organization s environmental policy, which commits the organisation to a program of environmental improvement. please provide a copy of the policy. Organization s environmental strategy, objectives and targets, as well as KPIs for these targets. Please provide examples. Manner in which the environmental policy, strategy and targets are communicated to all staff, including any training provided on sustainability. 11

12 Systems for Environmental Management In the last two years has your organization been subject to any court proceedings related to breaches of environmental legislation? If so, what was the outcome? Does your organization maintain records of potential environmental hazards and have mitigation strategies and systems in place to reduce environmental hazards such as carcinogens, irritants? Please provide examples. Greenhouse Gas (GHG) Emissions What steps does your organization take to reduce its greenhouse gas emissions? Criteria to be commented on in responding to this requirement include: Initiatives that the organization has undertaken to calculate its GHG emissions indicating whether these calculations are based on recognised guidelines. An endorsed policy with respect to reduction of GHGs indicating the management systems and processes in place to support the endorsed policy. GHG reduction targets and proposed actions to achieve GHG reductions. GHG emissions reductions achieved Public reporting of GHG emissions, and/or targets and actions for reduction 12

13 Packaging Describe any initiatives that your organization has in place to minimize/reduce the amount of packaging used. Criteria that are to be commented on in responding to this requirement include: Whether the organization is a signatory to the National Packaging Covenant (NPC). Demonstrated reductions in packaging volumes and targets for further packaging reduction and recycling. Any take back of packaging supplied with products and evidence that the collected packaging is recycled and/or reused. Include a description of how packaging is managed after delivery of products and whether the packaging can be recycled locally. Transport and logistics Describe initiatives that the organisation has implemented to reduce the environmental impacts directly associated with the transportation of raw materials/component parts and/or finished products. Criteria that are to be commented on in responding to this requirement include: Initiatives in place to improve efficiencies in delivery, such as reduced travel distances and/or frequency of travel associated with distribution of products, or transport logistics software that incorporates sustainability considerations. Initiatives in place to reduce the environmental impacts of travel, such as fuel efficiency, reduced air and noise pollution, or reduced carbon emissions. This could be demonstrated (for example) by utilising vehicles that rate 4 stars or more in the Australian Government s Green Vehicle Guide. Please provide evidence. Compliance with or working towards an eco-label or other credible sustainability credential relevant to transport and logistics. 13

14 Green product reporting Does your organization provide a green product range? If so, please describe the criteria used to determine that a product can be classified as green. What data or information can you provide for your green product range? Step 4 Management and monitoring Identification of needs Contract performance clauses Good procurement is sustainable procurement Definition of specifications Award of contract Selection of suppliers Step 4: Award of contract 14

15 General aspects Evaluation and comparison: Price only The most economically advantageous bid Economic offer General quality... Sustainability criteria Efficiency in the use of economic resources Step 4: Award of contract Scoring system Criteria to be followed: It must be justified Preferably based on: Risks Policies Compliance or failure to comply with award criteria (yes/no) May be granted through formula (objective criteria) Prioritize criteria through score Step 4: Award of contract 15

16 DEVELOPING SUSTAINABILITY EVALUATION CRITERIA Evaluation based on mandatory (pass/fail) criteria should be used in consideration of the market s maturity in terms of sustainability What? During evaluation, only those bids that comply with the minimum sustainability requirements will be considered compliant. When? To be used for straightforward procurements where: The market is well known (i.e. capable to respond to sustainability aspects) Sustainability criteria can be easily defined Examples of sustainability pass/fail criteria Do you have in place a documented environmental management system? Do you intend to use renewable energy sources in support of this contract? Do you have in place a documented system to manage workplace and labor practices? Have you established sustainability purchasing guidelines for your direct suppliers that address issues such as environmental compliance, employment practices, and product safety? DEVELOPING SUSTAINABILITY EVALUATION CRITERIA A weighted scoring system of evaluting bids can be used for rewarding exceptional performance What? Whilst specifications can set a minimum standard, evaluation criteria can be used to reward performance or features above and beyond this. How? Weighed criteria May be granted through formula (objective criteria): Weighed scoring system, e.g. levels of performance. Prioritize criteria through score. Sustainability risks: The sustainability risks that will be addressed through appropriate evaluation criteria at this stage are those which are not crucial to the success of the procurement action. When to be used? Strategically, in the absence of good market intelligence, which puts uncertainty on market maturity and potential price increase, and thus uncertainty as to how challenging to make specifications When one (or limited number) of suppliers outperform the marketplace but the buyer is reluctant to limit competition 16

17 DEVELOPING SUSTAINABILITY EVALUATION CRITERIA Example: Sustainability in furniture procurement evaluation Examples of evaluation criteria for furniture Sustainability evaluation criteria for office furniture Bonus points (max 20) 1. Recycled materials 2. Recycled textile fibres Percentage by weight of recycled content of wood-based materials, plastics and/or metals in the final piece of furniture Bidders shall indicate the proportion of the textile by weight made from recycled fibres, that is, fibres originating only from cuttings from textile and clothing manufacturers or from postconsumer waste (textiles or otherwise). Maximum 10 points Over 80%: 10 points 60-80%: 8 points 40-59%: 6 points 20-39%: 4 points 1-19%: 2 points 0% recycled materials: no points Maximum 10 points Over 80%: 10 points 60-80%: 8 points 40-59%: 6 points 20-39%: 4 points 1-19%: 2 points 0% recycled fibres: no points DEVELOPING SUSTAINABILITY EVALUATION CRITERIA Example: Procuring recycled paper Evaluation scoring: Price Financial points Technical points Sustainabilit y points Tender 1 $ Tender 2 $ Tender 3 $ Total Score With all tenders being technically compliant, Tender 3 would come out successful despite its somewhat higher price than Tender 1. The potential price increase is contained as Tender 2 does not come out on top despite its additional sustainability point. In this way, a maximum price increase of 25% over the lowest priced, technically compliant offer can happen. If the sustainability points are set at a maximum of 3 points, the equivalent price ceiling will be 6%. Indicative Price Ceilings Technical sustainability points (out of 100) Price increase ceiling 3 points Approx. 6% 5 points Approx. 11% 10 points Approx. 25% 17

18 CASE STUDY INTEGRATION OF SUSTAINABILITY INTO PROCUREMENT PLANNING AND SUPPLIER S SELECTION DAY II THE SUSTAINABLE PUBLIC PROCUREMENT AND ECO LABELLING PROJECT (SPPEL) Funded by the EU 18