Sustainable Public Procurement

By

S Tahalooa LLM, MBA, MCIPS

CPPP 25 Sep 2012

2

Inequal access to essential goods and services

1 billion people survive with less than one euro per day

1 billion people have no access to drinking water

2 billion have no access to sanitation

2,5 billion have no access to electricity

20% of the world population consumes 87% of the world’s output

whereas…

3

Accelerating urbanization in particular in Southern

countries

2. the demographic challenge

3. The urbanisation challenge

The world population will increase to 9 billion in 2025

Population mondiale, 1950-2050

Source : Division de la population (ONU)

Aggravating a number of imbalances and problems(housing and urban infrastructures deficits, loss of agricutural land,

water pollution…)

4

4. Ecological challenges

Pollution and overexpoitation of natural resources (atmosphere, water, soils, animal and vegetal life, oil, mineral resources, etc.)

Preserving natural resources Increased resource consumption

Increased production

Increased demand for products

Increased pressure on natural resource

Economic growth

Loss of biodiversity: 11 000 species threatened

Loss of resources: fich stocks, forests,

End of the oil economy by 2040?

5

How may Earths do we need?

1900 21002002 2050

If adopt/keep the current modes of consumption

and production:

Is there room enough on the planet for seven billion to ten billion human beings, tens of millions of other species, and economic convergence between rich and poor?

Source: Jeffrey Sachs (McKinsey,Feb 2009)

The answer is no with current technology, and yes if we focus on sustainable technology.

The global economy is literally unsustainable now and cannot absorb further economic and population growth without serious risks of global destabilization—even collapse. The unsustainability shows up in the following areas:

Unsustainability Areas

-Carbon dioxide emissions, now running at around 36 billion tons per year, and growing by 1 to 2 percent per year during normal years

-Nitrogen deposition from fertilizer use, creating more than 100 hypoxic zones in the world’s estuaries and wreaking even more extensive ecosystem damage

-Water stress from ground-water depletion, glacier melt, reduced snowmelt, diversion of upstream waters through dams, increased evapotranspiration with higher temperatures

-Greatly increased risk of new and reemerging zoonotic diseases -Greatly increased damage from invasive species - Greatly increased risk of extreme weather events, including droughts, floods, and tropical cyclones

Major Areas to focus• Electricity production, which must become low- or zero-carbon emitting • Automobile transport, which must multiply by four- or fivefold the miles

vehicles can travel per gallon of gasoline or eliminate gasoline entirely by moving to electric batteries recharged on a clean grid

• Food production, which must produce a healthier diet with much less destruction of habitats, biodiversity, and water resources; less use of pesticides and antibiotics; and reduced greenhouse gas emissions (methane, nitrous oxide, and CO2 through fossil-fuel use)

• Green buildings that are much more energy efficient and more reliant on electricity than they are on on-site burning of fossil fuels

• Reduced industrial pollution through systematic materials recycling and the redesign of production processes

• Comprehensive introduction of infectious-disease control, including surveillance, monitoring, case management, and appropriate uses of antibiotics

Sustainable

*English Oxford

“Ecology, especially of development which conserves an ecological balance by avoiding depletion of natural resources”, or secondly “that can be sustained”*

Green

“Green” refers to practices, processes and products that have minimal impact on the health of the ecosystem.The emphasis is on non-hazardous, recyclable, reusable and energy efficient products and processes.

Green and Sustainable

`Green’ and `Sustainable’ can be interchangeable and cover for example:

• using bio-degradable materials• using energy efficient devices• recycling• material replacement (for example planting a treewhen making wooden products)• avoiding intensive farming/mining• minimising harmful pollution• reducing the carbon footprint• energy efficiency.

Sustainable Development

Sustainable developmentis about

“… meeting the needs of the present without compromising

the ability of future generations to meet their own needs.”

Source: World Commission on the Environment and Development, Brundtland Report 1983

Sustainable Development• The fundamental aim of sustainable development is to secure the future. • Developing sustainably means ensuring that our actions today do not limit

our quality of life in the future. So our vision is based on the principles that we should:

- have regard for others who do not have access to the same level of resources, and the wealth generated

- minimise the impact of our actions on future generations by radically- reducing our use of resources and by minimising environmental impacts - live within the capacity of the planet to sustain our activities and to replenish- resources which we use.

Source: Scottish Executive web site

15

SD wants to bring together:

... respecting the rules of good governance

Social progress:

Human development, rights, education,

reduction of poverty and inequality, security

and social inclusion

Social progress:

Human development, rights, education,

reduction of poverty and inequality, security

and social inclusion

Economic sustainability:

Economic growth, full employment,

effectiveness, integration of social and

environmental costs

Economic sustainability:

Economic growth, full employment,

effectiveness, integration of social and

environmental costs

Environmental balance:

Preservation of natural resources, ecosystems, biodiversity; reduction

of the ecological footprint

Environmental balance:

Preservation of natural resources, ecosystems, biodiversity; reduction

of the ecological footprint

The three pillars of SDThe three pillars of SD

16

SD priority areas

Responding to the needs of the population and guarantee fundamental rights (housing, food, etc.)

Sustainable Production and Consumption

Climate change and energy

Natural resources protection and environmental enhancement

Building sustainable communities

Working to achieve more with less

Protecting natural resources from which we depend: air, water, energy sources, soil

Reducing pollution and ecological footprint

17

Sustainable Public Procurement (SPP): a Sustainable Public Procurement (SPP): a definitiondefinition

“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”

UK SP Task Force and MTF SPP Task Force, 2006

ADDRESSES THE THREE PILLARS OF SDADDRESSES THE THREE PILLARS OF SD

Sustainable Public Procurement (SPP): DefinitionSustainable Public Procurement (SPP): Definition

Sustainable procurement is the application of sustainable development principles to procurement and is a key activity in helping to ensure that the world remains habitable and that people have a decent quality of life. There is a wide range of approaches to sustainable procurement, which can be applied at all stages in the procurement process.

19

3. Product delivery

Total Sustainable

Quality

5. Product disposal

2. Production processes & conditions

The Product Life-cycle

1. Material inputs

4. Product use

20

Country Implementation

Business case for sustainable procurement

• reduce waste and improve resource efficiency

•secure the supply of goods and services

•provide cost savings

•provide added value

•protect or enhance reputation

•create markets for new products and services

•satisfy stakeholder expectations

Drivers of Sustainable Procurement

• Legislation (Producer Responsibility, Packaging, Waste, WEEE, End-of-LifeVehicles)• Costs e.g. landfill tax• International Obligagations• Environmental Objectives• Public Procurement• Legislation / Best Value• Adoption of standards – ISO 14001 and EMAS

Drivers of Sustainable Procurement

• Customer pressure• Other Stakeholder interest• Image / Reputation / Brand• Values• Competitor pressure• Benchmarking• Security of Supply• Demonstrating the value of good procurement

practice - added value, knowledge and information