Procurement process diagram

How to successfully
implement a Sustainable
Procurement Program
Lessons learned from 6 Programs
around the world
Thursday 10 November 2016
Co-organised by
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The 10YFP Sustainable Public
Procurement Programme
Working together to achieve a
collective impact
10/11/2016
• The 10YFP on SCP patterns was adopted at the Rio+20
Conference. It is a global framework of action to enhance
international cooperation to accelerate the shift towards SCP
patterns in both developed and developing countries.
• It supports capacity building and provides technical and
financial assistance to developing countries for this shift.
The 6 programmes of the 10YFP:
• Consumer information
• Sustainable lifestyles and education
• Sustainable public procurement
• Sustainable buildings and construction
• Sustainable tourism, including ecotourism
• Sustainable food systems
The 10YFP Sustainable
Public Procurement
Programme
Objectives:
Working together to achieve a collective
impact
1. Build the case for SPP:
improve knowledge on SPP and
its effectiveness as a tool to
promote greener economies
and sustainable development
2. Support the implementation of SPP
on the ground:
increased
collaboration
and
improved coordination between SPP
stakeholders
Image Copyrights: Shutterstock
10YFP SPP: Governance of the
programme
MAC Members
LEAD
1.
2.
3.
4.
5.
CO-LEADS
6.
7.
8.
9.
10.
11.
12.
13.
14.
15.
16.
17.
18.
19.
20.
21.
22.
ChileCompra
Eco Mark Office of Japan Environment Association
Environmental Development Center of Ministry of
Environmental Protection (EDC)
Forest Stewardship Council (FSC)
Fundación Centro de Gestión Tecnológica e
Informática Industrial (CEGESTI)
ICLEI – Local Governments for Sustainability (co-lead)
Indian Railways
Institut des Finances Basil Fuleihan-Lebanon
International Green Purchasing Network (IGPN)
International Institute for Sustainable Development
(IISD)
ITC-ILO (Int. Training Center of the ILO)
Korea Environmental Industry & Technology Institute
(co-lead)
Mauritius Procurement Policy Office
Ministry of Infrastructure and the Environment
National Agency for Public Procurement
NCPC Colombia (National Center for Cleaner
Production and Environmental
Technologies/CNPMLTA)
Secretariat of the Convention on Biological Diversity
SKL Kommentus
Sustainable Purchasing Leadership Council (SPLC)
Swiss Federal Office for the Environment (FOEN)
United Nations Environment Programme, UNEP (lead)
United States Environmental Protection Agency
Chile
Japan
China
Global
Costa Rica
Global
India
Lebanon
Global
Global
Global
Korea
Mauritius
Netherlands
Sweden
Colombia
Global
Sweden
United States
Switzerland
Global
United States
10YFP SPP: Regional distribution of the
programme’s partners
100 AS OF NOVEMBER 2016
The network of the SPP programme counts 99 partners in more than 40
different countries and includes governments, international organizations,
NGOs, consultancies, private sector representatives and SPP expert.
10YFP SPP: SPP Programme Outputs
Global Review on SPP:
Upcoming (Dec. 2016)
Using PSS to enhance SPP –
technical report, 2015
Monitoring SPP
Implementation,
2016
Pre-study on the sustainability
of supply chains, 2014
Measuring & communicating
benefits of SPP, 2015
SPP: A Global review
2013
Why joining the Programme?
• Access a broad network of 100 organizations and
individuals working together to implement SPP
• Share your experience
• Benefit from advice and technical support on SPP
implementation
• Apply for financial support for SPP activities in developing
countries through the 10YFP Trust Fund
• Develop large scale SPP projects with diverse and skilled
partners
And …it’s free! 
Join the 10YFP SPP Programme !
• Farid Yaker, Programme Officer, UNEP
[email protected]
• Sophie Loueyraud, Consultant, UNEP
[email protected]
Overview of the Benchmarking Study
•
Commissioned by Sustainable Choice
o
Membership-based program in New South Wales, Australia
o
Assist local councils to implement Sustainable Procurement (SP)
o
74 members
Sustainable Choice
•
Identifying best practice as an input to new Program
Strategy
o
Overview and Beneficiaries
o
Services to Members
o
Funding model, governance and staff
o
External collaborations
o
Impacts and the future
12
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6 benchmarked programs
Program
Region
Webinar
participant
Role
Email address
Tania Lalor
Program
Manager
[email protected]
Magali Silva
Program
Coordinator
[email protected]
Cuchulain Kelly
(not present)
Comms
Coordinator
cuchulain@sustainablepu
rchasing.org
Philipp Tepper
Program
Coordinator
[email protected]
Laurence
Cesbron
Admin, Finance,
European Relat.
Manager
laurence.cesbron@resea
ugrandouest.fr
Valeria Veglia
(not present)
Agenda 21
Coordinator
[email protected]
orino.it
Sustainable Choice
Acquisti Publici Ecologici (APE)
Benchmarking study manager: Jean-Louis Haie, Managing Director Planet Procurement
[email protected]
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Each SP Program is unique…
Sust. Choice
3AR
SPLC
Procura +
RGO
APE
Created in…
2006
2012
2013
2004
2006
2003
Current legal
status
Program owned by
Local Government –
No legal entity
Non-for-profit
organisation
Non-for-profit
organisation
Program owned by
ICLEI – No legal
entity
Non-for-profit
organisation
Program owned by
Province of Turin –
No legal entity
Geographical
coverage
NSW State
7.5M inhabitants
Mainly 1 Region
3.5M inhabitants
US: 85% - Rest: 15%
350M inhabitants
European Union
740M inhabitants
6 French Regions
13.5M inhabitants
Province of Turin
2.3M inhabitants
Outline of the
history and
evolution
Created through
partnership
State/Local
Government
Informal network in
2006, through
Government /
Regional Council
Built on 2 projects
in the field of green
products and SP
Started as a
‘campaign’ before
to become a
‘network’.
Created by 12
founding public
members
Created as part of
Province of Turin’s
Agenda 21 – Started
with 13 members.
Number and
range of
beneficiary
organisations
86 local councils
325 suppliers listed
50 members
including 87% of
councils.
154 members:
public, private, non
for profit
45 members: 40
government, RGO
and 5 strategic
partners
98 members:
councils, other
public authorities
since 2011
46 members: local
councils (40%) and
several others
(60%)
Key targeted
individuals
Procurement
Suppliers
Procurement, legal,
technical,
sustainability staff
Very diverse, with
Procurement strong
Mainly
Procurement
Mainly
Procurement +
Elected Reps
Procurement
Environment
SP policy in place
Membership fee
only
Membership fee
only
Membership fee
only
Membership fee +
Approve program
TOR
Sign agreement
protocol with
aspirational targets
Commitments
expected of
beneficiaries
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Services: events and working groups first!
Organisation
Sust Choice
3AR
SPLC
Procura +
RGO
APE
Essential services to Members
•
2 Regional Forums per year – Presentation + supplier speed dating
•
Sustainable supplier and product database
•
Free training sessions - 300 participants per year
•
Free technical half a day or one-day forums – Twice a year
•
Principles, Guidance, Rating System through working groups
•
Annual Summits – 350 participants in 2016.
•
Seminars, webinars, Interest groups
•
EcoProcura conference - Procura+ Awards
•
Working groups and guidance owned by members (17 so far!)
•
Induction for elected rep. and staff (4/y) – 3-day training (2/y)
•
Working group to develop tools to deliver agreement protocol
•
Annual Monitoring of SP achievements for some categories
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Funding model, governance and staff
Type of
funding
strategy
Effectiveness
of funding
strategy
Sust Choice
3AR
SPLC
Procura +
100% OEH grant
funded
60% member
funded
40% ad hoc
partnerships
80% member
funded, 20%
foundations
33% member
funded
67% EU grants
e.g. for events
Ad hoc
partnership: key!
Founders Circle
enabled to get 3year forecast of
funds
Membership fees
provide cushion
but would not be
sufficient
After 10 years of
increase,
stabilisation due
to economic
constraints
No need for
funding: nimble
and flexible.
Soft governance
Need to reapply
annually.
Reporting burden
RGO
APE
70% member
Resources provide
funded
their time ‘for
30% partnership
free’.
Soft governance
Strong
governance
Strong
governance
Soft governance
Strong
governance
Strong
participation of
elected reps
Annual
budget
AUD 150K
AUD 125K + AUD
110K of ad hoc
partnerships
AUD 800K + AUD
200K from
subsidies
AUD 60K + AUD
130K from EU
subsidies
AUD 220K + AUD
90K from
subsidies
Btw 18-30K for
technical support
Number of
FTEs
1 FTE
1 FTE
2 FTEs + 3 FT
contractors
0.4 FTE
4 FTEs
1 FTE
Governance
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External collaborations
Joint
initiatives and
partnerships
Added value
to members
Contribution
to stability
and growth
Sust Choice
3AR
SPLC
Procura +
RGO
APE
OEH for the
funding of the
program
7 partnerships
with a wide
variety of
organisations on
pilot projects
14 partnerships:
from sharing
complementary
resources to
collaborating on
some programs
5 Strategic
Partners that
support the
Network in 5
European
countries.
Participation to a
French and
European
Program to share
knowledge
Partnerships on
SPP at the (1)
regional, (2)
national and (3)
European level
(SPP regions).
High value
Get free expert
support on
specific topics
Medium value
Partnerships
complement the
activities of the
program.
High value
Advise and
monitor progress.
Disseminate info
in their areas, in
local language
Low value
Medium value
Enable exchange
of good practices
and good vibes!
High contribution
Partnership funds
account for 40%
of funds.
Medium
contribution
Partnerships
increase the
influence of the
program.
High contribution
Support
recruitment of
Low contribution
new members and
get 50% of their
fees in return.
Low value
High contribution
Allows for the
current funding of
the program,
Low contribution
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Impacts and the future
Sust Choice
3AR
Cultural
impacts
Still perception
that SP is more
expensive
Increased
expertise among
members and
consultants
Increased visibility Clear evolution in
SP has become a
given to SP across
terms of
BAU topic in many
the country
perception and
organisations
through program
influence
Difficult to
evaluate
Organisatio
nal impacts
Annual SP
scorecard shows
that some
members are
progressing.
Better
methodology to
make decisions
e.g. life cycle and
TCO approaches.
Not done yet. A
lot of debate on
types of metrics
Some
organisations
have now
individuals that
review each RFT
A working group
on evaluating SP
will be launched
soon.
Impacts in
organisations are
monitored
annually and
posted on the
program website
Not evaluated.
Not done yet. A
lot of debate on
types of metrics
Not evaluated.
Not enough funds
to do it.
Not evaluated.
Evaluated with
details for 12
categories
Increased number
and satisfaction of
members.
Keeping on
meeting and
knowing each
other.
Nurturing the
community
The duo made of
1 proactive
elected
representative
and 1 competent
staff.
Expand the scope
of the program by
including social
issues
Recruiting new
members.
Macroeconomic
impacts
Not evaluated.
Key success
factors for
the future
Securing a more
sustainable
funding model.
Keeping councils
engaged.
Appropriation by
elected
representatives
SPLC
Procura +
RGO
APE
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Focus on 6 key lessons learned (LL)
1. SUSTAINABLE CHOICE - Get Members To Meet The Market
2. 3AR - Create Projects Through Partnerships
3. SPLC - Diversify Membership Base
4. PROCURA PLUS - Build The Sense Of Community/Family
5. RGO - Include Decision Makers In Governance
6. APE - Measure, Report And Communicate
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Sustainable Choice
LL #1 – GET MEMBERS TO MEET THE MARKET
WHAT
Provide ‘safe’ opportunities to members to meet suppliers that offer
‘sustainable’ products and services
(1) Support supply market analysis
WHY
(2) Show that ‘sustainable’ suppliers are competitive
(3) Favour connections between buyers and suppliers
• Invite qualified suppliers to forums and events
HOW
• Organise speed dating sessions between buyers and suppliers
• Organise supplier market shows
20
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Sustainable Choice
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LL #2 – CREATE PROJECTS THROUGH PARTNERSHIPS
WHAT
Develop projects with organisations interested in the power of SP to
drive change in the value chain: expert support to members (pilots),
training, best practice guidance, ‘meet the supplier’ events
(1) Complement membership funds (3AR: partnerships = 40% budget)
WHY
HOW
(2) Provide great value to members
(3) Develop ecosystem of partners around different topics and
categories (we can’t be experts of everything!)
•
Matching members’ expectations and sponsors’ policies – Being
the intermediate that make things happen!
•
Make the business case to sponsors (e.g. government) that
procurement is a great tool to implement public policies
•
True partnership: DUO 3AR + Expert working hand in hand
22
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Category/Topic
Sponsor
Expert partner
Project
Circular Economy
Regional Council
Regional association of
eco-industries
Give visibility to ecoindustries
Environmental
Health
State Regional Agency Health
Non for profit specialist
of health issues
Connect health issues
and sust proc
Organic food in
canteens
State Regional Agencies –
Environment, Agriculture
and Forests
Non for profit
supporting organic
farmers/industry
Tailored support to
members on sourcing +
trainings
Federation of Furniture
Manufacturer
Best practice guidance
Road works
Federation of the Road
Construction Industry
Federation of the Road
Construction Industry
Event: share best
practice + stimulate
members to do pilots
Meet the supplier
Chamber of Commerce
None
‘Meet the supplier’
events
Furniture industry body in
Furniture end of life
charge of managing end-ofmanagement
life
23
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LL #3 - DIVERSIFY MEMBERSHIP BASE
WHAT
WHY
Include multiple organisations such as hospitals, universities,
technology parks, state-owned organisations, private companies
(1) Increase # of organisations that build/share knowledge – Learning
from organizations in other regions/sectors has been eye-opening
(2) Improve visibility, credibility and budget of the program
•
Define 3 Membership Roles for each staff: (1) Purchaser, (2)
Supplier, (3) Public Interest Advocate. Example: Working Groups.
•
Ensure that each of these three stakeholder groups has equal
representation in all decision-making bodies of the Program.
•
Make it flexible: 1 organisation can have different Membership
Roles for his staff, e.g. government agency with related advocacy
mission.
HOW
24
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Types of member organisations
Industries represented
Non-profit
12
Consulting
19
Standards and Certification
Manufacturing
Local Government
Higher Education
58
66
Regional and National Government
Information Technology
Information Services
Energy
Utilities
Public interest
Purchaser
Supplier
Mix
Association
22 other Industries
0
5
10
15
20
25
30
35
25
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LL #4 – BUILD THE SENSE OF COMMUNITY/FAMILY
WHAT
Support the development of strong and long-lasting relationships
between members through regular meetings and events
(1) Reduce churn of members
WHY
(2) Enable stability of program
(3) Members sell the program themselves
HOW
•
Regularly organise free ‘events’ (training, conferences, forums
and/or working groups)
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27
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LL #5 – INCLUDE DECISION MAKERS IN GOVERNANCE
WHAT
Include elected representatives in the governance and membership,
right at the creation of the Program – ‘They are our decision makers’
(1) Increase commitment to the program (‘it belongs to us’)
WHY
HOW
(2) Secure political support
(3) Ensure that program’s directions respond to members’ needs e.g.
public policies
•
To become a member: DUO Elected Representative (political
support) + Staff Member (internal implementation)
•
Only Elected Representatives on the Board: only them can
validate Program decisions
•
Nurture the relationship with elected representatives, e.g.
through sponsoring of working groups, induction sessions, etc.
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28
2010 - Gilles Mahé, Vice President
Angers Metropolis, introduces the outcome
report of the Organic Sourcing Group
2013 - Laurent Martinez, Pays de la Loire Regional
Council elected member, introduces the outcome
report of the Textile Working Group
2016 – Introduction of the RGO General
Assembly by Didier Quéraud, Rezé City
Councillor and RGO President
2016 – Working group including two
elected representatives
29
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Acquisti Publici Ecologici (APE)
LL #6 – MEASURE, REPORT AND COMMUNICATE
WHAT
Track realistic performance indicators related to the program and
communicate the results to partners, members and the wider
audience.
(1) Justify existence of the program to funders and members
WHY
(2) Monitor progress and adjust program strategy
(3) Increase individuals self confidence /pride (‘what we do is great’)
HOW
• Strong commitment from APE’s members formalised in
Agreement Protocol that is core to the program
• Identification of realistic KPIs for each category
• Support to members to collect and process data
30
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‘Classical’ Procurement
Acquisti Publici Ecologici (APE)
Total expenditures: 145 millions
A.P.E. expenditures: 86,5 millions
‘Protocol compliant’ Procurement
59.6% in accordance with
the A.P.E. Agreement!
31
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Acquisti Publici Ecologici (APE)
Total CO2 emissions
avoided through APE
compliant procurement View per spend category
17.731 tons of CO2 equivalent
avoided for electric power,
vehicles and IT office equipment
585 tons of plastic avoided
3.577 tons of CO2 equivalent avoided
for catering services
32
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