Transcript Sustainable Procurement

Action Sustainability
Inspiring sustainable procurement
Sustainable Procurement
Practice
Shaun McCarthy
Director
Action sustainability
www.actionsustainability.com
[email protected]
Action Sustainability
Inspiring sustainable procurement
Sustainable Procurement
Practice
Welcome
www.actionsustainability.com
[email protected]
Action Sustainability
Inspiring sustainable procurement
This presentation is about…








Who?
What?
Why?
When?
How?
Where?
Some controversial stuff
The future
www.actionsustainability.com
[email protected]
Action Sustainability
Inspiring sustainable procurement
Who – Action Sustainability…?
Action Sustainability is a social enterprise set up to lead and
inspire sustainable procurement.
How…?
Who…?
We are a not for profit social enterprise registered as
Community Interest Company. We manage events
and seminars to promote more sustainable
business. We also offer specialist expertise and
services to public and private sector organisations
interested in improving the impact of their supply
chain on society.
We support and facilitate the Strategic Supply Chain
Group, a leading authority on sustainable
procurement. We aim to extend the boundaries of
best practice in this area and advise organisations
and government on sustainable procurement policy
and strategy.
Delivery
We provide research, case studies, support, training, benchmarking and consultancy. Our group aims to
continuously extend, lead and inspire best practice in sustainable procurement
Action Sustainability
Inspiring sustainable procurement
Who – Strategic Supply Chain Group
To lead and inspire sustainable
procurement.
To lead and inspire good sustainable
business practice
To extend the boundaries of best
practice
This is achieved through a series of promotion and
awareness events, often working with member
organisations and other groups with an interest in
this issue.
Through research, benchmarking and thought
leadership in sustainable procurement. To use our
influence with members and their supply chains to
have a net beneficial impact on society.
To act as the primary source of advice and guidance to government policy
makers on sustainable supply chain solutions
We help Government to define and shape best practice in sustainable procurement. We support the implementation
of the Sustainable Procurement Task Force (link) and the Sustainable Consumption and Production Task Force
Action Sustainability
Inspiring sustainable procurement
Who – Shaun McCarthy…?



Used to be an engineer (got better!)
20 years buying and selling things (Shell and BAA)
Now:


Director of Action Sustainability
Head of CR for everything BAA buys and everything BAA
builds




MCIPS and MIEMA
Lead BAA Climate Change/Energy policy
London Sustainable Development Commissioner



BAA – 2nd place in BITC Index 2006
Chair London Olympics Sub-Group
Sustainable Procurement Task Force member
Chair Strategic Supply Chain Group
www.actionsustainability.com
[email protected]
Action Sustainability
Inspiring sustainable procurement
What – Sustainability…?

“Development that
meets the needs of
the present without
compromising the
ability of future
generations to meet
their own needs”

Bruntdland Definition
Action Sustainability
Inspiring sustainable procurement
What – Sustainable Procurement…?
Sir Neville Sims Definition
“Using procurement to support
wider social, economic and
environmental objectives, in ways
that offer real long-term benefits”.
Sir Neville Sims is Chairman of the UK Sustainable Procurement Task Force
Task force findings – not UK Government Policy
Action Sustainability
Inspiring sustainable procurement
Why…?
Employee
expectations
Brand
Customer
requirements
Benchmarking
Reputation
Risk
management
Business
efficiencies
Stakeholder
demands
Sustainable
Procurement
Performance
Licence to
Operate
Legislation &
Standards
Impact Reduction
(environmental)
Action Sustainability
Inspiring sustainable procurement
Why – Private Sector…?
BAA Stakeholder Survey 2003
Q13. To what extent does a sustainable development approach
make growth more acceptable?
0
Business Partners
Passenger Reps
Business Orgs
Employee Reps
Suppliers
Gov’t Agencies
Retailers
Media
Community Reps
MPs, MEPs
Local Authorities
Pressure Groups
20
40
60
80
100
Action Sustainability
Inspiring sustainable procurement
Why – Private Sector…?
Action Sustainability
Inspiring sustainable procurement
When…?
Better make it soon then……..
Action Sustainability
Inspiring sustainable procurement
How…?
What organisations do
UK Government
4 Priorities
Respond to
customer needs
Make/deliver
stuff
Buy stuff
Account for
stuff
Sustainable
Production &
Consumption
(more for less)
Sustainable
products
Responsible
marketing
Waste minimisation
Environmental
impact
Demand
management
Inventory
management
Life cycle cost
Business planning
Climate change
and Energy
Efficient products
Consumer
information
Energy efficient
delivery
Energy services
“Green” energy
procurement
Energy conservation
CO2 reporting
Emissions trading,
CCL etc.
Natural Resource
& Env.
Enhancement
Efficient products
Environmental
impact
Manufacturing
efficiency
Services minimise
resource use
Materials use
Environment impact
of purchases
Reporting (triple
bottom line)
Sustainable
Communities
Community impact
Social implications
of products
Community impact
Social implications
of products
Ethical procurement
Local suppliers
Community
partnerships
Charitable donations
Business ethics
Action Sustainability
Inspiring sustainable procurement
How…?
Buy stuff
Sustainable
Production &
Consumption
(more for less)
Climate change
and Energy
Natural Resource
& Env.
Enhancement
Sustainable
Communities
Demand
management
Inventory
management
Life cycle cost
“Green” energy
procurement
Energy conservation
Materials use
Environment impact
of purchases
Ethical procurement
Local suppliers
Community
partnerships
Action Sustainability
Inspiring sustainable procurement
How…?
Buy stuff
Sustainable
Production &
Consumption
(more for less)
Climate change
and Energy
Natural Resource
& Env.
Enhancement
Sustainable
Communities
Demand
management
Inventory
management
Life cycle cost
“Green” energy
procurement
Energy conservation
Hundreds of end users
Hundreds of products
Thousands of suppliers
Countless 2nd, 3rd, 4th
tier suppliers
Materials use
Environment impact
of purchases
Ethical procurement
Local suppliers
Community
partnerships
Tens of thousands of
transactions
Big....Complex...
How - Organisation
Corporate
Responsibility
Board
BAA Example
•Policy
•Strategy
•Governance
•Talent management
CAS
Environment
Big Ticket
Environment
•Noise
•Air Quality
•CO2/Energy
•Waste
Group
Areas of
Expertise
Other
Environment
•Biodiversity
•Natural resources
•Contamination
•Etc.
Corporate
Responsibility
•Social
•Economic
•Ethics
•Etc.
Policy advice
•External representation
•Options
•Analysis
•Policy
Implementation advice
•Legislation
•Strategy framework
•Policy communication
•Performance reporting
Sustainability
Team
Define knowledge
•To achieve outputs
Strategy
•Long term
•Sustainability
• impacts
Solutions
•Sustainable
•Performance
Guidance
•Documents to inform
Translate outputs
•SC and Capital processes
Businesses
Supply Chain*
Advice
•Hands on support
Capital*
Learning & Development
•Upskilling project teams
Deliver
Sustainable
Solutions
Assurance
Process reviews
Audit
Corrective action
Facilities
•Planning
•Solutions
Action Sustainability
Inspiring sustainable procurement
How – Process…?
Identification of
Specification
need
Supplier
qualification and
appraisal
Financial
evaluation
Accounting:
whole life costing
Financial
review
Contract
management
and review
Tendering and
tender evaluation
Environmental Purchasing – guidance for organisations CIPS/IEMA/NHS PASA 2002
How - Process
Description:
This process identifies the requirements needed for projects to deliver
facilities solutions that represent long term value and support BAA’s
aspirations, policies and standards with respect to Corporate Responsibility
(Sustainability). The process describes the responsibilities of a project,
and highlights how sustainability impacts are to be managed.
Develop performance
requirements in Options
Brief
Identify & relate relevant
sustainability issues


Inputs
Primary
Responsibili
ty (RACI)
IT/
Managemen
t System
Links


Approved Brief Decision
Report
Any planning/regulatory
requirements
Objectives :
To define what needs to be done to deliver sustainable solutions with
respect to:
 Addressing the impact of a project;
 Responding to planning requirements;
 Managing reputational risk;
 Addressing whole life costs;
 Assuring compliance with legal/BAA policy requirements; and
 Delivering leading edge performance for priority issues.
Define requirements in
Scheme Brief & define
scope of works for CEMP



Approved Options
Decision Report.
Design Brief
Project Execution Plan
Define requirements in
Production Plan & produce
CEMP



A Development
Managers
C Project Groups
C Sustainability AoE




Outputs
Issue briefs
AoE input (where
appropriate – Big
Ticket?)
BAA Example
Decision Model
List of relevant issues
Issues captured in
Brief Decision Report
Proposed approaches
for carbon intensity
included in Brief
Decision Report.
A Development Managers
R Design Managers
C Project Groups
C Sustainability AoE




Decision Model
Whole Life Cost factors
captured
Draft Design Brief
capturing issues
Energy/CO2, waste &
sensitive materials
assessments for each
option
A Development Managers
R Design Managers
C Project Groups
C Sustainability AoE







Decision Model
Scheme Design Brief
capturing issues
Whole life cost report
Non conformances with
Materials Strategy
justified and approved
Completed energy/CO2
& waste assessments
Self-Assurance checklist
List of relevant
construction activities
CEMP framework (via
Decision Model)
Approved Scheme Design
Brief
Draft targets/KPI’s
A Project Leaders
R Project Groups
C Sustainability AoE





Decision Model
Production Plan
capturing issues
Completed CEMP
Approved targets/KPI’s
BREEAM data
Relevant Policies
Management Policies
 Capital Sustainability Policy
Technical Policies
 N/A
Report the level of
performance achieved
against the Brief's &
CEMP
Approve CEMP &
implement


Approved CEMP
Targets/KPI’s



A Project Leaders
C Sustainability AoE




Decision Model
Implemented CEMP
Self-Assurance checklist
Cost reconciliation of
planned versus actual for
all sustainability cost
lines
Assurance outcomes
Target/KPI’s
Reconciliations
A Project Leaders
C Sustainability AoE




Decision Model
Handover file
containing all relevant
issues
Risk Register
highlighting any
residual risks
Knowledge capture
How - Process
Identify & relate relevant
sustainability issues
Develop performance
requirements in Options
Brief
Establish the significant
sustainability issues and
relate them to the
proposed approaches.
Review and develop the
issues in detail and relate
them to the proposed
options.
Activity
Description



Decide and agree the
significant issues and
opportunities relating to
approaches.
Understand the carbon
intensity of approaches
together with high level
renewables opportunities
Engage where necessary
sustainability AoE input.
Activities
Mandatory QMS Procedures: detail
procedures that must be adhered to

Templates

Issue Briefs
Decision Model
BAA Example
Define requirements in
Scheme Brief & define
scope of works for CEMP
Define requirements in
Production Plan & produce
CEMP
Define the issues into
performance requirements
for the Scheme Brief.
Understand construction
approaches to scope the
activities for the CEMP.
Establish the Production
requirements together with
confirmed construction
activities for CEMP
production.
Report the level of
performance achieved
against the Brief's &
CEMP
Approve CEMP &
implement
Seek approval for CEMP
and identify the most
effective way of
implementation.
Assess the level of
performance achieved
against the Brief's/CEMP
and prepare information
for the handover file.
Review in detail the
 Re-affirm issues
 Re-affirm issues
 Assign CEMP
 Report the level of
agreed significant
relevance and refine for
relevance and refine for
responsibilities in an
performance achieved
sustainability
inclusion into Scheme
inclusion into Production
auditable framework.
against the
issues/opportunities
Brief.
Brief.
Brief's/Plans
 Review sustainability cost
highlighted and develop
 Update Risk Plan/Form.
 Produce CEMP.
lines.
 Extract notable learning
them into performance
and place it into the
 Define Whole Life Cost
 Update Risk Form.
 Meter energy
requirements for Design
sustainability learning
factors, including end of
consumption during
 Fix targets and KPI’s.
Brief.
file.
life costs in model.
project
and
capitalise.
 Ensure costs include all
 Ensure significant
 Prepare handover file
 Work up business cases

Measure
waste
sustainability issues (e.g.
issues/opportunities are
of all the relevant
for potential renewables
generation.
energy, waste, disposal).
included in Risk
information required for
use and energy efficiency  Confirm compliance with
workshop.
release throughout the
opportunities.
Materials Strategy or
 Include input from any
business.
 Develop draft
agree any concessions.
Environmental Impact

Measure energy in use
energy/CO2 target.
Assessment (EIA) or
and feed into post
 Include Materials
other planning
project review and
Strategy requirements.
requirements/conditions.
airports business plan.
 Estimate waste
 Develop outline Whole
 Review whole life cost
generation and any
Cost factors using
model assumptions,
the Life
QMS Standard
Forms
listissues.
the standard forms
Checklists list the checklists that should be referenced.
hazardous
waste
benchmarks.
capture benchmarking
be
Prepare
a
list
of
that
should
used
in
support
of
the
procedures.
 Understand Materials and
data and feedback.
construction activities for
Waste issues.
CEMP.
 Develop energy/CO2
assessments for options.

:


How to doc’s
Decision Model

Decision Model
:


Justification Report
Decision Model

Decision Model

Decision Model
Action Sustainability
Inspiring sustainable procurement
How - Risk…?
What is risk...........?
The really bad stuff that
happens if you don’t do
something about it
Shaun McCarthy 2006
Action Sustainability
Inspiring sustainable procurement
How - Risk…?
L/H = M
M/H = H
H/H = H
L/M = L
M/M = M
H/M = H
L/L = L
M/L = L
H/L = M
High
Impact
Low
Likelihood
High
Action Sustainability
Inspiring sustainable procurement
How - Risk…?
High
Treat
Terminate
Terminate
Tolerate
Treat
Terminate
Tolerate
Tolerate
Treat
Impact
Low
Likelihood
High
Action Sustainability
Inspiring sustainable procurement
How – To get started…?
management commitment
Procurement,
Environment/
Energy/
Estates/
Waste
sustainable procurement
strategy and policy
Business
Improvement
Team
sustainable procurement
risk
manager
budget
holders
specifiers
users
risk assessment
sustainable procurement
risk management
customers
finance
(adapted from slides courtesy of NHS PASA)
Action Sustainability
Inspiring sustainable procurement
How – will it turn out…?
BAA Example
Noise
Air
Climate Surface
Quality Change Access
Water
quality
Local
Human
suppliers rights
Biod.
Waste
Materials
Cleaning
Coaching
Baggage
systems
Construction
Architect
Consider your impact on specific issues – not “one size fits all”
Action Sustainability
Inspiring sustainable procurement
How – will it turn out…?
NHS Example
pharmaceuticals
cleaning materials
employment agency
services
stationery
Environmental
Risk
Profile
clinical waste
medical consumables
patient transport
catering services
energy
uniforms
office furniture
signage
Action Sustainability
Inspiring sustainable procurement
How – Do you know…?
BITC Index www.bitc.org.uk
Action Sustainability
Inspiring sustainable procurement
How – Do you know…?
Flexible framework
Lead
Enhance
Practice
Embed
Foundation
Time
Benchmarking how well you are addressing your sustainability issues
against how well others are addressing theirs
www.actionsustainability.com, [email protected]
Action Sustainability
Inspiring sustainable procurement
How – To measure benefits…?










Tonnes of CO2 abated
No abatement notices for nuisance
Tonnes of waste diverted from
landfill
No prosecutions for contamination
or biodiversity
Tonnes of aggregate & cement
abated from natural sources
Tonnes of HFC/HCFC abated
Volume of timber abated from nonsustainable sources
Quantity of PVC not procured
Quantity of formaldehyde not
procured
No red residual risks related to
human rights
Action Sustainability
Inspiring sustainable procurement
Where – To get help…?










www.actionsustainability.com
www.bitc.org.uk
www.iema.net
www.cips.org
www.lsx.org.uk
www.forumforthefuture.org
www.wrap.org
www.envirowise.gov.uk
www.londomremade.com
www.thecarbontrust.cu.uk
Action Sustainability
Inspiring sustainable procurement
Where – to get training…?
Do you have the right to procure un-sustainably?
Organisations in the public and private sector are coming under increasing scrutiny by government, nongovernment organisations, investors and customers to act responsibly. The biggest area of reputation risk
lies beneath the supply chain. Organisations need to understand how to translate their environmental and
social values through their supply chains to inspire and embed responsible behaviour.
Content
Quality
This one day programme provides procurement and
environment professionals with the capability and
confidence to understand and exploit the benefits of
procuring effectively and responsibly. This is a
practical seminar with expert coaching and case
studies.
The course is referenced in the Government’s 2006
strategy “Procuring the Future”. This will be the only
programme of it’s type to be accredited by the
Chartered Institute of Purchasing and Supply
www.cips.org and the Institute of Environment
Management and Assessment http://www.iema.net/,
Delivery
The programme is delivered by leading experts in this field. Barbara Morton, Project Manager for the Sustainable
Procurement Task Force, and Shaun McCarthy, Chair of the Strategic Supply Chain Group and Chair of the
London Sustainable Development Commission 2012 Sustainability Group.
www.actionsustainability.com, [email protected]
Action Sustainability
Inspiring sustainable procurement
Some controversial stuff

Minimum standards


Won’t work on their
own
Unlikely to be
complied with


UK target for 100%
BREEAM excellent
buildings
17% achieved
Action Sustainability
Inspiring sustainable procurement
Some controversial stuff

Beware
“Greenwash”

UK Green Tariff
energy


Just a certificate for
your wall
Makes no difference
to the environment
Action Sustainability
Inspiring sustainable procurement
Some controversial stuff

ISO 140001 for
suppliers



Not the whole
solution
One size fits all
May not get you
what you need
Action Sustainability
Inspiring sustainable procurement
The Future

How much longer will it
be acceptable for
organisations to:





Grow their business and
increase greenhouse
emissions?
Send waste to landfill?
Buy from organisations
with poor human rights
practices
Deplete natural resources
in construction and
operations
Disrupt our neighbours
Action Sustainability
Inspiring sustainable procurement
Sustainable Procurement
Practice
Thank you
www.actionsustainability.com
[email protected]