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PLENARY 1: Rosemary Kumwenda_procurement_2017
1. DR. ROSEMARY KUMWENDA
Fostering Low-Carbon Health Care
Green Hospitals Asia Conference 2017
20 October 2017
UNITED NATIONS
SUSTAINABLE PROCUREMENT IN
THE HEALTH SECTOR
2. Presentation outline
1. Agenda 2030
2. SPHS Task Team – who we are.
3. Why Procurement – what we do.
4. Procurement as leverage
5. Partnerships – introducing procurement practices
6. UNDP Procurement Process
7. Key SPHS results
8. Challenges – Procurers dilema
9. Opportunities
10. Moving forward
#LowCarbonHealthCare
3. Consistent with the 2030 Agenda for Sustainable
Development, UNDP’s HIV and health focus
areas:
• Focusing on the linkages between health and
environment
• Addressing the social, economic and
environmental determinants (SEEDS) of health
and health equity
• Strengthening national responses to ensure a
multi-sectoral response to non-communicable
diseases (NCDs)
• Strengthening HIV responses with a strong
focus on key populations at higher risk of HIV
1. Agenda 2030
#LowCarbonHealthCare
4. A UN interagency task team which through a
transparent and inclusive engagement
process, is leveraging its normative and
market power, lowering the environmental
and social impacts of its procurement, to
improve human health and well-being.
#LowCarbonHealthCare
2. SPHS Task Team – who we are.
5. #LowCarbonHealthCare
3. Why Procurement – what we do.
-UNSG directive to “Green the Blue”
-Paris Agreement 2016
Procurement has an immense amount of leverage
and impact potential in the UN.
Total UN Procurement volume in 2016 was 17.8 bn
USD. 23% Health Procurement. 97% Health
procurement through SPHS members totaling
approx. 4 bn USD.
72% product category in pharmaceuticals and
contraceptives. This is a huge market impact
procurement that can transform SDGs.
UNDP CO2 emissions study in GF procurement
concluded that majority of CO2 emissions arose
from health procurement in GF programmes.
8. THE GREEN PROCUREMENT INDEX HEALTH ROADMAP
PHASE 1
Develop GPIH green procurement criteria/ Collect suppliers’ data / Develop supplier engagement
strategy/ Communicate
PHASE 2
Finalize and launch GPIH
criteria 2.0 and the Guidance
Note
PHASE 3
Launch Beta-version
GPIH and improve/scale
Scoping
Desk
Research &
Interviews
Clarify Vision /
Goals/Milestones
Project Set-up/
Plan/ Budget
Resource
Mobilization
$$$
FOCUS
III
I II
PHASE 0 (2014)
Roadmap
development and
funding
UN Expert
X: CO2
Y: Resources
Z: Toxicity
Supplier
Environmental
Profile
Supplier
Product
data
UN Procurement
data
Communication
Start Working Group B
(Data Collection, Processing,
Publication and Implementation)
Start Working Group A
(Development of GPIH Green
Procurement Criteria)
Set-up Advisory Boards
I
I*
Operate Supplier
Engagement Forum
Develop Supplier
Engagement Strategy
Develop GPIH Green
Procurement Criteria
1.0*
Organize UN
Procurement Workshop
and develop GPIH Green
Procurement
Criteria 1.1
Revise GPIH Green
Procurement Criteria 1.1
(Crowdsourcing)
Finalize and Launch GPIH
Green Procurement Criteria
2.0
II
Use GPIH Green Procurement
Criteria 2.0 (Basis for Beta-
version GPIH). Improve and
Scale Continuously
Publish GPIH on a Regular
Basis for Each UN-Agency
(Aim: Transparent
Development of the GPIH and
Individual Underlying Green
Procurement Criteria)
III
Develop a Guidance Note on
the GPIH Green Procurement
Criteria 2.0
$$$
Analysis of Financial Implications
Legal and Regulatory Reviews
(a) Introducing Sustainable Procurement Practices in the Global Health
Sector: Green Procurement Index Health
#LowCarbonHealthCare
5. Partnerships
9. (b) Introducing Sustainable Procurement Practices in the Global Health
Sector with Health Care Without Harm
#LowCarbonHealthCare
5. Partnerships
10. (b) Introducing Sustainable Procurement Practices in the Global Health
Sector with Health Care Without Harm: Focus
#LowCarbonHealthCare
5. Partnerships
List and products identification and development
Guide for procurement practitioners
Low carbon & resource depletion1
2
3 Green health procurement criteria
Substitution list of toxic chemicals
197 shortlisted from global conventions and authoritative lists
11. #LowCarbonHealthCare
6.UNDP procurement process: 3 main stages
Procurement
process
Pre-purchasingPurchasingPost-purchasing
Sourcing
Evaluation
Logistics
Contract Management
Planning
Requirements definition
Bid receipt and opening
Contract finalization and
issuance
Solicitation
Review and award
Goal of the procurement planning
stage: Introduce sustainability from the
start when the health commodity or
service requirements are being defined
12. #LowCarbonHealthCare
UNDP procurement process: Roles involved
KEY ROLE
Knowledge of the market/Knowledge of potential environmental/social impacts and
relevant regulations and legislation
• Procurement managers
• Procurement officers
• First- and second-tier suppliers
• End users/requisitioners
• Environmental/Supply Chain/
HR managers
Knowledge of products/services; influence on the development of new
products/markets
Information on alternative products/services, alternative means of delivering
functionality
13. #LowCarbonHealthCare
Structured approach to health procurement
1
Sourcing
Evaluation
Logistics
Contract Management
Planning
Requirements definition
Bid receipt and opening
Contract finalization and
issuance
Procurement process
Solicitation
Review and award
Pre-purchasingPurchasingPost-
purchasing
2
3
4
5
1) Planning
• Assess sustainability impacts of the procurement
• Consider using a “sustainable title” for the process
2) Requirements definition
• Use relevant technical standards and environmental labels
• Use performance and functional specifications
3) Sourcing
• Research the market for sustainable health products/services
• Pre-qualify suppliers that minimize sustainability risks
4) Solicitation
• Include pre-determined sustainability evaluation criteria
• Include Life-cycle-costs considerations
5) Contract management
• Work with suppliers to improve sustainability performance
Special attention: when
integrating technical SPP
requirements in health
sector, you need to ensure
that they will comply with the
World Health Organization
Pre-Qualification Scheme of
Medicines Programme
(PQP) and national
regulations
i
14. 7.Key SPHS Results: Focus on suppliers and manufacturers of health
commodities: Interagency Strategy and Statement on Engagement
#LowCarbonHealthCare
15. #LowCarbonHealthCare
Key SPHS Results: Mapping sustainability risks
Sustainability
impacts over the
life of a product ->
Example: Carbon emissions of a UNDP
Global Fund health initiative – HIV/AIDS grant
R8P2 in Tajikistan
i
Source: UNDP (2013) Carbon footprint of UNDP Global
Fund health initiatives in Montenegro and Tajikistan
16. #LowCarbonHealthCare
Emissions reporting
In partnership with Kuehne + Nagel A/S, data and analytics for CO2 emissions were
collected on a quarterly basis. The CO2 emissions below are from the TLE/ARVs LTA
framework in 2015.
i
Case Study: CO2 Emissions Reporting for Logistics
Air
16%
Sea
84%
Total CO2 Emission (kg) for 2015
445,698.62 CO2/kg
2015 CO2
Report
TLE-ARV
2.89
0.33
0
0.5
1
1.5
2
2.5
3
3.5
Air Sea
CO2Emissionperkg
Average CO2 Emission per kg for
2015
A reduction in 0.21 Kg of CO2
per TLE pack and US$0.26 per
TLE pack is acquired by
switching from air to sea freight
for the specified trade lane.
Decrease in CO2
81%
Cost Savings
49%
17. #LowCarbonHealthCare
Packaging reduction Case Study: Re-thinking Procurement of Anti-retroviral (ARV)
Medicines - Packaging Optimization and Innovation
Problem
• A considerably high amount of unnecessary
product packaging and its leaflets
Solution
• Eliminate individual outer bottle package
• Eliminate individual leaflets glued to bottles
• Shrink bottles wrapped and packed in carton
boxes / shippers
• Reduce leaflet amount of 5-10% for bottles
shipped in the carton boxes
Sustainability
• Reduction of product waste (12% waste
reduction)
• Cost effectiveness (15% cost savings)
• Carbon footprint reduction (13% kg of CO2 per
unit)
i
Source: UNDP (2016). New packaging
examples provided by one of the UNDP
TLE/ARV suppliers
Waste reduction
12%
Cost Savings
15%
18. #LowCarbonHealthCare
Solar for Health Initiative Case Study: Solar Panels Improve Healthcare in
Rural Zambia
Rethinking needs
• From diesel generators (high fuel costs and unreliable fuel
delivery) to solar panels (reliable and affordable energy supply)
Challenges
• Health facilities were isolated for six months of the year during
the rainy season - roads become inaccessible
• Urgent health care services impossible in the absence of
electrical power
Sustainability
• Environmentally friendly power sources to maintain the quality
of medicines and laboratory reagents
• Facilitation of water purification and wider range of diagnostic
equipment
• Expected cost recovery around 15 years
i
Source: UNDP (2016) Solar Panels Improve Healthcare
in Rural Zambia
19. A user-friendly and dynamic tool which
provides comprehensive overview of the
environmental performance of suppliers and
manufacturers of health commodities and
services
Interested in testing this tool, which was developed
in consultation with leading technical experts?
Please contact us at info@savinglivesustainably.org
i
#LowCarbonHealthCare
UNDP Environmental Assessments of Suppliers and Manufacturers of
Health Commodities and Services: Questionnaire and Online
Environmental Assessment Tool (OET)
20. #LowCarbonHealthCare
Healthcare Waste Management
UNDP has recently developed a practical toolkit for healthcare
waste management.
To assess the possible environmental impact of GF grants,
rapid assessments on healthcare waste were carried out.
Interested in testing this tool, which was developed in consultation with leading
technical experts? Please visit the page:
http://www.eurasia.undp.org/content/rbec/en/home/library/hiv_aids/rapid-assessment-
healthcare-waste-global-fund.html
i
Country assessments:
22. UNDP-UNEP-HCWH support government
officials to design and implement sustainable
public health procurement policies that
equally factor in the social, economic and
environmental impact of their operations.
Training reports from India (2017) and Ukraine (2016)
available at: https://issuu.com/informal_int_task_team_sphs
Interested to host a training in your organization?
Please contact us at info@savinglivesustainably.org
i
#LowCarbonHealthCare
Training: Focus on Procurement Practitioners
23. Aug 23: Ensuring Fair Play in the Global Health
Supply Chains
Oct 17: Human Rights and Gender Equality in
Health Supply Chains
For future webinars, what other topics would you like the
SPHS to cover? Please share your ideas with us at
info@savinglivesustainably.org
i
#LowCarbonHealthCare
Webinar Series: Sustainable Procurement in the
Health Sector - online and open to the public
Webinar recordings available at the SPHS YouTube channel:
https://www.youtube.com/channel/UCX2UQcpPViZVot-0wfBIU-Q
24. #LowCarbonHealthCare
8. Challenges -Procurers Dilemma
The price on its own, without considering other costs and if no
sustainability criteria have been included elsewhere (selection,
obligatory specifications, contract performance clauses), does not
allow us to achieve a sustainable purchase or contract. Nor does
it allow us to get the most efficient purchase from the point of view
of resource use.
Does Final Price of the Health Commodity or Service Rise with the
Introduction of Sustainability Criteria?
The most advantageous bid
allows the use of sustainability
criteria and actually make a
purchase that uses the
administration's economic
resources efficiently.
Efficiency in the
use of economic
resources
Lowest
Priced Bid
• Quality
• Social and
Environmental criteria
• Life Cycle Costs…
25. #LowCarbonHealthCare
Responses to identified sustainability risks and objectives can be
incorporated in one or more of the different stages of the procurement
process
Sourcing
Evaluation
Logistics
ContractManagement
Planning
Requirementsdefinition
Bid receiptand opening
Contractfinalization and
issuance
Procurement process
Solicitation
Review and award
Set mandatory requirement(s)/technical specifications in the Invitation to Tender
Invite only those suppliers who meet specific sustainability requirement(s)
Develop desirable sustainability requirements and set-aside sustainability points
that will be assigned to bidders offering more sustainable solutions as part of the
evaluation process
Incorporate sustainability performance contract clauses to be monitored during
contract management or work with suppliers during contract administration for
enhancing sustainability performance of the product/service offered or their corporate
performance
26. When
• Supplier selection
How
Only allow suppliers to bid who have Environmental Management System
ISO 140001 or equivalent certified
• Specification Specify that you will only buy TB medicines from suppliers and manufacturers
that have been ISO 140001 or equivalent certified
• Bid evaluation Assign evaluation points to reward bids with sustainability features
• Contract Management Ask the supplier to provide TB medicines, then work with them during the
contract to improve sustainability
Example: Possible options to manage the
sustainability of tuberculosis (TB) medicines
#LowCarbonHealthCare
27. 9. Opportunities: The supply chain is the new
frontier of sustainable business
#LowCarbonHealthCare
Once the procurement
processes are in place, the next
major source of sustainability
risk and opportunity is the
supply chain.
Procurer needs to know where
the products and services are
coming from, and needs to be
confident that the third parties
involved in this sourcing
understand and adhere to the
set principles.
Continuous improvements through linking
supplier engagement to contract KPIs:
Development meaningful relationships with
suppliers
Gain the assurance you need for proper risk
management
Drive more sustainable business practices within
your supply chain operations
28. Focus on suppliers and manufacturers of health
commodities
#LowCarbonHealthCare
Targeted
Communication and
Ensured Fair-Play
E.g. SMEs, disadvantaged and
vulnerable groups
34. Thank you
Let’s put the health sector back at the center of healing!
noharm-asia.org | greenhospitals.net
HCWHAsia
hcwhasia
HCWHAsia
#LowCarbonHealthCare #DoNoHarm
• GET IN TOUCH @ www.savinglivesustainably.org
Hinweis der Redaktion
Explain what UNDP does related to health: resilient lives
UNDP health and environment work - one pillar of the health team work
UNDP purchasing need of pharmaceuticals
Key SPHS assets highlighted were the leverage of its normative, operational and financial strengths to introduce sustainable procurement practices in the global health aid market, across the UN system and the SPHS global network.
This graphics explains the linkages between the SDGs, SPHS focus areas and key highlighted examples from this Annual Report. For more information about other good practice examples in sustainable procurement and manufacturing of health commodities, please visit http://savinglivesustainably.org/knowledge-practice.html
Solution has to address both production and consumption – SDG 12
You can see the concentration of dots near the SDGS – this is a representative graphic of the success stories featured on our platform
SDG 3 – Good health and wellbeing
SDG 12 – Responsible consumption and production
SDG 17 – Partnership for the goals
Much of our work focuses on health
Of our focus areas, largely relevant to today’s webinar are medical products, waste management, and water.
POLICY:
The specific sustainable procurement policy at UNDP is shown above and its key building blocks are:
Cleaner supply chains
Purchasing innovation
Better integration with programmes
Stronger partnerships
Transparency, integrity, and accountability
Measuring impact
Assessing and building capacity
Catalytic funding for the introduction of green procurement criteria in the UN health procurement, was received from the Danish Government and the UNDP Innovation Facility.
Skoll Project Timeline
Phase 1
Introduction of UNDP‘s key funding partners for the flagship project with HCWH on sustainable procurement in the health sector, and Green Procurement Index Health. Some of the key technical deliverables from the project with HCWH, important to procurement practitioners, are listed.
From this slide onwards, we will focus on the UNDP procurement process.
- The 3 main stages: pre-purchasing, purchasing and post-purchasing are in turn divided by a number of sub-stages
- A standard process would follow these 10 steps, however there might be cases where some do not apply
- This is sometimes referred to the procurement cycle, because the contract management stage can in many instances inform future processes in terms of planning, requirement definitions, etc.
- Sustainable considerations can be included in various stages of a procurement process
In rethinking needs, the procurement official has a key role to play
Where necessary, the procurement official shall advise the requisitioner of more sustainable solutions to meet the stated need. To be able to do this, it is necessary to be aware of the main social, environmental and economic considerations throughout the life cycle of the product/service, this is where the previous sustainability impact assessment comes in. Such solutions may include reducing the amount of procured goods or services, re-thinking the solution in favour of more sustainable alternatives or redesigning certain environmental and social aspects. A more sustainable procurement solution can translate into more or less stringent requirements for the supplier to be included in different stages of the procurement process, depending on the market maturity and on the strategic priorities of the procuring entity
It is also important to be aware of relevant social/environmental policy priorities and legislation. E.g. in some countries the legislation on the producer’s responsibility has established management obligations for manufacturers of many products, such as electric and electronic devices, vehicles and others (as well as the packaging in which this device arrives), to assume the responsibility for the products they release to market.
Thus, procurers should consider at an early stage what will happen with the product at the end of its useful life within the organization -which cannot be the end of its actual life.
-
Each product/service has impacts throughout its life cycle
… Thinking of all the impacts that may be generated throughout the life cycle of what we buy or purchase helps us define sustainability actions in every stage of the procurement process.
UNDP, with Norwegian NOREPS emergency preparedness funding, decided to set up Solar Photo-Voltaic power systems in three primary health care clinics offering antiretroviral treatment in Mpepo, Mulekatembo and Kazembe in the Eastern Province of Zambia.
Thanks to having a reliable power source, the three clinics are capable of more and better services. The energy generated is used to maintain the quality of medicines and laboratory reagents. Equipment sterilization has improved and cold-chain for vaccine storage is safely maintained.
The solar panels also enable water pumping and facilitate water purification – a pivotal achievement in a country in which water-borne diseases are the major killers of children. Finally, electricity opens the option of a wider range of diagnostic equipment required for malaria, tuberculosis and HIV patient monitoring.
The next step will be scaling up the pilot project to extend electricity access to over 1,000 health facilities in Zambia and improve access to health care to half of the population.
UNDP, with Norwegian NOREPS emergency preparedness funding, decided to set up Solar Photo-Voltaic power systems in three primary health care clinics offering antiretroviral treatment in Mpepo, Mulekatembo and Kazembe in the Eastern Province of Zambia.
Thanks to having a reliable power source, the three clinics are capable of more and better services. The energy generated is used to maintain the quality of medicines and laboratory reagents. Equipment sterilization has improved and cold-chain for vaccine storage is safely maintained.
The solar panels also enable water pumping and facilitate water purification – a pivotal achievement in a country in which water-borne diseases are the major killers of children. Finally, electricity opens the option of a wider range of diagnostic equipment required for malaria, tuberculosis and HIV patient monitoring.
The next step will be scaling up the pilot project to extend electricity access to over 1,000 health facilities in Zambia and improve access to health care to half of the population.
xxx
More in-depth analysis of the procurement process can be done with the following 2 tools. Conventions (shown on this slide) and waste management assessments (shown on the second slide)
The slides shows the cover of the publication and the automated dashboard with the results of running the conventions assessment in the procurement process. The excel spreadsheet to enable procurers to conduct such an exercise is available currently upon request and will be online in the near future. The UNDP team/SPHS is able to deliver a training/presentation on the relevance, importance and use of the assessment tool
5 Conventions covered in the Guide are:
Basel Convention on the Control of Transboundary Movements of Hazardous Wastes and Their Disposal
Rotterdam Convention on the Prior Informed Consent Procedure for Certain Hazardous Chemicals and Pesticides in International Trade
Vienna Convention for the Protection of the Ozone Layer and the Montreal Protocol on Substances That Deplete the Ozone Layer
Stockholm Convention on Persistent Organic Pollutants (POPs)
Minamata Convention on Mercury
To be able to share good practices on sustainable health procurement and manufacturing of health commodities, with the SPHS global network of collaborators, the SPHS Secretariat has developed the Webinar Series: Sustainable Procurement in the Health Sector. After each webinar, all the presentations are available at the SPHS SlideShare channel, and the video recording at the SPHS YouTube channel. Given a high number of questions, which were asked at the 1st webinar on August 23, speakers and the SPHS Secretariat have answered them all and posted on the SPHS platform: http://savinglivesustainably.org/news.html In this way we ensure that all the answers are responded. Join us for the next SPHS webinar on Oct 17, focusing on human rights and gender equality in the health supply chains. In case you have more ideas and suggestions on the topics that you would like us to cover in the next webinars, please share them with the Secretariat at the email address that you see on the slide.
The solution is the application of the Whole-Life Cycle Approach (WLC)
xxx
The supply chain is the new frontier for sustainable business. Once your processes are in place, the next major source of sustainability risk and opportunity is your supply chain. You need to know where your products and services are coming from, and you need to be confident that the third parties involved in this sourcing understand and adhere to your principles.
- Engaging with suppliers and manufacturers can stimulate the participation of more sustainable bidders
