Take some of these examples: Child Labour and poor working conditions of Developing world supply chains. Just look at what happened with Primark recently. They identified that working practices in one of their overseas production facilities was very poor and used child labour. Their immediate reaction was to pull their contract, was this the right thing to do?. Perhaps they should have invested resources into understanding and improving the problem. They received some really bad PR as a result of this and the Environment Agency certainly do not want to end up in this position. We have developed a very robust timber policy to prevent illegal logging. Across the board through our business activities we need to reduce waste to landfill, increase the use of renewable energy resources and protect our non renewable resources.
Our approach is underpinned by our sustainable procurement strategy, which we’ve evolved over a number of years CLICK Risk assessment and action are an integral tool – a risk based approach is at the heart of everything we do in our procurement team CLICK Sustainability is not an add on – it is fully integrated into our whole procurement approach CLICK We cannot deliver the strategy alone and recognise the significant role of our suppliers and the supply chain Our supplier development activity has a strong sustainability focus We carry out sustainability audits on 20 key suppliers each year This is evolving to include an assessment of socio-economic as well as environmental issues and also covers the suppliers approach to sustainable procurement including their influence on their supply chain It is important to ensure that our suppliers educate and monitor the performance of their supply chain to make sure they are all meeting our sustainability requirements This process helps spread the sustainability message and links in with our influencing role in Greening the Business World in helping us Create a Better Place CLICK We market our sustainable procurement approach both internally and externally as much as resources allow, we want others to follow our best practice solutions CLICK All procurement staff have undertaken sustainable procurement training, including training in our approach to risk assessments. And all procurement staff have a sustainable procurement within their personal objectives Last year prior to the launch of our new timber policy –more on this a little later - we ran 42 briefings covering over 700 of our own and our key suppliers’ staff Today’s briefing is another part of this raising awareness – you are an integral part of making the strategy tick and deliver the desirable outcomes CLICK We continue to strive to maintain excellence to close the loop. Our sustainable procurement strategies evolve with product and process improvements
Sustainable business network presentation- Environment Agency
Creating a Better Place Sustainable Procurement in the Environment Agency Emma Law Senior Procurement Officer February 2011
Procurement Mission <ul><li>Best Value </li></ul><ul><li>Best Practice </li></ul><ul><li>Most Sustainable Outcome </li></ul>
Economics Environment Society Sustainability Fair trade People & Diversity Resource Management Emissions Management Development & Innovation Stability
Procurement Pressures <ul><li>As a non departmental government body – and part of Defra, we have a constant pressure to ensure we’re spending public money in the best way possible. </li></ul><ul><li>On the next slide, we see some of the potential risks involved, both in terms of sustainability, H&S and PR…. </li></ul>
Considerations before we buy <ul><li>Opportunity not to buy? </li></ul><ul><li>Can you re-think the need? </li></ul><ul><li>Any technological innovations? </li></ul><ul><li>Are you buying as little as possible? </li></ul><ul><li>Are there opportunities to re-use / buy recycled? </li></ul>
Consider Environmental Impacts <ul><li>Non-renewable resource use (oil, water, copper) </li></ul><ul><li>Energy (think efficiency and environment) </li></ul><ul><li>Hazardous materials (REACH) </li></ul><ul><li>Emissions to air, land and water (CO2, pollution) </li></ul><ul><li>Packaging and waste (recycled, reuse, minimise) </li></ul><ul><li>Spares, consumables and maintenance (longevity) </li></ul><ul><li>Travel (reduced staff travel, logistics) </li></ul><ul><li>Support to EA vision, strategy and EMS </li></ul>
Socio-economic impacts <ul><li>Community benefits (regeneration zone) </li></ul><ul><li>Core labour standards (ILO) (list core standards) </li></ul><ul><li>Fair and ethical trade (all heard of fair trade) </li></ul><ul><li>Disability, gender and race equality (policy, care) </li></ul><ul><li>Employment conditions and training issues (pay, H&S) </li></ul><ul><li>SMEs, BMEs and the “third sector”, e.g. social enterprises, charities (remploy) </li></ul><ul><li>EA Commitments (Race for Opportunity & Stonewall) </li></ul>
What this approach delivers <ul><li>VALUE FOR MONEY </li></ul><ul><li>environmental and social benefits </li></ul><ul><li>more efficient use of resources </li></ul><ul><li>greater social inclusion </li></ul><ul><li>support for innovation </li></ul><ul><li>better risk management </li></ul><ul><li>lower whole-life costs </li></ul><ul><li>improved supplier relationships </li></ul>
Best practise examples <ul><li>Timber policy best in government </li></ul><ul><li>Supplier Audit Programme </li></ul><ul><li>Supply chain audit – Textiles – Southern Region won internal award for their change to fairly traded organic in conversion cotton goods for corporate clothing </li></ul><ul><li>Third sector venue suppliers – Southern has led national move to not-for-profit sector venue hire in order to support local economies, charities and save on venue spend </li></ul>
The Environment Agency has been working on its sustainable procurement impacts for many years, but this was brought together in 2006, by the central government Sustainable Task Force. We played a major part in the task force to assess our level of skill in sustainable procurement.
The business case in a nutshell <ul><li>“ this is worth doing, there are clear benefits, it can be done, it is not difficult, it will not cost more in the medium term and will show real dividends in the long term” </li></ul><ul><li>(Sir Neville Simms, “Procuring the Future”, 2006) </li></ul>