Sustainable Public Procurement

Barbara Morton, Sustainable Procurement Ltd MTF Technical Advisor

Port Louis, Mauritius 09 September 2009

Outline

• Sustainable Procurement: – Who, what, how and why?

• International activity on Sustainable Procurement• Marrakech Task Force on Sustainable Public

Procurement• Key elements of MTF on SPP Approach

• Delivering sustainable outcomes through public procurement – opportunities for Mauritius

What is Sustainable Procurement?

International activity on Sustainable Procurement

• Governments– Central and local government / municipalities

• Europe – Green Public Procurement– Public procurement = 16% of GDP (can be up to 30%)– Target = 50% contracts to be ‘green’ by 2010– Top 7 ‘Green’ countries

• Austria, Denmark, Finland, Germany, Netherlands, Sweden, UK

– ITC-ILO to roll out GPP Toolkit in training to 10 Member States (plus 10)

– Recent attention on social issues (e.g. Netherlands)

International activity on Sustainable Procurement

• SPP mainly in OECD countries (IISD study)– Brazil, India and China – laws in place

• Japan – Green Purchasing Law – IGPN and Green Purchasing Networks

• South Africa– Social agenda dominates - Preferential Procurement

• US– Women-owned businesses; veteran-owned businesses

• New Zealand and Australia (State level)

International activity on Sustainable Procurement

• Main drivers for companies and private sector:– Reputational risk issue, Customer and media interest – NGO interest e.g. illegal logging and sustainable forest

management– Investor interest – Corporate (Social) Responsibility; benchmarking

schemes– Environmental Management Systems e.g. ISO 14001– Codes of Conduct for supply chain – Resource efficiency – doing more with less

UK Sustainable Procurement Task Force

• Business-led– Construction, ICT, telecomms,

NGOs, small business, • UK to be recognised as amongst the

leaders in Europe in sustainable procurement by 2009

• Procuring the Future – June 2006• Tools for implementation

– Risk-based Prioritisation Methodology

United Nations

• Climate Change impacts almost all mandates of UN.

• More and more UN organizations are challenged by their governing bodies and member states

Ban Ki-Moon UN SG

UN SG pledged, on World Environment Day (5 June 2007)“…to explore ways of making the United Nations more climate friendly and environmentally sustainable, and to develop a climate-neutral approach to its premises and operations.”

International activity on Sustainable Procurement

• UN Secretary General’s commitment

• UN Global Compact

• Sustainable UN– Sustainable procurement training for UN

Agencies:– Rome, Panama, Bangkok – IFAD, FAO, UNICEF, ESCAP, etc– Spring 2009

• In line with UN principles

The Marrakech Task Force on Sustainable Public Procurement (1)

• Started in 2005• Supported and led by the Swiss Government

(Swiss Federal Office for the Environment - FOEN)

• Participants include – Switzerland, USA, UK, Norway, Philippines,

Argentina, Ghana, Mexico, China, Czech Republic, State of Sao Paolo (Brazil)

– ICLEI, UNEP, IISD, International Labor Organization (ILO), European Commission (DG-Environment)

The Marrakech Task Force on Sustainable Public Procurement (2)

Definition of SPP adopted by TF:• “Sustainable Procurement is a process whereby

organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment.”

• Taken from ‘Procuring the Future’ - report of the UK Sustainable

Procurement Task Force, June 2006

Definition of SPP

• Broader than Green Procurement– Footnote in definition reads:

Sustainable Procurement should consider the environmental, social and economic consequences of:

Design; non-renewable material use; manufacture and production methods; logistics; service delivery; use; operation; maintenance; reuse; recycling options; disposal; and suppliers' capabilities to address these consequences throughout the supply chain.

Capacity building for Sustainable Public Procurement (SPP) in developing countries

• European Commission funded project MTF-UNEP• Promote the implementation of effective SPP policies in

developing countries

• MTF on SPP target is to roll out to up to 14 countries– Pilot countries:• Chile, Costa Rica, Mexico, Mauritius, Tunisia, Uruguay • New Zealand• Ghana proposal under consideration• Interest from:

• Lebanon, League of Arab States

MTF on SPP ApproachCountry Implementation

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Key outputs of MTF on SPP

1. SPP Approach 2. SPP Principles 3. Implementation Plan and role of National Focal Point4. Status Assessment5. Legal Review6. Market Readiness Analysis7. Training – including pilot training course8. Building capability9. Roll out and implementation10. Plan for 2010-11 and beyond

SPP Principles

• Principles:

1. Good procurement is sustainable procurement 2. On leadership3. On policy through procurement 4. On enabling delivery5. On implementing

• Monitoring results and outcomes

SPP Principles:Policy through Procurement

• SPP can contribute, or be the main means, to the delivery of a wide range of organisational objectives, including:– efficiency– business strategy– sustainable development – sustainable consumption and production– Maurice Ile Durable

Letter of commitment to

project

Agreement TF

Legal review+

Market Readiness Analysis

Results reviewed by expert

assigned by TF

Training takes place (TF experts)

Implementation starts

Follow-up / remote assistance by TF

for 1 year

Identify / organize training

Funding support by TF

Review/ support by TF

Final plan completed

TF updates training material

Policy Options drafted by

Government + consultations

Complete Status

Assessment

STEPS IN THE PROCESS

National Priority Spend Areas

0

5

10

15

20

25

Scor

es a

s a

% o

f Tot

als

Infuence

Scope

Risk

Monitoring results and outcomes:

• Outcomes delivered through SPP can include:

1. improved environmental performance, including reduced CO2 emissions

• global and local environmental goals

2. cost savings including recognition of non-tangible benefits and costs

Financial impact of GPP

PWC / Ecofys StudyFor European Commission January 2009

2. Cost saving opportunities

Call for evidence to Westminster Sustainable Business Forum

‘Costing the Future’ published June 2008

Securing Value for Money through Sustainable Procurement

Co-chairs:

David Kidney MP and Barbara Morton

How can budget allocation and accounting regimes foster environmental/social procurement?

Outcomes delivered through SPP can include:

3. job creation (including SMEs: environmental goods and services)

4. minority empowerment

5. poverty reduction

6. wealth creation

7. transfer of skills/technology

8. good governance (as part of public procurement reform, for example).

SPP can also be used to:

• stimulate “appropriate” competition

• create markets for appropriate technology (i.e. not necessarily high-tech solutions)

• drive markets for innovative and sustainable solutions

• encourage early engagement and dialogue with the market

• and enhance dialogue with civil society.

2. Define the Specification and invite Bids

1. Evaluate and select suppliers

3. Evaluate Bids from suppliers and Award

4. Audit and improve supplier

5. Manage the contract and disposal

Procurement Process

Good procurement is sustainable

procurement

Identify need and Assess Risk

Challenges & Opportunities for SPP in Mauritius

• In times of international economic recession:– SPP offers resource efficiency– Employment and wealth creation through

targeted efforts in key markets consistent with government policy priorities

– Stimulating markets: step by step not three at once!

– Economic stimulus packages worldwide – potential of environmental technologies

Challenges & Opportunities for SPP in Mauritius

• In line with:– Modernised, professional procurement– Sustainable development policy priorities– SCP priorities– Legal requirements of country– Drive to increase proportion of business with SMEs

• Potential contribution to Maurice Ile Durable

Mauritius as a leader and exemplar of good practice in the region and in the world

Good procurement is sustainable procurement!

Barbara Morton

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Barbm110@aol.com

Merci

Thank you