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Ethical trade and public procurement London, 8 December 2010 Sustainable public procurement in the Netherlands Dr. Frans Papma, former advisor of the Dutch governement on sustainable public procurement.

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Ethical trade and public procurement london 8 december 2010

Ethical trade and public procurement

London, 8 December 2010

Sustainable public procurement in the Netherlands

Dr. Frans Papma, former advisor of the Dutch governement on sustainable public procurement


Ethical trade and public procurement london 8 december 2010

Summary:1. Short overview of Dutch policy makingFocus on international supply chains:2. What is “sustainable” in international supply chains?3. How can (public) buyers tell whether products are sustainable?The Dutch answer is:work with “supply chain initiatives”.


Ethical trade and public procurement london 8 december 2010

Aims of Dutch sustainable public procurement policies by 2010

  • State: 100% sustainable

  • Provinces & water boards: > 50%

  • Communities: 75% , and 100% in 2015


Ethical trade and public procurement london 8 december 2010

“Sustainable” = respect for:

Environmental criteria

  • Manufacturing it

    • Base material consumption

    • Landscape & nature

    • Emissions to air and water

  • Using it

    • Energy consumption

    • Pollution

    • Recycling

      Social criteria

  • Labour: ILO Conventions

  • Other Human Rights,

    including rights of local communities


Ethical trade and public procurement london 8 december 2010

Focus on international supply chains

Executive challenges

  • When is a product “good” or “sustainable” (enough)?

  • How can public authorities verify this?


Ethical trade and public procurement london 8 december 2010

  • When is a product “good” or “sustainable”?

    Example: migrant workers in natural stone


Ethical trade and public procurement london 8 december 2010

  • Legal issues (China):

  • No access to public health care

  • No access to age pension


Ethical trade and public procurement london 8 december 2010

  • Migrants work in gangs,

  • on piece-rate basis:

  • no contract,

  • no legal protection as employees

  • no records,

  • no over time payment


Ethical trade and public procurement london 8 december 2010

  • Housing for migrants (India):

  • Below standards

  • No access to education for children


Ethical trade and public procurement london 8 december 2010

  • When is a product “good” or “sustainanable”?

    Conclusion

  • We are talking structural problems with long term solutions

  • Embedded in national politics, local social structures and industrial culture

  • Cannot be solved in the time frame of any buying contracts, nor do buyers have the leverage to change all this

    Solution

    Dutch government recognises supply chain initiatives. Such as ETI, FSC, WGDN

  • Long term approach, process approach

  • Management system requirements


Ethical trade and public procurement london 8 december 2010

2. How can public authorities verify that products from far away are sustainable?

Don’ts for buyers

  • Do not include ILO standards (child labour) in your tender, without ….

  • Do not require social audits, unless ….

    Same solution: sector approach, “supply chain initiatives”

  • Can work with effective process approach

  • Can deal with complex supply chains


Ethical trade and public procurement london 8 december 2010

Quality requirement for supply chain initiatives:

  • Multi stakeholder governance

  • Internationally accepted sustainability standards, such as ILO

  • Capacity to effectively work with industry in the supply chain on social and environmental compliance

  • Public reporting

    Information on Dutch sustainable procurement policies:

  • www.senternovem.nl/duurzaaminkopen


Ethical trade and public procurement london 8 december 2010

Thank you,

Frans Papma


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