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1 Green Paper on the modernisation of EU public procurement policy Towards a more efficient European Procurement Market. Response The Rainforest Alliance Preamble The Rainforest Alliance is a not for profit organisation which works to conserve biodiversity and ensure sustainable livelihoods by transforming land-use practices, business practices and consumer behaviour. As such the Rainforest Alliance is the world s leading Forest Management certifier to the Forestry Stewardship Council standard and operates the Rainforest Alliance/Sustainable Agriculture Network certification scheme covers a wide range of agriculture commodities found within the European market. Through both our forestry and agricultural work the Rainforest Alliance and its partners, in particular NepCon, have a presence across the European Union. It is this capacity that we submit this response to the Green Paper on the modernisation of EU public procurement policy: Towards a more efficient European Procurement Market. We welcome this consultation and in particular the desire contained within it to support the objectives of the Europe 2020 Strategy and support the shift towards a resource efficient and low-carbon economy, e.g. by encouraging wider use of green public procurement. We believe that the objective using government(s) and government(s) agencies procurement power to support the take up and development of resource efficient products and services, while important in and of itself, should be used to drive broader sustainability and social objectives. In particular we point to the opportunties this consultation affords for the development of such markets in relation to timber and forestry based products and in terms of agricultural commodities. Moreover, we think it is important that such encouragement should not be solely restricted to trade and procurement activities within the EU and between member states. Such an approach should also be applied to the procurement of commodities from outside the EU, in particualar the so called exotic commodities, as a way of encouraging the take up of the highest sustainability and social standards that meet clear minimum sustainability and social criteria. Private sector players in Europe, from manufacturers to consumer goods companies to retailers are leading the world toward sustainable production and consumption, making large-scale commitments to purchasing all raw materials and feedstocks from responsible, well managed and certified sources. These commitments have positively affected production practices of wood, paper, coffee, tea, cocoa, bananas and other commodities. And there are now programs in place to add soy, sugar, palm oil, beef and leather to the list. Public agencies should continue to set a good example and lead the growing demand for certified sustainable products. The Rainforest Alliance recognises that there are a number of different voluntary and regulatary standard systems which could be applied to sustainable sourcing in pursuit of increased sustainability

2 and social outcomes. This consultation should establish a clear, rigorous and transparent criteria and level playing field for businesses to choose from among the different standards syastems. The policy should not, through inappropriate specification, favour one standard over another that could inadvertently lead to discrimination, beyond the achievement of a minimum level of outcome. Any such discrimation would undermine free market, social justice and sustainability that are at the heart of the European vision. In addition the Rainforest Alliance welcomes moves in this consultation to allow access to procurement opportunities for small and medium businesses within the EU. We feel that such moves should also apply to opportunities for business outside the EU, for example, through the creation of a procurement process which encourages the purchase of exotic commodities directly from producer associations locally as well as from large agricultural concerns. Our response to specific questions contained within the Green Paper We have not attempted to answer all of the questions posed within the Green Paper. Many of the questions posed are not areas with which the Rainforest Alliance concerns itself and/or are outside of the Rainforest Alliance s competencies. What follows is our response to those questions we do feel we are qualified to comment on. Questions 4 and 5 Should the distinction between A and B services be reviewed then we think it is important to use the opportunity afforded by such a review to embed sustainability and social criteria in specifications for procurement in relation to A and B services. As a minimum, the measures to promote sustainability and social outcomes should be included either in the procurement directives and specifications themselves or via a requirement to demonstrate compliance with credible independent voluntary certification schemes, as appropriate. Question 9 In terms of defining public procurement we are of the view that this should cover both government and government agencies, but also organisations in receipt of government funding which is then used to procure goods and services. Question 25 While we think there is a case for previous experience to be taken into account, with the appropriate safeguards (to be defined) we also think the spirit behind this question affords the opportunity to look at the issue of length of procurement contracts. If the purchasing body is seeking to use its procurement practices to deliver sustainability and social objectives, then any contract with a supplier needs to be of adequate length to allow the sustainability and social benefits to flow through the supply chain and deliver outcomes at scale. Sustainability is a long term undertaking requiring long term investments. Question 27 and 28 We would be in favour of there being a simplified procurement regime for relatively small contracts. However, we do feel it is important that any simplification is not as the expense of achieving nonfinancial objectives such as sustainability and social objectives which this consultation is also seeking to address. Question 29 There is an opportunity here to provide additional specific guidance in support of other EU initiatives. For example in relation to promoting sustainability and social objectives of the EU, particularly in relation to goods and services supplied from outside of the EU and so called exotic commodities, the following criteria could be applied: appropriate social and environmental management systems; measures to ensure and promote ecosystem conservation; measures to ensure wildlife protection;

3 measures to ensure and promote water conservation; measures to ensure safe and non-exploitative working conditions for farmers and farm workers (both permanent and seasonal); measures to ensure occupational health; measures to foster good community relations; the encouragement of integrated crop management; and measures to ensure and promote soil conservation. Questions 30 to 33 Whatever changes may be considered in relation to public procurement, we feel strongly that any changes must include the recognition and adoption of voluntary independent sustainable and social standards. Questions 34 to 38 While we understand the potential efficiencies that can be gained from joint procurement opportunities we would be concerned that any such move does not result in the exclusion of SME s or the undermining of other EU policy objectives such as sustainability and social policy objectives. Question 59 There is indeed a case to consider stronger safeguards against anti-competitive behaviours in any future procurement policies and/or directives. However, we feel such an approach needs to apply equally to the pursuit of other EU policy objectives. By this measure, the pursuit of sustainability and social objectives needs to be focused on outcomes rather than processes that could be anti-competitive. For example, a process such as a minimum price may not only be against the free market principle, it may not necessarily deliver the same level of benefit to the farmer in terms of increases in income, productivity, and access to social benefits. Question 65 to 68 In addressing this set of questions we feel it is important that any future guidelines and/or directive takes proper account of considerations related to other policy objectives. However, we also feel there is a need for caution so as to avoid unintended exclusivity. We also feel that the principle of equitable access needs to be maintained. Question 69 We believe the consultation should consider the standards as developed by the Sustainable Agriculture Network and the UK Government s experience with promoting public procurement of sustainable and legal timber through the CPET Programme These would help in establishing appropriate technical competence and selection criteria in pursuit of objectives such as protection of environment and promotion of social inclusion. Question 70 to 73 We think there is a strong case for additional criteria to be developed in order to assist the pursance of other policy objectives. An over emphasis on the lowest price only could be misplaced and run counter to the purpose of overall economic viability and sustaianbility. We support cost efficiency but caution againt it overriding critical environmental and social criteria. We therefore recommend criteria based

4 upon the Sustainable Agriculture Network standard for agricultural commodities is worthy of consideration, as this has been shown to meet environmental and social objectives without compromising performance and cost considerations. In fact, producers implementing these standards consistently show gains in efficiency, productivity and improved quality resulting in improved livelihoods without price subsidies. Question 74 to 76 The provision of contract performance clauses can indeed help to deliver social and environmental considerations but the acceptance of voluntary independent certification standards can often be as effective, more practical and less costly meaure to secure performance and compliance. Question 82.1 While we support the concept of specifications relating to the characteristics of the product, in order to encompass elements that are not reflected in the product's characteristics, such as the promotion of activities aimed at fostering the socio-economic development of local communities and environmental sustainability, we firmly believe that any such specification should be focused on outcomes, as assessed by, for example third party audits (as specified by the International Social and Environmental Accreditation and Labelling Alliance) or legislation with equal coverage, and not on process. Question 83 to 90 We do think there is merit in the what to buy obligations and would like to see these apply to agricultural commodities and forestry and timber products. We believe that the advantages of such an approach will enble the development and implementation of environmental and social considerations in the production process, for example through the requirement to ensure all timber is legally sourced and/or the ILO core conventions are adhered to. Question 91 While we understand that private entreprenurial initiatives which drive innovation there is a clear role for public procurement in terms of promoting and stimulating innovation. Within that context the acceptance of private voluntary certification in relation to forestry and timber products and agricultural commidities is an imporant requirement to encourage innovation and should be a consideration for public procurement. Question 100 to 103 We believe there is a role for EU level action with regard to the avoidance of favouritism within public procurement. Some intiatives that could, under certain circumstance, lead to acts of favouritism with regard to public procurement are matters that cut across EU member states, therefore there is a need for certain level of EU competency in regard to this matter. Conclusion We believe that this consultation is an important first step in the review of the EU s approach to public procurement and that it represents a major opportunity to place public procurement at the heart of driving changes in production and purchasing activities in order to further the EU s broader policies on environmental and social objectives. We thank you for giving us the opportunity to respond to this consultation and would welcome the opportunity to discuss the issues we have raised in this response further. We would very much like to have details of the proposed Conference on Public Procurement Reform which is due to take place in Brussels on 30 th June Contact information:

5 This reponse was authored by Stuart Singleton-White on behalf of the Rainforest Alliance, with input from: Mohammed Rafiq Senior Vice President, Programmes; Marcel Clement Manager, Sustainable Value Chains, Europe; Peter Fielberg, Chief Executive Officer, NepCon; Chris Wille Chief of Sustainable Agriculture. Contact: Stuart Singleton-White