Responsible Procurement City of London Corporation Overview: Responsible Procurement (RP) Obstacles They aren’t as complex as you think Successful mechanisms to overcome them! Strategic approach and procurement mechanisms

Obstacles…. There are so many issues to deal with! Should procurement be the vehicle? What about cost?! We don’t have time! What about skill set of procurers? Is it legal? – What about subjectivity? Will the market be able to respond? What about SMEs? Will the successes be genuine?

Responsible Procurement Strategy Buy in Dedicated resource, senior buy in, colleagues on board Justification Legislation, risk, benchmarking and added value Prioritisation of focus areas Risk/ value/ influence + low hanging fruit & communications Governance & Accountability – Category Boards & objectives in appraisals Engagement and Collaboration INTERNALLY: Alignment of focus areas and priorities, channelling offers, exchange of lessons learned and best practice (LRPN and SVP) WITH SUPPLY CHAIN: Ask them what they can do, where they want to focus their efforts, sell them the benefits, work together to improve

Supporting Corporate Policies, Strategies & Frameworks City of London Corporate Plan 2015 - 2019 Responsible Business Strategy 2016 (EDO) City of London Climate Change Adaptation Strategy 2010 Chamberlain’s Business Plan 2015 - 2016 City Bridge Trust Strategy 2013 – 2017 City of London Air Quality Strategy 2015 - 2020 City Procurement Strategy 2015 - 2018 City of London Sustainability Policy City of London Noise Strategy 2012 - 2016 Employability Framework (EDO) 2016 City of London AECOM ( Strategic Energy Review) (targets 2015 – 2018) City of London Biodiversity Action Plan 2016 - 2020 Enterprise framework (EDO) 2016 City of London Climate Change Mitigation Strategy (to 2020) City of London Transport Policy Local Plan – City of London (Planning) City of London Considerate Contractor Scheme (DBE) Construction and Street works Codes of Practice City of London Cultural Strategy 2012 - 2017 City of London Education Strategy 2016 - 2019 City of London Visitor Strategy 2013 – 2017 Contaminated Land Strategy 2015 - 2020 Road Danger Reduction Plan and Programme 2016/17 (DBE) Section 106 Policy and Guidance

Ethical Sourcing Ensuring labour and human rights ILO conventions, conflict-free minerals – use menus of options, depending on how developed the market is – continuous improvement throughout contracts Ensuring legal & fair employment practices Modern slavery & human trafficking, legal workers, fair remuneration in the supply chain (e.g. fair/ direct trade) Contracting with responsible businesses Bribery, corruption & tax evasion, green & social investment and responsible investment

Ethical Sourcing

Successes: Procurement mechanisms 10% quality and never less than 5% total Enforce a % supplier evaluation threshold – use a panel/ board to generate ideas 1 in 3 quotes must be a local business, SME or SE Define what “local” means – CoL use the National (London) Deprivation index Moving towards BAME, Disabled, LGBT and/or women-owned businesses Request price variants Quantify/dispel concerns about price premiums e.g. cruelty free/ TfL’s Fair trade cotton How will you support our commitment to…? We strive to get robust policies/ strategies in place so that we can use this question Use ITT to raise awareness of future intentions Use self-declaration as a starting point only Warn the market they will need to progress in this area to keep doing business

Successful Mechanisms: RP throughout the cycle Pre-procurement = social value panel, soft market testing Supplier selection = modern slavery (pass/fail), road danger (3 months), health and safety (SSIP, pass/fail) Specification = Government Buying Standards, supply chain mapping requirements, air quality menu, cost variants Supplier evaluation = bank of questions, flexible but with very clear response requirements, model answers Mobilisation = involved in kick off – named personnel for follow ups, firm up offers and expectations Contract management = contract and corporate KPIs/ scorecard on RP outcomes, testimonials from apprentices Get robust policies in place Securing social value through procurement is much easier with policy justification

Ethical sourcing - Electronics Within the first year, the Contractor shall undertake a supply chain mapping exercise to ascertain where ethical sourcing risks exist within the supply chain of goods being used on/ produced for the Corporation’s contract. Specifically, to identify highest risk of both:   Suppliers of minerals likely to be sourced from conflict zones Manufacturers based in countries with higher instances of human or labour rights violations (ILO fundamental conventions) At the time of the first end of year review, a strategy will be agreed which sets out actions designed to continually improve the contractor’s approach to ethical sourcing. This shall include specific actions such as: Imposing more stringent contractual requirements throughout the supply chain with appropriate contract management measures, Requirements for internal audits passed down through the supply chain, Requirements for supply chain partners to register with SEDEX or equivalent Establishment of an ethical sourcing policy or similar, accompanied by appropriate follow up actions, Affiliation with an appropriate organisation e.g. Electronics Watch, Ethical Trading Initiative (ETI) or similar, any other actions that are agreed. Can the group propose additional/ alternative actions?

Any Questions? Please contact me if you would like further information Natalie Evans Responsible Procurement Manager City of London Corporation natalie.evans@cityoflondon.gov.uk