Sustainable Procurement – are we prepared for the challenges? Sandy Duncan CIPS Yorkshire Branch Email: firstname.lastname@example.org LinkedIn Group: CIPS Yorkshire Branch Twitter: @yorkshirecips #cipsyorks Welcome to The Rose Bowl
Sustainable Procurement – are we prepared for the challenges? • Tonight’s Agenda • Welcome and Introductions 18:15 • Sustainable Procurement what is it & is it important? • A personal view from Sandy Duncan, Sourcing Manager, Lloyds Banking Group • Sustainable Procurement – are we prepared? • Survey findings and best practice overview from Dr. Alfred Chinta, Senior Lecturer – Supply chain management& Course Leader - MSc Supply chain management, Leeds Metropolitan University • Delivering Social Value - procurement’s role? • Sustainable Procurement, beyond just green issues - Bernadette Speight, Social Value & Social Enterprise Development Specialist from People Help People • Q&A Session • Any Other Business • Event Close and Informal Networking 20:10
Sustainable Procurement –What is it and is it important? A Personal View
And Procurement Needs To Change Too • All too often we are still seen as; transaction, cost focused and tactical • But many have moved (or are moving) to become; more strategic, value add and embedded • What does this mean in respect of Sustainable Procurement?
My Personal View • Value Chain – Understand the end to end process and impacts • Strategy – Society should be placed at the centre of our thinking • People – Good people want to work for good businesses, growing importance in attracting and retaining talent • Reporting – Measure material things, “roughly right v’s accurately wrong” • Key Challenges – supply chain resilience, safety/no-harm and innovation/value release – inc. Social Vlaue • The ClassicSustainability • Model
Sustainability : Are we prepared for the challenges Dr.A.C.Chinta Senior Lecturer - Supply chain management Leeds Metropolitan University
Why study sustainability? • Increased focus by the governments • Demand from customers • Demand from Investors • Supply chains shoulder the responsibility of implementation • Aid policy formation for training and education at Universities and CIPS • Gauge Supply chain pressures
The Survey • Covered CIPS members in Yorkshire and Northeast • 124 responses • Collected over a 4 week period • Conducted by electronic means • Anonymous
6.Is sustainability a part of your regular supplier performance reporting criteria?
7. Which, if any, of these measures does your organisation use to assess suppliers' sustainability?
8.Do your key customers require you to use sustainable suppliers / raw materials?
9.To what extent do you agree or disagree with the following statements about procuring sustainable products?
15.What is the primary source of your training on sustainability?
Info on the sample of respondents • Mainly from large businesses with more than £35 million turnover • 70% with more than 2 years of experience in procurement • More than 70% have a sustainability policy • Mostly buyers, Supply chain managers, procurement Directors
Key Findings of the Survey • Most businesses have a Sustainability policy • Few small businesses have participated • However very few enforce sustainability as a requirement for their suppliers • Many businesses do not report sustainability as part of their procurement reports • Most respondents are full members of CIPS
Conclusions from the survey • There is some understanding of Sustainability but it is varied • Confusion on standards for Sustainability • CIPS and University degrees are primary source of knowledge • Need for clearer guidelines for procurement professionals to evaluate and select suppliers • Sustainable procurement needs significant improvement
Challenges to procurement due to Sustainable requirements • Lack of knowledge internally – standards, • Lack of knowledge externally in the supply chain • Setting the right targets • Keeping focus - as Sustainability is achieved over the long term • Redesign and re-evaluate procurement strategies
Defining “sustainability” • Sustainable development has been inﬂuentially deﬁned as “development that meets the needs of the present without compromising the ability of future generations to meet their own needs” (WCED, 1987) • “Sustainability can be thought of as a process, as opposed to an end-state (Parker, 2002) • Global reporting initiative G4 guidelines provide a standard for all companies to report their sustainability initiatives • Rauch and Newman(2008) define metrics for sustainability in four areas of emissions, water, energy and material use
Reporting Sustainability-Evidence from Supermarkets • Tesco-Tesco knowledge hub, Overall Carbon footprint • Sainsbury-Responsible sourcing, puts all waste to positive use, difference to community, great place to work • Marks and spencer-19% of food products meet sustainability standard, 100% palm oil is RSPO certified, 85 clothing suppliers use energy efficient practices, 0 construction waste to landfill, 34% increase in energy efficient 68% reduction in A/c emissions • ASDA-Reduced waste, expanded locally grown produce, support women around the world, Renewable energy, direct farm program, diversity and inclusion • Morrison’s-Responsible sourcing, healthy lifestyles, reducing impact, colleagues, engage with communities
FMCG Companies • Unilever • embedding sustainability • health & hygiene • improving nutrition • greenhouse gases • water use • waste & packaging • sustainable sourcing • fairness in the workplace • opportunities for women • inclusive business • sustainable living news • P&G • Resource & Waste Summary • Energy • Waste • Emissions • Water • Compliance • Employees • Nestle • environment impact, • nutrition health and wellness, • social impact
From awareness to implementation – How can procurement professionals respond? • Undertake an audit of the business • Identify gaps in knowledge • Identify how sustainability will be measured and reported – work with key stakeholders • Identify improvements to be made to procurement processes to conform to sustainability requirements • Transfer “sustainability in procurement” knowledge internally and externally
References • Parker, H.W. (2002), “Sustainability as a process”, in Sikdar, S.K. (Ed.), Sustainable Engineering Conference Proceedings, American Institute of Chemical Engineers Annual Meeting, November 3-8, pp. 2-12. • G4 (2014) G4 Sustainability reporting guidelines, Available at https://www.globalreporting.org/resourcelibrary/GRIG4-Part2-Implementation-Manual.pdf, Accessed on [11-06-14] • Forbes (2014) The World's Most Sustainable Companies Of 2014, Available at http://www.forbes.com/sites/jacquelynsmith/2014/01/22/the-worlds-most-sustainable-companies-of-2014/ Accessed on [11-06-14] • Confino,J.(2014)Best practices in sustainability: Ford, Starbucks and more –Available at [http://www.theguardian.com/sustainable-business/blog/best-practices-sustainability-us-corporations-ceres] Accessed on [11-06-2014] • Tesco (2013) What matters now: using our scale for good, Available at http://www.tescoplc.com/files/pdf/reports/tesco_and_society_2013_ipad.pdf , Accessed on [11-06-2014]
Hogevold and Svensson (2012) A business sustainability model: a European case study, Journal of business and industrial marketing, 27/2, 142-151.
Introducing social value Bernie Speight People Help People
Support forsocial value One week left to apply – Social Enterprise UK have support programme for Health – bringing CCG’s procurement & suppliers together to co-design what social value will look like and how it will be measured & evidenced in your area. www.socialenterprise.org.uk
People Help People Our Vision An inclusive society where people help each other for the greater good of humanity Our Mission Harnessing our knowledge and experience we enable people to focus their passions and talents, in collaboration with others, to achieve sustainable & positive change in society
Social Value terms • Objectives – what you want to do • Values – how you will deliver • Activities – individual tasks or projects • Outputs – the quantitative countable stuff • Outcomes – the qualitative stuff / change that happens quickly • Impact - longer term sustained change
Why social value important? • Values – Walk the Talk. • Outcomes – the change you empower • Evidence – the story, testimony • Improvement and innovation • Added value / Value for money How can you PROVE?
OutCOME indicators… • What has happened as a result of your actions? • What difference has it made? • More qualitative… • Records the change… • Requires consultation with stakeholders…
People Help People Supporting you to deliver social value • Building Social Value Programme • Building Social Value Supply Chain Programme • Employee Resilience and Wellbeing Programmes • People Help People Foundation
People Help People Building Social Value – Supply Chain Programme • Enables: • Your social value aims and objectives to be delivered on a wider reaching basis through supply chain • Enhanced relationships with your supply chain partners. You are supporting them and they are supporting you • Robust action planning and monitoring throughout the supply chain
People Help People Building Social Value – Supply Chain Programme • Measurement and evidence of your supply chain social value delivery • Statutory and regulatory requirements to be met • Budgetary and resource challenges to be met. No direct cost to you • Collaborative approach enables enhanced community engagement of your organisation. You are supporting all stakeholders in your community
People Help People www.peoplehelppeople.co.uk email@example.com T: 0113 217 2705 M: 07850163488 facebook.com/peoplehelppeeps twitter - @PeopleHelpPeeps
Finally, The Usual Reminders 1. Join Our LinkedIn Group 2. Maintain your ‘MyCIPS’ Profile http://www.cips.org http://www.linkedin.com/groups 3. Update Your CPD • Keep in Touch with your branch Email – • firstname.lastname@example.org • email@example.com