Sustainable Procurement Myths & Legends

Shaun McCarthy Director Chair

What – Sustainability…? “Development that meets the needs of the present without compromising the ability of future generations to meet their own needs” - Brundtland Definition

What – Sustainability? Living within environmental limits Global hectares per capita - 2 Tonnes CO 2 per capita per year Living in an equal world - Gini coefficient 0.25 to Ratio of most advantaged to least advantaged

Inter-Governmental Panel on Climate Change CO 2 levels highest for 650,000 years Climate change “unequivocally” happening Global temperature will rise between 1.8 o C and 4 o C in the next century, worst case 6.4 o C In the worst case, Trafalgar Square would be under water

Stern Report

The challenge Source

It’s not just about carbon…! Resources - If the whole world lived like Western Europe we would need 3 planets resources to sustain life Inequality - 25% of London’s Black Caribbean community is unemployed compared to 2.5% of the Indian community - 25% of the UK population has a physical or mental disability - 3.8M children were living in poverty in the UK in 2005/6 Health - UK childhood obesity is increasing at the same rate as the USA, we are breeding a generation that will have a shorter life expectancy than their parents - Average male life expectancy in Tower Hamlets is 7 years shorter than Kensington Waste - Landfill capacity is likely to be non-existent within 7 years

The challenge – to purchasers “Using procurement to support wider social, economic and environmental objectives, in ways that offer real long-term benefits”. Sir Neville Simms Chairman Sustainable Procurement Task Force

Good Practice Flexible Framework

How good are we…? We have a long way to go: - 83% buying professionals “ill equipped” to deliver sustainability in 2006/7 - 55% in 2007/ benchmarks, average Level 1 against FFW - BITC Index still recording low scores in this area

Myths…

Which has the bigger carbon footprint…?

Myths… Which has the bigger carbon footprint…? From KenyaFrom Holland 14 Feb

Myths… How big is theirs…?

Myths… How big is his…?

Myths… How big is his…? - What proportion of global emissions is the UK responsible for? - 2% - 17% - Both - None of these - It depends

Myths… How big is yours…?

Myths… It’s all about risk. We don’t want to end up here!

How…? Workshop to define impacts Training needs analysis Define process requirements Consult on impacts Supplier communication event Workshop to define measures Finalise impact definition Develop processes & tools Tailor training material Implement supplier group Develop measures Implement processes & tools Deliver training Implement measures & review Identify competitive advantage Develop products Implement products FF evaluation Initial training The really important bit

Legends…

Swedish vehicle contract - Created a market for bio-ethanol vehicles

Legends Zero waste prison mattress - Market leading initiative

Legends M&S Plan A - Vision - Leadership - Research - Marketing led - Delivery?

Legends… Environment Agency - Want to know everything - And check it - Concerned about plastic membranes in Jiffy Bags (among other things)

Legends… Manchester City FC - Wind power - Biomass CHP - Local procurement - Except the players - …and owners

Legends… Premier Farnell - 3 clear priorities with plans and measures - Responded to jiffy bag challenge - No more tungsten bulbs - Presentation to a major global manufacturer resulted in objective to double turnover through this distributor - Top 10 product hit list

Olympic Delivery Agency ODA procurement Forward commitment Did what they said they would Changing the industry: - Concrete - Timber - Recycled materials - Embodied energy

On the horizon Water - The new carbon…? Social issues - Local - Fair partner/employee - Equalities/diversity Secondary impacts - Embodied carbon Food - Healthy - Organic - Sustainable

Thank you for your attention