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SPLC 2019 Summit: Impact Prioritization on a Budget: How Procurement Can Leverage Others' Learnings and Approaches

Slides from Karen Cook, Sustainability Project Manager, County of Alameda; Adam Rubinfield, Sustainable Procurement Manager, The World Bank Group; Yalmaz Siddiqui, Vice President of Corporate Sustainability, MGM Resorts International; 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: Impact Prioritization on a Budget: How Procurement Can Leverage Others' Learnings and Approaches

  1. 1. Impact Prioritization on a Budget Alameda County California, USA
  2. 2. Learning Objectives • Better understand the various methods used to prioritize the impacts of your purchasing, depending on budget and needs • Gain exposure to “real-world” applications of these methods across sectors • Provide a “toolkit” to help you get started on your own prioritization activity
  3. 3. • What do we mean by Impact Prioritization? • Impact Prioritization on a Budget: MGM Resorts Approach • Applying Lifecycle Thinking to Target Procurement Priorities: Alameda County’s Evolving Approach • Prioritizing Sustainable Procurement at The World Bank Group Agenda
  4. 4. • What do we mean by Impact Prioritization? • Impact Prioritization on a Budget: MGM Resorts Approach • Applying Lifecycle Thinking to Target Procurement Priorities: Alameda County’s Evolving Approach • Prioritizing Sustainable Procurement at The World Bank Group Agenda
  5. 5. Ex. Higher Education Spend Impact Prioritization: The process of identifying and prioritizing your purchasing’s environmental, social and economic impacts. What are the environmental impacts of my spend? Which of these impacts should I be addressing? What are the social impacts of my spend? What are the economic impacts of my spend?
  6. 6. Approaches: An emerging landscape Lifecycle Assessment (EIO-LCA) Product-level Lifecycle Assessment (LCA) Materiality Assessment Leverage someone else’s Lifecycle Assessment (EIO-LCA) Purchasing Toolkit Cost and Purchasing Scope TypesofImpacts*Considered Environmental Environmental Environmental, Social and Economic
  7. 7. The goal of impact prioritization • Ghg Emissions • Water Use • Conflicts of Interest • Local Economic Development • Supplier Diversity • Human Trafficking • Unsafe Factories 1. Understand the highest impacts (and opportunities) of your purchasing 2. Use this knowledge to align strategies and projects that address them Impact Prioritization + Aligned Strategies = IMPACT-FOCUSED RESULTS! • Renewable energy • Environmentally- preferred products • Supplier Diversity Development Program • Supplier Code of Conduct • Factory Audits • Transparency Policy • Local Sourcing Environmental Social Economic
  8. 8. Yalmaz Siddiqui VP of Corporate Sustainability MGM Resorts Three perspectives… Karen Cook Sustainability Project Manager County of Alameda, California (USA) Adam Rubinfield Sustainability Manager-Corporate Procurement The World Bank Group
  9. 9. MGM RESORTS INTERNATIONAL 9 MGM Resorts Approach Impact Prioritization on a Budget Yalmaz Siddiqui, VP, Corporate Sustainability
  10. 10. MGM RESORTS INTERNATIONAL 10 Four topics for discussion 1. What impact types could you prioritize? 2. How might you prioritize? 3. The hybrid approach MGM is taking 4. Potential lessons for you
  11. 11. MGM RESORTS INTERNATIONAL 11 First topic 1. What impact types could you prioritize? 2. How might you prioritize? 3. The hybrid approach MGM is taking 4. Potential lessons for you
  12. 12. MGM RESORTS INTERNATIONAL 12 You could prioritize: One or more specific environmental impacts
  13. 13. MGM RESORTS INTERNATIONAL 13 You could prioritize: Diverse supplier inclusion / human rights
  14. 14. MGM RESORTS INTERNATIONAL 14 You could prioritize: Short term or long term economic impacts
  15. 15. MGM RESORTS INTERNATIONAL 15 Second topic 1. What impact types could you prioritize? 2. How might you prioritize? 3. The hybrid approach MGM is taking 4. Potential lessons for you
  16. 16. MGM RESORTS INTERNATIONAL 16 Potential approaches to prioritization 1. No prioritization: just start…random acts 2. Prioritize based on stakeholder preference 3. Prioritization based on qualitative analysis 4. Prioritization based on free quantitative analysis 5. Prioritization based on deep dive EIO LCA etc.
  17. 17. MGM RESORTS INTERNATIONAL 17 You might prioritize impacts that you / your company / stakeholders care about
  18. 18. MGM RESORTS INTERNATIONAL 18 You might prioritize goals your company has or certifications you’re seeking…
  19. 19. MGM RESORTS INTERNATIONAL 19 You might prioritize a specific economic savings goal “By the end of 2020, we will drive $50 million in cost savings through procurement”
  20. 20. MGM RESORTS INTERNATIONAL 20 Or you might try to find the overlap Environmental Benefits Societal Benefits Business Benefits
  21. 21. MGM RESORTS INTERNATIONAL 21 Third topic 1. What impact types could you prioritize? 2. How might you prioritize? 3. The hybrid approach MGM is taking 4. Potential lessons for you
  22. 22. MGM RESORTS INTERNATIONAL First: Quick context: 70M square feet of buildings in <4 square miles in Las Vegas = concentrated footprint
  23. 23. MGM RESORTS INTERNATIONAL 23 Hybrid approach 1. No prioritization: just start…random acts 2. Prioritize based on stakeholder preference (& goals) 3. Prioritization based on qualitative analysis 4. Prioritization based on free quantitative analysis 5. Prioritization based on deep dive EIO LCA etc.
  24. 24. MGM RESORTS INTERNATIONAL 24 Over time: greener business is a better business Original: LEED & Supplier Diversity during new construction projects
  25. 25. MGM RESORTS INTERNATIONAL Current: Environmentally Preferable Purchasing [EPP] Program Development 25 Select Priority Categories Define EPP for Priority Categories Determine Total Category Spend 1. 2. 3. Selected based on business rationale Reference third party standards e.g. USGBC, EPA Work with Analytics and/or primary vendors
  26. 26. MGM RESORTS INTERNATIONAL EPP Program… 26 Engage Vendors to Calculate EPP Spend Establish Category EPP Spend Baseline Review Alternative Products & Strategies 4. 5. 6. E.g. Paper Vendor Worked with suppliers & internal leads 7.3% EPP Spend on Paper in 2016
  27. 27. MGM RESORTS INTERNATIONAL Gain Stakeholder Input on Alternatives EPP Program… 27 Implement Approved Products & Strategies Track & Report Progress 7. 8. 9. 27 Executive Admins for Paper; Catering teams for lunch boxes Switched paper Used compostables 86% EPP Spend on Paper in 2018
  28. 28. MGM RESORTS INTERNATIONAL Example: Environmentally Preferable Paper 28 Why prioritize? Symbolic, visible, achievable. Reduce impacts associated with deforestation. No cost increase. But not highest impact. vs.
  29. 29. MGM RESORTS INTERNATIONAL Metrics on EPP paper 29
  30. 30. MGM RESORTS INTERNATIONAL 30 2018 Relative Spend by Priority Category Copy Paper, 1% Straws & Picks, 0.1% EVS Cleaning Chemicals, 0.3%
  31. 31. MGM RESORTS INTERNATIONAL Current Priority Categories 31 1. Cleaning chemicals 2. Single use cups 1. Produce: Herbs 2. New categories based on: a. Cost savings, b. Scope 3 Carbon 1. Copy paper 2. Lighting 3. Paper Tissues & Towels 4. Linens & Terry 5. Air filters 6. Straws & Picks 7. Disposable containers 8. Select Cleaning Chemicals 9. Materials management 10.Seafood EPP spend % being tracked EPP Efforts Underway Emerging
  32. 32. MGM RESORTS INTERNATIONAL 32 # Priority Category Environmental impacts potentially mitigated by approach Social impacts potentially mitigated by approach Economic Impacts of approach 1 Copy Paper Deforestation risk Landfill Diverse supplier inclusion No cost premium Savings from demand reduction 2 Lighting Energy use & Carbon emissions Materials & Waste Diverse supplier inclusion Total Cost Savings Under 2 year ROI 3 Air Handler Filters Energy use & Carbon emissions Materials & Waste Total Cost Savings Under 2 year ROI 4 Linens & Towels Chemicals of concern Human health No cost impact 5 Cleaning Chemicals Chemicals of concern Human health Total Cost Savings Under 2 year ROI 6 Materials Management Landfill Diverse supplier inclusion Higher program costs, reduced through asset recovery & rebates7 Straws and picks Plastic pollution Higher item costs, savings from demand reduction 8 Disposable containers Plastic pollution Landfill Higher item costs, partially offset by composting service fees from clients 9 Paper Tissues & Towels Deforestation risk Landfill Human rights risks No cost impact 10 Seafood Overfishing Human rights risks TBD
  33. 33. MGM RESORTS INTERNATIONAL 33 Known EPP Spend % by Priority Category Cleaning Chemicals 100% 18%
  34. 34. MGM RESORTS INTERNATIONAL 34 Renewable Energy Contract 100MW Solar Array Science Based Target based on new knowledge of ‘Embodied Carbon’ Existing: 50% carbon reduction goal (Scope 1 & 2) Emerging: Science-Based Target (Scope 1, 2, 3)
  35. 35. MGM RESORTS INTERNATIONAL 35 What is Scope 3 Carbon?
  36. 36. MGM RESORTS INTERNATIONAL 36 What is a Science-Based Target?
  37. 37. MGM RESORTS INTERNATIONAL 37 Science Based Target (SBT) = Emerging prioritization of supply chain carbon 1. Submitted a signed SBT commitment letter in January 2019 2. Engaged World Resources Institute (WRI) to help develop SBT in accelerated timeline, including Scope 3 carbon 3. Aggregated 2018 operational spend, 2018 construction spend, 4. Used Quantis tool to calculate ‘embodied carbon’ of spend 5. Developing targets with WRI support 6. Plan to announce validated targets: ideally in Q3 2019
  38. 38. MGM RESORTS INTERNATIONAL 38 MGM Resorts spend by Level 1 category in 2018
  39. 39. MGM RESORTS INTERNATIONAL Aggregate spend by UN Category in 2018 39
  40. 40. MGM RESORTS INTERNATIONAL 40 Quantis Scope 3 Evaluator Tool (Free) https://ghgprotocol.org/scope-3-evaluator
  41. 41. MGM RESORTS INTERNATIONAL 41 Quantis Purchased Goods Example from Webinar https://www.youtube.com/watch?v=o3_8zlqWqiM
  42. 42. MGM RESORTS INTERNATIONAL 42 MGM 2018 Carbon Emissions by Scope [Draft] 0 500 1000 1500 2000 2500 3000 ThousandsofMTCO2e Scope 1* Scope 2* Scope 3 - Operations Scope 3 - Construction * Data represents greenhouse gas emissions from 2017
  43. 43. MGM RESORTS INTERNATIONAL 43 - 100 200 300 400 500 600 700 Other F&B Non-Metallic Minerals Manufacturing Machinery Metals Wood Electrical Equipment Rubber and Plastics Textiles Agriculture and Landscaping Construction Services Chemical Products Paper Third-Party Logistics Retail Transport Equipment Motor Vehicle Repair ThousandsofMTCO2e Operational Construction Scope 3 emissions by UN Category in 2018 [Draft]
  44. 44. MGM RESORTS INTERNATIONAL 44 Carbon Intensity by Category
  45. 45. MGM RESORTS INTERNATIONAL 45 Spend Embodied Carbon Carbon Intensity
  46. 46. MGM RESORTS INTERNATIONAL 46 Zoom Spend Embodied Carbon Carbon Intensity
  47. 47. MGM RESORTS INTERNATIONAL 47 Forth 1. What impact types could you prioritize? 2. How might you prioritize? 3. The hybrid approach MGM is taking 4. Potential lessons for you
  48. 48. MGM RESORTS INTERNATIONAL 48 Four lessons 1. First, be clear why you are choosing to focus on specific product categories for your sustainable purchasing efforts 2. Recognize there are multiple approaches to impact prioritization: chose the one most relevant to you currently 3. Know that there is more ‘maturity’ in tools for environmental impact reduction, notably carbon emissions reduction 4. Align purchasing priorities to organizational priorities
  49. 49. MGM RESORTS INTERNATIONAL 49 Thank you!
  50. 50. Applying Lifecycle Thinking to Target Procurement Priorities Alameda County’s Evolving Approach Karen Cook | Sustainability Project Manager SPLC Summit | May 21, 2019
  51. 51. Why look at supply chain opportunities  Scale of opportunity is significant  Desire to strategically target biggest sources of impact  Move beyond “low-hanging fruit” initiatives
  52. 52. Using EEIO* lifecycle assessment to estimate impacts $ × 𝐼𝑚𝑝𝑎𝑐𝑡 𝑀𝑒𝑡𝑟𝑖𝑐 $ = 𝐼𝑚𝑝𝑎𝑐𝑡 𝑀𝑒𝑡𝑟𝑖𝑐 Variable: Total Expenditure US avg. supply chain emissions factor Estimated supply chain impact Data source: Organization spend data Publicly Available Database (USEEIO or EIOLCA.net) *EEIO = Environmentally Extended Input-Output GHG’s Etc. Water Use Particulate Matter
  53. 53. Low-cost options for prioritization  Do it yourself ▫ How-To Guide  Follow the trends ▫ Trends Analysis Report  Find a comparable organization ▫ City – Portland, OR ▫ County – Alameda County, CA ▫ State – Minnesota, California
  54. 54. Do it yourself westcoastclimateforum.com/cfpt/HowTo
  55. 55. Follow the trends (public agencies and universities) Significant opportunities:  Construction ~40%  Professional Services ~10%  Fleets & Operating Supplies Source: Good Company on behalf of StopWaste (2015). Supply Chain Greenhouse Gas Inventory Meta-Analysis Download at: https://westcoastclimateforum.com/cfpt
  56. 56. Find a comparable organization Alameda County  ~ $900 million in spend ▫ Goods, services, construction and utilities  Impact focus on climate, water and public health pollutants  Uses EPA’s new USEEIO data model, accessed with openLCA
  57. 57. High impact purchasing categories Other impact metrics in study included: water use, human toxicity, ozone, acid rain
  58. 58. Focusing in to dig deeper What types of actions will reduce impacts? Community-directed services Construction & maintenance Food service
  59. 59. Pinpoint opportunities  Utilize USEEIO to determine: ▫ Sources and contributions ▫ Direct vs. upstream impacts  Identify leverage points: ▫ What actions will address impact ▫ What actions will reduce local health impacts, especially PM2.5 Figure 14: Percentage of total life-cycle impact, by supply chain activities for four impact metrics (%).
  60. 60. Recommended vendor actions  Procure energy efficient vehicles and equipment  Electrify vehicles & building systems and utilize renewable electricity  Serve lower impact foods and reduce food waste, particularly meat and dairy  Specify low-carbon concrete, asphalt and fuels for use in equipment at the construction site
  61. 61. Next steps in the journey  Inspire vendor adoption of sustainable business ops. (Energy efficiency and renewables, food choices and waste reduction, etc.)  Develop low-carbon specifications for construction materials
  62. 62. Thank you! Karen Cook | Sustainability Project Manager Alameda County | General Services Agency Karen.Cook@acgov.org | (510) 208-9754 westcoastclimateforum.com/cfpt www.acsustain.org www.goodcompany.com
  63. 63. Prioritizing Sustainable Procurement at the World Bank Group From Sustainability Reporting to Prioritizing Corporate Procurement
  64. 64. Agenda Quick introduction to the World Bank Determining Materiality for the World Bank sustainability report and GRI index. Prioritizing Sustainability Impacts for the World Bank Prioritizing Sustainability within Corporate Procurement
  65. 65. 67 Overview - Who We Are 3
  66. 66. Overview - Where the WBG Operates Confidential 68
  67. 67. Materiality • The Significance of Impacts • Relevance to Stakeholders
  68. 68. How the WBG Determines What’s Material Create long list of relevant topics from stakeholder input Filter for sustainability context and business case Prioritize – evaluate and rank impacts based on repeatable, transparent criteria. Validate – for Balance and with Senior Management Result: List of Material Topics to transparently report on in Sustainability Reporting, GRI Index, and in other communications with stakeholders.
  69. 69. Create Long List 7 1 Identify current relevant topics  Start with all GRI Topics  Investigate Sector-Specific Topics  Include Stakeholder-Derived Topics ! Process Must Be Systematic and Repeatable !
  70. 70. A Very Wide Net 1. Biodiversity / Habitats protected or restored 2. Budget efficiency 3. Capital adequacy / Changes in our financial sustainability 4. Changes in the business model 5. Citizen engagement 6. Climate Change / Corporate GHG emissions 7. Climate change / environmental consideration in operations 8. Climate change / Financial implications and other risks and opportunities due to climate change 9. Climate change / Minimal use of fossil fuels in IBRD-financed projects 10.Climate Change / Pledge to end financing for upstream oil and gas exploration after 2019 11.Climate Change / Transparency on GHG emissions in operations + shadow price on carbon in economic analysis of IBRD/IDA projects 12.Climate Change / WBG Climate Action Plan 13.Corruption / Operations assessed for risks related to corruption 14.Corruption in Operations 15.Discrimination / Incidents of discrimination and corrective actions taken 16.Diversity and Inclusion 17.Education / Country Opinion Survey 18.ES Policies / New Environmental and Social Framework 19.Ethics / Adoption of new Core Values and new Code of Conduct 20.Facilities / Energy consumption 21.Facilities / Waste by type and disposal method 22.Facilities / Water withdrawal by source 23.Financial / Direct economic value generated and distributed 24.Financial / Financial assistance received from government 25.Financial results and key drivers of financial performance 26.Forests and indigenous communities 27.Gender / Gender-Based Violence Action Plan 28.Gender / WB actions on sexual harassment policies 29.Gender mainstreaming in WBG operations 30.Health & wellbeing / Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities 31.Health and Wellness 32.Human Rights / Operations and suppliers at significant risk for incidents of forced or compulsory labor 33.Human Rights assessment 34.Human Rights definition in ESF 35.Impact assessments / Operations with local community engagement, impact assessments, and development programs 36.Infrastructure investments and services supported 37.Key changes in financial policies, risk management and governance 38.Local Community Impact / Community Connections Campaign 39.New financial products 40.Procurement / Materials used by weight or volume 41.Procurement / Negative environmental impacts in the supply chain and actions taken 42.Procurement / Negative social impacts in the supply chain and actions taken 43.Procurement / New suppliers that were screened using environmental criteria 44.Procurement / Proportion of spending on local suppliers 45.Public Sector Governance / Country Opinion Survey 46.Significant indirect economic impacts 47.Staff / Benefits provided to full-time employees that are not provided to temporary or part-time employees 48.Staff / Defined benefit plan obligations and other retirement plans 49.Staff / Knowledge about staff rights 50.Staff / New employee hires and employee turnover 51.Staff / Parental leave 52.Staff / Prevention of sexual misconduct 53.Staff / Programs for upgrading employee skills and transition assistance programs 54.Staff / Proportion of senior management hired from the local community 55.Staff / Ratios of standard entry level wage by gender compared to local minimum wage 56.Staff Compensation & Methodology use 57.Staff in Fragile, Conflict, and Violence Situations (FCV) 58.Staff/ Career progression 59.Supporting Open Space for Civil Society 60.Sustainable Finances / Maximizing Finance for Development 61.Tax Reform/Illicit Financial Flows 62.Training / Average hours of training per year per employee 72
  71. 71. Prioritize 1. Decide which sustainability impact paradigm to use:  AccountAbility 1000 (AA1000) – Accounting Principles  ISO 14001 – Environmental Management  Accounting for Sustainability – Sustainable Finance  The Natural Step – Defining a Sustainable Society  Company specific examples 2. Decide how to prioritize stakeholder expectations.  Who are your stakeholders?  Would lack of action/reporting result in reputational risk?  Cast the Appropriate Boundaries  Organization’s Strategy and Goals 73
  72. 72. Material topics meeting “high” threshold. Climate change / environmental consideration in operations Operational Climate change / Financial implications and other risks and opportunities due to climate change Operational Climate change / Minimal use of fossil fuels in IBRD-financed projects Operational Climate Change / WBG Climate Action Plan Operational Climate Change / Transparency on GHG emissions in operations + shadow price on carbon in economic analysis of IBRD/IDA projects Operational Climate Change / Corporate GHG emissions Corporate 74 Significant indirect economic impacts Operational Financial / Direct economic value generated and distributed Operational ES Policies / New Environmental and Social Framework Operational Gender mainstreaming in WBG operations Operational Corruption / Operations assessed for risks related to corruption Both Corruption in Operations Operational Public Sector Governance / Country Opinion Survey Corporate Citizen engagement Corporate Supporting Open Space for Civil Society Operational Procurement / Proportion of spending on local suppliers Both Procurement / Negative social impacts in the supply chain and actions taken Both Forests and indigenous communities Operational Impact assessments / Operations with local community engagement, impact assessments, and development programs Operational Human Rights / Operations and suppliers at significant risk for incidents of forced or compulsory labor Operational Human Rights assessment Operational Human Rights definition in ESF Operations Budget efficiency Both Capital adequacy / Changes in our financial sustainability Both Financial / Financial assistance received from government Corporate Sustainable Finances / Maximizing Finance for Development Operational Infrastructure investments and services supported Operational Diversity and Inclusion Corporate Staff / Ratios of standard entry level wage by gender compared to local minimum wage Corporate Staff Compensation & Methodology use Corporate Staff in Fragile, Conflict, and Violence Situations (FCV) Corporate Staff/ Career progression Corporate Staff / New employee hires and employee turnover Corporate Staff / Defined benefit plan obligations and other retirement plans Corporate Staff / Programs for upgrading employee skills and transition assistance programs Health and Wellness Corporate Health & wellbeing / Types of injury and rates of injury, occupational diseases, lost days, and absenteeism, and number of work-related fatalities Discrimination / Incidents of discrimination and corrective actions taken Corporate Staff / Knowledge about staff rights Corporate Staff / Prevention of sexual misconduct Corporate Facilities / Energy consumption Corporate Facilities / Waste by type and disposal method Corporate Facilities / Water withdrawal by source Corporate
  73. 73. Validate and Finalize Validation: Evaluate material Aspects for balance, and obtain approval through:  Management  Stakeholder feedback 76 Outcome: Balanced, approved list of material Aspects; each with boundaries, DMAs and indicators
  74. 74. Prioritizing our Corporate Sustainability Impacts
  75. 75. Survey Stakeholders on Priorities
  76. 76. Prioritizing Sustainability Impacts for the World Bank 79
  77. 77. Prioritizing Corporate Sustainability Impacts for the World Bank 80
  78. 78. Corporate Sustainable Principles Nov. 2017 Be Climate Resilient Be Energy Smart Be Water Efficient Ensure Resource Efficiency Reduce Waste Promote Sustainable Land Management Enhance Diversity and Inclusion Ensure staff wellbeing Engage and Preserve the Community Eliminate Corruption
  79. 79. Applying Sustainability Principles to Corporate Procurement at the WBG
  80. 80. Corporate Procurement at the WBG CONFIDENTIAL Global support for IBRD, IFC, MIGA Annual Spend $1.6B-$2.0B Missions:  Commerciality  Risk Management  Sustainability Key Categories • Consulting Services • IT Hardware & Software • Construction & Facilities Management • Travel Services • Health Services Current Vendor Base: 32,000
  81. 81. Highlights in Sustainable Procurement Embedding sustainability in high impact procurements
  82. 82. At the WBG we recognize… That every purchase we make is a vehicle for change that supports the World Bank Group’s priorities. 85
  83. 83. Objective Sustainable Procurement will benefit the organization by identifying efficiencies, minimizing risk, encouraging innovation, and raising the organization’s reputation. Outcomes Environmental Purchasing goods and services that provide a net environmental benefit to the WBG and the planet, while continuing to reduce the adverse impacts of the goods and services we purchase. Social Create positive social impact through the goods and services the WBG purchases, while minimizing supply chain risks. Economic/Supplier Diversity Cultivate the use of underutilized categories of suppliers to increase innovation and diversity of perspective in the WBG supply chain. 86
  84. 84. Sustainability Assessment by Material Class Category1. Assess impact according to each sustainability priority Focus – Impacts ALL areas Control – Impacts more than 1 Manage – Impacts at least 1 Monitor 2. Determine sustainability strategy 3. Implement By assessing these inherent impacts of each procurement category, we can identify which categories have the highest sustainability impacts and prioritize solicitations in these categories for mitigation activities and opportunities. 87 Be Climate Resilient Be Energy Smart Be Water Efficient Ensure Resource Efficiency Reduce Waste Promote Sustainable Land Management Enhance Diversity and Inclusion Ensure staff wellbeing Engage and Preserve the Community Eliminate Corruption
  85. 85. Category Prioritization [CELLRANGE] [CELLRANGE][CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE][CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] [CELLRANGE] OpportunitytosupportSDGs Sustainability Impact Score High Opportunity to Support SDGs Low Opportunity to Support SDGs Low Inherent Sustainability Impact High Inherent Sustainability Impact Focus Control Manage Monitor 88
  86. 86. Impact and Opportunity Inherent Sustainability Impact Rating of the Category’s Impact in 3 pillars of sustainability Based on Sustainability Impacts Identified in Corporate Sustainability Impact identification exercise Somewhat objective measure of utilizing Natural Step process Opportunities to Support the SDGs Rating of connection to World Bank Group’s strategic priorities Positive impact to achievement of the SDGs Opportunity to Raise Awareness of Procurement as a strategic partner for the organization 89
  87. 87. Sustainability Strategies Focus  Represents highest inherent sustainability impact on all three areas.  Sustainability must be included regardless the value of the project.  Integrated throughout the procurement process, from identifying key impacts and best practices to the award criteria and inclusion of sustainability-related KPIs as part of the contract. Control  Represents high inherent sustainability impact and value on more than one area.  Sustainability must receive consideration throughout procurement process for solicitations above $1 million.  Assess to what degree it must be incorporated in the specifications, evaluation and award criteria based on key project parameters. Manage  Represents some inherent sustainability impact relative to a specific area (environmental, social, economic).  Address as appropriate in the procurement process. Monitor  Represents least inherent sustainability impact.  Monitor industry developments.
  88. 88. Lessons Learned
  89. 89. Questions? Alameda County California, USA
  90. 90. Additional Resources
  91. 91. • Sustainable Business Council (SBC) – New Zealand Guide to Materiality Assessment: http://www.sbc.org.nz/__data/assets/pdf_file/000 5/83048/SBC_How-to-complete-a-simple- materiality-assessment.pdf • The World Bank’s Materiality Assessment: http://www.worldbank.org/en/about/what-we- do/crinfo • Green Biz article: GreenBiz "Materiality assessments: The missing link for sustainability strategy“ • Sustainability for Accounting Standards Board (SASB): Materiality Assessment Implementation Guide For more on materiality assessments: • West Coast Climate and Materials Management – Climate Friendly Purchasing Toolkit: https://westcoastclimateforum.com/sites/westcoa stclimateforum/files/related_documents/TA%20Fin al.pdf#page=4 • State of California Spend Analysis Case Study: https://community.sustainablepurchasing.org/cont ent/uploads/_mediavault/2017/05/2017_SPLC_Ca se_California_Spend.pdf • City of Portland Spend Analysis Case Study: https://www.portlandoregon.gov/brfs/article/6279 73 • Spend Analysis & Prioritization: Lessons Learned (2017 SPLC Summit) – City of Portland / Lockheed Martin https://community.sustainablepurchasing.org/vide os/spend-analysis-prioritization-lessons-learned For more on EI/EO-based spend analysis:
  92. 92. Thank you!

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Slides from Karen Cook, Sustainability Project Manager, County of Alameda; Adam Rubinfield, Sustainable Procurement Manager, The World Bank Group; Yalmaz Siddiqui, Vice President of Corporate Sustainability, MGM Resorts International; Kris Spriano, SPLC Program Manager, SPLC; presented at the Sustainable Purchasing Leadership Council’s 2019 Summit in Portland, OR.

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