1. Sustainable Procurement – A brief overview by Charles Burt Some key questions HMG’s current position on Sustainable Development The UK’s carbon agenda HMG’s current Sustainable Procurement position What the primes are doing Where next? Current good practice Planning ahead What to watch, where to go?

2. What do these mean to you?: The Stern Report to HMT (2006) & Climate Change Act (2008)? Low Carbon Transition Plan & Low Carbon Industrial Strategy Procuring the Future & the Flexible Framework? Standards - ISO 14001:2004? BS 8903? Public Sector Sustainable Procurement Strategy(ies) e.g. MOD’s voluntary Charter? Through Life Costing & the CADMID cycle (or equivalents)? “Capability” and Through Life Management Plans? Environmental “significance”? Carbon sensitivity, foot-printing, PAS 2050 etc? Supply chain carbon, finite resources, & price risks? UK and EU Green Public Procurement policy? The Environmental & Social questions in PQQs and ITTs?

3. “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, 2006 Chair, Sustainable Procurement Task Force 3

4. The core principles of Sustainable Procurement: Source: IDEA

5. 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?

6. Understand the sensitivities above and below you....

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

8. Assessed by the Flexible Framework

9. “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

10. 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....

11. Thank you Charles Burt The Olive Consultancy www.consultolive.com