Sustainable Procurement and ISO Sustainable Procurement

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2 Sustainable Procurement and ISO Sustainable Procurement Tania Lalor, Sustainable Choice Program Manager t: e: Jean-Louis Haie, Managing Director Planet Procurement t: e: Local Government Procurement Annual Conference, 18 November 2016

3 Overview Concept of sustainable procurement What is Sustainable Choice? Membership and program elements Sustainable Choice database Sustainable Procurement global movement ISO Sustainable Procurement Local Government Procurement Annual Conference, 18 November

4 What is Image: Local Government Procurement Annual Conference, 18 November

5 Procurement that has the most positive environmental, social and economic impacts on a whole life basis. ISO/DIS , Sustainable Procurement - Guidance Local Government Procurement Annual Conference, 18 November

6 Principles Core principal: Value for money! Avoid unnecessary consumption Reduce environmental impact Ensure fair and ethical sourcing practices Foster innovation Local Government Procurement Annual Conference, 18 November

7 Quadruple Bottom Line Local Government Procurement Annual Conference, 18 November

8 But what about the? Reduce overall consumption Provide a real cost and return on investment Products = more efficient = $ to operate and maintain Products have end of life disposal $ and impact Local Government Procurement Annual Conference, 18 November

9 Wide range of benefits Efficient use of resources: e.g.: reduction of energy and water consumption Reduce waste and pollution Reduce environmental impacts Effective use of financial resources Meet statutory obligations Stimulate local economy and green growth Support long social and environmental objectives Drive innovation Demonstrate leadership, corporate responsibility, and active citizenship and stewardship Generate positive social norms Improve public image Contribute to sustainability outcomes Reduction of GHG emissions Engage and support local communities and businesses Increase the availability of cost effective sustainable products and services Expand market opportunities for sustainable goods and services Promote health, safety, equality and diversity Enable an evaluation of need, performance and value Local Government Procurement Annual Conference, 18 November

10 Wide range of benefits Efficient use of resources: e.g.: reduction of energy and water consumption Reduce waste and pollution Reduce environmental impacts Effective use of financial resources Meet statutory obligations Stimulate local economy and green growth Support long social and environmental objectives Drive innovation Demonstrate leadership, corporate responsibility, and active citizenship and stewardship Generate positive social norms Improve public image Contribute to sustainability outcomes Reduction of GHG emissions Engage and support local communities and businesses Increase the availability of cost effective sustainable products and services Expand market opportunities for sustainable goods and services Promote health, safety, equality and diversity Enable an evaluation of need, performance and value Efficient use of resources: e.g.: reduction of energy and water consumption Reduce waste and pollution Reduce environmental impacts Effective use of financial resources Meet statutory obligations Local Government Procurement Annual Conference, 18 November

11 Sustainable Development Goals September Global Goals for Sustainable Development Goals/Targets/Indicators Australia signed up Sustainable Public Procurement contribution vital Local Government Procurement Annual Conference, 18 November

12 What is Sustainable Choice? Partnership program between LGNSW and NSW OEH A procurement program assisting Local Government in NSW to integrate sustainability into their procurement systems. Local Government Procurement Annual Conference, 18 November

13 Membership 74 Council Members 58% of NSW Councils Local Government Procurement Annual Conference, 18 November

14 Local Government Procurement Annual Conference, 18 November

15 Forums Local Government Procurement Annual Conference, 18 November

16 Newsletters Local Government Procurement Annual Conference, 18 November

17 Training Local Government Procurement Annual Conference, 18 November

18 Online Resources Local Government Procurement Annual Conference, 18 November

19 Sustainable Products and Services Database Local Government Procurement Annual Conference, 18 November

20 Sustainable Choice database Local Government Procurement Annual Conference, 18 November

21 Sustainable Choice database Local Government Procurement Annual Conference, 18 November

22 Evaluation/Reporting Local Government Procurement Annual Conference, 18 November

23 Membership requirements Free and available to all NSW councils Resolution Establish a team to drive the process Incorporate sustainable purchasing into Council s purchasing policies, procedures and systems Participate in free peer education and information sharing Complete the annual reporting survey Local Government Procurement Annual Conference, 18 November

24 Framework Working Group Policy Procedures Education Tracking Reporting / Scorecard Review Local Government Procurement Annual Conference, 18 November

25 Sustainable Procurement Globally Local Government Procurement Annual Conference, 18 November

26 Fact #1 SP is now BAU 550 analysed SP case studies View per Region January 2016 North America 70 Europe 344 Asia 15 South America 5 Africa 3 Oceania 114 Local Government Procurement Annual Conference, 18 November

27 Fact #1 SP is now BAU analysed SP case studies View per Spend Category January Food Fleet Construction Works Construction Design Maintenance Lights Waste Management Office supplies Catering Services Electricity IT Hardware Cleaning products Cleaning Services Social Services Paper Materials Street Lights Transport services Furniture Energy Packaging Print services Printers Arts Green spaces Manufacturing Wood Asphalt Event management HVAC Professional Services Street Furniture Uniforms Others Local Government Procurement Annual Conference, 18 November

28 Fact #1 SP is now BAU 550 analysed SP case studies View per Topic January 2016 Environment (60%) Governance (25%) Community (13%) Others (2%) Local Government Procurement Annual Conference, 18 November

29 Fact #2 Impacts get measured Low carbon reconstruction of a high way section Department of Public Works, Netherlands, 83.70M euros contract TCO savings Quality Sustainability 17% savings 69,36M (winner) 24% energy savings 50.8 toe / year Similar quality 9,000 t CO2 reduction /year = 1500 European households Source: Local Government Procurement Annual Conference, 18 November

30 Fact #2 Impacts get measured Green cleaning services City of Reykjavík, Iceland, 1.520M euros contract TCO savings Quality Sustainability 50% 770K USD Considerable less number of complaints 50% less chemicals 200k less plastics Source: Local Government Procurement Annual Conference, 18 November

31 Fact #2 Impacts get measured Single use medical devices reprocessing Hospital Corporation of America, US, High value contract TCO savings Quality Sustainability 21.7M USD in 2011 Similar safety and quality performance 364 tons of waste diverted in 2011 Source: Local Government Procurement Annual Conference, 18 November

32 Fact #3 Organisations collaborate Per Region Per Sector, Category or Topic Local Government Procurement Annual Conference, 18 November

33 ISO20400 Local Government Procurement Annual Conference, 18 November

34 Countries involved in the project The international project committee (PC277) is managed under the umbrella of ISO 65% world population 85% world GDP 73% world CO2 emissions Local Government Procurement Annual Conference, 18 November 2016

35 Key other stakeholders International organisations Other ISO standards ISO Social Responsibility (published in 2010) ISO/TC 207 Environmental management ISO/PC 278 Anti bribery management system ISO/TC 262 risk management Local Government Procurement Annual Conference, 18 November 2016

36 Membersof the Australian Mirror Committee Public sector Private sector Non for Profit Procurement Suppliers The Australian Mirror Committee (MB- 024) is hosted and managed by Standards Australia Research Chair Jean Louis Haie Local Government Procurement Annual Conference, 18 November 2016

37 What is ISO20400? ISO guidance standard on sustainable procurement, to be published in early 2017 Provides an understanding of: what sustainable procurement is; what the sustainability impacts and considerations are across the different aspects of the procurement activity: policy, strategy, organisation, process; and how to implement sustainable procurement practically. Applies to: any organisation, regardless of its sector, size and location. any stakeholder involved in or impacted by procurement decisions and processes. Does not replace legislation, policy and ethical frameworks that regulate procurement activities. Local Government Procurement Annual Conference, 18 November 2016

38 ISO20400: Sustainable Procurement 1. SCOPE 2. NORMATIVE REF. 3. DEFINITIONS 4. FUNDAMENTALS 5. POLICY/STRATEGY 6. ORGANISATION 7. PROCESS Local Government Procurement Annual Conference, 18 November 2016

39 1. SCOPE 2. NORMATIVE REF. 3. DEFINITIONS 4. FUNDAMENTALS 5. POLICY/STRATEGY 6. ORGANISATION 7. PROCESS Local Government Procurement Annual Conference, 18 November 2016

40 1. SCOPE 2. NORMATIVE REF. 3. DEFINITIONS 4. FUNDAMENTALS 5. POLICY/STRATEGY 6. ORGANISATION 7. PROCESS Local Government Procurement Annual Conference, 18 November 2016

41 1. SCOPE Sustainable Procurement at the top of the organisation 2. NORMATIVE REF. 3. DEFINITIONS 4. FUNDAMENTALS ORGANISATION S OBJECTIVES AND GOALS including on Sustainability / Social Responsibility ORGANISATION S PROCUREMENT CONTEXT including the supply chain and procurement practices 5. POLICY/STRATEGY 6. ORGANISATION 7. PROCESS SUSTAINABLE PROCUREMENT POLICY AND STRATEGY including how it will be implemented Local Government Procurement Annual Conference, 18 November 2016

42 1. SCOPE 2. NORMATIVE REF. 3. DEFINITIONS 6.1 GOVERNING PROCUREMENT 6.2 ENABLING PEOPLE 6.3 IDENTIFYING AND ENGAGING STAKEHOLDERS 4. FUNDAMENTALS 5. POLICY/STRATEGY 6. ORGANISATION 6.4 SETTING SP PRIORITIES 6.5 MEASURING & IMPROVING PERFORMANCE 6.6 ESTABLISHING A GRIEVANCE MECHANISM 7. PROCESS Local Government Procurement Annual Conference, 18 November 2016

43 1. SCOPE 2. NORMATIVE REF. 3. DEFINITIONS Integrating sustainability into the comprehensive procurement process 7.2 PLANNING Preparing a sustainable sourcing strategy 4. FUNDAMENTALS 5. POLICY/STRATEGY 7.6 REVIEWING AND LEARNING FROM THE CONTRACT 7.3 INTEGRATING SUSTAINABILITY REQUIREMENTS IN THE SPECIFICATIONS 6. ORGANISATION 7. PROCESS 7.5 MANAGING THE CONTRACT Contract management plan, supplier relationship and performance 7.4 SELECTING SUPPLIERS Prequalification, tender, evaluation, negotiation, contract award Local Government Procurement Annual Conference, 18 November 2016

44 ISO SUSTAINABLE PROCUREMENT TCO savings Innovation Managed risks Impact on society Local Government Procurement Annual Conference, 18 November 2016

45 THANK YOU