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Sustainable Procurement:
An Introduction
Presented by
Christine Storry – PIPEN Project Manager
South West England
Key definition themes
Meeting
organisational
and purchasing
needs
Whole life
cost basis
Benefitting:
Society
Environment
Economy
Minimising
environmental
impact
Balance of
social,
economic and
environmental
issues
Sustainable Procurement
Social
Workers’ rights
Ethical issues
Fair pay
Economic
Local economy
Life cycle costs
Employment
Environmental
Air quality
Water use
Energy
What happens if you don’t
procure sustainably?
The world won’t fall apart but…
• Rather than being part of the solution
• Could be conflicting with the
organisation’s policies, eg on air quality
• Could be encouraging or endorsing bad
practice, eg paying low wages, using
harmful chemicals
• Procuring goods that waste resources –
including the organisation’s resources
(eg, human and financial)
You’re contributing to
the problem
What you could lose if you
don’t
Making
cost
savings
Reputation
Chance for
innovation
Procuring
better
What you could gain if
you do
Economic
• Cost
efficiencies
• Use of SME
suppliers
• Contribution
to local
economy
• Innovative
contracts
Social
• Improved
workers’
rights
• Local
employment
• Fairly +
ethically
produced
goods
• Reputation
Environmental
• Reducing
resource
wastage
• Reducing
emissions
• Reducing
consumption
Myths
#1 - SP always drives up costs
 No – it doesn’t; can save costs
• Define need properly
• Use life cycle costing
#2 – SP isn’t allowed under the EU Directive
 It is allowed but
• must relate to the subject matter of the
contract; cannot be arbitrary
#3 – SP always takes longer
 Not necessarily
• Use tried and test tools and standards
• Early market engagement is crucial
Barriers
• Risk aversion
– Lack of sustainability understanding
– Unsure of the legal issues
– Assumed to be too complex
– Organisational culture
• The market
– Need to understand what procurers
want
– Un/willingness to engage with the
market
– Adapting to what the market can
provide (often an enhanced offer)
Embedding SP
Part of the Procurement Process
Championed by senior
management/politician
Develop a
Sustainable
Procurement
Policy
Link into existing
policies
Needs
commitment –
not lip service
Know what is
important to the
organisation
SP meets Social Value
Both address the same three issues, but
•Sustainable Procurement
– SP takes a wider, often global, approach
but also targets local issues
– SP can have more reach – eg,
addressing labour conditions in long
supply chains
•Social Value
– Social Value is localised (ie, ‘relevant
area’)
– Social Value often addresses a specific
concern – eg, creating apprenticeships
© 2017, UWE Bristol
www.uwe.ac.uk
South West England
Sustainable procurement - An Introduction

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Sustainable procurement - An Introduction

  • 1. Sustainable Procurement: An Introduction Presented by Christine Storry – PIPEN Project Manager South West England
  • 2. Key definition themes Meeting organisational and purchasing needs Whole life cost basis Benefitting: Society Environment Economy Minimising environmental impact Balance of social, economic and environmental issues
  • 3. Sustainable Procurement Social Workers’ rights Ethical issues Fair pay Economic Local economy Life cycle costs Employment Environmental Air quality Water use Energy
  • 4. What happens if you don’t procure sustainably? The world won’t fall apart but… • Rather than being part of the solution • Could be conflicting with the organisation’s policies, eg on air quality • Could be encouraging or endorsing bad practice, eg paying low wages, using harmful chemicals • Procuring goods that waste resources – including the organisation’s resources (eg, human and financial) You’re contributing to the problem
  • 5. What you could lose if you don’t Making cost savings Reputation Chance for innovation Procuring better
  • 6. What you could gain if you do Economic • Cost efficiencies • Use of SME suppliers • Contribution to local economy • Innovative contracts Social • Improved workers’ rights • Local employment • Fairly + ethically produced goods • Reputation Environmental • Reducing resource wastage • Reducing emissions • Reducing consumption
  • 7. Myths #1 - SP always drives up costs  No – it doesn’t; can save costs • Define need properly • Use life cycle costing #2 – SP isn’t allowed under the EU Directive  It is allowed but • must relate to the subject matter of the contract; cannot be arbitrary #3 – SP always takes longer  Not necessarily • Use tried and test tools and standards • Early market engagement is crucial
  • 8. Barriers • Risk aversion – Lack of sustainability understanding – Unsure of the legal issues – Assumed to be too complex – Organisational culture • The market – Need to understand what procurers want – Un/willingness to engage with the market – Adapting to what the market can provide (often an enhanced offer)
  • 9. Embedding SP Part of the Procurement Process Championed by senior management/politician Develop a Sustainable Procurement Policy Link into existing policies Needs commitment – not lip service Know what is important to the organisation
  • 10. SP meets Social Value Both address the same three issues, but •Sustainable Procurement – SP takes a wider, often global, approach but also targets local issues – SP can have more reach – eg, addressing labour conditions in long supply chains •Social Value – Social Value is localised (ie, ‘relevant area’) – Social Value often addresses a specific concern – eg, creating apprenticeships
  • 11. © 2017, UWE Bristol www.uwe.ac.uk South West England