sustainability makes dollars and sense: sustainable purchasing 101 april 8, 2015
TRANSCRIPT
Sustainability Makes Dollars and Sense:Sustainable Purchasing 101
April 8, 2015
Agenda
1. Presenter Introductions
2. Quick Audience Poll
3. Overview: Understanding Sustainable Purchasing and Its Impact
4. Overview: Guidance for Leadership in Sustainable Purchasing v1.0
5. Case Study: District of Columbia Office of Contracting and Procurement
6. Q&A
2
Presenters
3
Christina MackenSustainable Purchasing Leadership Council
Jonathan RifkinDistrict of ColumbiaOffice of Contracting and Procurement
Patty RoseSmarter DC Challenge
4
Time for a Quick Poll!
Are you participating in the Smarter DC Challenge?
5
6Analysis by TRUTHstudio based on US Bureau of Economic Analysis 2011 Summary Use Annual I-O Table
Opportunity: Institutional purchasing shapes markets.
7
Opportunity: Institutional purchasers shapes markets.
8
“ Our acquisition of goods and services creates a carbon footprint nine times that of our buildings and fleet, put together.”
Dan TangherliniAdministratorUS General Services Administration
DEFORESTATION
SWEATSHOPS
DISCRIMINATION
OVERFISHING
9
Challenge: Lack of coordination.
10
$
$
$ $
$
$
$
$
$
$$
$
11
Root Challenge
12
The lack of standardization in
how sustainable purchasing
is defined, guided, measured,
and rewarded.
13
Could we collaborate tolaunch a shared program for guiding, measuring, and recognizing leadership in sustainable purchasing?
14
15
: purchasing : : : construction
Create a common…
• Definition of leadership in sustainable purchasing
• Language for sharing across sectors and regions
• Guidance and training program
• Framework for differentiating credible standards/labels
• Self-assessment and benchmarking tool
• Leadership recognition program
16
: purchasing : : : construction
Create a common…
Definition of leadership in sustainable purchasing
Language for sharing across sectors and regions
Guidance and training program
Framework for differentiating credible standards/labels
Self-assessment and benchmarking tool
Leadership recognition program
20
Chapter 2. Create the Program
21
Sample Page
Note that separation of instruction, examples and guidance eases skim reading.
22
Sample Page
Note high-level instructions accompanied by situational tips.
23
24
Chapter 3. Run the Program
25
Run a Sustainable Purchasing Program
Strategy Cycles provide a flexible process for a group of key stakeholders collaborate to:
• understand opportunities for improvement;
• prioritize strategies for addressing them;
• commit to specific strategic actions;
• implement those actions; and
• measure the results over time.
26
Strategy Cycle Phases
27
Strategy Cycle Phases
28
Strategy Cycle Phases
29
Strategy Cycle Phases
30
Strategy Cycle Phases
31
Strategy Cycle Phases
32
33
Chapter 4. Category Guidance
34
Time for a Quick Poll!
What purchasing categories are important to you when it comes to sustainability?
35
Purchasing Categories
36
Approach to Purchasing Guidance
The Purchasing Category Guidance provides the following:
• clusters of significant environmental, social, and economic
impacts;
• best available actions to address the identified impacts;
• external and organizational benefits
• anticipated challenges
• metrics and indicators that teams can use
to track progress
• policy and specification language
and resources to assist in implementing
the proposed actions, and
• undecided issues
37
Approach to Purchasing Guidance
Why use the Purchasing Category Guidance?
• Provides reliable information consistent with how a cross-functional team operates within the context of this guide.
• Can expedite the Strategy Planning process outlined in Chapter 3
Guidance v1.0 Pilot Program
Why participate?
• contribute and offer improvements to program• early access to education• collaboration with other participants• obtain assistance from SPLC• public acknowledgement
38
39
Pilot Program Online Community
www.sustainablepurchasing.org/pilot
40
Interested?
www.sustainablepurchasing.org/summit41
Summit workshops will feature Guidance-based training, case study
presentations, and peer-to-peer dialogue.
DCSustainable Purchasing
The DC Story…• Jurisdiction meets Earth.• Jurisdiction falls in love with Earth.• Jurisdiction wants to make a commitment to Earth.
Challenges to Integrating Sustainability
Challenges:1. Lack of consistency defining what
makes a product sustainable.2. Policies, e-procurement systems, and
standard operating procedures do not require consideration of sustainable factors.
3. High-level shortcomings described in items 1 & 2, make training and tracking exceptionally difficult.
We’ve been busy…OCP received grant from Mayor’s office to address these challenges.• New Policy• Improved PASS Tracking
Capabilities.• Consulted Vendor
Community• Worked with Programs• Reviewed Best Practices• Hired Consultant• New Sustainable Webpage• Developed Sustainable
Specifications in key product and service areas.
New Sustainable Specification Guidance
• Imaging Equipment• Janitorial Services• Landscaping Services• Office Supplies• Paper• Printing Services• Toner
• Appliances• Automotive Fleet• Automotive Products• Cleaning Supplies• Computers & Monitors• Food Services• Furniture
Sustainable specifications available for 100 unique products and services across 14 categories.
Prioritization of Product Categories
• Established a set of criteria to evaluate each product category Current spending patterns Other jurisdictions Cost-effectiveness Complexity of developing specifications Connections to Sustainable DC Plan Current DC legal landscape
Prioritization of Product Categories• Developed a matrix to assess product and
service categories against criteria• Inform prioritization of the categories for
specification development
Building the Sustainable Specification
Current DC Practices
Vendor Input
Other Jurisdictions
Programmatic Input
Sustainable SOW Development
Prioritized Product & Service Categories
Got Credibility?
BIG TENT ENSURES SUCCESS!• 30 focus group meetings with
appx. 75 program managers/contract administrators.
• 40 consultations with most prominent small and local vendors.
• 200 contracts from other jurisdictions already implementing EPPS reviewed.
• Completed ad hoc market research and price comparisons to ensure availability and get a feel for price variance.
Got Credibility?Held Inter-Agency Sustainable Purchasing Kick-Off Meeting• Director Buy-in established.• Explained goals, game plan, and
expectations.• Referenced existing framework and
authority for taking action.
Specification Guidance Document Overview
Scope Background Information
Significance to the District
Environmental Hotspots
Specification LanguageBenefits
End-User SupportMeet systems and people where they are.
Pre-Populated Solicitation Guidance
• SOW Guidance• Small Purchase Attachment• Request for Quote Templates• Contractor Reporting
Templates
End-User SupportCustomer Service Solutions
User Guide (Desk Aid) Product Focused Webinars Ongoing Consult Services Proactive Solicitation
Reviews
Institutionalize Your Program
Training -- Trainings being provided to all procurement stakeholders, and given under authority of established training structure.
Policy – New policy requiring consideration and tracking of EPPS.
E-Procurement SOPs-- Established new environmental fields in e-procurement system, that directly correlate to SPP activity.
Indicate “Yes” in the EPPS Indicator if utilizing an EPPS
specification.
Choose EPPS Office Supplies from drop
down menu and provide appropriate
category
For more information about the EPPS
program click here.
Tracking Sustainable Spend
If Program opts not to use the EPPS SOW they must indicate reason:• Cost• Performance• Unable to find EPPS• Not Applicable
Tracking Sustainable Spend
Accessing DC Resources
www.ocp.dc.gov
Click on Opportunities and Support, and link
to “Sustainable Purchasing.”
59
Access sustainable purchasing
guidance and support
documents.
60
Access sustainable purchasing
guidance and support
documents.
61
Staying in Touch
PM - Purchasing
BeginnerIntermediat
e
ID Action Points
P-1 Conduct and maintain a purchasing inventory of services & products
x 200
P-2 Increase the % of green purchases to 25, 50, 75 or 100%
x 150
P-3 Develop a plan for improving performance on an annual basis.
x 200
P-4 Buy locally whenever possible (local businesses, 500 miles radius or less)
x 50
P-5 Use environmentally friendly, third-party certified cleaning products in the bathroom and kitchen (where available)
x 100
P-6 Use custodial service that is third-party certified as eco-friendly
x 100
ID Action Points
P-1 Conduct and maintain a purchasing inventory of products & services
x 200
P-2Conduct or procure a green purchasing assessment to obtain a baseline and identify the most critical areas for improvement
x 200
P-3 Increase the % of green purchases to 25, 50, 75 or 100%
x 150
P-4 Develop a plan for improving performance on an annual basis.
x 200
P-5 Replace equipment with new or used ENERGY STAR qualified products when due
x 100
P-6Use eco-friendly paper products for business and facilities (FSC-certified, post-consumer recycled, chlorine-free)
x 50
P-7Provide reusable dishware and select cateresr that do the same and serve family style
x 100
P-8Purchase EPEAT (Electronic Product Environmental Assessment Tool) certified products (Silver/Gold)
x 50
P-9 Inform your suppliers about green business efforts
x 50
P-10 Purchase from suppliers that provide eco-friendly products and services
x 50
P-11Use environmentally friendly, third-party certified cleaning products in cleaning other parts of the building
x 100
P-12 Use custodial service that is third-party certified as eco-friendly
x 100
P-13Enter into a Green Lease with your property manager when renegotiating or moving into a new space
x 300
O - Purchasing
Beg
inn
er
Inte
rmed
iate
Contact Us
72
Christina MackenSustainable Purchasing Leadership [email protected] 202-607-2600 x301
Jonathan RifkinDistrict of ColumbiaOffice of Contracting and [email protected]
Patty RoseSmarter DC [email protected]