This presentation was delivered at the Global Forum 2019 in Africa Panel Discussion by Lin Roger Li, Senior Manager, Strategic Sourcing, Sourcing and Supply Chain Department at the Global Fund.

1. Responsible
Procurement
SAVING LIVES SUSTAINABLY: 2019 GLOBAL FORUM IN AFRICA
18-19 JULY, DAR ES SALAAM, TANZANIA

2. How We Work.
We raise the money
The Global Fund Secretariat based in Geneva, Switzerland, raises and invests
more than US$4 billion a year to support programs.
2
Oversight in Action
Local Fund Agents in each country monitor the implementation of grants.
The Global Fund’s Office of the Inspector General conducts audits and investigations.
The Secretariat reports information to the Global Fund Board and the wider public.
Who We Are.
A 21st partnership organization to accelerate the end of HIV, tuberculosis and malaria as epidemics
2018-2020
period
Amount Countries
USD million % #
HIV/AIDS 5,098 50% 105
Malaria 3,227 32% 71
TB 1,842 18% 98
Where the Programs Are. 4%
Eastern Europe
and Central Asia
19%
Asia and
the Pacific
65%
Sub-Saharan
Africa
8%
North Africa
And the
Middle East
4%
Latin America
and the Caribbean

3. 3
Funding
Procurement
Services Agent
Recipient Country Manufacturer
Funding
Agency
PSA PR ManufacturerProducts
Other Procurement Agents,
Global Drug Facility (TB)
Funding
Agency
PSA PR ManufacturerProducts
Funding
Agency
PSA PR ManufacturerProducts
Funds
Orders
Long Term Agreements and Funds
Orders
Pooled Procurement
Mechanism (PPM)
Funds
Orders
National Procurement
Mechanisms
Approx. 1bn USD Health
Products are managed through
PPM, presenting 55% of the
GF funded health products
Global Fund utilizes a number of procurement channels to supply health
products to its grants

4. In December 2016,
GF formally
committed to
collectively advance
environmentally
and socially
responsible
procurement
through engagement
with suppliers of
health products.
GF is advancing responsible procurement aims in partnership
GF is a
member of
the UN
Informal
Interagency
Task Team on
Sustainable
Procurement
in the Health
Sector
(SPHS).
https://savinglivesustainably.org/who-we-are.html

5. GF has defined a tailored, holistic responsible procurement
approach across 4 elements
SOURCE: Adapted from corporate responsibility's framework by Crane et al, 2014
Principles for building
holistic standards
▪Build on existing
guidelines
▪Provide practical
guidance
▪Include phased
approach
▪Focus on procurement
▪Align with GF objectives
Dimen-
sions
Description
Ecology
▪Mitigate effect on environment along the
end-to-end supply chain
▪Use knowledge and skills to contribute
to a constant rise in eco-efficiency
Society
▪Promote fundamental human rights, e.g.,
–Advocate for decent labor conditions
–Promote children rights
▪Promote workers’ health and safety
Economy
▪Provide additional economic benefits to in-
country community
▪Empower community by sharing knowledge
▪Promote best business practices among
suppliers and other buyers
Business
practices

6. GF addresses each dimension of responsible procurement’s
framework through a case-by-case approach
SolutionsIssuesCase examples
Dimension
addressed
▪ GF mandated social and environmental assessment by a
3rd party for 7 LLIN production sites in 3 countries
▪ GF provided action plans for each site assessed to
implement environmental and labor regulations
▪ GF encouraged Principal Recipients to order bulk
packaging of LLINs for campaigns, reducing plastic
waste in 2018 to date by an estimated 930 tonnes
▪ LLIN manufacturing countries have weak
regulators’ focus on textile
▪ Plastics and insecticides used for LLINs
present high chemical risks for environment
▪ Historical reputational issues related to
corruption, environment and disposal
LLIN
Artemisinin
▪ GF mitigated price volatility and environmental risks by
visiting agricultural artemisinin producers and reviewing
Environmental, Health and Safety (EHS) practices:
– GF conducted agricultural artemisinin manufacturer
qualification through 3rd party
– GF incentivized best practices by manufacturers
through 3 year volume allocations
▪ Agricultural artemisinin prices are volatile due to:
– Overproduction capacity because of low
technical barrier to entry
– Lack of harmonized quality standards
▪ Agricultural artemisinin price volatility causes
supply interruptions to ACT suppliers
▪ Prior reliance on spot tenders contributed to
an important reliance on delivery by air
▪ Poor performing suppliers lobby when losing
volumes
▪ Outer/secondary paper cartons traditionally
included for multi-month ARV packs increase
transportation weight and waste
▪ GF implements performance-based allocations to
suppliers, with more than 80% of ARV volume shipped
by sea
▪ GF encouraged Principal Recipients to switch to
carton-less packaging of multi-month ARVs, reducing
freight volume, costs, paper and waste
ARV
EcologySociety Economy
Business
practices

7. Continue to gather and address inputs from
partner organizations
Continue to refine holistic responsible framework
based on best practices
Continue to build best business practices
Stepping stones going forward
Continue to incorporate Responsible Procurement into
Global Fund sourcing and supply chain practices

8. 8
► Investment of US$14 billion to save
16 million lives
► Avert 234 million infections/cases
and reduce the incidence rate
by 42%
► Reduce the death toll