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
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. What you could lose if you
don’t
Making
cost
savings
Reputation
Chance for
innovation
Procuring
better
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. 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. 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. 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. 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
