Sochi 2014 Olympic Games - Opportunities For Sustainable Business Procurement

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Sochi 2014 Olympic Games - Opportunities For Sustainable Business Procurement

  1. 1. Sochi 2014 Opportunities for Sustainable Procurement Marco Torregrossa Independent Consultant European Partners for the Environment European Partners for the Environment (EPE) www.epe.be European Partners for the Environment European Partners for the Environment (EPE) www.epe.be
  2. 2. Sustainable Business Procurement "…a process whereby companies seek to procure goods, services and works with a reduced environmental impact throughout European Partners for the Environment (EPE) www.epe.be reduced environmental impact throughout their life cycle when compared to goods, services and works with the same primary function that would otherwise be procured."
  3. 3. European Partners for the Environment (EPE) 67, Av. De la Toison d´or 1060 Brussels T:+32 2 7711534 F:+32 2 539 4815 I:www.epe.be
  4. 4. Purchase energy efficient products and services while minimising running costs and CO2 output Use market power to bring to commercialisation environmentally friendly products including breakthrough technologies Joint procurement of several companies to bring down the costs with Opportunities of Sustainable Procurement for Companies Engaging with Suppliers European Partners for the Environment (EPE) www.epe.be Joint procurement of several companies to bring down the costs with economies of scale Assist companies in generating awareness of the issues of sustainability and drive their CSR agenda Boost competitiveness of industry (both of supplier and procurer side) and set a good example for consumers and governments Reduce reputational risk and strengthen brand Social benefits and job creation
  5. 5. Sectors to Benefit from Sustainable Procurement in the Organisation of the Olympic Games Infrastructure Water and waste Travel and Tourism Industry Construction (stadium, demolition) Organic food and catering servicesservices Transport and transport services Energy Use IT machinery Clothing, uniforms, flags and other textiles Paper, packaging and printing services Sports equipments Lighting and appliances Cleaning products and services Equipment for health sector European Partners for the Environment (EPE) www.epe.be
  6. 6. A Six Steps Approach Companies which have successfully embedded sustainable procurement into their choice of suppliers can go through a standard process: 1. Awareness: that a problem needs to be addressed and that a range of possible solutions exist. 2. Associate: enough benefits with their own current agenda so that they European Partners for the Environment (EPE) www.epe.be 2. Associate: enough benefits with their own current agenda so that they will start the necessary effort to address the problem. 3. Acquire: the necessary skills, resources and support to be able to address the problem. 4. Apply: the recipient must overcome their innate human resistance to change and implement the solution. 5. Maintain: the change until it is mainstream 6. Monitor: the process and develop metrics to assess progress This process can be brought about by internal champions, external capacity building programs, government initiatives and, often, a combination of all three.
  7. 7. Recommended Tools for Companies to Engage with Suppliers Eco-labeling and eco-labeled products Environmental Management Systems (EMS) like ISO 14000 Certification for materials and processes Development of purchasing guidelines and partnership specifications Formalised public sustainability commitment CO2 footprint measurement that coversCO2 footprint measurement that covers emissions across the entire product lifecycle – from sourcing raw materials through to manufacture, distribution, use and disposal Training toolkit for employees and procurement officers A product group alert system to review periodically a market for a given product or product groups Database of environmentally friendly products and data to be shared between suppliers and procurers Regular organization of eco-products exhibition with suppliers goods European Partners for the Environment (EPE) www.epe.be
  8. 8. European Partners for the Environment (EPE) www.epe.be
  9. 9. Life Cycle Assessment of Procuring Sustainable Goods and Products 1. Internationally standardised methodology (ISO 14040 series) to quantify the resources consumed and the potential environmental impacts of goods and services 2. Environmental impacts are assessed2. Environmental impacts are assessed for the whole life cycle along the value chain, including the provision of raw materials, energy consumption, as well as the end-of-life stages such as recycling 3. LCA analysis has a particular impact in realising the opportunities to save in costs, particularly the operating/maintenance costs which represent the main part of company expenditures European Partners for the Environment (EPE) www.epe.be
  10. 10. Checklist to Clearly Define the Preconditions for the Contract (based on LCC analysis) Quantity Number of years of usage Discount rate European Partners for the Environment (EPE) www.epe.be Energy consumption Energy price Annual use Maintenance costs
  11. 11. Pre-procurement Dialogue with the Market Phase Encouraging early market engagement and consultations between companies and suppliers prior the award of the contract has the following benefits: 1. Promote the introduction onto the market of innovative highly energy efficient newinnovative highly energy efficient new technologies 2. Lower perceived risk in purchasing new products 3. Share of experience on how to progress sustainability issues relating to the products / services provided under the contract 4. Position your company as an innovative and forward thinking leader 5. Develop a closer working relations with suppliers that will enable future partnership relationship 6. Identification of best performing products specifications to be supplied for further purchasing European Partners for the Environment (EPE) www.epe.be
  12. 12. Examples of Procurement of Sustainable Goods for the Olympic Games LED lighting system for stadiums Electric vehicle technologies Waste management technologiesWaste management technologies for demolition of infrastructures Renewable heating and cooling systems Smart metering and management systems for stadiums Passive storage buildings European Partners for the Environment (EPE) www.epe.be
  13. 13. Example Contract Conditions – products Timber and wood derived products shall be sourced from sustainable sources and labelled Forestry Stewardship Council (FSC) or equivalent European Partners for the Environment (EPE) www.epe.be Packaging shall be recyclable, and consist of elements that can easily be recycled. Any packaging not required shall be removed for recycling by the contractor. The contractor shall avoid multi materials, mixed plastics, and use water based glues and inks
  14. 14. Examples Contract Conditions – services Energy: Equipment procured and used when carrying out this contract shall be highly energy efficient (For example white goods, bulbs – A+; IT equipment Green Star 4.0 or better) Vehicles / Transport: Vehicles, machinery and equipment European Partners for the Environment (EPE) www.epe.be Vehicles / Transport: Vehicles, machinery and equipment procured and used for this contract to meet Euro 5 emissions standard and for vans and cars have CO2 emissions near or below 120g/ km Water Use and Water Efficiency: The contractor shall ensure that water is used efficiently in all circumstances and shall use such appliances that minimize water use in the pursuance of this contract
  15. 15. Golden Rules for Companies Procuring Sustainable Goods 1. Develop purchasing guidelines with environmental criteria 2. Procurement procedures and formats to be standardized, making them accessible to SMEs European Partners for the Environment (EPE) www.epe.be standardized, making them accessible to SMEs avoiding innovation-killing conditions in tendering 3. Grow a green procurement plan that’s worth gold, and develop metrics that measure progress 4. Work with other business units to ensure a synchronized approach across the entire supply chain 5. Ensure suppliers compliance with company policies
  16. 16. Greening the Olympic Games “Greening events won’t just lead to reducing direct environmental impacts. If managed appropriately green European Partners for the Environment (EPE) www.epe.be If managed appropriately green events can leave a positive economic output and lasting legacy in the region and host community.”
  17. 17. Greening the Olympic Games Positive impacts: Networking Learning and Exchange experiences Open to different ideas and cultures Good for tourism Creates jobs Media attentionMedia attention Negative impacts: Transport related GHG emissions Water consumption Waste, waste, waste Not always benefits to local communities Excessive paper, gadgets Media pressure (*) Source UNEP Greening Events Guide
  18. 18. Host Country Economic Benefits Average 4 billion worldwide audience with over 50,000 accredited and non accredited media Average 10 million ticket sales Big uplift in business tourism (34% uplift in Sydney) with an additional 1.6 million visitors the year after the gamevisitors the year after the game Sydney recorded highest business uplift after the Games (23%) with an estimate 6 billion $ worth of international exposure and publicity Barcelona went from being the 16th most visited to the 3rd Atlanta added $5.1 billion to the state economy Athens – 10% increase in in bound tourism 1 year after the Games
  19. 19. London 2012 – Greenest Ever Games Sustainability Plan: combating climate change reducing waste European Partners for the Environment (EPE) www.epe.be reducing waste enhancing biodiversity promoting inclusion encouraging healthy living sustainable sourcing (procurement of secondary material)
  20. 20. Vancouver 2010 Olympics to aim for Carbon Neutrality “As the World Conference on Sport and the Environment on 14 April 2009 called on stakeholders to implement green projects to improve the contribution of sport to sustainability, European Partners for the Environment (EPE) www.epe.be projects to improve the contribution of sport to sustainability, organisers of the 2010 Winter Olympics in Vancouver unveiled a "carbon-offset portfolio" of green energy projects. The portfolio will include investments in green technology projects that improve energy efficiency or produce renewable energy such as wind, solar or geothermal. It may also include forestry and land use projects to help capture and store carbon from the atmosphere”.
  21. 21. Thank You for Your Attention Marco Torregrossa Independent Consultant European Partners for the Environment European Partners for the Environment (EPE) www.epe.be Be in Touch !!! Tel: +32 2 771 15 34 Email: marco.torregrossa@epe.be European Partners for the Environment (EPE) www.epe.be

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