Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Sustainable Public Procurement in EU Member States:

Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007

Sustainable Public Procurement in EU Member States: Case Studies & Synthesis

Presentation given at the 16th Meeting of the EU High-Level Group on CSRBrussels, 16 October 2007

Reinhard Steurer

Gerald Berger

RIMAS - Research Institute for Managing SustainabilityVienna University of Economics and Business Administration

www.sustainability.eu www.sustainability.eu/csr-policies


Orientation

1. Context and general remarks …About the project, the survey, the case studies

2. Some survey results commemoratedTypes of instruments etc.

3. The three case studies The „legal framework“ on SPP in FranceThe „strategic framework“ on SPP in the UKGuidelines on SPP/GPP in Austria

4. ConclusionsSynthesis of survey & case study results


Orientation






Context

1. The project: „Analysis of national policies on CSR, in support of a structured exchange of information on national CSR policies and initiatives“ is commissioned by DG Employment (Tender No VT/2005/063; www.sustainability.eu/csr-policies)

2. The survey results: Presented at CSR HLG Meeting on 7 May 2007

3. Final report on SPP in Europe summarises survey results (part I), case studies (part II) and synthesis (part III)

4. The case studies & synthesis: Describe selected policy approaches in more detail Highlight relevant success factors and

challenges/obstacles Facilitate an in-depth discussion of different approaches


General remarks on the case studies

1. Cases selected based on survey, in cooperation with DG Employment (most relevant instruments in countries that make extensive use)

2. Cases considered … …but not selected also briefly described in final report • EKU Tool in Sweden (hybrid instrument: internet platform)• NAP on SPP in the Netherlands• Informational instruments in Denmark, in particular the websites

www.ski.dk (GPP) and http://www.udbudsportalen.dk/socialaftaler (the “Danish Public Procurement Portal on Social Clauses”)

3. Sources of information: • Documents (incl. websites) on the initiatives• 2 interviews per case (from ministries and procuring agency)• Interview partners and questions: Annex IV of final report


Orientation






Countries covered in the survey

Green: survey

Orange: other studies

Grey: not covered


Overview of 103 SPP initiatives found in the surveyOverview of 103 SPP initiatives found in the surveyEducational activities, e.g.

conferences, seminars, trainings; 3.9%

Government-sponsored guidelines; 13.6%

Information resources, e.g. websites, studies,

reports, etc.; 11.7%

Information/awareness raising campaigns; 1.9%

Networks/partnerships/agreements; 1.0%

Decrees, resolutions; 4.9%

Circulars; 4.9%

Action plans/programmes/strategies

for CSR; 27.2%

Platforms/centres/institutions; 5.8%

Informational instruments

Partnering instruments

Legal instruments

Hybrid instruments

Laws; 25.2%


Overview of SPP initiativesOverview of SPP initiativesEducational activities, e.g.








Circulars; 4.9%


for CSR; 27.2%




Legal instruments

Hybrid instruments

Laws; 25.2%

Economic/financial instruments are missing, but…

Economic/financial instruments are missing, but…










Circulars; 4.9%


for CSR; 27.2%




Legal instruments

Hybrid instruments

Laws; 25.2%

Indirectly: All SPP initiatives foster CSR by

providing economic/ financial incentives


0

10

20

30

40

50

60

70

Target groups of SPP initiativesTarget groups of SPP initiatives

Public sector in general; 66.0%

Business; 10.7%

Regional and/or local level; 6.8%

National/federal level; 19.4%

not identified; 8.7%

Others; 1.9%

„Direct“ target group: 92.2% public sector

„Indirect“ target group 100% businesses

„Direct“ target group: 92.2% public sector

„Indirect“ target group 100% businesses

R. Steurer

spp statt aware


Focus of SPP initiatives: Environmental and/or social?Focus of SPP initiatives: Environmental and/or social?

Environmental & social

(47.6%)

Environmental only(41.7%)

Social only(6.8%)

Focus not identified (3.9%)


Orientation














Circulars; 4.9%


for CSR; 27.2%




Legal instruments

Hybrid instruments

Laws; 25.2%

The legal framework for SPP in France



EU Directives* on PP: Status of implementation

19: implemented

2 (Es, Lux): in preparation

1: not implemented

5: status unclear

* „Procurement directive“ 2004/18/EC „Utilities directive“ 2004/17/EC



Type Legal instruments: laws, ordinances, decrees, circulars

Key activities

• Public Procurement Contracts Code/PPCC (“Code des marches publics”): requirements for public procurement have to be defined “by taking into account the objectives of SD”

• Ordinance 2005-649 and decrees (target public entities with commercial purpose)

• Circulars on wood & energy efficiency (give guidance)

Timing 2005-2006

Responsibilities Ministry of Ecology/SD & Min. of Economy & Finance

WebsitePPCC:

http://www.minefi.gouv.fr/directions_services/daj/marches_publics/code2006/comparatif_cmp2006-cmp2004.pdf


Success factors & recommendations

Too early to assess the impact of the French legal framework on SPP, but the following points were mentioned:

Political backing and constitutional basis (“Charter for the Environment” as Annex to French Constitution)

Follow up: Procurers must state how they have integrated SD or justify why they did not (statistical analysis possible)

Legal framework rather than single law: General legal provisions are complemented with more specific guidelines (circulars)

Consultation of other public authorities and businesses


Challenges

Legal framework is an important basis for SPP, but fostering SPP also requires:

Training

Training

Training


Challenges


Training of public procurers to help them understand the integrative nature of Sustainable Development

Training

Training


Challenges



Training of public procurers to help them implement the new legal requirements/possibilities

Training


Challenges



Training of public procurers to help them implement the new legal requirements/possibilities

Training of public procurers so that they understand the economics/efficiency of SPP


Orientation














Circulars; 4.9%


for CSR; 27.2%




Legal instruments

Hybrid instruments

Laws; 25.2%

The strategic framework for SPP in the UK



Member States with National Action Plans on SPP/GPP

9: NAP adopted

7: NAP in preparation/ drafted

3: No (draft) NAP

8: Status unclear



Type Hybrid instruments: strategies and action plans

Key activities

• UK Government Sustainable Procurement Action Plan (“the UK aims to be a leader in SPP by 2009”; it contains quantified goals on CO2, energy efficiency and waste reduction)

• Transforming Government Procurement (aims to build capacity and capability for SPP)

• SD Action Plans of Government Departments (assessed by SD Commission)

Timing First two: 2007; departmental plans: 2005

Responsibilities DEFRA (Environment Dep), Treasury, others

WebsiteUK Action Plan:http://www.sustainable-development.gov.uk/publications/pdf/SustainableProcurementActionPlan.pdf



Too early to assess the impact of the strategic framework, but the following points were mentioned:

Political commitment to make SPP a government priority

Experience and good track record in strategic management

Consultation of stakeholders (other departments and businesses)

Strategies on SPP should also aim to build evidence about the economic advantages of SPP


Challenges

“Value for money” (“cost-benefit ratio”) of SPP still not quantified …

… thus, potentially higher costs often regarded as unjustified strains on the budget

Building capacity and capability for SPP with guidelines, trainings etc.


Orientation



3. The three case studies The „legla framework“ on SPP in FranceThe „strategic framework“ on SPP in the UKGuidelines on SPP/GPP in Austria











Circulars; 4.9%


for CSR; 27.2%




Legal instruments

Hybrid instruments

Laws; 25.2%

Guidelines for SPP/GPP in

Austria

Guidelines for SPP/GPP in

Austria


Guidelines on SPP/GPP in Austria

Type Informational instruments

Key activities

• General Government Guidelines on GPP from 1998; update from 2004 not adopted by government because of “unclear follow-up costs of GPP”

• “Check it” criteria catalogue for GPP: LIFE project, 11 modules provide detailed information on various product groups

• “Greening events”: guideline for sustainable event management that covers 10 environmental and 2 social topics, followed by similar initiatives

Timing 1998 – 2001 (“Check it”) – 2005 (“Greening Events”)

ResponsibilitiesEnvironment Ministry, in cooperation with other Ministries and, more recently, with Federal Procurement Agency

Website “Check it” (only document in English) http://www.ifz.tugraz.at/oekoeinkauf/index_en.php



Develop practical and easy to use guidelines …

… through a close cooperation between • sustainable development experts, • procurement practitioners and • businesses

Address the issue of “value for money” (also in guidelines)


Challenges

Develop practical and easy to use guidelines …

… through a close cooperation between • sustainable development experts, • procurement practitioners and • businesses

“Value for money” argument

Broaden focus from Green to Sustainable Public Procurement


Orientation






Conclusions

Policies on SPP are dominated by laws, action plans and guidelines

The number of SPP initiatives seems to relate to the actual GPP performance

SPP is dominated by GPP (8 of 16 NAPs focus on GPP)

Value for money is a guiding principle of public procurement and SPP

These 3 complementary instruments have

developed into a standard set of SPP policy-making

across the EU

These 3 complementary instruments have

developed into a standard set of SPP policy-making

across the EU

But: the effectiveness of the different SPP

instruments should be assessed in depth

But: the effectiveness of the different SPP

instruments should be assessed in depth

Sustainable PP should reflect economic, social and environmental aspects SD

Sustainable PP should reflect economic, social and environmental aspects SD

SPP initiatives should pro-actively use the value for money argument for their

own purposes

SPP initiatives should pro-actively use the value for money argument for their

own purposes


Conclusions II

SPP initiatives often fail because of a lack of relevant (legal) knowledge and expertise among procurers

Respective capacities for SPP can be built with many complementary informational instruments, such as campaigns, guidelines and trainings

High-level political commitment, the involvement of procurers and other stakeholders and bottom-up ownership are key success factors for SPP

Procurers must be educated and trained to implement laws and

NAPs on SPP

Procurers must be educated and trained to implement laws and

NAPs on SPP

But: these initiatives are only effective if they address the

needs and concerns of public procurers

But: these initiatives are only effective if they address the

needs and concerns of public procurers

NAPs and other strategic approaches to SPP should

focus also on how to secure these success

factors

NAPs and other strategic approaches to SPP should

focus also on how to secure these success

factors


[email protected] - Research Institute for Managing Sustainability

Vienna University of Economics and Business Administration

www.sustainability.euwww.sustainability.eu/csr-policies

Thanks for your support so far ---

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