How to successfully implement a Sustainable Procurement Program Lessons learned from 6 Programs around the world Thursday 10 November 2016 Co-organised by Planet Procurement 2015 All rights reserved www.planetprocurement.com.au 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 Planet Procurement 2015 All rights reserved www.planetprocurement.com.au 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] 13 Planet Procurement 2015 All rights reserved www.planetprocurement.com.au 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 14 Planet Procurement 2015 All rights reserved www.planetprocurement.com.au 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 15 Planet Procurement 2015 All rights reserved www.planetprocurement.com.au 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 16 Planet Procurement 2015 All rights reserved www.planetprocurement.com.au 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 17 Planet Procurement 2015 All rights reserved www.planetprocurement.com.au 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 18 Planet Procurement 2015 All rights reserved www.planetprocurement.com.au 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 19 Planet Procurement 2015 All rights reserved www.planetprocurement.com.au 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 Planet Procurement 2015 All rights reserved www.planetprocurement.com.au Sustainable Choice 21 Planet Procurement 2015 All rights reserved www.planetprocurement.com.au 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 Planet Procurement 2015 All rights reserved www.planetprocurement.com.au 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 Planet Procurement 2015 All rights reserved www.planetprocurement.com.au 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 Planet Procurement 2015 All rights reserved www.planetprocurement.com.au 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 Planet Procurement 2015 All rights reserved www.planetprocurement.com.au 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) 26 Planet Procurement 2015 All rights reserved www.planetprocurement.com.au 27 Planet Procurement 2015 All rights reserved www.planetprocurement.com.au 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. Planet Procurement 2015 All rights reserved www.planetprocurement.com.au 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 Planet Procurement 2015 All rights reserved www.planetprocurement.com.au 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 Planet Procurement 2015 All rights reserved www.planetprocurement.com.au ‘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 Planet Procurement 2015 All rights reserved www.planetprocurement.com.au 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 Planet Procurement 2015 All rights reserved www.planetprocurement.com.au Planet Procurement 2015 All rights reserved www.planetprocurement.com.au We provide advisory services, training and tools to help your organisation deliver sustainability and social responsibility through procurement and the supply chain. M - +61(0)423 328 603 W - www.planetprocurement.com.au @ - [email protected] In partnership with Planet Procurement 2015 All rights reserved www.planetprocurement.com.au
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