Sustainability in tendering
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A requirement to provide sustainability and ethical trading information becomes an integral part of tendering process in public and private sector. What information to select, how to present it, where to find helpful background info about buyer's needs and objectives plus our top tips on how to write a winning sustainability policy - all included in our Sustainability in Tendering, Maximise the opportunity presentation.
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Sustainability in tendering
- 1. Sustainability in Tendering Maximise the opportunity Monika Maciejewska Sustainability &CSR Strategist
- 2. Agenda Making tenders more competitive What to include? Finding the right information What’s ahead? What is sustainability?
- 3. Sustainability “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs” Definition by UN & Brundtland Report Corporate Social Responsibility (CSR) “The responsibility of enterprises for their impacts on society” Definition by the European Commission
- 5. 3 pillars of sustainability 3 pillars of sustainability, source London Mining (http://www.londonmining.com/sustainability/)
- 6. Sustainable Procurement is a robust, risk-based, commercial approach to integrating environmental and social criteria into decisions throughout the procurement lifecycle It’s about looking at what products are made of, where they come from and who has made them What is the business case behind sustainable procurement?
- 7. Sustainable procurement Risk reduction/ Brand Reputation
- 8. Sustainable procurement Revenue improvement In 2000 Unilever acquired Ben&Jerry’s In 2010 announced that the brand will be fully Fairtrade by 2013 Revenue ↑£180 million
- 9. Sustainable procurement Cost reduction M&S Plan A launched in 2007 100 sustainability commitments initially (expanded to 180) £135 million savings
- 10. Procurement process &love, love environment ‘Delivering value for money’ Supply Chain Sustainability School John Lewis, M&S, Unilever
- 11. What to include? Sustainability/ CSR Policy Reflect business’ values Avoid generalisations e.g. we are committed to protection of environmental resources Keep it short and sweet Take a look at our top tips on how to write a Sustainability and CSR Policy
- 12. What to include? Sustainability/ CSR Policy – Top tips o Start with short description of the business [max 1 sentence] o Add an extract from your mission statement What are you striving to achieve. What are your values? Linked them to sustainability commitments for example o State how sustainability or CSR, is relevant to you business. Pick the areas that are applicable. For example if you run an operational company you may focus on energy, water, community whereas if you are a consultancy people, charitable activities and data protection may be higher on your agenda. Define your commitments in those areas. o Phrases like: ‘We believe ....’, ‘As responsible manufacturer ....’ ‘For us at .... ethical business practices ....’ emphasise your commitment to ethical business practices
- 13. What to include? Detailed description of the product or service Composition Certification Your supply chain (are you in control?) Packaging Miles travelled (&carbon footprint)
- 14. What to include? Innovation (eco-innovation?) Standardisation of the product Social Aspects Community programmes Unemployment issues Apprenticeship scheme Charitable work Examples of Previous work Initiatives within the business
- 15. Finding information (Sustainable)Procurement Policy Sustainability Strategy Annual Sustainability Report Website / Social Media Look at your competition!
- 16. Sustainability trends Information disclosure Suppliers assessments Sedex Other 3rd party Zero landfill Water footprinting Local sourcing
- 17. Summary Sustainability: People-Planet-Profit (3Ps) Sustainable Procurement: integrates environmental and social aspects into buying process to reduce impact & deliver business value
- 18. Summary Work as a team Use Sustainability Model Appeal to the buyer values Use publicly available information
- 19. Summary Steer clear from ‘copy&paste’ Look into weighting of the tender Include quantitative data Be proactive
- 20. Everything you always wanted to know about CSR but were afraid to ask Thank you for your attention! w: www.monikamaciejewska.com e: info@monikamaciejewska.com m: 07999 289153 t: @majooski
- 21. About Us We provide support to small and medium size enterprises in achieving long-term profitability whilst operating in an ethical way Visit our website to learn more: www.monikamaciejewska.com Being a good business is good business w: www.monikamaciejewska.com e: info@monikamaciejewska.com m: 07999 289153 t: @majooski
Editor's Notes
- Good morning ladies and gentlemenWelcome to our webinar. My name is Monika Maciejewska and I would like to share with you this morning
- My experience in making tenders more competitive by appealing to the buyers’ strategic sustainability objectives as well as values. What to include in the tender document when you have been faced by a request to provide sustainability related information. I would also like to mention typical structure of sustainability governance.Towards the end of your session today I would like to bring to your attention few main trends in sustainable development that are shaping up at the moment supply chains and hence you may also be affected by those.Let’s start however with a quick reminder of what sustainability stands for.
- Sustainability as a concept gained wide international recognition for first time in 1987 following publication by United Nations Word Commission (UN) of the Brundtland Report. It defined sustainable development as ..........You may have also came across another term used sometimes in place of sustainability – Corporate Social Responsibility (CSR). Although there is close relationship between sustainability and CSR they are slightly different concepts.Social responsibility has the organisation as its focus and concentrates at organisation’s responsibilities to society and the environment. Sustainability is a broader concept taking into consideration needs of the wider society. You could though say that organisation seeking to act responsibly would take into account wider society needs and expectations and therefore would contribute to sustainable development. This is the bridge between those two concepts.
- You could also view sustainability as low wattage Malcolm and CSR as ethical board of directors. Within a reason of course ....
- There are 3 pillars to sustainability. These are: Economic or Profit, Social or People and Environmental or Planet. You may have heard other business talking about their commitments in those three area So lets take a look on how People-Planet-Profit model would apply to a procurement process
- The objective is to reduce negative environmental and social impacts of procurement decisions, while maintaining or improving business value
- Based on PwC research
- Internal costs: energy transport etcSpecification/ demand e.g. Over packagingReduced env and social compliance costs eg taxes, WEEE, packaging Directive
- Gone are the times when saying we recycle paper (or send copy of ISO9001 etc) was sufficient to meet the environmental requirements of the procurement process. Major progress in forward thinking and introducing sustainable thinking and introducing sustainability requirements into tendering process on the government and private sector level With governments ‘Delivering values for money’ procurement spend of £220bn (goods, service and works)John Lewis 154 local supplier in their supply chain 2012 contributing £508 million to the UK economyGovernment’s sustainable procurement policy aims to:Ensure long term cost effectivness;Reduce waste, carbon emissions, energy and water consumption and encourage recycling and reuse in line with targets for the Central Government Estate;Protect biodiversity;Stop the buying of products, such as timber and timber products from unsustainable or illegal sources;Support fair and sustainable economic growth.By achieving these four things, we will not only protect natural resources and tackle climate change, but also reduce our operating costs as we do so.
- Could be Env Policy but incorporate susty elementsPros and Cons of having a policyTell the storyAvoid generalisations like ‘we are committed to protection of environmental resources’ Well everyone is! Be specific, what resource? How does it apply to your business?My top tips: - questionStart with short description of the business – max 1 sentenceAdd and extract from your mission statement – what are you striving to achieveWhat are your values? Linked them to sustainability commitments for example ‘Honesty and accountability: We will communicate our environmental policies, objectives and performance openly and honestly to our Partners and to others with an interest in our activities, including customers and suppliers’State how the topic, sustainability or CSR, is relevant to you business. Pick the areas that are applicable. For example if you run an operational company you may focus on energy, water, communityWhereas if you are a consultancy people, charitable activities and data protection will be higher on your agenda.Define your commitments in those areas. Use phrases like: ‘We believe ....’, ‘As responsible manufacturer ....’ ‘For us at .... ethical business practices ....’ to emphasise your commitment to ethical business practices.
- Could be Env Policy but incorporate susty elementsPros and Cons of having a policyTell the storyAvoid generalisations like ‘we are committed to protection of environmental resources’ Well everyone is! Be specific, what resource? How does it apply to your business?My top tips: - questionStart with short description of the business – max 1 sentenceAdd and extract from your mission statement – what are you striving to achieveWhat are your values? Linked them to sustainability commitments for example ‘Honesty and accountability: We will communicate our environmental policies, objectives and performance openly and honestly to our Partners and to others with an interest in our activities, including customers and suppliers’State how the topic, sustainability or CSR, is relevant to you business. Pick the areas that are applicable. For example if you run an operational company you may focus on energy, water, communityWhereas if you are a consultancy people, charitable activities and data protection will be higher on your agenda.Define your commitments in those areas. Use phrases like: ‘We believe ....’, ‘As responsible manufacturer ....’ ‘For us at .... ethical business practices ....’ to emphasise your commitment to ethical business practices.
- Nature of the product (disposable, recycled, hazardous, harmful)Supply chain (traceability, certification e.g. FSC timber, Fairtrade cotton; PRINTERS – inks, recycling, paperLocality of supply (applies also to consultants and sub-contactors)Energy efficiencyCarbon footprinting
- InnovationStandardisation of the goods
- Innovation incl. eco-innovation Standardisation of the productSocial impact, human rights policy, underage employementApprenterships schemes and unemployment programmesQualifications and training
- Transparency and accountabilityFind information about your clientInvitation to tender will provide you with the requirementsVarious level of advancement across country Defra website dedicated to sustainable development and government procurement policies. Includes information like buying standards, 5 principles of sustainable development and Guide to understanding sustainable procurement http://sd.defra.gov.uk/advice/public/buying/Look at your competition!!!
- To disclose you have to know and monitor first – Mitie exampleSedex – empowering sustainable and ethical supply chain – Supplier data exchangeLabour standardsH&SBusiness EthicsEnvironmentAs a buyer you have access to ethical information of your suppliers in one secure placeAs a supplier you can do a self assessment, enter your data and choose to share it with your clients. Focusing on social risks of supply chain as well as auditing rather than providing information i.e. Independent verification b/ the costs are charge to you the audited businessYou enter data once – you share many times! Reduce the need for multiple audits, Allowing both parties to concentrate on making real improvementsOther 3rd party – developed by business on their own or in partnership with other organisations. Aim: to control global supply chain. Started with corporate or group suppliers, now moving to smaller more local groups. Request for comprehensive self assessment information on compliance of the business from H&S, product safety, quality, sustainability and environment etc. Questions incl. Does the supplier continuously improve its level of sustainability ?How does the supplier prove that its performance is improving? Hence once again ‘We really really love environment and here is our policy statement’ approach won’t be enough. Zero landfill – M&S exampleWater footprinting – water intence sectors - calculate your impact, Carbon Trust standard for waster footprintLocal sourcing – big trend John Lewis £508 m in 2012 and going to be bigger