sustainable procurement practice shaun mccarthy director action sustainability action sustainability...
TRANSCRIPT
Sustainable Procurement Practice
Shaun McCarthyDirector
Action sustainability
Action SustainabilityInspiring sustainable procurement
Sustainable Procurement Practice
Welcome
Action SustainabilityInspiring sustainable procurement
This presentation is about…
Who? What? Why? When? How? Where? Some controversial stuff The future
Action SustainabilityInspiring sustainable procurement
Who – Action Sustainability…?
Action SustainabilityInspiring sustainable procurement
Action Sustainability is a social enterprise set up to lead and inspire sustainable procurement.
How…?
We are a not for profit social enterprise registered as Community Interest Company. We manage events and seminars to promote more sustainable business. We also offer specialist expertise and services to public and private sector organisations interested in improving the impact of their supply chain on society.
Who…?
We support and facilitate the Strategic Supply Chain Group, a leading authority on sustainable procurement. We aim to extend the boundaries of best practice in this area and advise organisations and government on sustainable procurement policy and strategy.
Delivery
We provide research, case studies, support, training, benchmarking and consultancy. Our group aims to continuously extend, lead and inspire best practice in sustainable procurement
Who – Strategic Supply Chain Group
To lead and inspire good sustainable business practice
This is achieved through a series of promotion and awareness events, often working with member organisations and other groups with an interest in this issue.
To extend the boundaries of best practice
Through research, benchmarking and thought leadership in sustainable procurement. To use our influence with members and their supply chains to have a net beneficial impact on society.
To act as the primary source of advice and guidance to government policy makers on sustainable supply chain solutions
We help Government to define and shape best practice in sustainable procurement. We support the implementation of the Sustainable Procurement Task Force (link) and the Sustainable Consumption and Production Task Force
To lead and inspire sustainable procurement.
Action SustainabilityInspiring sustainable procurement
Who – Shaun McCarthy…? Used to be an engineer (got better!) 20 years buying and selling things (Shell and
BAA) Now:
Director of Action Sustainability Head of CR for everything BAA buys and everything
BAA builds BAA – 2nd place in BITC Index 2006
MCIPS and MIEMA Lead BAA Climate Change/Energy policy London Sustainable Development Commissioner
Chair London Olympics Sub-Group Sustainable Procurement Task Force member Chair Strategic Supply Chain Group
Action SustainabilityInspiring sustainable procurement
What – Sustainability…?
“Development that meets the needs of the present without compromising the ability of future generations to meet their own needs”
Bruntdland Definition
Action SustainabilityInspiring sustainable procurement
What – Sustainable Procurement…?
Action SustainabilityInspiring sustainable procurement
Sir Neville Sims Definition
“Using procurement to support wider social, economic and environmental objectives, in ways that offer real long-term benefits”.
Sir Neville Sims is Chairman of the UK Sustainable Procurement Task Force
Task force findings – not UK Government Policy
Why…?
Reputation
Performance
Licence to Operate
Brand
Sustainable Procurement
Customerrequirements
Stakeholderdemands
Employee expectations
Benchmarking
Legislation &Standards
Impact Reduction(environmental)
Business efficiencies
Risk management
Action SustainabilityInspiring sustainable procurement
Why – Private Sector…?
Action SustainabilityInspiring sustainable procurement
0 20 40 60 80 100
BAA Stakeholder Survey 2003Q13. To what extent does a sustainable development approach
make growth more acceptable?
Retailers
Suppliers
Passenger RepsBusiness Partners
Media
Pressure Groups
Employee Reps
Local AuthoritiesMPs, MEPs
Gov’t Agencies
Business Orgs
Community Reps
Why – Private Sector…?
Action SustainabilityInspiring sustainable procurement
When…?
Action SustainabilityInspiring sustainable procurement
Better make it soon then……..
How…?
Action SustainabilityInspiring sustainable procurement
Sustainable Production & Consumption (more for less)
Respond to customer needs
Make/deliver stuff
Buy stuff Account for stuff
Climate change and Energy
Natural Resource & Env. Enhancement
Sustainable Communities
Sustainable productsResponsible marketing
Waste minimisationEnvironmental impact
Efficient productsConsumer information
Efficient productsEnvironmental impact
Community impactSocial implications of products
Energy efficient deliveryEnergy services
Manufacturing efficiencyServices minimise resource use
Community impactSocial implications of products
Demand managementInventory managementLife cycle cost
“Green” energy procurementEnergy conservation
Materials useEnvironment impact of purchases
Ethical procurementLocal suppliersCommunity partnerships
Business planning
CO2 reportingEmissions trading, CCL etc.
Reporting (triple bottom line)
Charitable donationsBusiness ethics
UK Government 4 Priorities
What organisations do
How…?
Action SustainabilityInspiring sustainable procurement
Sustainable Production & Consumption (more for less)
Buy stuff
Climate change and Energy
Natural Resource & Env. Enhancement
Sustainable Communities
Demand managementInventory managementLife cycle cost
“Green” energy procurementEnergy conservation
Materials useEnvironment impact of purchases
Ethical procurementLocal suppliersCommunity partnerships
How…?
Action SustainabilityInspiring sustainable procurement
Sustainable Production & Consumption (more for less)
Buy stuff
Climate change and Energy
Natural Resource & Env. Enhancement
Sustainable Communities
Demand managementInventory managementLife cycle cost
“Green” energy procurementEnergy conservation
Materials useEnvironment impact of purchases
Ethical procurementLocal suppliersCommunity partnerships
Hundreds of products
Thousands of suppliers
Countless 2nd, 3rd, 4th tier suppliers
Tens of thousands of transactions
Hundreds of end users
Big....Complex...
How - Organisation
Corporate ResponsibilityBoard
Big Ticket Environment•Noise•Air Quality•CO2/Energy•Waste
OtherEnvironment•Biodiversity•Natural resources•Contamination•Etc.
Corporate Responsibility•Social•Economic•Ethics•Etc.
CAS Environment
•Policy•Strategy•Governance•Talent management
GroupAreas ofExpertise
Policy advice•External representation•Options•Analysis•Policy Implementation advice
•Legislation•Strategy framework•Policy communication•Performance reporting
Businesses
Strategy•Long term•Sustainability• impacts
Solutions•Sustainable•Performance
Facilities•Planning•Solutions
Supply Chain*
Capital*
DeliverSustainableSolutions
SustainabilityTeam
Translate outputs•SC and Capital processes
Define knowledge•To achieve outputs
Guidance•Documents to inform
Advice•Hands on support
Learning & Development•Upskilling project teams
AssuranceProcess reviews Audit Corrective action
BAA Example
How – Process…?
Action SustainabilityInspiring sustainable procurement
Specification
Supplier qualification and
appraisalIdentification of
need
Contract managementand review
Tendering andtender evaluation
Accounting:whole life costing
Financialevaluation
Financialreview
Environmental Purchasing – guidance for organisations CIPS/IEMA/NHS PASA 2002
Inputs
Issue briefs AoE input (where
appropriate – Big Ticket?)
Approved Brief Decision Report
Any planning/regulatory requirements
Approved Options Decision Report.
Design Brief Project Execution
Plan
CEMP framework (via Decision Model)
Approved Scheme Design Brief
Draft targets/KPI’s
Approved CEMP Targets/KPI’s
Assurance outcomes Target/KPI’s Reconciliations
Primary Responsibility (RACI)
A Development ManagersC Project GroupsC Sustainability AoE
A Development ManagersR Design ManagersC Project GroupsC Sustainability AoE
A Development ManagersR Design ManagersC Project GroupsC Sustainability AoE
A Project LeadersR Project GroupsC Sustainability AoE
A Project LeadersC Sustainability AoE
A Project LeadersC Sustainability AoE
IT/ Management System Links
Decision Model Decision Model Decision Model Decision Model Decision Model Decision Model
Outputs
List of relevant issues
Issues captured in Brief Decision Report
Proposed approaches for carbon intensity included in Brief Decision Report.
Whole Life Cost factors captured
Draft Design Brief capturing issues
Energy/CO2, waste & sensitive materials assessments for each option
Scheme Design Brief capturing issues
Whole life cost report Non conformances
with Materials Strategy justified and approved
Completed energy/CO2 & waste assessments
Self-Assurance checklist
List of relevant construction activities
Production Plan capturing issues
Completed CEMP Approved targets/KPI’s BREEAM data
Implemented CEMP Self-Assurance
checklist Cost reconciliation of
planned versus actual for all sustainability cost lines
Handover file containing all relevant issues
Risk Register highlighting any residual risks
Knowledge capture
Develop performance requirements in Options
Brief
Define requirements in Scheme Brief & define
scope of works for CEMP
Define requirements in Production Plan & produce
CEMP
Approve CEMP & implement
Report the level of performance achieved against the Brief's &
CEMP
Description: This process identifies the requirements needed for projects to deliver facilities solutions that represent long term value and support BAA’s aspirations, policies and standards with respect to Corporate Responsibility (Sustainability). The process describes the responsibilities of a project, and highlights how sustainability impacts are to be managed.
Objectives : To define what needs to be done to deliver sustainable solutions with respect to:
Addressing the impact of a project; Responding to planning requirements; Managing reputational risk; Addressing whole life costs; Assuring compliance with legal/BAA policy requirements;
and Delivering leading edge performance for priority issues.
Relevant Policies
Management Policies Capital Sustainability Policy
Technical Policies N/A
Identify & relate relevant sustainability issues
Advice
Delivery
How - Process BAA Example
How - Process
Mandatory QMS Procedures: detail the procedures that must be adhered to
QMS Standard Forms: list the standard forms that should be used in support of the procedures.
Checklists: list the checklists that should be referenced.
Activity Description
Establish the significant sustainability issues and relate them to the proposed approaches.
Review and develop the issues in detail and relate them to the proposed options.
Define the issues into performance requirements for the Scheme Brief. Understand construction approaches to scope the activities for the CEMP.
Establish the Production requirements together with confirmed construction activities for CEMP production.
Seek approval for CEMP and identify the most effective way of implementation.
Assess the level of performance achieved against the Brief's/CEMP and prepare information for the handover file.
Activities
Decide and agree the significant issues and opportunities relating to approaches.
Understand the carbon intensity of approaches together with high level renewables opportunities
Engage where necessary sustainability AoE input.
Review in detail the agreed significant sustainability issues/opportunities highlighted and develop them into performance requirements for Design Brief.
Ensure significant issues/opportunities are included in Risk workshop.
Include input from any Environmental Impact Assessment (EIA) or other planning requirements/conditions.
Develop outline Whole Life Cost factors using benchmarks.
Understand Materials and Waste issues.
Develop energy/CO2 assessments for options.
Re-affirm issues relevance and refine for inclusion into Scheme Brief.
Update Risk Plan/Form.
Define Whole Life Cost factors, including end of life costs in model.
Work up business cases for potential renewables use and energy efficiency opportunities.
Develop draft energy/CO2 target.
Include Materials Strategy requirements.
Estimate waste generation and any hazardous waste issues.
Prepare a list of construction activities for CEMP.
Re-affirm issues relevance and refine for inclusion into Production Brief.
Produce CEMP. Update Risk Form. Fix targets and KPI’s. Ensure costs include
all sustainability issues (e.g. energy, waste, disposal).
Confirm compliance with Materials Strategy or agree any concessions.
Assign CEMP responsibilities in an auditable framework.
Review sustainability cost lines.
Meter energy consumption during project and capitalise.
Measure waste generation.
Report the level of performance achieved against the Brief's/Plans
Extract notable learning and place it into the sustainability learning file.
Prepare handover file of all the relevant information required for release throughout the business.
Measure energy in use and feed into post project review and airports business plan.
Review whole life cost model assumptions, capture benchmarking data and feedback.
Templates
Issue Briefs Decision Model
How to doc’s Decision Model
Decision Model Justification Report Decision Model CEMP Template
Decision Model Decision Model
Develop performance requirements in Options
Brief
Define requirements in Scheme Brief & define
scope of works for CEMP
Define requirements in Production Plan & produce
CEMP
Approve CEMP & implement
Report the level of performance achieved against the Brief's &
CEMP
Identify & relate relevant sustainability issues
Advice
Delivery
BAA Example
How - Risk…?
What is risk...........?
The really bad stuff that happens if you don’t do
something about it
Shaun McCarthy 2006
Action SustainabilityInspiring sustainable procurement
How - Risk…?
Action SustainabilityInspiring sustainable procurement
H/L = MM/L = LL/L = L
H/M = HM/M = ML/M = L
H/H = HM/H = HL/H = M
Impact
Likelihood
Low
High
High
How - Risk…?
Impact
Likelihood
TreatTolerateTolerate
TerminateTreatTolerate
TerminateTerminateTreat
Low
High
High
Action SustainabilityInspiring sustainable procurement
How – To get started…?
Action SustainabilityInspiring sustainable procurement
management commitment
Business Improvement
Team
budgetholders
usersspecifiers
riskmanager
customersfinance
Procurement,Environment/Energy/ Estates/ Waste
sustainable procurement
risk management
sustainable procurement
risk assessment
sustainable procurement
strategy and policy
(adapted from slides courtesy of NHS PASA)
How – will it turn out…?
Air Quality
Climate Change
Noise Surface Access Waste
Water quality Biod. Materials
Humanrights
Local suppliers
Cleaning
Coaching
Baggagesystems
Construction
Architect
Consider your impact on specific issues – not “one size fits all”
Action SustainabilityInspiring sustainable procurement
BAA Example
How – will it turn out…?
Action SustainabilityInspiring sustainable procurement
clinical wastemedical consumables
patient transport catering services
energy
uniformsoffice furniture
signage
pharmaceuticalscleaning materials
employment agencyservices
stationery
Profile
Environmental
Risk
NHS Example
How – Do you know…?
Action SustainabilityInspiring sustainable procurement
BITC Index www.bitc.org.uk
How – Do you know…?
Action SustainabilityInspiring sustainable procurement
Time
Foundation
Embed Practice
Enhance
Lead Flexible framework
Benchmarking how well you are addressing your sustainability issues against how well others are addressing theirs
www.actionsustainability.com, [email protected]
How – To measure benefits…? Tonnes of CO2 abated No abatement notices for
nuisance Tonnes of waste diverted from
landfill No prosecutions for
contamination or biodiversity Tonnes of aggregate & cement
abated from natural sources Tonnes of HFC/HCFC abated Volume of timber abated from
non-sustainable sources Quantity of PVC not procured Quantity of formaldehyde not
procured No red residual risks related to
human rights
Action SustainabilityInspiring sustainable procurement
Where – To get help…?
www.actionsustainability.com
www.bitc.org.uk www.iema.net www.cips.org www.lsx.org.uk www.forumforthefuture.org www.wrap.org www.envirowise.gov.uk www.londomremade.com www.thecarbontrust.cu.uk
Action SustainabilityInspiring sustainable procurement
Where – to get training…?
Action SustainabilityInspiring sustainable procurement
Do you have the right to procure un-sustainably?
Organisations in the public and private sector are coming under increasing scrutiny by government, non-government organisations, investors and customers to act responsibly. The biggest area of reputation risk lies beneath the supply chain. Organisations need to understand how to translate their environmental and social values through their supply chains to inspire and embed responsible behaviour.
Content
This one day programme provides procurement and environment professionals with the capability and confidence to understand and exploit the benefits of procuring effectively and responsibly. This is a practical seminar with expert coaching and case studies.
Quality
The course is referenced in the Government’s 2006 strategy “Procuring the Future”. This will be the only programme of it’s type to be accredited by the Chartered Institute of Purchasing and Supply
www.cips.org and the Institute of Environment
Management and Assessment http://www.iema.net/,
Delivery
The programme is delivered by leading experts in this field. Barbara Morton, Project Manager for the Sustainable Procurement Task Force, and Shaun McCarthy, Chair of the Strategic Supply Chain Group and Chair of the London Sustainable Development Commission 2012 Sustainability Group.
www.actionsustainability.com, [email protected]
Some controversial stuff
Minimum standards Won’t work on
their own Unlikely to be
complied with UK target for 100%
BREEAM excellent buildings
17% achieved
Action SustainabilityInspiring sustainable procurement
Some controversial stuff
Beware “Greenwash” UK Green Tariff
energy Just a certificate
for your wall Makes no
difference to the environment
Action SustainabilityInspiring sustainable procurement
Some controversial stuff
ISO 140001 for suppliers Not the whole
solution One size fits all May not get you
what you need
Action SustainabilityInspiring sustainable procurement
The Future
Action SustainabilityInspiring sustainable procurement
How much longer will it be acceptable for organisations to:
Grow their business and increase greenhouse emissions?
Send waste to landfill? Buy from organisations
with poor human rights practices
Deplete natural resources in construction and operations
Disrupt our neighbours
Sustainable Procurement Practice
Thank you
Action SustainabilityInspiring sustainable procurement