Sustainable Procurement at UNOPS

Despoina Kouria,

Sustainability analyst, UNOPS

Helsinki Business Seminar

Thursday 07 May 2015

Agenda

2

1 Introduction to sustainable procurement

2 UN and sustainable procurement

Sustainable procurement at UNOPS 3

AGENDA -

1

Introduction to sustainable procurement

In order to understand sustainable procurement it is important to

understand first Sustainable Development and its main triggers

Decent

work deficit

Pollution

and GHG

emissions

Overexploitation

of natural

resources

*Source: World Commission on Environment and Development’s

(the Brundtland Commission) report Our Common Future, 1987

Sustainable Development can be defined that meets the needs of the

present without compromising the ability of future generations to meet their own needs*.

Main triggers of Sustainable Development:

Global

population

growth

INTRODUCTION TO SUSTAINABLE PROCUREMENT 1

SP is not a stand alone practice: it seeks resource efficiency, improves

quality of products and optimizes costs, therefore it is good procurement

Sustainable Procurement (SP) is the practice of

integrating requirements, specifications and

criteria that are compatible with and in favor of

• the environment,

• social progress

• the support of economic development

primarily by seeking

• resource efficiency,

• improving the quality of products, and

• ultimately optimizing costs

therefore,

Sustainable Procurement is good Procurement!

INTRODUCTION TO SUSTAINABLE PROCUREMENT 1

The Triple Bottom Line of

Sustainable Development

Sustainable procurement refers to 3 main factors: economic, social and

environmental, i.e. it goes beyond ‘green procurement’

Economic

• Best value for

money (price,

quality, availability,

functionality,

innovation)

• Life Cycle Costing

• Economic

development

• Employment

• Good governance

Social

• Human

development

• Education

• Human and labour

rights

• Reduction of

poverty and

inequality

• Security

• Social inclusion

• Promotion of SMEs

Environmental

• Preservation of

natural resources,

ecosystems and

biodiversity

• Reduction of

ecological footprint,

• Reduction of GHG

emissions

• Waste management

Photo: UN Photo/Eskinder Debebe Photo: UNOPS

INTRODUCTION TO SUSTAINABLE PROCUREMENT 1

Sustainable Procurement can be an effective mechanism to further

economic, social and environmental development

• Government bodies, international organizations and the public sector have an

opportunity through their collective and substantial purchasing power to

leverage markets to produce more sustainable goods and services

• Properly applied, SP is an effective mechanism to further the economic,

social and environmental development, i.e. to achieve policy goals

• It can therefore have a multiplying effect Sustainability

GOALS

Private

sector Consumers

Public

sector

INTRODUCTION TO SUSTAINABLE PROCUREMENT 1

Systematic approach to SP with sustainability interventions incorporated

throughout the entire procurement process

Some examples of SP integration:

1

1) Planning • Assess sustainability impacts of the procurement

• Consider using a “sustainable title” for the process

Sourcing

Evaluation

Logistics

Contract Management

Planning

Requirements definition

Bid receipt and opening

Contract finalization and

issuance

Procurement process

Solicitation

Review and award

Pre

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2

2) Requirements definition • Use relevant technical standards and

environmental labels

• Use performance and functional specifications

3

3) Sourcing • Research the market for sustainable products

• Pre-qualify suppliers that minimize sustainability

risks

4

4) Solicitation • Include pre-determined sustainability evaluation

criteria

• Include life-cycle costs considerations

5) Contract management • Work with suppliers to improve sustainability

performance

• Include contract performance clauses furthering

sustainability

5

INTRODUCTION TO SUSTAINABLE PROCUREMENT 1

Sustainability and procurement principles

9

INTRODUCTION TO SUSTAINABLE PROCUREMENT 1

• Includes environmental

and social considerations

• Reduced energy and

resource consumption

throughout the life-cycle

results in greater

efficiencies and long-term

cost savings

Best value for money

• Essential to sustainable

procurement

• Right of access to the UN

market for suppliers from

developing countries and

countries with economies in

transition

Effective competition

• Integrated sustainability criteria early

in the process helps uphold these

criteria

Fairness, integrity and

transparency

• SP ensures economy and

efficiency

• SP reduces reputational risks

resulting from adverse publicity

which would have a negative impact

on UNOPS reputation and image

Best interest of the organization

and its clients

2

UN and sustainable procurement

Sustainable Procurement is gaining more and more ground within

the UN system

• On 5th June 2007 UN Secretary General Ban Ki-moon

publically called on all UN agencies, funds and

programmes to become climate neutral and "go green".

• As a response, the UN among other actions in becoming

more sustainable, are embarking more and more on

sustainable procurement.

The mission of the UNEP SUN team is to enable the UN and other public organisations to achieve climate neutrality and sustainability by 2020.

UN AND SUSTAINABLE PROCUREMENT 2

12

What is changing: business practices

• Growing number of UN / international organisations having official

SP policies: UNOPS; UNDP; UNFCCC; UNFPA; World Bank; AfDB: ADB;

European Union, IADB.

• More organisations (both in developed and developing countries) include

now sustainability criteria in tenders with an angle on resources

efficiencies

• Organisations progressing on EMS: UNU has a certified EMS. UNOPS

(ISO 14001 for infrastructure projects).FAO,WFP, World Bank, WHO are

working on an EMS

• Buildings being restored or built with sustainability in mind : New

York and Geneva(UN), Nairobi (UNEP), Panama-Hanoi-Copenhagen

(Shared UN houses), Rome (IFAD), Uganda Regional Support Center

(DFS)

13

UN AND SUSTAINABLE PROCUREMENT 2

Case study: UNFPA

14

• 2010: UNFPA proposed an ISO standard for environmentally friendly production of male

condoms

• 2013: male condom LTA included optional environmental criteria

ISO14001, wastewater treatment, air pollution, energy saving

Packaging: recycled materials, biodegradable

The criteria presented progressively stronger environmental requirements over the

course of the LTA

Although optional, nearly all

suppliers provided

information and commitment

on the environmental criteria

Shows the value of

communication and

sensitizing the market

UN AND SUSTAINABLE PROCUREMENT 2

UN are strongly encouraging suppliers to support the

UN Global Compact

LABOUR RIGHTS HUMAN RIGHTS ENVIRONMENT ANTI-CORRUPTION

The Ten Principles

Principle 3: Businesses should uphold the freedom of association and the effective recognition of the right to collective bargaining;

Principle 4: the elimination of all forms of forced and compulsory labour;

Principle 5: the effective abolition of child labour; and

Principle 6: the elimination of discrimination in respect of employment and occupation.

Principle 1: Businesses should support and respect the protection of internationally proclaimed human rights; and

Principle 2: make sure that they are not complicit in human rights abuses.

Principle 7: Businesses should support a precautionary approach to environmental challenges;

Principle 8: undertake initiatives to promote greater environmental responsibility; and

Principle 9: encourage the development and diffusion of environmentally friendly technologies.

Principle 10: Businesses should work against corruption in all its forms, including extortion and bribery.

The UN Global Compact is a framework of businesses that are committed to

aligning their operations/strategies with 10 principles

UN AND SUSTAINABLE PROCUREMENT 2

Information on Sustainable Procurement, including tools and resources

can be found at “Greening the Blue” and UNGM websites

16

Greening the Blue

launched in 2010 ; www.greeningtheblue.org

UNGM page on

sustainable procurement; https://www.ungm.org/Public/Knowledge

Centre/SustainableProcurement

UN AND SUSTAINABLE PROCUREMENT 2

3

Sustainable procurement at UNOPS

UNOPS is a central resource for the United Nations system in

procurement and contract management

UNOPS helps its partners…

Build schools, roads,

bridges, hospitals,

prisons and police

stations

Manage funds and

administer small grants

Procure goods

ranging from vehicles

to medical supplies

Train teachers, journalists,

health workers and

government officials and

organize mass education

efforts for elections and

disaster preparedness

SUSTAINABLE PROCUREMENT AT UNOPS 3

UNOPS vision is to advance sustainable implementation practices in development,

humanitarian and peacebuilding contexts.

Countries with UNOPS activities Project size

1000 projects in 80+ countries UNOPS is widely certified

UNOPS acts as a service provider to a variety of partners, from UN bodies to

private sector organizations across 80 countries

SUSTAINABLE PROCUREMENT AT UNOPS 3

Key results achieved in 2013

48% of projects worked on developing national

capacity

30% of projects worked on improving

environmental sustainability

SUSTAINABLE PROCUREMENT AT UNOPS 3

Sustainable procurement is one of the new frontiers

21

UNOPS PROJECTS

CREATE SUSTAINABLE RESULTS

Economic Social Environmental

SUSTAINABLE PROCUREMENT AT UNOPS 3

Environmental

management

UNOPS is a actively engaging in Sustainable Procurement

$749

million worth of goods

and services

Pharmaceuticals

Construction

and engineering

Source: UN Annual Statistical Report

Vehicles

and parts

Lab

equipment

and medical

devices

An integrated vision for sustainability

and procurement

Considerations

• Fit for purpose

• Carbon emissions

• Resource conservation

• LEED designs

• Life cycle costs

• Supplier diversity

• Youth employment

• Local skills development

• Knowledge transfer

• Waste management

• National capacity

• …

SUSTAINABLE PROCUREMENT AT UNOPS 3

CAMP MANAGEMENT AND ASSOCIATED SERVICES

FOR UNMAS SOMALIA | GPSO PSC SOMALIA

Case overview

• Type of procurement: Services

• Solicitation method: Request for Proposal (RFP)

• Procurement value: $ 26,882,753 USD

• Timeframe: May 2014

Sustainability in the procurement cycle

Procurement objective

• Implementation of a waste management plan • Use of energy-efficient equipment • Local sourcing of bottled water and produce • No polystyrene in food packaging • Regular environmental, health and safety (EHS)

training for cleaners • Aerobically readily biodegradable cleaning

products • Employment of females in the workforce

Requirements definition

Objective: provide camp management

and associated services in 4 locations in

Somalia that house and support UNMAS

personnel and contractors.

Needs: catering; basic medical services;

laundry; cleaning; basic furnishing of

rooms and offices; maintenance of

vehicles; basic construction works to

improve the functioning of each camp;

and 24/7 security.

SOMALIA

7/80 total points (9%) of technical evaluation criteria awarded to sustainability: • Organizational commitment to the UN Global

Compact, Global Reporting Initiative, or equivalent (1pt)

• Approach to ensuring a socially and environmentally sustainable implementation of the Terms of Reference (TOR) (3pts)

• Work plan addressing sustainability as per TOR (2pts)

• Personnel at all levels is composed of at least 20% qualified females (1pt)

Evaluation

Verification of the sustainability evaluation criteria included: • Ensuring the separation of waste • Use of alternative food packaging materials • Provision of the EHS training schedule • Checking of cleaning products’ labels

Contract management

Results and impact

The winning bidder’s sustainability initiatives include:

• procuring bottled water and fresh produce locally, reducing transport-

related emissions and contributing to local development;

• gender mainstreaming through the employment of females;

• using paper-based food packaging materials and cleaning products,

reducing harmful environmental impacts upon disposal; and

• providing regular EHS training for cleaners, developing local capacity

UNOPS/Senthil Kumar Subramani

UNOPS/Senthil Kumar Subramani

SUSTAINABLE PROCUREMENT AT UNOPS 3

INTEGRATED CLEARANCE TEAMS | GPSO PSC

MINE ACTION IN SUPPORT OF UNISFA

Case overview

• Type of procurement: Services

• Solicitation method: Request for Proposal (RFP)

• Procurement value: $ 1,100,000 USD

• Timeframe: May 2014

Sustainability in the procurement cycle

Procurement objective

• Adherence to the principles of the United Nations Global Compact

• Description of the steps undertaken to promote gender mainstreaming in operations, such as steps to include obtaining information and views from women, girls, boys, and men in survey and clearance activities

• Capability of liaising with local communities • Employment of local personnel

Requirements definition

Objective: provide two Integrated

Clearance Teams (ICTs) to deploy along

the Sudan / South Sudan border and the

Safe Demilitarised Border Zone in

support of the United Nations Interim

Security Force for Abyei (UNISFA).

Needs: ICTs with the ability to separate;

operate independently; join to form a

larger capacity where necessary; employ

Sudanese Staff and operate in Sudan;

and employ South Sudanese staff and

operate in South Sudan.

SOUTH SUDAN

9/100 total points (9%) of technical evaluation criteria awarded to sustainability: • 5 points to be awarded on the quality of the

bidders’ statement on sustainable and sound environmental practices (eg. use of renewable energy; water management; oil and tyre disposal): sustainability (2pts), environment (2pts), and innovation (1pt)

• Demonstration of the integration of gender mainstreaming in the project’s approach and attention to gender balance with the inclusion of two or more female staff (outside domestic or cleaning duties) in the team was required (4pts)

Evaluation Results and impact

The winning bidder’s sustainability initiatives include:

• re-treading used tyres or reusing them for other purposes, eliminating

environmental and health hazards from toxic pollutants from burning;

• safely storing used oil, reducing spills and leaches into the environment;

• separating biodegradable and non-biodegradable waste, reducing

harmful environmental impacts upon disposal; and

• providing community Mine Risk Education, developing local capacity

and advancing health and safety practices

UN Photo/Tobin Jones

UN Photo/Martine Perret

SUDAN

SUSTAINABLE PROCUREMENT AT UNOPS 3

HOUSING & URBAN REHABILITATION AND SOLAR

STREET LAMPS INSTALLATION | LCO HTOC HAITI

Case overview

• Type of procurement: Goods, services and works

• Solicitation method: Request for Proposal (RFP), Invitation to Bid (ITB), and Request for Quotation (RFQ)

• Procurement value: 1) $ 385,585 USD; 2) $ 478,500 USD

• Timeframe: 1) April 2013; 2) May 2014

Sustainability in the procurement cycle

Procurement objective

1) Housing & urban rehabilitation: • Market research for sustainable construction

materials • Community needs assessment

Procurement planning

Objective: 1) Provide sustainable housing

solutions and improved living conditions

through better access to services basic and

income-generating activities; 2) provide

infrastructure support services to install solar

powered lighting to reduce community

violence.

Needs: 1) Site preparation incl. construction

of houses, retaining walls, and drainage; 2)

installation of street light poles, lamp arms,

solar panels, lighting, smart controllers,

batteries, and an advertisement plaque.

HAITI

1) Housing & urban rehabilitation: RFP: 30/100 total points (30%) of technical evaluation criteria awarded to sustainability: • Capacity to promote the local economy by sourcing

construction materials (blocks, cement, sand, gravel) from small entrepreneurs in the 6 local communities (30pts)

Evaluation

Results and impact

• By using renewable solar energy and LED lighting, the project minimized

greenhouse gas emissions;

• By sourcing locally available, renewable construction materials such as

bamboo, as well as blocks, cement, sand and gravel from small local

entrepreneurs, the project reduced transport-related emissions and

promoted local economic growth;

• Employing youth, the local population and women in the contractor’s

workforce also promoted local economic growth and gender mainstreaming;

• Training suppliers in the local language enhanced local capacity.

UNOPS/Claude-Andre Nadon

UNOPS/Claude-Andre Nadon

1) Housing & urban rehabilitation: • Local sourcing of bamboo • 75% of contractor personnel to be locally recruited • Contractor’s Health and Safety plan • Contractor’s Environmental Management System 2) Solar street lamps installation: • Solar panels for power • LED lighting • Unskilled workers:

- must be at least 18 years of age - must be between 18-26 years (more than 26

should prove to be economically vulnerable) - at least 95% must be locally recruited - at least 30% of local workers must be women

Requirements definition

1) Housing & urban rehabilitation: • Local suppliers received training in Haitian Creole,

the local language, on how to respond to the sourcing requirements, including sustainability requirements

Solicitation

SUSTAINABLE PROCUREMENT AT UNOPS 3

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Thank you!

Despoina Kouria

Sustainability Analyst Procurement Practice, UNOPS DespoinaK@unops.org