Un Sustainable Procurement


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Un Sustainable Procurement

  1. 1. UN Sustainable Procurement
  2. 2. Climate neutrality and sustainability in the UN UN SG pledged, on World Environment Day (5 June 2007), to explore ways of making the United Nations more climate friendly and environmentally sustainable, and to develop a climate-neutral approach to its premises and operations. Ban Ki-Moon Statement of the Chief Executives Board (26 UN Secretary General October 2007) : “We, the Heads of the United Nations agencies, funds and programmes, hereby commit ourselves to moving our respective organizations towards climate neutrality in our headquarters and United Nations centres for our facility operations and travel.” CEB statement
  3. 3. SP update 1.  What is Sustainable Procurement? 2.  Current status of Sustainable Procurement at UN 3.  Overview of existing mechanisms for mainstreaming SP (EMG / HLCM joint programme of work and vision) 4.  Barriers : training, resistance to change, G77+ international bidding (things come from far)
  4. 4. 1 What is SP ? Sustainable Procurement is procurement that integrates requirements, specifications and criteria that are compatible and in favour of the protection of the environment, of social progress and in support of economic development, namely by seeking resource efficiency, improving the quality of products and services and ultimately optimizing costs (immediate and life cycle based). Sustainable Procurement bases its choice of goods and services on:   conomic considerations: best value for money, price, quality, e availability, functionality;   environmental aspects, i.e. green procurement: the impacts on the environment that the product and/or service has over its whole life-cycle, from cradle to grave; and   social aspects: child labour, landmines, health considerations, SMEs and local vendors preferences, equity in the distribution of resources, labour conditions, human rights Sources: UNEP (2002) and French Sustainable Public Procurement National Action Plan (March 2007)
  5. 5. 1 Why SP   The annual “Statistical Report on UN purchasing”[1] indicates that “the overall procurement volume of UN Agencies during 2007 reached US $10.08 billion”.   The procurement function does not only provide the UN with means to work but and gives a signal of what is important for the organisation can concretely support sustainable development and innovation. [1] the report is managed by UNOPS. 'The Annual Statistical Report‘ 2007 provides data on procurement of goods and services from 33 UN organizations and UNDP's country offices.
  6. 6. 1 SP and climate change The UN operates thought the purchase of products and services (including projects), the management buildings, travel and operations etc. To be Climate Neutral the UN needs to embed this aspiration in the way it operates and acts as a consumer on the market. Procurement choices have a significant influence on UN Climate Neutrality :   the purchase of renewable energies and energy efficient equipment or products, products coming from closer markets have a lesser embedded Carbon footprint   Facilities management choices such as the installation of solar panel on roof building go through a procurement procedure   Offsetting CO2 emissions through Carbon sequestration is also an act of procurement as it requires ultimately the identification of a service, the selection of a supplier and a contract.
  7. 7. 2 Current status of SP in UN 2006 EMG survey on status of SP in the united nations (15 biggest procurers& interagency working group on procurement): a. Sustainable development is present as a concept in UN procurement but under different names. Some initial steps are being taken to have environmental or social considerations in purchasing; b. No co-ordination or guidelines exist at system level. Agencies act mainly on their own under inspiration of some motivated procurement officials. c. Procurers are open to include sustainability in their work, but they need a legal mandate (high-level strong political signals), training and well-targeted specific information (database or clear guidelines per product category).
  8. 8. 2 Good stories.. Unicef factory inspections on child labor but also H&S UNHCR training on environmental management for refugees camps UNPS code of conduct and global compact endorsement UNEP Gigiri environmental audit and EMS UNESCO and UNEP building renovations inclusive of environmental and energy saving considerations UNDP sustainable procurement guide and green offices award World Bank CSR and carbon neutrality ….. ...there is no space however to show off
  9. 9. 2 The procurers said… 1. Lack of high level endorsement 2. Lack of capacity to address these issues (SD is not part of the required knowledge of procurers) and to implement them “SP is not difficult to draft it is difficult to implement” 3. Lack of tools: guidelines, product specs, incentives, IT solutions, case studies; monitoring and verification systems 4. Lack of training tools (especially associated to staff on field and to high turn over of staff) 5. Exclusion of procurement in project development process (importance of the role of requisitioners /project officers); need to work in teams
  10. 10. 3 The EMG commitment By 2009, facilitate the implementation of SP : 1. Draft “model” documents to facilitate the adoption of SP: standard SP policy, examples of ToRs etc. Work with HLCM 2. Provide training opportunities on SP Procurement Network 3. Design 10 SP products guidelines 4. Proposal for a UN wide awareness raising initiative for staff (CD rom) 5. Advice on the inclusion of SP in legal and guidance documents (UN contract conditions, UN procurement manual, etc.) 6. Facilitate info sharing and best practices
  11. 11. 3 What has been achieved so far 1.  Close relationship and joint programme of work with HLCM 2.  Joint HLCM procurement network and EMG First draft SP Policy presented in Rome on 3 September 3.  Sustainable procurement on www.ungm.org ! 4.  ICT Product guidelines finalised 5.  Guidelines for office furniture, cleaning products, stationary and paper, vehicles (March 2009) + five more by end of 2009 + ten more to be identified and developed by HLCM
  12. 12. 3 What has been achieved so far 6.  SP guide “light” developed as support to half day awareness raising module ready 7.  Training on SP as part of the UN PS / UNDP “procurement basics” training in 2 locations (Nairobi and Brindisi) + one large awareness raising session scheduled in October in NY 8.  Professional 3 days SP Training to be developed and tested in Rome (WFP, IFAD, FAO) in November/December (then we can extend the trainings so we accept candidates)
  13. 13. 4 Difficulties encountered 1.  Generic interest but difficulty to find links and directions in manuals “SP is difficult to implement” 2.  Need to ensure that SP (and CN) does not hinder access to UN procurement for companies from developing countries 3.  Different levels of awareness and openness to change at all levels 4.  The commitment to Climate neutrality has not always reached the administrative function
  14. 14. 3 The 10 SUN categories 1.  ICT (computers, printers, beamers, (May 2008) 2.  Vehicles (date tbd) 3.  Office furniture (March 2009) 4.  Cleaning services (March 2009) 5.  Office supplies /stationary and paper (March 2009) 6.  Carpets/paints/lighting (tbd) 7.  Energy (energy services providers, green certificates, generators) (tbd) 8.  Food/catering (including water for drinking) (tbd) 9.  Leasing or rental of buildings? 10.  Uniforms? Or Transport? Travel? UNEP is also working on a Green Meetings Guide (December 2008)
  15. 15. Key Components: Making sustainable procurement a reality 1.  Adopt a step-by–step approach 2.  Consider the environmental and social impacts 3.  Focus on broad environmental problems   climate change; waste reduction 4.  Consider availability and cost of environmentally and socially superior alternatives 5.  Consider availability of data 6.  Look for visibility 7.  Consider potential for technological development 8.  Adopt a scientifically, sound life-cycle approach
  16. 16. Stages of Sustainable Procurement   Preparatory stage of procurement process is crucial   each stage builds on preceding stage   Any mistake or oversight at beginning will adversely affect each successive stage and end result   Important to clearly define:   subject or content of the proposed Purchase Order or Contract   instruments to be used to reach the set objective
  17. 17. Stages of Sustainable Procurement Social-responsible evaluation criteria Incentive-based weighted scoring
  18. 18. www.unep.fr/SCP/SUN E-mail: sustainable.un@unep.fr isabella.marras@unep.fr