1. 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

2. 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?

3. 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

4. Supporting Corporate Policies, Strategies & Frameworks
City of London Corporate Plan
Responsible Business Strategy 2016 (EDO)
City of London Climate Change Adaptation Strategy 2010
Chamberlain’s Business Plan
City Bridge Trust Strategy – 2017
City of London Air Quality Strategy
City Procurement Strategy
City of London Sustainability Policy
City of London Noise Strategy
Employability Framework (EDO) 2016
City of London AECOM ( Strategic Energy Review) (targets 2015 – 2018)
City of London Biodiversity Action Plan
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
City of London Education Strategy
City of London Visitor Strategy 2013 – 2017
Contaminated Land Strategy
Road Danger Reduction Plan and Programme 2016/17 (DBE)
Section 106 Policy and Guidance

6. 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

7. Ethical Sourcing

9. 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

10. 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

11. 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?

12. Any Questions? Please contact me if you would like further information
Natalie Evans
Responsible Procurement Manager
City of London Corporation