Ethical trade and public procurement London, 8 December 2010 Sustainable public procurement in the Netherlands Dr. Frans Papma, former advisor of the Dutch governement on sustainable public procurement

Summary: 1. Short overview of Dutch policy making Focus on international supply chains: 2. What is “sustainable” in international supply chains? 3. How can (public) buyers tell whether products are sustainable? The Dutch answer is: work with “supply chain initiatives”.

Aims of Dutch sustainable public procurement policies by 2010 State: 100% sustainable Provinces & water boards: > 50% Communities: 75%, and 100% in 2015

“Sustainable” = respect for: Environmental criteria Manufacturing it –Base material consumption –Landscape & nature –Emissions to air and water Using it –Energy consumption –Pollution –Recycling Social criteria Labour: ILO Conventions Other Human Rights, including rights of local communities

Focus on international supply chains Executive challenges 1.When is a product “good” or “sustainable” (enough)? 2.How can public authorities verify this?

1.When is a product “good” or “sustainable”? Example: migrant workers in natural stone

Legal issues (China): No access to public health care No access to age pension

Migrants work in gangs, on piece-rate basis: no contract, no legal protection as employees no records, no over time payment

Housing for migrants (India): Below standards No access to education for children

1.When is a product “good” or “sustainanable”? Conclusion We are talking structural problems with long term solutions Embedded in national politics, local social structures and industrial culture Cannot be solved in the time frame of any buying contracts, nor do buyers have the leverage to change all this Solution Dutch government recognises supply chain initiatives. Such as ETI, FSC, WGDN Long term approach, process approach Management system requirements

2. How can public authorities verify that products from far away are sustainable? Don’ts for buyers Do not include ILO standards (child labour) in your tender, without …. Do not require social audits, unless …. Same solution: sector approach, “supply chain initiatives” Can work with effective process approach Can deal with complex supply chains

Quality requirement for supply chain initiatives: Multi stakeholder governance Internationally accepted sustainability standards, such as ILO Capacity to effectively work with industry in the supply chain on social and environmental compliance Public reporting Information on Dutch sustainable procurement policies:

Thank you, Frans Papma