1. Windows Group Presentation
“Responsible Sourcing”
Windows Group Presentation
Wednesday 19th January 2011
Dr Jason Leadbitter
Sustainability & Compliance Manager, INEOS ChlorVinyls

2. Contents Responsible Sourcing What are the options?
What is it?
Why bother with it?
What are the options?
BES 6001 – Methodology  Summary
BS8902 – Methodology  Summary
Conclusions of both approaches
Discussion

3. Responsible Sourcing What is it?
Responsible Sourcing of Materials (RSM)
Responsible sourcing of materials is demonstrated through an ethos of supply chain management and product stewardship and encompasses social, economic and environmental dimensions
Environment
Society
Economics

4. Responsible Sourcing Why Bother with it?
Gain additional 2-3 credits from Code for Sustainable Homes
Mat 3 – Responsible Sourcing of Materials – Finishing Elements p 113
BES Listed in Green Book Live
Satisfy chain of custody requests from downstream customers
Key Action from DEFRA RoadMap Sustainability Action Plan
Maintains good relationships with our Regulators and demonstrates commitment towards SD
Industry backed target that 25% of construction products are responsibly sourced by 2012
Potential Differentiation in Market
Potential for longer-term FSC type label or BES Certificate
Seen as “the right thing to do”
Key driver towards sustainable development
Benchmarking and Continual Improvement

5. What are the Options? Two Potential Routes: BES 6001 BS 8902
Developed by BRE in 2009
BS 8902
Developed by BSI in 2009

6. BES 6001 Methodology
Developed by BRE Global as a new framework standard
Perceived need for suppliers (other than timber) to have ability to match the Forestry Stewardship Council (FSC)
This standard sets out requirements under 3 main headings:
Organisational Management
Supply Chain Management
Environmental & Social Issues
Organisations must meet certain compulsory elements
All of these must be met to achieve a pass
Additional points are rewarded for voluntary performance beyond compulsory requirements:
Based on a points scoring methodology, leading to:
Excellent
Very Good
Good

7. Uptake regarding BES 6001 Aggregates Industry
Serious uptake for BES 6001
Currently 17 companies with 42 certificates between them largely from Aggregates industry (e.g. clay, brick and concrete) listed within Green Book Live
Why the Aggregates industry
Quarry Products
Provides opportunities to get across environmental benefits
E.g.. Biodiversity increase

8. BES 6001 – Key Criteria Organisational Management Requirements
Responsible Sourcing Policy – compulsory – 1 element
Legal Compliance – compulsory – 1 element
Quality Management System – compulsory – 2 elements
Supplier Management System – compulsory – 1 element
Supply Chain Management Requirements
Material Traceability Through the supply chain – compulsory – 3 elements
Environmental Management Systems in supply chain – compulsory -4 elements
Health & Safety Management in supply chain – compulsory – 4 elements
Env & Social Requirements
Greenhouse Gas Emissions – compulsory – 4 elements
Resource Use- compulsory – 4 elements
Waste Management – 4 elements
Water Extraction – 4 elements
LCA – 3 elements
Transport Impacts – 4 elements
Employment & Skills – 4 elements
Local Communities – 4 elements

9. BES 6001 – Procedure & Costs Application & Fee Proposal
Up to 5 sites and/or 5 product ranges per company £350
Up to 100 sites and/or 30 product ranges per company £1300
Proposal
Pre-assessment & Fee
1 day evaluation £630
Site Assessment & Fee
1 day assessment fee £630
Verification and Certification & Fee
Per certification project £1250
Annual Scheme Fee
Annual Surveillance Visit £630 + Travel etc
Annual Listing Fee £350
TOTALS = £4-6K (approx) per company assuming easy ride

10. BES Summary
Demonstrated to be achievable with some effort following a prescriptive standard
Certification scheme already in place with this standard
Off-the-shelf verification process with scoring system directly accredited to the Code for Sustainable Homes
Excellent/Very Good = 3 points per element
Good = 2.5 points per element
Pass = 2 points per element
Certified EMS only = 1 point per element
Short term – achievable but real credibility of scheme in terms of making a difference is questionable (Jason’s view!)

11. BS 8902 Methodology
Developed by BSI as an alternative means to demonstrate responsible sourcing compliance to BES 6001
According to P Jervis produced in shortest possible time!
Main difference, BS 8902 is not a responsible sourcing standard rather it is the standard (framework) for the development of sector certification schemes for responsible sourcing of construction products (confusing!)
It cannot in itself be used to examine the responsible sourcing claims of material or product manufacturers
It is the scheme that conforms to this standard and not a company or product
BS8902 sets out criteria for the development, operation and management, and future improvements of sector standards

12. BS8902 Overview Market: (procurers, specifiers
Contractors, etc) influences the
Sector certification scheme
Accreditation Body
(internationally recognised:
UKAS or equivalent can accredit certification schemes against BS 8902, and certification bodies in implementing sector scheme schedule
Sector scheme Council
Develops and runs scheme in
Conformity with BS8902 in
Consultation with its
Stakeholders and oversees
certification
Certification Body
Run in compliance with
BS EN to certify applicant organisations’ products against the schedule
Organisation supplying
Construction Products: Applies
to scheme for certification of its products as being responsibly sourced. E.g. primary product suppliers, material suppliers, product processors and finished product suppliers
Solid line = relationships that have to exist to conform to this standard
Dotted line = relationships that are desirable in implementing this standard

13. BS8902 Key Developments Sector ‘Scheme Council’
Certification Procedures
Stakeholder Identification
Stakeholder Engagement
Sector Scheme Policy
Responsible sourcing issues including objectives and targets

14. Scheme Council
Requires balanced representation both within and external to the sector supply chain
Stakeholders selected including special interest groups and government agencies
Identify the management for responsibility of:
Performance and testing
Formulation of policy matters
Supervision of finances
Delegation of authority
Ensure transparency
Disciplinary matters including
Disputes, complaints, appeals etc

15. Scheme Policy + Responsible Sourcing Issues
Draft and approve a policy describing its commitments to the principles of sustainable development and to promote those principles in scheme activities
Establish responsible sourcing issues, objectives and targets
Council will consider each of the issues listed (on next slide) and identify relevance of each to the sector under consideration
Set objectives and challenging but deliverable targets for each relevant issue agreed in consultation with industry

16. Sustainability Issues Identified within Standard
Sector Scheme Council – responsibility to consider each of the above and
Identify relevance of each to the sector under consideration

17. Responsible Sourcing Scheme Schedules
General
Set up scheme through stakeholder engagement
Procedural Control Mechanisms
Ensuring mechanisms in place for tracking/managing certified products
Chain of Custody
Mapping study is undertaken from RMS Point of Sale
Declarations and Product Marking
To allow for differentiation for certified goods in marketplace
Documentation and Records
Logging sources of data and setting time periods for retention of documents
Auditing
Organisational Maturity
Benchmarked against a maturity matrix
Scheme Development
Continuous Improvement
Scheme Maturity Improvement
Certification Reporting and Conformity Declaration

18. BS Summary
Rather logical procedure requiring leadership and influence
Far more challenging than BES potentially with greater rewards
PVC industry better positioned than most with various Charters/ Codes of Practice and Voluntary Commitments already in place
Significant amount of work to be undertaken
Process will require up-front investment
Much longer lead times to achieve success (at least 2 years)

19. Key Conclusions BES 6001 BS 8902 Far easier route to market
Carries least risk
Probably achievable in less than 1 year
BS 8902
likely to achieve greater long-term success
Greater risk of failure
Opportunity to set up something bespoke to our industry
Costs unknown and far more difficult to predict
Overall Conclusions
The main driver for responsible sourcing is not likely to be determined by credits gained from the Code for Sustainable Homes
PVC industry is uniquely positioned to develop our own scheme BUT this will require a lot of hard work and commitment
Easiest route is through BES 6001
For the long-term the scheme that is likely to be the most credible is via BS 8902

20. Acknowledgments
I would like to thank the following personnel for their help in preparing this presentation:
Paul Jervis – initial evaluation and interpretation
Chris Hunt, Development Project Manager BBA
Derek Hughes, Responsible Sourcing Manager, BRE

21. Discussion