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Embedding Sustainability in the Supply Chain

Philip Duddell, Sustainable Procurement Limited10th September 2015

Conference On University Purchasing 2015


‘Golden Thread’ Clarity in Sustainable Outcomes and

Innovation Identifying priorities Procurement Strategy/Market

Engagement Strategy Mapping Risks and Opportunities to

Supply Chain

Embedding Sustainability in the Supply Chain


Scotland’s National PurposeHigh Level Purpose TargetsNational

Outcomes

National Indicators

Organisational Sustainable Outcomes

Organisational Procurement

OutcomesProcurement

Strategic Priorities

Frameworks/ Contracts

Sustainable Outcomes delivered


Sustainable Outcomes

Environmental

Climate Change

Socio-economic

Employment, skills and training

Materials Health and wellbeing

Waste Communities

Hazardous materials Ethical and fair trade

Biodiversity Equalities

Water


Behind the headlines

Waste Waste - production

Is waste routinely produced from products procured or in service delivery AND/OR is there an opportunity to minimise waste/enhance high quality recycling/composting or recover value in some other way?

Waste - prevention/reuse/ recondition/ remanufacture

Are there opportunities to prevent waste/ extend products' (procured separately or used within service delivery) useful life, through reuse, repair, reconditioning or remanufacturing, internally or externally?


Source: Green Alliance

Circular Economy


Behind the headlinesFairly and Ethically Traded

Fairly and Ethically traded - Working conditions

Are there potential risks relating to working conditions and labour standards within the supply chain related to the delivery of a related service or products AND/OR are there potential opportunities to improve labour standards by working with the market?

Fairly and Ethically traded - Conflict Minerals

Are there potential risks regarding human rights abuses as a result of the use of minerals that are mined in areas of conflict AND/OR are there opportunities to ensure that these are verified as conflict free?


Sustainable Outcome

Social Value Procurement Outcomes

Social Value Procurement Outputs

Realise relevant and proportionate Social Value from the procurement of services

Well trained and educated new entrants who are able to take advantage of employment opportunities

Increase in numbers of new entrants with sustainable local jobs that offer opportunities for progression

• Total number of new entrants recruited

• No. of new entrants recruited as apprentices

• No. of other new entrant trainees

• No. of new entrants recruited who have sustained their place for minimum 13 weeks

• No. of new entrants who have gone on to secure further employment on other contracts


Suppliers control and manage many key impacts

Importance of selecting suppliers able to address sustainability

Many major life cycle impacts are found in the manufacturing and logistics stage and suppliers’ own procurement.

Supply Chain Risks & Opportunities


Life Cycle Impacts

Impacts of obtaining raw materials

Impacts of manufacturing & logistics

Impacts during use of product/service

Impacts at end-of-life / disposal


Impacts of obtaining raw materials• Sourcing overseas if demand outstrips

supply – impact on carbon emissions• Wood should be sourced from legal,

sustainable forests/woodlands – forest management critical

• Potential impact on biodiversity of forests/ woodlands if focus is only on economic viability

• Support development of an immature supply chain through aggregated demand

• Opportunities for community woodland schemes to be integral to supply chain

Impacts of manufacturing & logistics• Carbon emissions from transportation,

particularly if local supply chains are inadequate

• Production of chips/pellets – is renewable energy used

• Sourcing overseas if demand outstrips supply – impact on carbon emissions

• Competition for raw materials e.g. chipboard manufacturers

• Waste products from pellet manufacturing process

Impacts during use of product/service• Emissions particularly in ‘Air Quality

Management Areas’• Shortage of qualified engineers/installers;

through aggregated demand an opportunity to influence recruitment and training

• Disposal of waste products e.g. ash

Impacts at end-of-life / disposal• Disposal of ash – use as a fertiliser • Disposal of boilers


Devolved Centralised Hybrid Resource constraints Be clear what your intended sustainable outcomes

are: Legislation HEFCE University

Innovation and Universities – natural partners Focus on priorities

Within Universities


Innovation and Sustainability

Value

Transformation

Innovation

Engagement

Compliance

Opportunity


Focus effort according to balance between:

Spend Environmental Risks & Opps Socio-economic Risks & Opps Scope to improve Influence

Identifying priorities


Overall priorities


Clarify relevant Risks & Opps and where they are

Informs Procurement Strategy Identify key suppliers across

prioritised categories/commodities and priorities for market engagement.

Using results


Key internal and external stakeholders engaged with on views on sustainable outcomes sought

Results of prioritisation cross-referenced with suppliers within prioritised categories/commodities

Targeted programme of stakeholder engagement, promoting continual improvement

Two way communication between procurer, key internal and external stakeholders

Key suppliers targeted for intensive engagement Supply chains mapped for prioritised spend areas Best practice shared with other/peer organisations locally,

nationally and internationally

Using results


Can you map? When do you need to? Risks &

Opportunity based Resource constraints Importance of Contractor

Supply chain Sub-contractors

Mapping supply chains - sustainability


The Contractor will be expected to maintain security of supply through appropriate and comprehensive supply chain management of risks, which are reasonably within their control, and which may arise due to availability of components, environmental, social or other relevant factors.

the Contractor will be required to demonstrate how they assess the likelihood of conflict minerals within products, and what measures they have undertaken to minimise and eliminate, where practical, such minerals. The Contractor will be required to comply with any new and emerging legislation and/or self-certification system.

The Contractor will be expected to have a comprehensive system which demonstrates an on-going and systematic approach to identifying and managing risks relating to labour standards, working conditions and use of child labour in the supply chains relevant to the Framework Agreement.

Relevant requirements


Prioritise

Clarity in intended outcomes Prioritisation and stakeholder

engagement key Can’t embed sustainability without

understanding of market possibilities Contractors aren’t necessarily focused

just on minimum compliance Bold, visionary and innovative can equal

relevant, proportionate and value for money


Philip Duddell, Director [email protected]+44(0)7796070228

Thank you

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