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Sustainable procurement - An Introduction
- 1. Sustainable Procurement: An Introduction Presented by Christine Storry – PIPEN Project Manager South West England
- 2. Key definition themes Meeting organisational and purchasing needs Whole life cost basis Benefitting: Society Environment Economy Minimising environmental impact Balance of social, economic and environmental issues
- 3. Sustainable Procurement Social Workers’ rights Ethical issues Fair pay Economic Local economy Life cycle costs Employment Environmental Air quality Water use Energy
- 4. What happens if you don’t procure sustainably? The world won’t fall apart but… • Rather than being part of the solution • Could be conflicting with the organisation’s policies, eg on air quality • Could be encouraging or endorsing bad practice, eg paying low wages, using harmful chemicals • Procuring goods that waste resources – including the organisation’s resources (eg, human and financial) You’re contributing to the problem
- 5. What you could lose if you don’t Making cost savings Reputation Chance for innovation Procuring better
- 6. What you could gain if you do Economic • Cost efficiencies • Use of SME suppliers • Contribution to local economy • Innovative contracts Social • Improved workers’ rights • Local employment • Fairly + ethically produced goods • Reputation Environmental • Reducing resource wastage • Reducing emissions • Reducing consumption
- 7. Myths #1 - SP always drives up costs No – it doesn’t; can save costs • Define need properly • Use life cycle costing #2 – SP isn’t allowed under the EU Directive It is allowed but • must relate to the subject matter of the contract; cannot be arbitrary #3 – SP always takes longer Not necessarily • Use tried and test tools and standards • Early market engagement is crucial
- 8. Barriers • Risk aversion – Lack of sustainability understanding – Unsure of the legal issues – Assumed to be too complex – Organisational culture • The market – Need to understand what procurers want – Un/willingness to engage with the market – Adapting to what the market can provide (often an enhanced offer)
- 9. Embedding SP Part of the Procurement Process Championed by senior management/politician Develop a Sustainable Procurement Policy Link into existing policies Needs commitment – not lip service Know what is important to the organisation
- 10. SP meets Social Value Both address the same three issues, but •Sustainable Procurement – SP takes a wider, often global, approach but also targets local issues – SP can have more reach – eg, addressing labour conditions in long supply chains •Social Value – Social Value is localised (ie, ‘relevant area’) – Social Value often addresses a specific concern – eg, creating apprenticeships
- 11. © 2017, UWE Bristol www.uwe.ac.uk South West England