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Sustainable procurement - An Introduction



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This presentation aims at introducing sustainable procurement - making sure that the products and services an organisation buys achieve value for money and generate benefits not only for the organisation, but also for the environment, society and the economy.

Presented by Christine Storry - PIPEN Project Manager

Sustainable procurement - An Introduction

  1. 1. Sustainable Procurement: An Introduction Presented by Christine Storry – PIPEN Project Manager South West England
  2. 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. 3. Sustainable Procurement Social Workers’ rights Ethical issues Fair pay Economic Local economy Life cycle costs Employment Environmental Air quality Water use Energy
  4. 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. 5. What you could lose if you don’t Making cost savings Reputation Chance for innovation Procuring better
  6. 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. 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. 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. 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. 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. 11. © 2017, UWE Bristol South West England