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The Power of Sustainable Purchasing

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The Power of Sustainable Purchasing

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Purchasing has the power to help mitigate climate change, reduce income inequality, and build strong local economies, but only if we make the commitment to invest in our future by investing in sustainable companies.

Purchasing has the power to help mitigate climate change, reduce income inequality, and build strong local economies, but only if we make the commitment to invest in our future by investing in sustainable companies.

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The Power of Sustainable Purchasing

  1. 1. What is Sustainable Procurement
  2. 2. Three Key Findings about Sustainable Purchasing 1) Good policy creates demand 2) Aggregating supply spurs growth 3) Innovation overcomes barriers
  3. 3. Good Policy Creates Demand: Ben & Jerry’s Ben & Jerry’s, the popular ice cream maker in Vermont, follows a three part mission: creating high-quality products while maintaining a sustainable financial model and committing to social activism. Greyston Bakery, another B Corp, was founded in 1982 with the mission to create great baked goods while providing jobs and job training to those who face barriers to employment. Greyston makes the brownies for B&J’s wildly popular, Chocolate Fudge Brownie ice cream.
  4. 4. Aggregating Supply Spurs Growth: TOG TOG aggregates, distributes, and markets USDA organic produce on behalf of its farmers to restaurants, major organic grocery retailers, food retail cooperatives, community- supported agriculture, institutional food service buyers, produce distributors, and buying clubs.
  5. 5. Innovation Overcomes Barriers: ICIC Initiative for a Competitive Inner City (ICIC) is a non-profit organization championing small businesses to promote economic growth within inner cities. Its goals are to foster an anchored local economy, inner-city business growth, and the economic resilience needed for sustainable communities.
  6. 6. Kris Spriano Kris Spriano is a passionate, seasoned sustainability professional with demonstrated success in design and execution of supply chain sustainability objectives for a Fortune 100. Before coming to SPLC, Kris was the Supply Chain Sustainability Manager at Cisco Systems, where she worked in a variety of supply chain roles over the last 16 years. Among other impressive accomplishments and initiatives, Kris led the development and execution of the tech industry’s first-ever Scope 3 end-to- end supply chain emissions reduction program which has already met over 38% of its 2020 1 million tonne CO2e reduction goal.
  7. 7. Cohort Program Results Summary As of June 4, 2018
  8. 8. Agenda • BENCHMARK Background • Benefits Identified by Participants • Sector-level Key Takeaways
  9. 9. Agenda • BENCHMARK Background • Benefits Identified by Participants • Sector-level Key Takeaways
  10. 10. Where BENCHMARK fits into SPLC’s Programs Benchmarking to Peers Benchmark to SPLC Maturity Model Training / Education Category Guidance Process Guidance Principles Leadership Community of Practice COMPETITIVE ADVANTAGE Organizations compete to help improve their performance on benchmarks. MARKET TRANSFORMATION Market clarity and competition results in improved products and services becoming available for everyone in the marketplace. MARKET CLARITY Multi-sector guidance enables purchasers and suppliers to speak a common language. + = Leadership Recognition
  11. 11. SPLC BENCHMARKSM is… • A process management-based set of programs and tools that drive leadership in sustainable purchasing Benchmarking to Peers Benchmarking to SPLC’s Maturity Model Training / Education Category Guidance Process Guidance Principles Leadership Community of Practice Leadership Recognition How does my sustainable purchasing program compare to peers in my sector or org? What can I learn from all of this to improve my program? What does a good sustainable purchasing program look like? How does my sustainable purchasing program measure up to this? Establish strategic goals Create action plan
  12. 12. BENCHMARK Maturity Model: Built on substantial member input Guidance for Leadership in Sustainable Purchasing 38 Questions 4 measured “maturity levels”
  13. 13. SPLC BENCHMARK Maturity Model: A HIGH BAR LEADINGInitiating Developing Improving Leadership in SPLC’s Maturity Model sets a VERY HIGH BAR. This is because our goal in doing sustainable purchasing is to transform our global economy into one that is genuinely sustainable, from an environmental, social, and economic perspective. Therefore, the “Leading” maturity level describes how purchasing organizations will be operating when we have achieved a genuinely sustainable global economy. This makes SPLC BENCHMARK a highly useful tool for measuring how well we are doing on achieving that goal. These are the things all purchasing organizations will be doing when we have a truly sustainable global economy
  14. 14. SPLC BENCHMARKSM Process Sustainable Purchasing Scorecards & Action Steps Online Data Submission Tool 3rd Party Data Validation 1 2 3 Individual Org Peer Comparison
  15. 15. Agenda • BENCHMARK Background • Benefits Identified by Participants • Sector-level Key Takeaways
  16. 16. SPLC BENCHMARKSM Cohort Program Participating Organizations NASPO (State-level) Cohort:  State of Minnesota  Commonwealth of Massachusetts  State of Oregon  State of California  State of Connecticut  State of Oklahoma State of California Agency Cohort:  Corrections and Rehabilitation (CDCR)  Department of Transportation (Caltrans)  Department of Fish & Wildlife  Department of Resources, Recycle and Recovery (CalRecycle)  Department of Housing and Community Development  Department of General Services (OBAS)  High-Speed Rail Authority  Department of Fire and Forestry Protection
  17. 17. Benefits identified by our participants Improve operational efficiencies. By identifying and removing duplicative and/or mis-aligned activities; and capitalizing on leading best practices developed by a cross-sector community of experts. Demonstrate leadership. Identify strategic leadership within your organization including third- party certification you can take forward to your customers, employees, investors and customers with confidence. Obtain a strategic path for moving forward. Receive an organized framework of strategic next steps to achieve and justify your next level of leadership in sustainable purchasing. Reduce risk from complex supply chains. Understand the operational levers that ensure the social, economic and environmental performance of your supply chain in order to mitigate risks and increase supply chain resiliency. Formalize your program. Identify a comprehensive “inventory” of existing activities that define your sustainable purchasing program, and serve as the foundation for cross-functional communication and progress. Build a team of champions. Partner with internal and external peers to learn, teach and drive supply chain practices which enable a global sustainable economy. “You have demonstrated leadership in understanding your sustainable purchasing impacts.” “Increase your leadership maturity by publicly reporting your program’s goals and results.”
  18. 18. Agenda • BENCHMARK Background • Benefits Identified by Participants • Sector-level Key Takeaways
  19. 19. Key Takeaway #1: It is now possible to pinpoint how mature an organization is across multiple dimensions of sustainable purchasing leadership. These are the things all purchasing organizations will be doing when we realize the truly sustainable global economy we want LEADINGInitiating Developing Improving YOU ARE HERE
  20. 20. Key Takeaway #2: BENCHMARK has revealed the path that states can follow to lead their regions towards a genuinely sustainable economy 0 1 2 3 4 Transparency Innovation Results Commitment Understanding NASPO Median CA Agency Median Not Started INITIATING DEVELOPING IMPROVING LEADING TREMENDOUS OPPORTUNITY to create a truly sustainable economy Median Maturity Level
  21. 21. Key Takeaway #3: BENCHMARK provides segmentation which enables targeted assistance 0.0 1.0 2.0 3.0 4.0 State#2 State#3 State#6 Dept#3 Dept#6 Dept#7 Dept#8 NASPO States and CA Agencies Understanding Commitment Results Innovation Transparency INITIATING DEVELOPING IMPROVING LEADING Not Started Have many formal program elements (eg. best practices) in place. Need help broadening what is included in their programs in an efficient way; and in a more inclusive manner with stakeholders. 0 1 2 3 4 State#1 State#5 Dept#1 Dept#2 Dept#4 Dept#5 NASPO States and CA Agencies Understanding Commitment Results Innovation Transparency INITIATING DEVELOPING IMPROVING LEADING Not Started Emerging Leaders Have few formal program elements in place. Need help building momentum from ad hoc activities in order to win support for establishing a formal program. Need help visioning and designing program elements appropriate for their org. Program Initiators
  22. 22. Key Takeaway #4 The most consistently under-utilized best practice is engaging suppliers. Tremendous opportunity to activate supplier innovation and assistance. 23 0 1 2 3 Supplier Engagement Organizational Processes & Policy Stakeholder Engagement Staff Engagement Median Maturity by Evaluation Category INITIATING DEVELOPING IMPROVING Not Started
  23. 23. OPTION 1 Quick Assessment OPTION 2 Maturity Model OPTION 3 Guided Individual Assessment OPTION 4 Guided Cohort Assessment Ways to Use BENCHMARK Self-guided 11- question “Quick Assessment” Worksheet identifying current priorities and related activities Self-guided 38- question “Full Assessment” which sits behind the SPLC BENCHMARK online platform Contracted consultative project in which SPLC staff lead Full Assessment; leverages SPLC BENCHMARK online platform and provides validated maturity reports and action plan. Training and peer-to-peer learning project in which participants lead Full Assessment with SPLC support. Results in validated maturity reports, action plans, and cohort peer benchmarking. Free Download!
  24. 24. Next Steps • To download the full report, visit asbcouncil.org/procurementreport • For questions, email Eliza Kelsten at ekelsten@asbcouncil.org • SPLC BENCHMARKSM: https://www.sustainablepurchasing.org/benchmarking/ • To get in touch with Kris, email Kris@sustainablepurchasing.org

Editor's Notes

  • Thank you for having me! Today, I’ll be sharing a bit more about the SPLC BENCHMARK Program, focusing on the high-level results from our Cohort Pilot Program which began last August and ran through the early part of this year.
  • I’ll start by providing some background on the approach, review some of the benefits that our past participants have highlighted and then give you all a view of the types of sector-level insights that we’ve been able to achieve as a result.
  • BENCHMARK Background (Sam)
    NASPO Investments in BENCHMARK (Sam)
    Program Accomplishments (Kris)
    Key Takeaways (Kris)
    Participating Sharing & Feedback (Kris leads; Julia and Johanna participating)
    Opportunities to Extend NASPO's Leadership (Sam)
  • SPLC commonly describes its services using this pyramid of programs and offerings. We have foundational sustainable purchasing and supply chain resources which connect multiple sectors through a common language and understanding of leadership. We then build on foundation by providing levers that challenge organizations to excel. It is that space where Benchmark serves to assess and measure an organization’s sustainable purchasing activities.
  • So, Benchmark is a process management-based set of programs and tools that drive leadership in sustainable purchasing.

    Ultimately, Benchmark seeks to answer questions like…<READ QUESTIONS>. At the end of this process, participants are provided with strategic next steps to move the needle on their organization’s maturity.
  • The SPLC Maturity Model is the underlying framework for all benchmarking activities. This model was built by the Benchmark Working Group who leveraged years of curated leading best practices obtained from a cross-sector of leaders in sustainable purchasing.
  • It should also be noted here that Leadership in SPLC’s Maturity Model sets a VERY HIGH BAR.

    We have already seen in its use that achieving a validated LEADING response is unique and sets apart those who are able to achieve it in even a handful of up to 38 prioritized leadership practices.
  • SPLC BENCHMARK Platform is the foundation for getting us there. The platform delivers the Maturity Model organized under the framework of our Principles for Leadership. The process includes 3rd party validation and the generation of two reports benchmarking maturity to the Model and maturity to a particular group of peers.
  • BENCHMARK Background (Sam)
    NASPO Investments in BENCHMARK (Sam)
    Program Accomplishments (Kris)
    Key Takeaways (Kris)
    Participating Sharing & Feedback (Kris leads; Julia and Johanna participating)
    Opportunities to Extend NASPO's Leadership (Sam)
  • Between 2017 and early 2018, fourteen independent purchasing organizations experienced the Benchmark process by-way of cohort workshops. The first was a team representing six states as you see here. The second took the state of California into a deeper, internal investigation into the sustainable purchasing activities of eight of their agencies.
  • BENCHMARK Background (Sam)
    NASPO Investments in BENCHMARK (Sam)
    Program Accomplishments (Kris)
    Key Takeaways (Kris)
    Participating Sharing & Feedback (Kris leads; Julia and Johanna participating)
    Opportunities to Extend NASPO's Leadership (Sam)
  • [This slide is about the MATURITY MODEL. It is now possible to see where an organization is in the intermediate space between getting started and leadership.]
    With NASPO’s help, we have been able to define what a truly sustainable global economy is, establish a building block set of best practices that achieve that leadership, and demonstrate that it IS possible to measure an organization or set of organizations against those milestones.
  • Here you see a more detailed breakdown of how NASPO cohort participants measured up to that comprehensive definition of sustainable purchasing leadership. <<WALK THRU CHART>>
    We wouldn’t expect any organization around the world to be measured significantly better than this at this point.
    However, the difference is that NASPO now sits at the forefront of being able to use the organized framework of required steps to move forward (ahead) in maturity to all other organizations. In short, NASPO sits at the forefront of leading a sustainable purchasing revolution!

  • Sustainable purchasing maturity varies across states and even internally within those states. However, what was clear throughout the process and demonstrated in the teams’ Benchmark results was two groups with varying needs:
    Emerging Leaders: Those organizations that recognize what sustainable purchasing is, and have invested in developing very specific practices within our defined maturity model. Interestingly, these emerging leaders often lead in areas complementary to one another. In other words, together, their experience in leading best practices is much more mature than an individual organization’s leadership across the 38 measured areas. Therefore, they have a lot to gain by further sharing what they are doing with one another.
    Just Starting: These organizations are either just starting to learn the strategic definition of a sustainable purchasing program, requiring a more basic understanding of its components.

    SIDE NOTE: Only two (of 14) organizations fell somewhere “in between” these two major groups.

  • NOTE: Supplier Engagement in this context includes:
    Assessing impacts
    Collaborating on goals
    Product/service-level evaluation
    Supplier’s enterprise-level evaluation
    Supplier development (diversity, product innovation, etc)
    Supplier transparency
  • There are now four ways to utilize the Benchmark Approach and start taking advantage of its benefits.

    The first is our newly released self-directed Quick Assessment. This new tool allows teams to obtain an introduction to the Benchmark Approach in a consolidated 11-question format, while still getting a sampling of its benefits. We recommend this as a first step for anyone wanting to take advantage of any part of Benchmark.

    The second is the Maturity Model, which is the 38-question full assessment built into our 3rd and 4th options. Organizations may download the document for free, but are on their own to assess themselves against the criteria.

    We’re very excited to begin offering Guided Individual Assessments for those that are looking to benchmark to the Maturity Model, and want to take advantage of our online platform. In this option, SPLC staff uses an interview-based approach to walk your organization through the full 38-question assessment, and then provide a Maturity Report including strategic next steps tailored to your organization.

    And the final option is the Guided Cohort Assessment. This is great for organizations that wish to experience Benchmark together as an interactive workshop, further supporting sharing of results and best practices uncovered in the group.
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