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SPLC 2019 Summit: Charting a Path to Leadership: The Journey of Three Sustainable Purchasing Programs

Slides from Stacey Foreman, Sustainable Procurement Coordinator, City of Portland, Oregon; Brian Goldberg, Sustainability Project Manager, MIT; Renee Paris, Associate Category Manager, Sonoco Products; Kris Spriano, SPLC Program Manager, SPLC; presented at the Sustainable Purchasing Leadership Council’s 2019 Summit in Portland, OR.

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SPLC 2019 Summit: Charting a Path to Leadership: The Journey of Three Sustainable Purchasing Programs

  1. 1. Charting a Path to Leadership May 22, 2019
  2. 2. Learning Objectives • Brief overview of what a strategic program approach means as it relates to sustainable purchasing • Gain exposure to sector-specific development paths towards program leadership • Inspire you to chart your own course towards leadership armed with a “toolkit” to get started
  3. 3. • Brief introduction to a strategic program approach and SPLC’s Maturity Model • Leveraging internal resources to advance in waste management - Brian Goldberg, Sustainability Project Manager, MIT • Evaluating progress in order to inform your journey towards leadership - Stacey Foreman, Chief Procurement Officer and Sustainability Coordinator, The City of Portland, Oregon • Aligning sustainable purchasing to organizational goals in order to drive action - Renee Paris, Associate Category Manager, Sonoco Products Agenda
  4. 4. • Brief introduction to a strategic program approach and SPLC’s Leadership Maturity Model • Leveraging internal resources to advance in waste management - Brian Goldberg, Sustainability Project Manager, MIT • Evaluating progress in order to inform your journey towards leadership - Stacey Foreman, Chief Procurement Officer and Sustainability Coordinator, The City of Portland, Oregon • Aligning sustainable purchasing to organizational goals in order to drive action - Renee Paris, Associate Category Manager, Sonoco Products Agenda
  5. 5. A set of strategies, policies and/or activities embedded into an organization’s cross-functional purchasing processes that are meant to not only generate traditional purchasing benefits, but also benefits to the environment, society and economy. What is a Strategic Sustainable Purchasing Program?
  6. 6. We’re doing all these great things, but where are we…really?
  7. 7. Maturity Model A framework for measuring and charting your path towards leadership Setting Relevant ESE Priorities Meaningful Goals and Metrics Staff Engagement and Accountability Supplier Engagement, Transparency & Accountability Goods/Services Evaluation and Transparency Supplier Development and Innovation Communications and Program Transparency http://www.sustainablepurchasing.org/maturity-model SPLC Maturity Model
  8. 8. Charting a path towards leadership A sustainable global economy through purchasing!
  9. 9. Three unique journeys… Brian Goldberg, Sustainability Project Manager Renee Paris, Corporate Sustainability Lead Stacey Foreman Sustainability Coordinator
  10. 10. MIT Journey: Tackling Consumption from Inputs through Outputs Brian Goldberg MIT Office of Sustainability
  11. 11. 13 million gross square feet 22,200 students, faculty, researchers, staff 168 acres Package receiving Truck to campus Product storage Packaging waste Waste shipment Material disposal 400+ departments, labs and centers MIT Cambridge Campus 29,000 total items in active stock *through FY’16 Property database 11 What are we solving for? MATERIAL INPUTS 1 million+ ITEMS (e-cat 2016) MATERIAL OUTPUTS ~6,100 tons (appx 2016 ALL waste)
  12. 12. VISION Imagine an MIT campus where consumption, reuse, and disposal DRIVE POSITIVE IMPACTS in the world and INSPIRE innovative research and better behaviors. GOALS 1. Promote sustainable consumption that enhances the health of people and the planet 2. Grow a Circular Economy where innovation drives reuse; waste outputs become inputs 3. Transform systems to a Zero Waste future: WASTE is DESIGNED OUT of the system 12 The Opportunity
  13. 13. IMPACT VISIBILITY Data-Driven Impacts Supply Chain Strategies 13 Campus Test Bed and Demonstrator Distributed leadership Defining Success Scale-able and replicable solutions
  14. 14. Operations (Facilities, Procurement, Dining, etc.) Office of Sustainability Researchers (Students, Faculty, research scientists) 14 • Systems view • Pilot projects • Data • Scale-ability of solutions Material Flow Analysis Feedback loops: Research + Operations Inputs + Outputs Source: Rachel Perlman, MIT
  15. 15. Sourcing, Procurement, Design Purchasing Waste Generation Waste Collection Systems INPUTS OUTPUTS Levers / Opportunities for Impact: Micro + Macro- Scale Procurement officers Project Managers Designers Planners Construction Managers Vendors EVERYONE Lab Managers Admin Assistants Principal Inv. Project Managers Vendors EVERYONE! Recycling + Custodial Services Housing + Dining Admin Assistants Project Managers Designers Vendors Prioritizing strategies based on leverage/influence
  16. 16. RAPID ASSESSMENT BENCHMARK WORKSHOP • First convening of procurement staff throughout campus • Generated landscape analysis of activities underway • Revealed that small business program is part of a sustainable procurement platform • Identified areas of individual interest and capacity gaps • Inspired staff to see broader impact of their roles • Empowered staff to see what’s possible
  17. 17. Sourcing, Procurement, Design Purchasing Waste Generation Waste Collection Systems INPUTS OUTPUTS MFA / Spend Analysis Waste/Recycling Services Vendor Engagements Surplus Matchmarking GHG/Climate Impacts Emerging Strategies Prioritizing strategies based on Leverage / Impact / Scale
  18. 18. Purchasing Channels Electronic catalog (ECAT Purchases) Purchase Order Invoice Credit Card Employee reimbursement 18 INPUTS Baseline: Spend Analysis
  19. 19. STOCK Baseline: Property/Surplus Data Standard Product Name General Category Num of Records Avg. Lifetime (Years) Std. dev. of Age (Years) COMPUTER, LAPTOP Electronics 9,537 4.9 2.6 COMPUTER - desktop Electronics 8,084 6.3 3.5 COMPUTER SYSTEM, MICRO - desktop Electronics 5,339 7.8 2.9 SERVER, EDP Electronics 2,073 6.4 2.7 COMPUTER, MICRO - desktop Electronics 1,718 5.2 2.5 PRINTER, EDP Electronics 1,306 10.1 3.9 MONITOR, EDP Electronics 1,180 9.0 4.2 THERMAL CYCLER Lab Equipment 479 4.5 3.8 FREEZER Appliance 448 5.6 5.9 COPIER Electronics 411 7.9 3.3 OSCILLOSCOPE Lab Equipment 361 22.1 7.4 DESK Furniture 243 16.5 5.4 INCUBATOR Lab Equipment 235 7.9 8.0 TABLE Furniture 187 13.9 6.6 CENTRIFUGE Lab Equipment 173 9.0 9.7 REFRIGERATOR, LAB Appliance 160 6.1 6.9 PRINTER Printer 159 7.2 2.9 MICROSCOPE Lab Equipment 153 14.1 9.9 CHAIR Furniture 152 14.5 4.6 TELEVISION Electronics 136 4.8 4.2
  20. 20. 20 OUTPUTS Baseline: Waste Stream data
  21. 21. CONFIDENTIAL – FOR USE BY ENEVO ONLY PILOT Example: Building to Campus-Scale MIT Media Lab Recycling Behavior Study
  22. 22. PILOT: Can operational changes transform recycling behavior? CONFIDENTIAL – FOR USE BY ENEVO ONLY Trash (Traditional, Overly Soiled, Liquids, etc.) Clean Paper Corrugated Cardboard (Broken Down) GMP (Glass, Metals, Plastics) ~25%
  23. 23. CONFIDENTIAL – FOR USE BY ENEVO ONLY 1. Convenient + Consistent STATIONS 2. Daily Monitoring 3. Outcomes: YES! • 100 lbs of food waste collected each week • Recycling Contamination Rate: 97% of all collections NO CONTAMINATION • User participation and satisfaction HIGH 50 hodge-podge bins è PILOT: Can operational changes transform recycling behavior? 6 Central Stations
  24. 24. 24 Key Takeaways so far… • Research as mechanism to open conversations • Clarify what to solve for • Spend Analysis challenges: data accessibility • Prioritize areas of Influence + Leverage + Impact • Hot Spot vs Hot Button Issues • What impacts matter? • Inclusive planning • Value of pilots at DIFFERENT SCALES
  25. 25. Evaluating program-level progress in order to inform your journey towards leadership Stacey Foreman, Sustainable Procurement Coordinator
  26. 26. City of Portland Sustainable Procurement: History • Pre-2002: attribute-specific actions to support energy efficiency and “buy recycled” • 2002: Sustainable Procurement Strategy adopted • 2008: Sustainable Procurement Policy adopted • Also in context with: • Sustainable City Principles & Environmental Performance Objectives • Green Building Policy • Climate Action Plan 26
  27. 27. How We Got To Today Program Evolution • Steering Committee with Multi- Stakeholder Commodity Workgroups • What’s the next big sustainable procurement opportunity? • Action driven by hot topics/policies • Strategic Plan • High-Value, High-Impact Actions/Projects • Value Alignment • Synergies Structured Opportunistic Strategic 2002 2018 27
  28. 28. SP Program Status: 2016 • Sustainable procurement is evolving to address more issues • Significant increase in demands on the program • No additional staff or other capacity-building resources • SP program is still fairly siloed • Still relatively little employee awareness of SP • Difficult to track and measure SP benefits • Realizing contract-by-contract successes, but not driving organizational change 28
  29. 29. Sustainable Procurement Program Evolution • Step 1: Identify Program Priorities (2016) • Step 2: Develop Program Strategic Plan (2017-8) • Step 3: BENCHMARK Program against Leadership Practices (2018-9) • Step 4: Adjust Strategic Plan As Needed (2019) • Step 5: Implement Strategic Plan (2018-2021) 29
  30. 30. Sustainable Procurement Program Evolution • Step 1: Identify Program Priorities • 2016 Spend Analysis – identifies environmental priorities: GHGs, Toxics • Additional (non-environmental) priorities: Supplier Diversity, Fair & Safe Supply Chains • Step 2: Develop Program Strategic Plan • Internal stakeholder listening sessions: very informative • Strategic plan focuses on: • Providing Direction, Priorities, and Expectations • Building Capacity to Transform Markets for Positive Change 30
  31. 31. Sustainable Procurement Program Evolution • Step 3: BENCHMARK Program against Leadership Practices • BENCHMARKED as “Developing” • Areas for improvement: • Increase employee engagement; Embed cross-departmental SP responsibilities • Establish program goals and performance metrics • Executive-level engagement • Increase supplier sustainability engagement • Step 4: Adjust Strategic Plan as Needed • BENCHMARK reinforced many Strategic Plan action items • Really highlighted need for better leveraging of program resources • Highlighted more supplier engagement 31
  32. 32. Sustainable Procurement Program TODAY • Step 5: Implement Strategic Plan Complete/Currently In Progress: • Update Sustainable Procurement Policy (2018) • Improve Program Communications • Develop audience-specific resources that enable action beyond program staff On Deck: • Executive-level engagement • Develop program goals & metrics • Develop supplier engagement • Develop employee action incentives 32
  33. 33. Key Take Aways • Program resources alone will not drive change. Rather, need: • Alignment with existing values / drive values-based decision making • Incentives are powerful – SP should remove a pain or provide a gain • Thus, leveraging existing resources can make a difference, if you are strategic about it • Focus on high-impact/high-value actions • But okay to collect easy wins from low-hanging fruit 33
  34. 34. More Information • www.portlandoregon.gov/buygreen • Sustainable Procurement Policy • Reports/Case Studies • Sustainable Supply Chain Analysis • Strategic Plan • BENCHMARK report 34
  35. 35. Aligning sustainable purchasing to organizational goals in order to drive action Renee Paris, Associate Category Manager, Sonoco Products
  36. 36. Meaningful Goals and Metrics • Must know where you are to know how to get where you’re going • Sudden focus on plastics requires enhanced coordination between customer, corporate, and purchasing goals
  37. 37. Sonoco Goals
  38. 38. Sonoco Goals • Are we a supplier sustainability leader? • How do we know? • DJSI • CAPS summits • Would benchmarking help?
  39. 39. What is benchmarking?
  40. 40. Benchmarking Process • We adjusted budgetary priorities to make room for cost of SPLC Benchmarking • 1st private sector company to participate • Marc Ensign (Executive Sponsor of Supplier Sustainability) and I made room in our schedules for benchmarking
  41. 41. Room in our Schedules
  42. 42. Room in our Schedules
  43. 43. Room in our Schedules
  44. 44. Results!
  45. 45. Previous Supplier Sustainability Charter
  46. 46. Current Supplier Sustainability Charter
  47. 47. Team Activities
  48. 48. Questions?
  49. 49. Try it out! SPLC Program Inventory Checklist Use this document to “inventory” your organization’s sustainable purchasing leadership activities. Or, to learn more: www.sustainablepurchasing.org/benchmarking
  50. 50. Thank you!
  51. 51. Celebrating the journey… We should not judge people by their peak of excellence; but by the distance they have traveled from the point where they started. - Henry Ward Beecher
  52. 52. WWW.S U STA INA BLEP U RCH A S ING .O RG

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Slides from Stacey Foreman, Sustainable Procurement Coordinator, City of Portland, Oregon; Brian Goldberg, Sustainability Project Manager, MIT; Renee Paris, Associate Category Manager, Sonoco Products; Kris Spriano, SPLC Program Manager, SPLC; presented at the Sustainable Purchasing Leadership Council’s 2019 Summit in Portland, OR.

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