Transcript Environmental Purchasing in the NHS

Environmental Compliance
Requirements
Darian McBain
Head of Sustainable Development Policy
October 2003
Content
• Introduction
• Regulatory Considerations
• Environmental Procurement
• Sustainable Development
• Contacts and Further Information
Introduction - NHS PASA

Executive Agency of the Department of Health, established April 2000

remit to modernise and improve purchasing and supply performance in
the NHS

150 purchasing professionals in the Agency and 300+ in the NHS

3,000 contracts and framework agreements worth +£2.3b covering +1M
product lines with 1,400+ suppliers

centre of expertise and knowledge

ISO 14001 certified environmental management system, third annual
environmental report published September 2003
Why are environmental issues
important?
•
the environment affects human health
•
EU policy
•
Government policy
•
New Environmental Strategy for the NHS
•
bottom-line
•
environmental legislation
Environmental legislation
•
WEEE (Waste Electrical and Electronic Equipment) Directive
– Agreement reached on new EC Directive
– Introduction of mandatory collection, re-use and recycling of WEEE
•
Packaging Regulations
– Producer Responsibility Obligations (Packaging Waste)
Regulations 1997
– Packaging (Essential Requirements) Regulations 1998
•
Integrated Product Policy (IPP) – aims to minimise the environmental
impact that products have on the environment
– Advisory Committee on Consumer Products and the Environment
(ACCPE)
– Market Transformation Programme (MTP)
WEEE – Who? Why?
Waste Electrical and Electronic Equipment Directive
• EU Directive to improve producer responsibility
• Makes producer responsible for the COLLECTION,
TREATMENT AND RECYCLING of WEEE
• Aims to minimise environmental impact by considering
whole of life costs
• Producer is financially responsible
• Producer includes manufacturer, importer or retailer
selling their own goods
WEEE – What?
• Covers all equipment dependant on electrical currents or
electromagnetic fields
• Applies to 10 categories
• Category 8 (Medical Devices) – no targets
• Excepts all implanted and infected products
• Cat 8 includes: radiotherapy equipment, cardiology,
dialysis, pulmonary ventilators, nuclear medicine,
laboratory equipment for in-vitro diagnosis, analysers,
freezers, fertilization tests, other appliances
WEEE – When?
• Adopted by EU in October 2002, to be
transposed to UK Law by August 2004
• Most producer responsibility requirements
will be in force by August 2005
• At least 4kg of WEEE must be collected per
head of population - some 250,000 tonnes
in the UK - by 31 December 2006
Meet the Family (1) ROHS
Restriction on Use of Hazardous Substances
• Sister of the WEEE Directive
• Electrical goods source of heavy metals and organic
pollutants
• Bans the use of mercury, cadmium, lead, hexavalent
chromium, PBDEs and PBBs from July 2006, with certain
exemptions
• Applies to 9 areas of WEEE directive
• Medical Devices will be reviewed by Technical Advisory
Committee 2 years AFTER entry into force
Meet the Family (2) - EEE
Electrical and Electronic Equipment Directive
• Work in harmony with WEEE and ROHS
• Aims to improve the environmental impact of EEE from
design stage
• Aims to harmonise product related environmental
requirements for EU market
• Stardardisation bodies (eg CEN) to develop harmonised
technical standards
• Will encourage use of life cycle assessment, EMS,
ecolabelling
Packaging Regulations
Producer Responsibility Obligations (Packaging Waste)
Regulations 1997
• Applies to: ‘all products made of any material of any
nature used for the containment, protection, handling,
delivery and presentation of goods, from raw materials to
processed goods, from the producer to the user or the
consumer’
• Applies to 6 types of activity – packaging manufacturer,
converter, packer/filler, seller, wholesaler, importer
Packaging Regulations
Packaging (Essential Requirements) Regulations 1998
• Controls packaging placed on the market
• Essential Requirements:
– minimal packaging;
– minimise noxious or hazardous substances
– Recoverable
• Heavy Metal Limits: aggregate <100 ppm
(cadmium, mercury, lead, hexavalent chromium)
Packaging – case study
Pharmaceutical company - reusable plastic delivery
crates
• Cost savings on packaging
• Cost savings on waste disposal, both for pharmaceutical
company and for clients
• Fewer breakages
• Modular designed crate to allow easy repair of broken
containers
• Collapsible empty crates easy to transport
• Transport efficiency – cycled back to depot
Source: Envirowise
EC Procurement Rules
• Non-discrimination
• Freedom of movement
• Equal treatment
There must be a direct link between award criteria and
the subject matter of the contract
What is environmental
purchasing?
• the pursuit of environmental policy goals through
procurement activity
• integration of environmental issues into procurement and
financial accounting systems
• integration of procurement into environmental
management systems
• the optimisation of value for money
Scope of environmental
purchasing
• what is purchased
• what is not purchased
• the purchasing and supply process
• how products are manufactured/services are delivered
• end-of-life
• supply-chain performance
The business case for
environmental procurement
•
reduce waste and improve resource efficiency
•
secure the supply of goods and services
•
provide cost savings, improve profitability
•
provide added value
•
protect or enhance reputation
•
create markets for new products and services
•
satisfy stakeholder expectations
•
opportunity for competitive advantage
adapted from the
IEMA/CIPS/NHS PASA guide
Environmental Purchasing in
practice, 2002, Section 3, pp9-14
Whole life costing
• Lowest price vs value for money
• Whole life costing – cradle to grave
• Enables running costs to offset any increase in capital
costs
• Applies to payback over the life of the equipment or
service contract
• Consider – running costs, special storage or handling
facilities, material inputs, waste management costs from
use or ultimate disposal
• Encourage Design for the Environment
adapted from the
IEMA/CIPS/NHS PASA guide
Environmental Purchasing in
practice, 2002, Section 3, pp9-14
Design for the
Environment
• Reduce total materials used
• Reduce component count
• Minimise harmful materials
• Extend product life
• Extend materials life
• Design for energy efficiency
• Minimise pollution
Case Study - DFE
Varian Medical Systems
• Implemented cleaner design techniques to reduce
environmental impact of products throughout life
• First applied to collimator unit of radiotherapy simulator
• Benefits include:
–
–
–
–
–
Lower production costs
adapted from the
Reduced environmental impact of products IEMA/CIPS/NHS PASA
guide Environmental
Purchasing in practice,
Positive marketing feature
2002, Section 6, p40
Improved quality product
Easier disassembly and increased recyclability
What is the Agency doing?
supplier environmental survey
•
survey of all nationally contracted suppliers in 2001 to determine
environmental performance in the NHS supply chain
•
59.5% response rate achieved
– 86% top management place at least some importance on
environmental issues
– 52% affected by environmental issues
– 11% operating under a certified ISO14001 or EMS scheme, 39%
have an environmental policy
– 3% make self-declared environmental claims which comply with a
recognised standard
– 7 % use third party eco-labels
– 18% had not taken steps to reduce the packaging applied to
products supplied to the NHS
Eco-labelling
•
eco-labels are a guide for consumers to help them choose products and
services that cause less damage to the environment and to human health
•
products or services awarded an eco-label must comply with an agreed
set of criteria which are determined on the bases of life-cycle assessments
(i.e the cradle to grave approach)
•
life-cycle assessments consider environmental impacts associated with
raw material acquisition, manufacturing, packaging, distribution, operation,
maintenance, and disposal
•
eco-label criteria can be used as the basis for “green” specifications
•
Global Eco-labelling Network - http://www.gen.gr.jp/
EU Eco-label product groups
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Tissue paper
Dishwashers
Soil Improvers
Bed Mattresses
Indoor paints and varnishes
Footwear
Textile products
Personal Computers
Laundry Detergents
Detergents for dishwashers
Copying paper
Lightbulbs
Portable Computers
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Refrigerators
Washing machines
All purpose cleaners and
cleaners for sanitary facilities
Hand dishwashing detergents
Televisions
Hard floor coverings
Vacuum cleaners
Tourist accommodation
Furniture
Tyres
Rubbish bags
Converted paper products
Batteries for consumer goods
Those in italics are under development - see http://europa.eu.int/comm/environment/ecolabel
Sample of Eco-labels
Green Flags/Quick Wins
• Joint project with NHS Logistics
• To appear in catalogues for NHS Buyers by end 2003
• Identify those products and services complying with ecolabelling program
• Suppliers should highlight to their relevant buyer if they
meet this category
• OGC.buying solutions to highlight ‘Quick Wins’ in their
catalogues
Awards and External
Benchmarks
• ACCA awards
• FTSE4Good Index
• Business in the Environment’s
Index of Corporate Environmental
Engagement
• Dow Jones Sustainability Index
• Reduced risk – show better
performance through reduced risk,
possibly better shareprice
performance
The future - sustainable
development
•
sustainable development is a very simple idea…it’s about
ensuring a better quality of life for everyone, now and for future
generations to come (UK Government 1998)
•
meeting four objectives at the same time:
 social progress which recognises the needs of everyone
 effective protection of the environment
 prudent use of natural resources
 maintenance of high and stable levels of economic growth
and employment
(see: www.sustainable-development.gov.uk)
•
applicable at local, national, international and global level
Sustainable development - the
NHS rationale
resources
emissions to
air, land and
water
preventative
healthcare
decreased life
expectancy/
reduced quality of
life?
increased life
expectancy
treatment
improved quality
of life
care
emissions to air, land
and water
decreased life
expectancy/reduced
quality of life?
Sustainable development:
sustainable procurement
•
what is sustainable procurement?
 inclusion of environmental and social, as well as economic,
considerations in the procurement process
 procurement processes that support and help deliver sustainable
development objectives
•
public sector procurement is governed by EC Treaties and directives,
as well as UK Government procurement policy. The situation is more
complex than in the private sector, but there is still considerable scope
to pursue procurement in ways that support sustainable development
•
focus of current activity across Government, and within the Agency
and NHS, is environmental procurement
•
social issues are more problematic to tackle, but by no means
impossible - this is an emerging area
NHS as Good Corporate
Citizen
• Public procurement accounts for 14% of GDP for EU as a
whole
• NHS spends over £11 billion annually on goods and
services.
• significant influence over not only the type and quality of
services purchased, but also over local economies and
the prospects for sustainability.
• By behaving as a Good Corporate Citizen, the NHS can
help support local communities and create a better
environment
NHS-sid
What should you do?
•
comply with all environmental legislation
•
respond positively to requests for environmental information – whether
during the tendering process or execution of the contract
•
improve environmental performance by moving up the performance
hierarchy e.g. environmental policy, EMS, eco-labelling
•
minimise the amount of packaging applied to products, and consider reusable options and packaging take-back
•
re-examine product design and explore opportunities for reducing
impacts on the environment throughout the life-cycle of the product
•
consider how your business can contribute to the achievement of
sustainable development
Further information
• Agency website: http://www.pasa.nhs.uk
• Environmental Purchasing in Practice – guidance for
organisations (copies can be purchased from IEMA)
• NHS PASA Environmental Report 2002/03 – available on the
website or in hard copy
• Envirowise website: http://www.envirowise.gov.uk
• UK Government sustainable development website:
http://www.sustainable-development.gov.uk