Sustainable Procurement Practice: Shaun Mccarthy
Sustainable Procurement Practice: Shaun Mccarthy
Sustainable Procurement Practice: Shaun Mccarthy
Sustainable Procurement
Practice
Shaun McCarthy
Director
Action sustainability
www.actionsustainability.com
[email protected]
Action Sustainability
Inspiring sustainable procurement
Sustainable Procurement
Practice
Welcome
www.actionsustainability.com
[email protected]
Action Sustainability
Inspiring sustainable procurement
www.actionsustainability.com
[email protected]
Action Sustainability
Inspiring sustainable procurement
How…? Who…?
We are a not for profit social enterprise registered as We support and facilitate the Strategic Supply Chain
Community Interest Company. We manage events Group, a leading authority on sustainable
and seminars to promote more sustainable procurement. We aim to extend the boundaries of
business. We also offer specialist expertise and best practice in this area and advise organisations
services to public and private sector organisations and government on sustainable procurement policy
interested in improving the impact of their supply and strategy.
chain on society.
Delivery
We provide research, case studies, support, training, benchmarking and consultancy. Our group aims to
continuously extend, lead and inspire best practice in sustainable procurement
Action Sustainability
Inspiring sustainable procurement
This is achieved through a series of promotion and Through research, benchmarking and thought
awareness events, often working with member leadership in sustainable procurement. To use our
organisations and other groups with an interest in influence with members and their supply chains to
this issue. have a net beneficial impact on society.
We help Government to define and shape best practice in sustainable procurement. We support the
implementation of the Sustainable Procurement Task Force (link) and the Sustainable Consumption and
Production Task Force
Action Sustainability
Inspiring sustainable procurement
What – Sustainability…?
“Development that
meets the needs of
the present without
compromising the
ability of future
generations to meet
their own needs”
Bruntdland Definition
Action Sustainability
Inspiring sustainable procurement
Why…?
Employee Stakeholder
expectations Brand demands
Customer
Benchmarking
requirements
Sustainable Licence to
Reputation Procurement
Operate
Business Partners
Passenger Reps
Business Orgs
Employee Reps
Suppliers
Gov’t Agencies
Retailers
Media
Community Reps
MPs, MEPs
Local Authorities
Pressure Groups
Action Sustainability
Inspiring sustainable procurement
When…?
How…?
What organisations do
How…?
Buy stuff
Sustainable Demand
management
Production &
Inventory
Consumption management
(more for less) Life cycle cost
“Green” energy
procurement
Climate change
Energy conservation
and Energy
Ethical procurement
Sustainable Local suppliers
Community
Communities
partnerships
Action Sustainability
Inspiring sustainable procurement
How…?
Buy stuff
Sustainable Demand
Production & management Hundreds of end users
Inventory
Consumption management
(more for less) Life cycle cost
Hundreds of products
“Green” energy
procurement
Thousands of suppliers
Climate change
Energy conservation
and Energy
Countless 2nd, 3rd, 4th
tier suppliers
Natural Resource Materials use
Environment impact
& Env.
of purchases
Enhancement Tens of thousands of
transactions
Ethical procurement
Sustainable Local suppliers
Community
Communities
partnerships Big....Complex...
How - Organisation
Big Ticket Other Corporate
Corporate Environment Environment Responsibility
Responsibility •Noise •Biodiversity •Social
Board •Air Quality •Natural resources •Economic
•CO2/Energy •Contamination •Ethics
•Waste •Etc. •Etc.
BAA Example
Group Businesses
•Policy Policy advice
CAS •Strategy Areas of •External representation
Environment •Governance Expertise •Options
•Talent management •Analysis Strategy
•Policy Implementation advice •Long term
•Legislation •Sustainability
•Strategy framework • impacts
•Policy communication
•Performance reporting
Solutions
Sustainability Guidance •Sustainable
Team •Documents to inform •Performance
Assurance
Process reviews Audit Corrective action
Action Sustainability
Inspiring sustainable procurement
How – Process…?
Supplier
Identification of Specification qualification and
need appraisal
Financial
evaluation
Accounting:
whole life costing
Financial
review
Contract
management Tendering and
and review tender evaluation
Issue briefs Approved Brief Decision Approved Options CEMP framework (via Approved CEMP Assurance outcomes
AoE input (where Report Decision Report. Decision Model) Targets/KPI’s Target/KPI’s
appropriate – Big Any planning/regulatory Design Brief Approved Scheme Design Reconciliations
Ticket?) requirements Project Execution Plan Brief
Inputs Draft targets/KPI’s
A Development A Development Managers A Development Managers A Project Leaders A Project Leaders A Project Leaders
Primary Managers R Design Managers R Design Managers R Project Groups C Sustainability AoE C Sustainability AoE
Responsibilit C Project Groups C Project Groups C Project Groups C Sustainability AoE
e
C Sustainability AoE
ry
y (RACI) C Sustainability AoE C Sustainability AoE
vi c e
IT/
d l iv
Decision Model Decision Model Decision Model Decision Model Decision Model Decision Model
A De
Managemen
t System
Links
List of relevant issues Whole Life Cost factors Scheme Design Brief Production Plan Implemented CEMP Handover file
Issues captured in captured capturing issues capturing issues Self-Assurance checklist containing all relevant
Brief Decision Report Draft Design Brief Whole life cost report Completed CEMP Cost reconciliation of issues
Proposed approaches capturing issues Non conformances with Approved targets/KPI’s planned versus actual for Risk Register
for carbon intensity Energy/CO2, waste & Materials Strategy BREEAM data all sustainability cost highlighting any
Outputs included in Brief sensitive materials justified and approved lines residual risks
Decision Report. assessments for each Completed energy/CO2 Knowledge capture
option & waste assessments
Self-Assurance checklist
List of relevant
construction activities
How - Process Develop performance
Define requirements in Define requirements in
BAA Example
Report the level of
Identify & relate relevant requirements in Options Approve CEMP & performance achieved
Scheme Brief & define Production Plan & produce
sustainability issues Brief implement against the Brief's &
scope of works for CEMP CEMP
CEMP
Establish the significant Review and develop the Define the issues into Establish the Production Seek approval for CEMP Assess the level of
sustainability issues and issues in detail and relate performance requirements requirements together with and identify the most performance achieved
relate them to the them to the proposed for the Scheme Brief. confirmed construction effective way of against the Brief's/CEMP
proposed approaches. options. Understand construction activities for CEMP implementation. and prepare information
approaches to scope the production. for the handover file.
activities for the CEMP.
Activity
Description
Decide and agree the Review in detail the Re-affirm issues Re-affirm issues Assign CEMP Report the level of
significant issues and agreed significant relevance and refine for relevance and refine for responsibilities in an performance achieved
opportunities relating to sustainability inclusion into Scheme inclusion into Production auditable framework. against the Brief's/Plans
approaches. issues/opportunities Brief. Brief. Review sustainability cost Extract notable learning
Understand the carbon highlighted and develop Update Risk Plan/Form. Produce CEMP. lines. and place it into the
intensity of approaches them into performance Define Whole Life Cost Update Risk Form. Meter energy sustainability learning
together with high level requirements for Design factors, including end of consumption during file.
Fix targets and KPI’s.
renewables opportunities Brief. life costs in model. project and capitalise. Prepare handover file
Ensure costs include all
Ensure significant
Engage where necessary Work up business cases of all the relevant
sustainability issues (e.g. Measure waste
c e
Include input from any
i
Develop draft
Materials Strategy or
agree any concessions.
ry
Measure energy in use
Activities
v
Environmental Impact energy/CO2 target.
d
Assessment (EIA) or project review and
l
Include Materials
other planning
A De
Strategy requirements. airports business plan.
requirements/conditions. Review whole life cost
Estimate waste
Develop outline Whole
model assumptions,
Life Cost factors using generation and any
capture benchmarking
benchmarks. hazardous waste issues.
data and feedback.
Mandatory QMS Procedures: detail the Understand Materials
QMSand :
Prepare a list of
Standard Forms list the standard forms :
Checklists list the checklists that should be referenced.
Waste issues. that should be construction activities for
procedures that must be adhered to used in support of the procedures.
CEMP.
Develop energy/CO2
Issue Briefs How to doc’s Decision Model Justification Report Decision Model Decision Model
Templates Decision Model Decision Model Decision Model
CEMP Template
Action Sustainability
Inspiring sustainable procurement
How - Risk…?
What is risk...........?
How - Risk…?
L/H = M M/H = H H/H = H
High
Likelihood High
Action Sustainability
Inspiring sustainable procurement
How - Risk…?
Likelihood High
Action Sustainability
Inspiring sustainable procurement
Cleaning
Coaching
Baggage
systems
Construction
Architect
Consider your impact on specific issues – not “one size fits all”
Action Sustainability
Inspiring sustainable procurement
uniforms
stationery office furniture
Environmental signage
Risk
Profile
Action Sustainability
Inspiring sustainable procurement
Enhance
Practice
Embed
Foundation
Time
Benchmarking how well you are addressing your sustainability issues
against how well others are addressing theirs
www.actionsustainability.com, [email protected]
Action Sustainability
Inspiring sustainable procurement
Organisations in the public and private sector are coming under increasing scrutiny by government, non-
government organisations, investors and customers to act responsibly. The biggest area of reputation risk
lies beneath the supply chain. Organisations need to understand how to translate their environmental and
social values through their supply chains to inspire and embed responsible behaviour.
Content Quality
This one day programme provides procurement and The course is referenced in the Government’s 2006
environment professionals with the capability and strategy “Procuring the Future”. This will be the only
confidence to understand and exploit the benefits of programme of it’s type to be accredited by the
procuring effectively and responsibly. This is a Chartered Institute of Purchasing and Supply
practical seminar with expert coaching and case
www.cips.org and the Institute of Environment
studies.
Management and Assessment http://www.iema.net/,
Delivery
The programme is delivered by leading experts in this field. Barbara Morton, Project Manager for the Sustainable
Procurement Task Force, and Shaun McCarthy, Chair of the Strategic Supply Chain Group and Chair of the
London Sustainable Development Commission 2012 Sustainability Group.
www.actionsustainability.com, [email protected]
Action Sustainability
Inspiring sustainable procurement
The Future
How much longer will it
be acceptable for
organisations to:
Grow their business and
increase greenhouse
emissions?
Send waste to landfill?
Buy from organisations
with poor human rights
practices
Deplete natural resources
in construction and
operations
Disrupt our neighbours
Action Sustainability
Inspiring sustainable procurement
Sustainable Procurement
Practice
Thank you
www.actionsustainability.com
[email protected]