1. Sustainability in the MOD IEMA Conference 2011 Dr Jon Freeman Sustainable Procurement Strategy

2. If nothing else… …sustainability must be MATERIAL to your business. So…how is sustainability material to the MOD?

3. Structure of the presentation MOD context Greening Government Commitments Sustainable procurement in Defence Operational energy Critical materials

4. MOD Context Defence has two high-level outputs: –Defence policy –Military capability 2009/10 Defence spending was £39 bn 178,000 personnel in Armed Forces (April 2010) 86,000 civil servants (April 2010) Significant reductions in personnel over the next few years –Aim to reduce civil servants by 25,000 by 2015 –Aim to reduce military by 17,000 by 2015 Significant budgetary pressure So…what does sustainability mean for this particular organisation?

5. Sustainability context for the MOD MOD manages ~1% of UK land area, ~40,000 buildings, ~170 SSSIs Emits slightly less than 1% of UK greenhouse gases –4.7 million tonnes (2009/10) Strategic Defence and Security Review (2010) highlighted concerns about energy and materials security SD Strategy published in 2011 MOD has already significantly reduced its impact on the environment

6. Greening Government Commitments By 2015: Reduce greenhouse gas emissions by 25% from a 09/10 baseline from the whole estate and business related transport Reduce waste by 25% from a 2009/10 baseline Reduce water consumption from a 2009/10 baseline, and report on office water use against best practice benchmarks Ensure government buys more sustainable and efficient products and engages with its suppliers to understand and reduce the impacts of its supply chain –Embed Government Buying Standards in procurement contracts –Improve and publish data on our supply chain impacts, initially focussing on carbon, but also water and waste – setting detailed baselines for reducing these impacts

8. Sustainable Procurement for Defence Embedding sustainability in commercial processes and relations with industry Challenge – teams need to think about what sustainability means for them…can be hard work! Sustainable Procurement Assessment of Risk –Tool that is available on the Acquisition Operating Framework www.aof.mod.uk Operational Energy Critical materials inc. REACH

9. Energy in theatre

10. Operational Energy 1.3 billion litres of fuel (2010/11) at a cost of ~£600 million Challenge of getting an accurate baseline Reducing fuel helps costs, operational effectiveness and energy security

11. Operational energy – what is the MOD doing? Developing an operational strategy to reduce our reliance on fossil fuel Certifying synthetic fuels for use aircraft Research with Dstl PowerFOB trial in Cyprus July 2011 –Intelligent power management –Low power accommodation (esp. shelter insulation) –Micro-power Future challenges – the power for our future equipment

12. Energy research at Dstl Objectives: To understand the supply, demand and vulnerability to operational energy supply; To identify energy technologies that could be matured for exploitation in defence; To identify new ways of using capabilities through-life that reduces the energy used to deliver operational effect; To assist in developing energy requirements and assessment criteria for capability acquisition

13. PowerFOB Generator Management Energy Storage Demand Management Renewables Integration Intelligent Power Management Management of in-service generators to work with storage or renewable power solutions Controlling the power demands in a base through scheduling and shedding Capturing ‘spare’ power produced by generators or renewables to use when needed Integrating the power from wind or solar solutions into the base-wide network Power Architecture

14. Critical materials Scarcity of natural resources much discussed in the media The effects of REACH…scarcity through legislation Does this affect defence and, if so, what should we do about it? Potential benefits – cost, operational effectiveness, materials security Working with industry is important as we need to understand what materials are in the MOD supply chain

15. Critical Materials – research objectives To understand the supply and defence demand for certain critical materials To understand the vulnerabilities of MOD capabilities to shortages of supply in certain critical materials To identify and, where appropriate, classify possible sustainable alternative materials

16. Summary MOD “mainstreaming” sustainable development in its management processes and has had some successes in reducing our impact on the environment As complexity increases (e.g. systems, legislation etc) it gets harder to be sustainable and to manage risks. We must, wherever possible, make sustainability the easy option – need to develop tools and training that help our staff work out what sustainability means for them Energy and materials challenges are particularly important sustainability issues in the procurement of military capability. We are using research to help us develop the tools and options to address these

17. Further information: Jon Freeman Sustainable Procurement Strategy jon.freeman206@mod.uk