Transcript EcoBuy - Sustainable Purchasing

TOWNSVILLE CITY COUNCIL
SUSTAINABLE PURCHASING
TRAINING MODULE
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1. TRAINING OVERVIEW
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TRAINING OVERVIEW
1. Introduction to Sustainable Purchasing (SP)
2. SP: What is it & Why practice it?
3. Overview- Good SP Practices
4. SP Principles
5. Including the Environment in Procurement Policies &
Planning
6. Writing Specifications
7. Tender Evaluation
8. Make sure you get what you paid for
9. Bringing it all together
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OBJECTIVES
The purpose of this training is to help you:
Understand what Sustainable Purchasing (SP)
is;
Appreciate the reasons to support it; &
Be able to apply the Principles of SP in
procurement policies & practices, that is,
how to do it!
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SP- WHAT IS IT & WHY DO IT?
Sustainability- Triple Bottom Line (TBL) in Public
Disclosure.
Q: What is Unsustainable?
Sound Management Systems include the Environment,
as well as WH&S & Quality Systems;
Competitive Advantage;
Environmentally Responsible Businesses;
Image, Grants & Support for Local Business.
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WHAT IS SP?
SP means integrating environmental/health
considerations into purchasing decisions.
Sustainable Goods & Services (G&S) are those that
have a lesser or reduced effect on human health & the
environment when compared with competing G&S
that serve the same purpose.
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WHY DO SP?
Purchasing G&S that satisfy value for money (V4$) criteria but
also include sustainability;
Save $- improving efficiency & reducing costs- landfill charges
& on-sell recyclables
Better manage environmental risks;
To ensure the public image of TCC as a leader in
environmental management & a responsible corporate citizen;
To provide an example to other businesses, industry & the
community in promoting the use of sustainable G&S;
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BARRIERS/MOTIVATORS
Changing behaviours in an organisation not only
requires an understanding of the levers that can
push the desired changes but also a knowledge of
the barriers.
If you wish to improve your organisation’s SP
performance, it is worthwhile understanding the
reason to support it, the barriers against it &
finding ways to overcome these barriers (CBSM).
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KEY POINTS
SP means integrating environmental considerations
into purchasing decisions.
Sustainable G&S have a lesser/reduced effect on
human health & the environment when compared with
competing G&S that serve the same purpose.
There are sound reasons for organisations to support
SP which include V4$, environmental leadership &
risk management.
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GOOD PURCHASING PRACTICES
Planning the Purchase
Drawing up Specs
Tender Evaluation Plan (TEP)
Tender Evaluation Process
Managing the Successful Tender
Feedback loops
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SP PRINCIPLES
Waste Management- Life Cycle Analysis (LCA/C2C)
Recycled vs Recyclable
Future Costing- life time
Managing Environmental Risk
Meeting Sustainability Commitments
Water/Energy/CO2e reduction
Haz Subs reduction
EMS ISO 14000
Stewardship- Due Diligence/Care/GED
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VALUE FOR MONEY (V4$)
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Price (cost neutral)
Transport
Installation
Insurance
Operational costs
Energy Efficiency
Water Efficiency
Service & Maintain
Spares
Waste Mgt (WM)
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Durability
After sales support
Long Term V4$
Reusability
Recyclablity
Warranty
Env & OH&S Risks
EIA- 249P Corps Act
Performance
Image
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KEY POINTS
• WM Principles should guide procurement planning
so that strict avoidance of waste is the highest
priority & disposal to landfill the least favourable
option.
• When costs of G&S are compared, it should not
only relate to price but to all other costs during use
of G&S.
• SP as part of Environmental Risk Mgt strategy
• SP most effective at front end of procurement
process, where relevant policies incorporating
sustainable principles direct procurement.
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ENVIRONMENTAL POLICY
• “Environmental Considerations will be taken into
account in investment & corporate strategies & in
the purchase of G&S” Australian Post
Environmental Policy
• “The organisation is committed to purchasing G&S
that reduce environmental impacts & contributes to
the socio-economic development of Brisbane City
Council”
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SP POLICIES & PLANNING
• Service Level Agreements (SLA) & Standards of
G&S
• Specifications
• Quantities [Q] (measurable)
• Verification (competent person)
• Evaluation- Tenders
• Re-evaluation
• Reporting- feedback
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TOP DOWN COMMITMENT
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Purchasing Policy
Behavioural/cultural change
Change Agents/Champs
“Rewards”
Contracts
Education
Promotion
Involvement- design & implementation
Tools- ecospecifier
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ENVIRONMENTAL ISSUES
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Environmental Policy- Corporate/Business Units
Information (tools)
Current Product Performance
Payback timeframe
Price Premium- up-front cost
Considerations- next sheet
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Q’s BEFORE PURCHASING
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Is it needed at all?
Life-cycle costs?
Waste prevention?
Toxicity?
No virgin material?
Sustainable harvest?
Recycled/recovered?
Reusability?
*Greenhouse gases =
• Recyclability?
• Durability?
• Energy Rating?
• Water Rating?
• Disposal (package)?
• Clients Needs?
• Alternatives?
• CO2e*?
Equivalent CO2
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TARGET G&S- OFFICE
OFFICE:
• A4
• COMS PAPER
• TOILET TISSUE
• STATIONARY
• TECHNOLOGY
• SPARE PARTS
• LIGHTS
ELSEWHERE:
• PARKS
• CONSTRUCTION
• FLEET
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SUSTAINABLE G&S
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ecospecifier www.ecospecifier.org
ecoBuy www.mav.asn.au/buyrecycled
AGO www.greenhouse.gov.au
www.greenprocurement.org.au/toolbox
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KEY POINTS
• To be most effective, sustainability issues need to be considered
in the policy & planning phases of purchasing.
• By adopting a proactive stance to the establishment & use of SP
policies, an organisation can ensure that SP becomes a reality.
• SP will be most successful with top-level management support,
as such people have the most power to influence policy
frameworks & the general culture of the organisation.
• Consider sustainability issues in your procurement planning.
Review previous checklist.
• Some types of goods such as paper, office equipment,
landscaping materials, certain construction materials &
rubber/tyre derived products particularly lend themselves to SP
considerations
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ELIMINATING BIAS
• Performance verses prescriptive specs.
• Obstacles: colour, virgin paper, all-or-none basis,
tight response & delivery times.
• Over-Reliance on Track Record.
• Cost considerations- cheap vs longevity:
- Comparison shopping & bulk purchasing
- Life-cycle (LCA) costing
- Demand management (reduced volumes)
- Longer term solutions- economies of scale
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SUPPLIER CHECKLIST
• What is their Environmental Record?
• What is the Environmental Impact of their G&S?
• What is the Environmental Impact of their
production process?
• What are whole of life considerations?
• What are Environmentally positive features of each
G&S?
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USEFUL ADVICE
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Internal expertise
Review Purchasing Policy
Review Tender Template
Re-develop Specs- biodegradable etc.
Statement- greater recycled content preference
Use eco-product databases
Discussions with like organisations
Attend relevant forums
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KEY POINTS
• Specs may result in bias against sustainable G&S if
overly prescriptive, reliant on track record or focus
on up front costs
• Writing performance specs less likely to create bias
• When preparing spec based on existing template,
check for & amend prejudicial provisions.
• Add appropriate provisions to specs to enhance SP
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TENDER EVALUATION
• Sustainable factors must be incorporated in
evaluation criteria before the Request for Tender
(RFT) is released. Hughes Aircraft Systems
International v Airservices Australia [1997] 558
Federal Court of Australia (30 June 1997).
• Scoring of tenders against predetermined criteria &
application of agreed weightings against scores is
generally acceptable (similar to job applications).
• All tenderers must be legally compliant.
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KEY POINTS
• There are legal requirements relating to tender evaluation
that impact upon SP. Importantly, environmental issues
must be incorporated into evaluation criteria before the call
for tenders.
• Checklists &/or questionnaires can be used to gather &
assess environmental information on suppliers & their
G&S. These can be stipulated in the requirements for the
tenderer in the specification.
• Environmental issues need to be appropriately weighed in
the tender evaluation process. V4$ considerations should
encompass all the relevant factors rather than simply the
cheapest purchase price.
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GET WHAT YOU PAID FOR
• The extent of monitoring of supplier’s performance is
determined by the level of risk with the G&S being
provided.
• Good monitoring of contractor performance progressively
identifies, anticipates & facilitates correction of short
comings before the relationship is adversely affected.
• The suppliers performance must be assessed objectively
using techniques & against criteria which are predetermined, clearly understood & agreed by both parties.
• Techniques- Contract Management Meetings, Contract
Reporting, Expediting, Inspection/Visits, SLA Performance
Audits & Financial Monitoring & Review/Audit.
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KEY POINTS
• Standard Contract Management Procedures
should be used to ensure compliance with SP
components of specs.
• Refer Contract Management notes.
Developed by DEPT of ENVIRONMENT & CONSERVATION (NSW) & Adapted
from MOLINO STEWART PL. presentation.
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