It pays to be well informed

Sustainable Procurement – A brief overview by Charles Burt

1. Some key questions2. HMG’s current position on Sustainable Development3. The UK’s carbon agenda4. HMG’s current Sustainable Procurement position5. What the primes are doing6. Where next?

A. Current good practiceB. Planning aheadC. What to watch, where to go?

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What do these mean to you?:1. The Stern Report to HMT (2006) & Climate Change Act

(2008)?2. Low Carbon Transition Plan & Low Carbon Industrial Strategy3. Procuring the Future & the Flexible Framework?4. Standards - ISO 14001:2004? BS 8903?5. Public Sector Sustainable Procurement Strategy(ies) e.g.

MOD’s voluntary Charter?6. Through Life Costing & the CADMID cycle (or equivalents)?7. “Capability” and Through Life Management Plans?8. Environmental “significance”?9. Carbon sensitivity, foot-printing, PAS 2050 etc?10. Supply chain carbon, finite resources, & price risks?11. UK and EU Green Public Procurement policy?12. The Environmental & Social questions in PQQs and ITTs?

It pays to be well informed3

“Sustainable Procurement”

Task Force’s definition:“Sustainable Procurement is a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment.”

“using procurement to support wider social, economic and environmental objectives, in ways that offer real long-term benefits…”

Sir Neville Simms, 2006Chair, Sustainable Procurement Task Force

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The core principles of Sustainable Procurement:

Source: IDEA

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Understand your market’s priorities• Is what you are selling environmentally sensitive, e.g.

Carbon or finite resource intensive?• How public sector focused are you?• Can you respond to emerging Public Sector Sustainable

Procurement Policy?• Are rising fuel cost a potential risk to competiveness?• Are there renewable or more sustainable alternatives?• What are the client’s position, policy and plans?• Where are you in the supply chain?• What metrics apply?• Are there life-cycle issues to anticipate?

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Understand the sensitivities above and below you....

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Quantify environmental values and risks and have policies to respond to them

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Foundation Embed Practice Enhance Lead

Level 1 Level 2 Level 3 Level 4 Level 5

People

Policy, Strategy & Communicati

ons

Procurement Process

Engaging Suppliers

Measurement and Results

Assessed by the Flexible Framework

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“Whole of life costs”• “Value for money” to include “whole of life costs” – e.g.

the MoD’s CADMID cycle:

– Concept– Assessment– Demonstration– Manufacture– In-service– Disposal

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Why do it?

• The client wants it• It adds value• Risk management• It offers competitive advantage• It drives innovation (we didn’t come out of the stone

age because we ran out of stones!)• Cost control/savings• Your future success• Its not difficult• Your competitors are doing it....

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Thank you

Charles Burt

The Olive Consultancy

www.consultolive.com