Sustainable Procurement Index for Health (SPIH) - Global Forum 2019 in Africa
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This presentation was delivered at the Global Forum 2019 in Africa session on Sustainable Procurement Index for Health by Dr. Kristian Steele and Anna Tuddenham of Arup.
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Sustainable Procurement Index for Health (SPIH) - Global Forum 2019 in Africa
- 1. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 Sustainable Procurement Index for Health (SPIH) Kristian Steele and AnnaTuddenham, Arup
- 2. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 Agenda 1. Background 2. Work completed to date 3. The Index 4. Interactive Q&A session
- 3. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 1. Background
- 4. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 1. Background SPHS United Nations Informal Interagency TaskTeam on Sustainable Procurement in the Health Sector (SPHS): 7 United Nations agencies 3 global health financing institutions Committed to introducing sustainable procurement in the global health sector UNDP United Nations Development Programme UNEP United Nations Environment Programme UNFPA United Nations Population Fund UNHCR United Nations High Commissioner for Refugees UNICEF United Nations International Children’s Emergency Fund UNOPS United Nations Office for Project Services WHO World Health Organisation Gavi The Vaccine Alliance GF The Global Fund UNITAID UNITAID
- 5. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 1. Background The GPIH project aims to improve the transparency and accountability of procurement in the health sector with regard to its environmental impact and encourage United Nations agencies and their suppliers and manufacturers to produce, procure and supply in a more environmentally friendly manner. Image source: https://savinglivesustainably.org/knowledge-practice/contribution/green-procurement-index-health-gpih/VB777B.html GPIH
- 6. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 Focus areas of work towards green procurement 1. Background
- 7. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 1. Background Why do these key focus areas deserve our attention and how does the SPHS act on key focus areas?
- 8. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 1. Background GPIH Roadmap
- 9. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 2.Work done to date
- 10. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 2.Work done to date
- 11. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 2.Work done to date Environmental questionnaire for suppliers and manufacturers
- 12. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 3.The Index
- 13. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 3.The Index Criteria and metrics for the index to be developed based on four dimensions of environmental footprint of UN procurement in the health sector: 1. Greenhouse gas emissions; 2. Resource depletion (water, energy, and material consumption); 3. Chemical/toxic impact on human health and the environment; and 4. Human, labour rights and gender equality. Themes
- 14. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 3.The Index Dimensions HARMONIZED GLOBALLY ADOPTED ACCURATE
- 15. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 3.The Index Concept The index should: Be targeted at end users – people involved in procurement and supply chain management Transparent Provide a proportionate approach Support decision making and improvement
- 16. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 3.The Index Partners and Programme Arup, working with Clean Production Action and ErgonAssociates, supporting UNDP Developing the Index in to a useable product by the end of 2020 Defining a specification for the index; Developing the index; Piloting, training Working with industry stakeholders throughout
- 17. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 3.The Index Developing the indicators Requirements For each theme*, we expect to develop a set of indicators that will form the Index.These will likely be a mix of: Prescriptive requirements, which form part of ‘minimum standards’ approach (e.g. ‘the product must be free of mercury’ or ‘the product must be low risk in terms of modern slavery’); and Performance levels, which provide tiers of good, better, and best practices that enable measuring and comparing suppliers (e.g. ‘what is the carbon footprint of your product’) and their products on their progress to the highest and best levels of performance. Both may include existing ecolabel or certification schemes, and some indicators may apply at either the company or product level (and therefore influenced by whether the Index targets either or both). *GHGs, resource depletion, chemical/toxic impact, Human, labour rights and gender equality
- 18. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 3.The Index Organising the indicators Tiered approach Not all indicators will be applicable to every aspect of procurement or every purchase that is made. There may be differences in relative risk, geographies and competence that need to be accounted for. Considering a tiered approach This might contain more prescriptive requirements in the lower tier (reflecting lower risk profiles) and more performance-level requirements at the higher tiers (reflecting higher risk profiles or key focus areas) Proportional approach allows more sophisticated demands to be introduced over time and enables suppliers to prepare
- 19. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 3.The Index Organising the indicators Heatmapping exercise Supporting the tiered approach, we will undertake a heatmapping exercise. This will: Rank different product categories based on their potential for impacts against each of the four themes For each category, establish the relative risk profile against each of the themes at a generic level by reviewing the available evidence This will establish the tier of requirements which are most appropriate for that category of item and, for example, during the sourcing stage, identify the appropriate types of questions to ask suppliers during prequalification. Key part of this approach will be to clearly signpost the ways in which suppliers can improve. As tiers are developed by our Experts, they will be designed to become more challenging to meet and therefore drive supply chains to achieve more sustainable outcomes.
- 20. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 3.The index Organising the indicators Weighting approach Considering how to weight the four themes and whether to combine them into a single Index value Considering strengths and weaknesses of different approaches: Ease of use – a single indicator value (e.g. a ‘performance grade’) provides an easy to communicate and compare different suppliers at a high level Obscurity – whether the Index provides enough detail on the strengths and weaknesses of a particular supplier or product Scope for improvement – whether the Index supports, incentivises and rewards genuine efforts to increase performance Examples below Least complex Most complex
- 21. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 4.Q&A session
- 22. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 Q&A Please complete our Survey Monkey Poll during / following the session today Using your phone or other device, navigate to the link or scan the QR code below The results of each poll are stored but they are not identifiable to any single person https://www.surveymonkey.com/r/QHL3S39
- 23. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 Q1.What do you think the main use of the index should be?
- 24. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 Q2.What should be the primary focus of the index?
- 25. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 Q3. Should the Index score outcome (Score) or intent (improvement) or both?
- 26. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 Q4. In terms of structure, the Index should be…
- 27. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 Q5. Should the index be consistent in geographies and across organisations / products?
- 28. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 Q6. How should we engage with stakeholders throughout the project?
- 29. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 Q7. Has anyone developed their own solutions?
- 30. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 Q8.What level of disclosure is appropriate?
- 31. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 Q9.What should the index look like? Single score Performance bands Multi-criteria Multi-criteria (simple) (complex)
- 32. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 “Onlythroughmeasuringand monitoringourown green procurementpracticewillwe demonstratethatcommitmentis followedbyaction.” Christoph Hamelmann UNDP, SPHS Coordinator
- 33. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 Q&A Please complete our Survey Monkey Poll during / following the session today Using your phone or other device, navigate to the link or scan the QR code below The results of each poll are stored but they are not identifiable to any single person https://www.surveymonkey.com/r/QHL3S39
- 34. Africa Forum 2019: 18-19 July 2019, Dar es Salaam,Tanzania I #AfricaForum2019 Thank you for your time and contributions to this session. Ifyouhaveanyfurtherfeedback,please contactusatkristian.steele@arup.com Dr Kristian Steele Anna Tuddenham Contact details: Dr Kristian Steele, Arup, 13 Fitzroy Street, London, W1T 4BQ E: kristian.steele@arup.com T: +44 20 7755 6549 Terry Ellis
Editor's Notes
- Hello and welcome. My name is Kristian Steele and I am here today to present a new and innovative project working with the UNDP to produce a Sustainable procurement index for health.
- Our agenda today will cover 4 aspects. I will present the context of the index, the work completed to date and the concept and development of index. We will then run an interactive Q&A session. You will need to use your phones or other electronic devices to respond to a series of discussion questions that we would like your input on. Before I start presenting, let’s check that the technology works.
- A group of UN agencies and financing institutions are working together to strengthen sustainability in the global health sector. The SPHS task team is dedicated to lowering the environmental impact of its procurement, improving human health and wellbeing Whilst the work covers a range of areas, today we will focus down on a sustainable health procurement index, and how the creation of an index and monitoring could help reduce associated environmental and social risks. Indeed, such an index is an important instrument to leverage the purchasing power for a more sustainable health sector.
- Whilst the work of SPHS is wide-ranging, today we will focus down on the creation of a sustainable procurement index for healthcare Work is required to specify and harmonize green procurement criteria and to develop monitoring tools that enable continuous improvement and benchmarking of green procurement practices. The Green Procurement Index Health (GPIH) project is aiming to address these challenges. Indeed, such an index is an important instrument to leverage the purchasing power for a more sustainable health sector.
- As set out in the Roadmap, there a 9 focus areas of green procurement work.
- Efforts to introduce policies and practices to strengthen health systems are targeting nine focus areas of intervention, as set out on the slide. Members of the SPHS have put a focus on the environmental footprint of large-volume purchasing.
- To act on this, in 2014 the UNDP developed a Roadmap for a green procurement index This outlines key processes, stakeholders and deliverables for successful measuring, monitoring, and fostering of green health procurement practices.
- Much work has been done to date in Phase 0 and 1 of the Roadmap.
- The UNDP has focused on the following components from Phase 1: Development of a Supplier and Manufacturer Engagement Strategy on Green Health Procurement Development of an Online Engagement Platform on Green Health Procurement (www. savinglivesustainably.org) Engagement with key stakeholders from the global health aid market (particularly with suppliers and manufacturers) on green health procurement, through various venues of engagement Organization of Environmental Capacity Development Sessions on Greening Supply Chains Standardization and harmonization of environmental questionnaire for suppliers and manufacturers Development of a pilot guide on Monitoring Health Procurement Compliance with International Environmental Conventions on Chemicals
- One I would like to comment on in particular is the standardized questionnaire on green procurement This was created to assess the environmental performance of its suppliers and manufacturers It is based on international standards, Global Compact principles, Global Reporting indicators and existing and well-accepted environmental scorecards and questionnaires from other national and international organizations.
- The index will focus on four themes in particular
- UNDP and HCWH lead a development of a new Index that will: Harmonized: Generate timely, tailored discussions with all key stakeholders operating in the global health sector, focusing on harmonizing currently available indices Accurate: Make ratings on sustainable health procurement more consistent and accurate Globally adopted: Get everyone by producing one, globally standardized and adopted index on sustainable health procurement.
- • Be targeted at people involved in the management of and process of procurement and supply chain activity; • Transparently communicate the expectations for supply chain performance against the four key themes identified in the RfP (i.e. GHG emissions; resource depletion; chemical/toxic impact; and human, labour rights and gender equality); • Provide a proportionate approach to identifying supply chain performance that reflects the nature of what is being bought, considering the relative competence and capability within supply chains; • Not just identify risk but support decision making and provide clear guidance for stakeholders to act to improve their performance.
- Team We are supporting the UNDP to develop the index Working with specialist consultants in the key themes (toxicity and human rights) Programme Working to develop a usable product by the end of 2020, with interim milestones throughout This year we will be defining the specification for the index, of which a key part is engagement with stakeholders (including this session!) Next year we will begin to develop the end product, with the aim to pilot by the middle of 2020. Aiming for completion by the end of 2020. Supported by training and awareness sessions. Stakeholders Referring back to our concept, it is vital that it is usable and useful Engagement with stakeholders it key to this. We need and want to encourage a wide range of viewpoints in order to develop something that works and contributes to the wider SPHS programme. >> Lead in to the questions
- Examples of indices The Green Procurement Index Health (GPIH) Phase 1 included a concept of the Index as a spider diagram. Other indices such as the CDP and green labelling schemes rely on a single rating (e.g. from A to E), which relied on an inherent set of assumptions as the importance of various issues. We need to understand What type of information is useful to buyers? What are potential unintended consequences of approaches to weighting of issues?
- We are going to spend the next 50 minutes in an interactive session to identify and agree on the scope of the index, including its components, its scoring and its visualisations. We will start with a test question to check everything is working and then have 9 questions for wider discussion. Scoping the Index : Component definition: Who is the index for? E.g. is the index for procurement (sourcing suppliers) or management of suppliers or both? Also how can it be made useful for policy makers? What themes/components should be included in the index? What product /service categories are the priority? Component scoring: Should the index score outcomes or intent or both? Should the index provide a standalone score or a score showing how to improve (maturity matrix)? Examples include energy scorecards, GPIH environmental profile (star diagram) (single score or range of scores) Should the index be prescriptive or flexible? What might the dimensions be (location, competence, scale of supplier, value of contracts, impact of product)? Should there be a central database of performance or should people be able to integrate in to their own systems? What is the threshold at which this index would be applied? Cost and effort? Tiered approach to users. Developing the index: Engagement: How should we engage with stakeholders throughout the project and learn lessons from them? Has anyone developed their own solutions? Transparency: What should the requirement for transparency be? Should the index be used privately, or should organisations disclose their performance? Visual representation: What should the index look like ? Getting early-stage feedback: Identify with us the basis and criteria for the UN Sustainable Procurement Index in Health (SPIH) Examples, prior work CDP – number and letter for level of disclosure and letter was performance (matrix approach) – not a single score
- Defining the index components. Back ups What themes/components should be included in the index? What product /service categories are the priority?
- Defining the index components: Prompts lower tier obligations could focus on organisation, whilst higher tier obligations could be products We should also consider what the implication might be for having to continually provide evidence e.g. every time you supply something. What if you have already done so in the last 3 months and nothing has changed? Back ups What themes/components should be included in the index? What product /service categories are the priority?
- Scoring the index components: Prompts: Should the index provide a standalone score or a score showing how to improve (maturity matrix)? Examples include) (single score or range of scores) energy scorecards, GPIH environmental profile (star diagram) Are just interested in policies being in place or outcomes (i.e. audit result) What is the role of pass//fail questions in this? So if they are doing a poor job on human rights, is that an automatic 0 score, or is the fact they have an improvement plan in place enough? Back ups Should there be a central database of performance or should people be able to integrate in to their own systems? What is the threshold at which this index would be applied? Cost and effort? Tiered approach to users.
- Scoring the index components: Prompts What might the dimensions be (location, competence, scale of supplier, value of contracts, impact of product)? Interesting angle is that if it is tightly defined, it opens up the opportunity for third-party assurance in a clear way. A very flexible system might be more complicated from that perspective.
- Africa viewpoint - discuss
- Prompts Stakeholder engagement method Would you have time to participate Comments on formal documents? Invite comments on proposal?
- Prompts Do people use the current questionnaire produced by the UNDP? Does anyone go further? Collect quant data? Follow any other standards e.g. iso 20400 on sustainable procurement
- Prompts Stakeholder engagement method Would you have time to participate Comments on formal documents? Invite comments on proposal?
- Last question
- We are going to spend the next 50 minutes in an interactive session to identify and agree on the scope of the index, including its components, its scoring and its visualisations. We will start with a test question to check everything is working and then have 9 questions for wider discussion. Scoping the Index : Component definition: Who is the index for? E.g. is the index for procurement (sourcing suppliers) or management of suppliers or both? Also how can it be made useful for policy makers? What themes/components should be included in the index? What product /service categories are the priority? Component scoring: Should the index score outcomes or intent or both? Should the index provide a standalone score or a score showing how to improve (maturity matrix)? Examples include energy scorecards, GPIH environmental profile (star diagram) (single score or range of scores) Should the index be prescriptive or flexible? What might the dimensions be (location, competence, scale of supplier, value of contracts, impact of product)? Should there be a central database of performance or should people be able to integrate in to their own systems? What is the threshold at which this index would be applied? Cost and effort? Tiered approach to users. Developing the index: Engagement: How should we engage with stakeholders throughout the project and learn lessons from them? Has anyone developed their own solutions? Transparency: What should the requirement for transparency be? Should the index be used privately, or should organisations disclose their performance? Visual representation: What should the index look like ? Getting early-stage feedback: Identify with us the basis and criteria for the UN Sustainable Procurement Index in Health (SPIH) Examples, prior work CDP – number and letter for level of disclosure and letter was performance (matrix approach) – not a single score