Delivering value to the NHS Ethical Procurement at NHS Supply Chain ETI Conference 8/12/2010

Delivering value to the NHS 2 AGENDA  NHS Supply Chain Company overview  NHS Supply Chain Ethical Agenda  Questions

Delivering value to the NHS 3 Team structure Martin Lee MD Supply Chain & Transformation Colin Stuart Sustainability Analyst Clare Macintosh Sustainability Manager Sophie Cros Sustainable Procurement Manager Alfreton Chester Runcorn Jane Bingham Senior HRBP & CSR Lead

Delivering value to the NHS 4 NHS Supply Chain.. Our strength is in our scale  A 10 year contract operating as an agent for the NHS Business Services Authority (NHSBSA), providing long term security of supply to the NHS  NHS Supply Chain’s commercial return is capped ensuring 80% of savings flow back to trusts  all NHS Supply Chain’s financial transactions are transparent to the NHSBSA  powered by DHL – the global leader in logistics, bringing supply chain excellence to the NHS and reduced supply chain costs  targeted to deliver £1 billion savings to NHS by 2016  providing contract coverage compliant to EU regulation for £5 billion NHS non-pay spend, reducing legal risks to trusts  significant investments in infrastructure since 2006, saving NHS from investing in non core areas. “We are your national service”

Delivering value to the NHS 5 The NHS Supply Chain Sustainability Agenda What is Sustainable Development within NHS Supply Chain? – ‘development which meets the needs of the present without compromising the ability of future generations to meet their own needs’ – we recognise the need to join up economic, social and environmental goals – Aim to be a leading organisation striving for excellence in our environmental performance We have 3 key areas of activity – Sustainable Operations – Community and Social – Sustainable Procurement We are governed by the Sustainability Memorandum of Understanding with the NHS BSA and also by DHL targets e.g. Go Green One of NHS SC 4 Pillars (Customer proposition)

Delivering value to the NHS 6 Our Aim NHS Supply Chain aims to reduce as far as possible, adverse environmental and social and economic impacts occurred during the life cycle of products procured and ensure sustainable value for the NHS. Security of Supply – organisations operating outside legal limits run the risk of closure. Quality of Product – Sweat shops / child labour / poor working conditions / long working hours do not support the production of quality products. Brand reputation - Part of our customer value proposition

Delivering value to the NHS 7 What is Sustainable Procurement? Definition A process where an organisation meets it procurement needs whilst considering external social, environmental and economic factors.

Delivering value to the NHS 8 Health & Safety Discrimination Child Labour Forced & Bonded Labour Living Wage Casual Labour Harsh Treatment Working Hours Freedom of Association What is a social factor?

Delivering value to the NHS 9 Stakeholders BSA DHL DH BMA ETi NHSSC Trusts Policy Alignment Sustainable Procurement Forum Ethical Trade Working Group Policy Alignment Portfolio Value Proposition Base Code Advice, training and resources Targets Monitoring Policy Code of Conduct MoU Public Patients Social interest

Delivering value to the NHS 10 Sustainable Procurement Policy Sustainable Development Strategy Sustainable Procurement Policy Memorandum of Understanding Flexible Framework Govt Minimum Standards Supplier Code of Conduct Baseline Assessment T&C’s NHSSC SD Annual Report SPROUT Contract Award Business Case

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Delivering value to the NHS 12 SPROUT Questions included: - Are there concerns over labour standards within the supply chain - Are there concerns over broader ethical issues (e.g. bribary, human right, etc) within the supply chain Risk scoring per contract

Delivering value to the NHS 13 Supplier Code of Conduct Laws and Ethical Standards Health & Safety Business Continuity Planning Improper Payments/Bribery Environment Business Partner Dialogue Child Labour Forced Labour Compensation and Working Hours Discrimination

Delivering value to the NHS 14 Baseline Questionnaire Confirmation of receipt of Supplier Code of Conduct Confirmation of compliance Ethical Policy Questions Environmental Policy Questions Manufacturing Locations Assessment of Supply Base Supplier Action Plan –Improvement Action Plan

Delivering value to the NHS 15 Fairly traded product ranges 1st Fairtrade garment to the NHS introduced in May 2010 & coming soon: doctor coats, nurse tunic, nurse dress… Faitrade coffees FSC paper Importance of making it visible to our customer with our flag for “ethically sourced product”

Delivering value to the NHS 16 Thank You for your attention Sophie Cros Sustainable Procurement Manager Tel: General Keep in touch