Zero emission deliveries through smart procurement This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 724101 Zero emission deliveries through smart procurement PROCUREMENT OF INNOVATIVE SOLUTIONS FOR ZERO EMISSION URBAN DELIVERY OF GOODS AND SERVICES Simon Clement, ICLEI – Local Governments for Sustainability 16/6/2017 | Eafip workshop – Innovation Procurement in the transport and mobility sector BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

ICLEI – Local Governments for Sustainability Global network of cities and local governments striving for sustainability 12 mega-cities, 100 super-cities and urban region, 450 large cities and 450 small and medium -sized cities and towns Working on sustainable and innovation procurement since 1996 BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

Our starting point – sustainable mobility European cities face key challenges: Achieving efficient, uncongested and seamless mobility Reducing CO2 emissions Minimising local emissions of PMs, NOx and noise Meeting ever stricter public budgets BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

Transport and procurement Almost all procured contracts involve transportation

Impact of local government operations on vehicle trips in the city Role of procurement Impact of local government operations on vehicle trips in the city ?

Procurement categories 2. Purchased transport services 3. Other goods and services 1. Own fleet Garbage trucks Office car fleet Maintenance staff … Bus services Social transportation School transport … Construction Road maintenance Office supplies Cleaning services School catering … BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

BuyZET project Procurement of innovative solutions for zero emission urban delivery of goods and services 5 cities involved Core cities: Rotterdam, Oslo, Copenhagen Observer (partner) cities: Southampton, Brussels Timeline: Nov 2016 – Apr 2019 Website: www.buyzet.eu

BuyZET – Phase 1: Footprint mapping Identify goods and service procurement areas with highest ‘transportation footprint’. Select two procurement areas to focus on per city June 2017

BuyZET – Phase 2: Research & Dialogue Market dialogue with all key supply chain actors Internal stakeholder involvement European best practice research Identify other key buyers for co- operation August 2017 – July 2018

BuyZET – Phase 3: Procurement plans Develop innovative procurement plan for each priority area Establish buyers groups where possible Sept 2018 – Apr 2019

Observer City group Which are the terms and conditions? Appoint a City Contact Complete an Expression of Interest Form Attend project meetings and study visits Undertake the implementation of one of the project‘s activities Contact: procurement@iclei.org BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

BuyZET mapping methodology This project has received funding from the European Union’s Horizon 2020 research and innovation programme under grant agreement No 724101 BuyZET mapping methodology PROCUREMENT OF INNOVATIVE SOLUTIONS FOR ZERO EMISSION URBAN DELIVERY OF GOODS AND SERVICES Nina Nesterova, TNO 16/6/2017 | Eafip workshop – Innovation Procurement in the transport and mobility sector BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

TNO - the Netherlands Organisation for applied scientific research TNO connects people and knowledge to create innovations that boost the sustainable competitive strength of industry and well-being of society 2,600 professionals Focus areas: industry, healthy living, defence, urbanisation Sustainable transport and logistics department BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

BuyZET – Phase 1: Footprint mapping Objective: to map a footprint from the municipality transport activities with an aim to identify goods and service procurement areas with highest ‘transportation footprint’, BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

Context of the footprint mapping Internal procurement organisation Data accuracy Supporting environment on city levels Data availability Categorization of the procurement flows Variety of vehicle fleets Procurement data: invoices, receipts Large number of suppliers Identification of key suppliers BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

Trade-offs of mapping methodology Source : COFRET Deliverable 3.3 BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

Approach Mapping of the transportation footprint per transport category Accurate calculation of emissions for the prioritized procurement categories

Results: BuyZET mapping scope 2016 (spent) data City boundaries CO2, NOX, PM emissions “Administrative” boundary: Copenhagen: 7 administrations Oslo: 50 agencies Rotterdam: 7 organisational clusters BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

Assumptions, challenges, opportunities Category Assumptions and challenges vs opportunities 1. Own fleet Distance travelled; year of vehicle registration; type of fuel used external sources (leasing companies, procurement system Automated system for fuel consumption; better/easier overview and direct influence 2. Purchased transport Supplier location and distance travelled; Type of vehicles used; Number of invoices per delivery; Share of deliveries and return trips; Share of municipalities; Load of vehicles Interview with key suppliers; direct request of information form key suppliers; supplier surveys 3. Procured goods and services Number of invoices per delivery; Mass of goods; unit price; Load of vehicles; Distance travelled; Type of vehicles used; share of delivereies and return trips and share of municipalities Get key people (controller, category managers) involved; Data from main suppliers; Calculation backwards from known numbers; calculations based on the unit price; reorganising procurement categories with logistics logic behind

Preliminary results: Rotterdam (1) Population: 638,221 1. Own fleet E.g. urban development; municipal lease; service organisation; general urban maintenance; public works; waste collection; etc. 677 vehicles (excl passenger cars) 1176,4 tons CO2 2. Purchased transport Public transport Social transport 275 buses; 112 trams; 1 fast ferry; 159 metro 75 wheelchairs PT: 73286 tons CO2 ST: 17856 tons CO2 3. Procured goods and services 50 product groups 30 services groups 181.389 invoice entries, 6039 suppliers Services: 2166 tons CO2 Goods: 524,62 tons CO2

Preliminary results: Rotterdam (2) BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services

Learnings from the Phase I (1) Time consuming, but useful exercise No one way methodology: data dependent and sensitive to the objective of mapping, resources involved Shortnening the link between procurement systems and logistics: efforts from only logistics is not enough, you need to have procurement involved too

Learnings from the Phase I (2) Keep an objective in mind Internal procurement: System errors Sensibilisation of category managers Procurer targets External suppliers: Difficulty to reach crticial group Key suppliers: talking; regular data supply Supplier surveys

The way forward for the BuyZET cities Impact/footprint Meaningful: the emission reduction realised has to be significant. Doable: it has to be possible to realise the changes. Visible: the achieved results have to be clear and demonstrable to people within and outside the organisation. Potential for snowball impact on the wider impact Replicability within the organisation.

Contact us Reach us: For more information: Partners: Visit the project website: www.buyzet.eu Join the discussion at the BuyZET Procurement Forum Group: https://procurement-forum.eu/ Follow BuyZET on Twitter: @BuyZETproject Join the BuyZET LinkedIn Group: BuyZET Project Nina Nesterova Research Scientist, TNO Phone: + 32 (6) 52 80 37 69 Email: nina.nesterova@tno.nl Simon Clement BuyZET Co-ordinator, ICLEI – Local Governments for Sustainability Phone: +49-761 / 3 68 92-0 Email: simon.clement@iclei.org Partners: BuyZET – Procurement of innovative solutions for zero emission urban delivery of goods and services