Delivering Sustainability Through Procurement Stephen Connor Development

Delivering Sustainability Through Procurement

Stephen Connor Development and Sustainability Manager APUC 2

Aim • Provide an understanding of the role procurement can play in delivering sustainability Objectives • Examine the relationship between procurement and sustainability. • Summarise the constraints • Look at changing legal context • Show what is happening already 3

What is Sustainability? Sustainability “meets the needs of the present without compromising the ability of future generations to meet their own needs” - United Nations. 4

What is Procurement? • “The acquisition [by contracting authorities], whether under formal contract or otherwise, of goods, services and works from third parties”

Procurement the right quality the right price the right place the right quantity the right time 6

What impact can procurement have on Sustainability? Economic • Viability Social • Social Benefit Environmental • Minimise Harm 7

What impact can procurement have on Sustainability? Economic • Jobs • Ethics and efficiency • Demand influence Social • Inclusiveness and diversity • Education and Training • Healthy living Environmental • Consumption • Carbon reduction • Drive waste reduction. • Circular Economy 8

Benefits of Sustainable Procurement q. Whole Life Cost benefit q. Minimisation of Risk q. Reputation q. Innovation in supply chain q. Meets the aims of Institution and Scottish Government. Sustainable Procurement is good procurement 9

What’s stopping us? Value for Money Procurement Legislation Government Initiatives Sustainable Procurement Students Individual Institution Priorities Knowledge and Understanding 10

Public Sector Procurement All public bodies have a legal requirement to obtain Best Value

EU Treaty Principles Fundamental principles flowing from the Treaty include: • Transparency - contract procedures must be transparent and contract opportunities should generally be publicised; • Equal treatment and non-discrimination - potential suppliers must be treated equally; • Proportionality - procurement procedures and decisions must be proportionate; • Mutual recognition - giving equal validity to qualifications and standards from other Member States, where appropriate.

Sustainability and new legislation • EU Commission: Public Procurement to play a key role in ‘Europe 2020, a strategy for smart, sustainable, and inclusive growth’ • One of main purposes of the new EU Directive: “…to enable procurers to make better use of public procurement in support of common societal goals”

Sustainability and new legislation • Contract performance – Contracting authorities may lay down special conditions relating to the performance of the contract, including economic, innovation-related, environmental, social or employment-related considerations – E. g. packaging, training opportunities, production process without toxic chemicals, …

Sustainability—Example Measures • Ask for certification/labels of social/environmental characteristics • Reserve award of certain contracts to social enterprises • Full life cycle costing encouraged. • Level playing-field for SMEs • Encourage Innovation – new procedure

Sustainability—Reform Act • Sustainable procurement duty on all public bodies to consider how procurement process can; (i) improve the economic, social, and environmental wellbeing of the authority's area, (ii) facilitate the involvement of small and medium enterprises, third sector bodies; supported businesses in the process; and (iii) promote innovation.

What is APUC’s Role? Influence • Large value Frameworks mean that APUC are in a position to influence suppliers. Expectation • As the Centre of Expertise for HE/FE there is an expectation that APUC consider sustainability in all of their Framework Agreements. Commitment • Commitment from APUC to embed sustainability. By using Frameworks institutions can meet objectives and aims. Reform • Providing the tools and expertise for Institutions to procure sustainably. 17

SUSTAINABLE PROCUREMENT AT APUC Ø Senior Level support Ø Embedded tools and templates Ø Maximising collaborative opportunity Ø Working Group Ø Code of Conduct Ø Contract clauses Ø Post Award / Contract Management steps Ø www. sustain. ac. uk Ø Training and Support

APUC and ELECTRONICS WATCH Electronics Watch: “Independent Monitoring Organisation working to achieve respect for labour rights in the global electronics industry through socially responsible public procurement in Europe” • Using the combined £ power of public bodies to drive change in labour conditions in ITC supply chains. • Paying affiliates get contractual help, drafted clauses, monitoring of supply chains, reports on issues. • Not one-off supplier auditing. In country monitoring and worker assistance/supplier improvement plans. • Funded by paying affiliate members (public bodies). APUC is a Founding Member, as is another UK consortia – LUPC. University of Edinburgh, University of Leeds and University of Durham are also Founding Members. • Affiliate members now also include University of Aberdeen and University of Leicester. www. electronicswatch. org

ICT PROCUREMENT APUC (IT related systems contracts including Blackboard, Student Records, Finance, HR and Payroll) (All have APUC Sustain wording). HEPCW: Apple Agreement Jan 16 (currently retendered with EW clauses) NEUPC: Data Centre Management (Equipment & Infrastructure) Sep 15 Sep 17 (extensions) Network Equipment Dec 13 - Dec 15 (extensions) SUPC: ITRAP (IT Related Accessories & Parts) Jun 12 - May 16 NSSA (National Server & Storage Agreement) Nov 12 - Jul 16 LUPC: NDNA (National Desktop & Notebook Agreement) Aug 13 - Jul 16 (will be retendered with EW clauses) Office, Computer & Library Supplies Aug 15 - Jul 18 CCS: Technology Products (Inc IT Hardware) Nov 14 - Nov 16 (extensions) Scottish Government: IT Consumables Sep 12 - Aug 16 (retender 2016) Tablet Devices Mar 13 - May 16 (retender 2016) IT Hardware (desktop and mobile) Nov 11 - Dec 15 Retender into 1. Cloud and Proprietary devices 2. Mobile devices 3. Thin Client devices 4. Workstation devices 5. Desktop devices All in place end 2015. Do not have EW wording, but do have KPI's on Sustainability and clauses on social & ethical responsibility and conflict minerals.

Sustain Social Ethical Sustain Economic Environmental 21

Sustain Ø Based on APUC Code of Conduct (in Social, Ethical & Economic and Environmental) and puts them into 13 ‘requirements’ for suppliers to assess themselves against. Ø Enables suppliers to easily select which statements apply to their company. Ø The statements are listed under Bronze, Silver and Gold levels. Ø Suppliers will gain recognition for all statements they meet – there is no requirement to ‘pass’ one level before achieving at the next level. 22

Sustain Why are we doing this • To deliver on APUC’s, and our client institutions’ desire to buy in a responsible manner • Risk mitigation • Institution reputation • Address gap in understanding of supply chain • Student group pressure Where does Sustain ‘Fit’? Pre-Award Post-Award Strategy Contract Management PQQ Supplier Relationship Management ITT Sustain assessment 23

Summary • Procurement and Sustainability are inextricably linked. • Legislative landscape is changing • Some progress • Collaboration is key