Sustainable Procurement

2. Sustainable Procurement Myths & Legends www.actionsustainability.com

3. Shaun McCarthy Director www.actionsustainability.com Chair www.cslondon.org

4. What – Sustainability…? • “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs” • Brundtland Definition

5. What – Sustainability? • Living within environmental limits • 1.8 Global hectares per capita • 2 Tonnes CO2 per capita per year • Living in an equal world • Gini coefficient 0.25 to 0.35 • Ratio of most advantaged to least advantaged

6. Inter-Governmental Panel on Climate Change • CO2 levels highest for 650,000 years • Climate change “unequivocally” happening • Global temperature will rise between 1.8oC and 4oC in the next century, worst case 6.4oC • In the worst case, Trafalgar Square would be under water

7. Stern Report

8. Stern Report

9. Stern Report

10. Stern Report

11. The challenge Source www.nationmaster.com/index.php

12. It’s not just about carbon…! • Resources • If the whole world lived like Western Europe we would need 3 planets resources to sustain life • Inequality • 25% of London’s Black Caribbean community is unemployed compared to 2.5% of the Indian community • 25% of the UK population has a physical or mental disability • 3.8M children were living in poverty in the UK in 2005/6 • Health • UK childhood obesity is increasing at the same rate as the USA, we are breeding a generation that will have a shorter life expectancy than their parents • Average male life expectancy in Tower Hamlets is 7 years shorter than Kensington • Waste • Landfill capacity is likely to be non-existent within 7 years

13. Sustainable Procurement “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 to society and the economy, whilst minimising damage to the environment”. Footnote: Sustainable Procurement should consider the environmental, social and economic consequences of: Design; non-renewable material use; manufacture and production methods; logistics; service delivery; use; operation; maintenance; reuse; recycling options; disposal; and suppliers' capabilities to address these consequences throughout the supply chain.” Procuring the Future – June 2006

14. The challenge – to purchasers “Using procurement to support wider social, economic and environmental objectives, in ways that offer real long-term benefits”. Sir Neville Simms Chairman Sustainable Procurement Task Force

15. Good Practice • Flexible Framework www.actionsustainability.com/evaluation/

16. Myths…

17. Myths… Which has the bigger carbon footprint…?

18. Myths… Which has the bigger carbon footprint…? 14 Feb From Kenya From Holland

19. Myths… • How big is theirs…?

20. Myths… • How big is his…?

21. Myths… • How big is his…? • What proportion of global emissions is the UK responsible for? • 2% • 17% • Both • None of these • It depends

22. Myths… How big is yours…?

23. Myths… Why bother with social issues? I can make no difference as a buyer.

24. The great ROC n’ Roll Swindle Buying “Green Energy” will make no difference to your carbon emissions.

25. Myths… It’s all about risk. We don’t want to end up here!

26. Myths…? “Centre for Sustainable Procurement Excellence”

27. Myths… “The UK is already among the EU leaders in sustainable procurement”

28. Legends…

29. Legends… • Swedish vehicle contract • Created a market for bio-ethanol vehicles

30. Legends • Zero waste prison mattress • Market leading initiative

31. Legends • M&S Plan A • Vision • Leadership • Research • Marketing led • Delivery?

32. Legends… • Environment Agency • Want to know everything • And check it • Concerned about plastic membranes in Jiffy Bags (among other things)

33. Legends… • Manchester City FC • Wind power • Biomass CHP • Local procurement • Except the players • …and manager

34. Legends… • Premier Farnell • 3 clear priorities with plans and measures • Responded to jiffy bag challenge • No more tungsten bulbs • Presentation to a major global manufacturer resulted in objective to double turnover through this distributor • Top 10 product hit list

35. On the horizon • Water • The new carbon…? • Social issues • Local • Fair partner/employee • Equalities/diversity • Secondary impacts • Embodied carbon • Food • Healthy • Organic • Sustainable

36. Statistics… • We have a long way to go: • 83% buying professionals “ill equipped” to deliver sustainability in 2006/7 • 55% in 2007/8 • 550+ benchmarks, average Level 1 against FFW • BITC Index still recording low scores in this area

37. London 2012… Myth or Legend…? • 3 different organisations procure (ODA, LOCOG, LDA) • ODA • NDPB • Current bulk of procurement activity • Under review by CSL working with NAO • Process includes balanced scorecard with sustainability embedded • Contract specs include sustainability requirements (?) • Ground breaking work with concrete (forward commitment) • Local opportunities and support (?) • LOCOG • Private company • Commercial sponsors provide free goods & services • Merchandising and promotions • Food • LDA • RDA • Legacy owner • Procurement activity 2012 onwards

38. London 2012 – Sustainable…? It could be said that building a lot of facilities and flying people round the globe to stage an event is inherently un-sustainable. But…

39. London 2012 – Sustainable…? • …it is possible to… • Create real, long term jobs for people in the UK and in particular East London, • Use the power of sponsorship, media and communications to change people’s behaviour across the world, • Developa diverse and vibrant community in East London, • Set new standards of sustainability for the construction industry, • Delivera truly inclusive and accessible place, • Make all these things work together in a virtuous cycle, • Then, the net effect of the London 2012 Games could be positive.

40. Thank you for your attention www.actionsustainability.com shaun@actionsustainability.com