Helsinki UN Business Seminar

1. Sustainable Procurement at UNOPS
Despoina Kouria,
Sustainability analyst, UNOPS
Helsinki Business Seminar
Thursday 07 May 2015

2. Agenda
2
1 Introduction to sustainable procurement
2 UN and sustainable procurement
Sustainable procurement at UNOPS3
AGENDA-

3. 1
Introduction to sustainable procurement

4. In order to understand sustainable procurement it is important to
understand first Sustainable Development and its main triggers
Decent
work deficit
Pollution
and GHG
emissions
Overexploitation
of natural
resources
*Source: World Commission on Environment and Development’s
(the Brundtland Commission) report Our Common Future, 1987
Sustainable Development can be defined that meets the needs of the
present without compromising the ability of future generations
to meet their own needs*.
Main triggers of Sustainable Development:
Global
population
growth
INTRODUCTION TO SUSTAINABLE PROCUREMENT1

5. SP is not a stand alone practice: it seeks resource efficiency, improves
quality of products and optimizes costs, therefore it is good procurement
Sustainable Procurement (SP) is the practice of
integrating requirements, specifications and
criteria that are compatible with and in favor of
• the environment,
• social progress
• the support of economic development
primarily by seeking
• resource efficiency,
• improving the quality of products, and
• ultimately optimizing costs
therefore,
Sustainable Procurement is good Procurement!
INTRODUCTION TO SUSTAINABLE PROCUREMENT1
The Triple Bottom Line of
Sustainable Development

6. Sustainable procurement refers to 3 main factors: economic, social and
environmental, i.e. it goes beyond ‘green procurement’
Economic
• Best value for
money (price,
quality, availability,
functionality,
innovation)
• Life Cycle Costing
• Economic
development
• Employment
• Good governance
Social
• Human
development
• Education
• Human and labour
rights
• Reduction of
poverty and
inequality
• Security
• Social inclusion
• Promotion of SMEs
Environmental
• Preservation of
natural resources,
ecosystems and
biodiversity
• Reduction of
ecological footprint,
• Reduction of GHG
emissions
• Waste management
Photo: UN Photo/Eskinder DebebePhoto: UNOPS
INTRODUCTION TO SUSTAINABLE PROCUREMENT1

7. Sustainable Procurement can be an effective mechanism to further
economic, social and environmental development
• Government bodies, international organizations and the public sector have an
opportunity through their collective and substantial purchasing power to
leverage markets to produce more sustainable goods and services
• Properly applied, SP is an effective mechanism to further the economic,
social and environmental development, i.e. to achieve policy goals
• It can therefore have a multiplying effect
Sustainability
GOALS
Private
sectorConsumers
Public
sector
INTRODUCTION TO SUSTAINABLE PROCUREMENT1

8. Systematic approach to SP with sustainability interventions incorporated
throughout the entire procurement process
Some examples of SP integration:
1
1) Planning
• Assess sustainability impacts of the procurement
• Consider using a “sustainable title” for the process
Sourcing
Evaluation
Logistics
Contract Management
Planning
Requirements definition
Bid receipt and opening
Contract finalization and
issuance
Procurement process
Solicitation
Review and award
Pre-purchasingPurchasingPost-purchasing
2
2) Requirements definition
• Use relevant technical standards and
environmental labels
• Use performance and functional specifications
3
3) Sourcing
• Research the market for sustainable products
• Pre-qualify suppliers that minimize sustainability
risks
4
4) Solicitation
• Include pre-determined sustainability evaluation
criteria
• Include life-cycle costs considerations
5) Contract management
• Work with suppliers to improve sustainability
performance
• Include contract performance clauses furthering
sustainability
5
INTRODUCTION TO SUSTAINABLE PROCUREMENT1

9. Sustainability and procurement principles
9
INTRODUCTION TO SUSTAINABLE PROCUREMENT1
• Includes environmental
and social considerations
• Reduced energy and
resource consumption
throughout the life-cycle
results in greater
efficiencies and long-term
cost savings
Best value for money
• Essential to sustainable
procurement
• Right of access to the UN
market for suppliers from
developing countries and
countries with economies in
transition
Effective competition
• Integrated sustainability criteria early
in the process helps uphold these
criteria
Fairness, integrity and
transparency
• SP ensures economy and
efficiency
• SP reduces reputational risks
resulting from adverse publicity
which would have a negative impact
on UNOPS reputation and image
Best interest of the organization
and its clients

10. 2
UN and sustainable procurement

11. Sustainable Procurement is gaining more and more ground within
the UN system
• On 5th June 2007 UN Secretary General Ban Ki-moon
publically called on all UN agencies, funds and
programmes to become climate neutral and "go green".
• As a response, the UN among other actions in becoming
more sustainable, are embarking more and more on
sustainable procurement.
The mission of the UNEP SUN
team is to enable the UN and
other public organisations to
achieve climate neutrality and
sustainability by 2020.
UN AND SUSTAINABLE PROCUREMENT2

12. 12

13. What is changing: business practices
• Growing number of UN / international organisations having official
SP policies: UNOPS; UNDP; UNFCCC; UNFPA; World Bank; AfDB: ADB;
European Union, IADB.
• More organisations (both in developed and developing countries) include
now sustainability criteria in tenders with an angle on resources
efficiencies
• Organisations progressing on EMS: UNU has a certified EMS. UNOPS
(ISO 14001 for infrastructure projects).FAO,WFP, World Bank, WHO are
working on an EMS
• Buildings being restored or built with sustainability in mind : New
York and Geneva(UN), Nairobi (UNEP), Panama-Hanoi-Copenhagen
(Shared UN houses), Rome (IFAD), Uganda Regional Support Center
(DFS)
13
UN AND SUSTAINABLE PROCUREMENT2

14. Case study: UNFPA
14
• 2010: UNFPA proposed an ISO standard for environmentally friendly production of male
condoms
• 2013: male condom LTA included optional environmental criteria
 ISO14001, wastewater treatment, air pollution, energy saving
 Packaging: recycled materials, biodegradable
 The criteria presented progressively stronger environmental requirements over the
course of the LTA
Although optional, nearly all
suppliers provided
information and commitment
on the environmental criteria
Shows the value of
communication and
sensitizing the market
UN AND SUSTAINABLE PROCUREMENT2

15. UN are strongly encouraging suppliers to support the
UN Global Compact
LABOUR RIGHTSHUMAN RIGHTS ENVIRONMENT ANTI-CORRUPTION
The Ten Principles
Principle 3: Businesses
should uphold the freedom of
association and the effective
recognition of the right to
collective bargaining;
Principle 4: the elimination of
all forms of forced and
compulsory labour;
Principle 5: the effective
abolition of child labour; and
Principle 6: the elimination of
discrimination in respect of
employment and occupation.
Principle 1:
Businesses should
support and respect
the protection of
internationally
proclaimed human
rights; and
Principle 2: make sure
that they are not
complicit in human
rights abuses.
Principle 7: Businesses
should support a
precautionary approach
to environmental
challenges;
Principle 8: undertake
initiatives to promote
greater environmental
responsibility; and
Principle 9: encourage
the development and
diffusion of
environmentally friendly
technologies.
Principle 10: Businesses
should work against
corruption in all its
forms, including
extortion and bribery.
The UN Global Compact is a framework of businesses that are committed to
aligning their operations/strategies with 10 principles
UN AND SUSTAINABLE PROCUREMENT2

16. Information on Sustainable Procurement, including tools and resources
can be found at “Greening the Blue” and UNGM websites
16
Greening the Blue
launched in 2010 ;
www.greeningtheblue.org
UNGM page on
sustainable procurement;
https://www.ungm.org/Public/Knowledge
Centre/SustainableProcurement
UN AND SUSTAINABLE PROCUREMENT2

17. 3
Sustainable procurement at UNOPS

18. UNOPS is a central resource for the United Nations system in
procurement and contract management
UNOPS helps its partners…
Build schools, roads,
bridges, hospitals,
prisons and police
stations
Manage funds and
administer small grants
Procure goods
ranging from vehicles
to medical supplies
Train teachers, journalists,
health workers and
government officials and
organize mass education
efforts for elections and
disaster preparedness
SUSTAINABLE PROCUREMENT AT UNOPS3
UNOPS vision is to advance sustainable implementation practices in development,
humanitarian and peacebuilding contexts.

19. Countries with UNOPS activities Project size
1000 projects in 80+ countries UNOPS is widely certified
UNOPS acts as a service provider to a variety of partners, from UN bodies to
private sector organizations across 80 countries
SUSTAINABLE PROCUREMENT AT UNOPS3

20. Key results achieved in 2013
48%
of projects worked on developing national
capacity
30%of projects worked on improving
environmental sustainability
SUSTAINABLE PROCUREMENT AT UNOPS3

21. Sustainable procurement is one of the new frontiers
21
UNOPS PROJECTS
CREATE SUSTAINABLE RESULTS
Economic Social Environmental
SUSTAINABLE PROCUREMENT AT UNOPS3

22. Environmental
management
UNOPS is a actively engaging in Sustainable Procurement
$749
million
worth of goods
and services
Pharmaceuticals
Construction
and engineering
Source: UN Annual
Statistical Report
Vehicles
and parts
Lab
equipment
and medical
devices
An integrated vision for sustainability
and procurement
Considerations
• Fit for purpose
• Carbon emissions
• Resource conservation
• LEED designs
• Life cycle costs
• Supplier diversity
• Youth employment
• Local skills development
• Knowledge transfer
• Waste management
• National capacity
• …
SUSTAINABLE PROCUREMENT AT UNOPS3

23. CAMP MANAGEMENT AND ASSOCIATED SERVICES
FOR UNMAS SOMALIA | GPSO PSC SOMALIA
Case overview
• Type of procurement: Services
• Solicitation method: Request for Proposal (RFP)
• Procurement value: $ 26,882,753 USD
• Timeframe: May 2014
Sustainability in the procurement cycle
Procurement objective
• Implementation of a waste management plan
• Use of energy-efficient equipment
• Local sourcing of bottled water and produce
• No polystyrene in food packaging
• Regular environmental, health and safety (EHS)
training for cleaners
• Aerobically readily biodegradable cleaning
products
• Employment of females in the workforce
Requirements
definition
Objective: provide camp management
and associated services in 4 locations in
Somalia that house and support UNMAS
personnel and contractors.
Needs: catering; basic medical services;
laundry; cleaning; basic furnishing of
rooms and offices; maintenance of
vehicles; basic construction works to
improve the functioning of each camp;
and 24/7 security.
SOMALIA
7/80 total points (9%) of technical evaluation criteria
awarded to sustainability:
• Organizational commitment to the UN Global
Compact, Global Reporting Initiative, or
equivalent (1pt)
• Approach to ensuring a socially and
environmentally sustainable implementation of
the Terms of Reference (TOR) (3pts)
• Work plan addressing sustainability as per TOR
(2pts)
• Personnel at all levels is composed of at least
20% qualified females (1pt)
Evaluation
Verification of the sustainability evaluation criteria
included:
• Ensuring the separation of waste
• Use of alternative food packaging materials
• Provision of the EHS training schedule
• Checking of cleaning products’ labels
Contract
management
Results and impact
The winning bidder’s sustainability initiatives include:
• procuring bottled water and fresh produce locally, reducing transport-
related emissions and contributing to local development;
• gender mainstreaming through the employment of females;
• using paper-based food packaging materials and cleaning products,
reducing harmful environmental impacts upon disposal; and
• providing regular EHS training for cleaners, developing local capacity
UNOPS/Senthil Kumar Subramani
UNOPS/Senthil Kumar Subramani
SUSTAINABLE PROCUREMENT AT UNOPS3

24. INTEGRATED CLEARANCE TEAMS | GPSO PSC
MINE ACTION IN SUPPORT OF UNISFA
Case overview
• Type of procurement: Services
• Solicitation method: Request for Proposal (RFP)
• Procurement value: $ 1,100,000 USD
• Timeframe: May 2014
Sustainability in the procurement cycle
Procurement objective
• Adherence to the principles of the United Nations
Global Compact
• Description of the steps undertaken to promote
gender mainstreaming in operations, such as
steps to include obtaining information and views
from women, girls, boys, and men in survey and
clearance activities
• Capability of liaising with local communities
• Employment of local personnel
Requirements
definition
Objective: provide two Integrated
Clearance Teams (ICTs) to deploy along
the Sudan / South Sudan border and the
Safe Demilitarised Border Zone in
support of the United Nations Interim
Security Force for Abyei (UNISFA).
Needs: ICTs with the ability to separate;
operate independently; join to form a
larger capacity where necessary; employ
Sudanese Staff and operate in Sudan;
and employ South Sudanese staff and
operate in South Sudan.
SOUTH SUDAN
9/100 total points (9%) of technical evaluation
criteria awarded to sustainability:
• 5 points to be awarded on the quality of the
bidders’ statement on sustainable and sound
environmental practices (eg. use of renewable
energy; water management; oil and tyre
disposal): sustainability (2pts), environment
(2pts), and innovation (1pt)
• Demonstration of the integration of gender
mainstreaming in the project’s approach and
attention to gender balance with the inclusion of
two or more female staff (outside domestic or
cleaning duties) in the team was required (4pts)
EvaluationResults and impact
The winning bidder’s sustainability initiatives include:
• re-treading used tyres or reusing them for other purposes, eliminating
environmental and health hazards from toxic pollutants from burning;
• safely storing used oil, reducing spills and leaches into the environment;
• separating biodegradable and non-biodegradable waste, reducing
harmful environmental impacts upon disposal; and
• providing community Mine Risk Education, developing local capacity
and advancing health and safety practices
UN Photo/Tobin Jones
UN Photo/Martine Perret
SUDAN
SUSTAINABLE PROCUREMENT AT UNOPS3

25. HOUSING & URBAN REHABILITATION AND SOLAR
STREET LAMPS INSTALLATION | LCO HTOC HAITI
Case overview
• Type of procurement: Goods, services and works
• Solicitation method: Request for Proposal (RFP), Invitation to Bid (ITB),
and Request for Quotation (RFQ)
• Procurement value: 1) $ 385,585 USD; 2) $ 478,500 USD
• Timeframe: 1) April 2013; 2) May 2014
Sustainability in the procurement cycle
Procurement objective
1) Housing & urban rehabilitation:
• Market research for sustainable construction
materials
• Community needs assessment
Procurement
planning
Objective: 1) Provide sustainable housing
solutions and improved living conditions
through better access to services basic and
income-generating activities; 2) provide
infrastructure support services to install solar
powered lighting to reduce community
violence.
Needs: 1) Site preparation incl. construction
of houses, retaining walls, and drainage; 2)
installation of street light poles, lamp arms,
solar panels, lighting, smart controllers,
batteries, and an advertisement plaque.
HAITI
1) Housing & urban rehabilitation:
RFP: 30/100 total points (30%) of technical evaluation
criteria awarded to sustainability:
• Capacity to promote the local economy by sourcing
construction materials (blocks, cement, sand, gravel)
from small entrepreneurs in the 6 local communities
(30pts)
Evaluation
Results and impact
• By using renewable solar energy and LED lighting, the project minimized
greenhouse gas emissions;
• By sourcing locally available, renewable construction materials such as
bamboo, as well as blocks, cement, sand and gravel from small local
entrepreneurs, the project reduced transport-related emissions and
promoted local economic growth;
• Employing youth, the local population and women in the contractor’s
workforce also promoted local economic growth and gender mainstreaming;
• Training suppliers in the local language enhanced local capacity.
UNOPS/Claude-Andre Nadon
UNOPS/Claude-Andre Nadon
1) Housing & urban rehabilitation:
• Local sourcing of bamboo
• 75% of contractor personnel to be locally recruited
• Contractor’s Health and Safety plan
• Contractor’s Environmental Management System
2) Solar street lamps installation:
• Solar panels for power
• LED lighting
• Unskilled workers:
- must be at least 18 years of age
- must be between 18-26 years (more than 26
should prove to be economically vulnerable)
- at least 95% must be locally recruited
- at least 30% of local workers must be women
Requirements
definition
1) Housing & urban rehabilitation:
• Local suppliers received training in Haitian Creole,
the local language, on how to respond to the sourcing
requirements, including sustainability requirements
Solicitation
SUSTAINABLE PROCUREMENT AT UNOPS3

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Thank you!
Despoina Kouria
Sustainability Analyst
Procurement Practice, UNOPS
DespoinaK@unops.org