1. National Sustainability Network – Nov 2009 Engaging Suppliers with CAESER Charles Morrison

2. National Sustainability Network – Nov 2009 Agenda Introduction Overview of CAESER Assessment and Analysis CAESER Demo Results “Where are we going”

3. National Sustainability Network – Nov 2009 Introduction Securing our Future and Materiality Stakeholder Engagement Social Context Benefits of a Balanced ESE Approach “Thoughts on Sustainability” 72% of Applicants listed social and environmental considerations above pay when applying for jobs

4. National Sustainability Network – Nov 2009 Introduction “Thoughts on Sustainability” There is a need to change behaviour Cultural mindset over time Environmental, Social and Economic agenda complement A mindset of responsible behaviour “ We endorse Senator Obama because we believe he is the best candidate for the environment.” Brent Blackwelder, Action President, Friends of the Earth

5. National Sustainability Network – Nov 2009 Leveraging Relationships Increasing commercial need to leverage our supplier relationships Driven by  Cut in Government spending  Increased Government Agenda Dialogue must deliver  Reduce cost and increase quality of the current product/service  Wider Government objectives “CSR is the business contribution to our sustainable development goals” Stephen Timms UK Government 2004

6. National Sustainability Network – Nov 2009 The Networked Organisation “Challenging the traditional view of the supplier” “It is not just an organisation’s own performance that matters but that of its suppliers. Approximately 85% of sustainable development issues attracting media interest arise from supplier activity” Barbara Morton, Sustainable Supply Chain Forum 2005

7. National Sustainability Network – Nov 2009 SPTF – Flexible Framework “CAESER - Engaging Suppliers, Measuring Results”

8. National Sustainability Network – Nov 2009 AA1000 Global Reporting Initiative AA1000 − Sustainability Themes Stakeholder Engagement Materiality Completeness Responsiveness “Accountability demonstrated through stakeholder Engagement” CBOS Centre for Business Organisations and Society AA1000AP Accountability Core Principles other partners

9. National Sustainability Network – Nov 2009 CAESER Overview Communication Assessment Education Language of CSR provides broad agenda

10. National Sustainability Network – Nov 2009 Assessing with CAESER Environment CO2 Energy Waste Water Social Equality & Diversity Economic Socio- economic Regeneration Data Information Assurance CSR Low Carbon Employment & Training 10 day payment Data Protection

11. National Sustainability Network – Nov 2009 CAESER Overview 1. General Context of CSR 3. Stakeholder Engagement Supply Chain Finance Communications Governance Code of Ethics Personnel Operations 2. Government Agenda Organisation – Common Business Areas

12. National Sustainability Network – Nov 2009 Government Agenda Energy Efficiency & Management Carbon Dioxide Emissions Waste and Recycling Water Efficiency & Management Biodiversity Local Communities

13. National Sustainability Network – Nov 2009 Priority Areas “How do we prioritise areas of public sector spend to make maximum progress?” Source: Sustainable Procurement National Action Plan

14. National Sustainability Network – Nov 2009 “Neither equality nor respect for difference (diversity) is a sufficient value in itself. The two must be held together, mutually challenging and supportive.” (The Runnymede Trust, Multi-Ethnic Britain, 2000). Social Responsibility The Equality Duty will require public bodies to tackle discrimination and promote equality through their purchasing functions........... We are looking at how to encourage greater transparency among private sector contractors to contribute to the delivery of our equality targets” Framework for a Fairer Future – The Equality Bill

15. National Sustainability Network – Nov 2009

19. Supplier Analysis

20. National Sustainability Network – Nov 2009 Supplier Analysis – Local Sectors Average score was 43% Best performing industry sector is Construction, average score of 69% Lowest performing industry sector is Health Services with score of 15% 52% of the council’s supply base in located in the local area. 10% of the council’s suppliers are BMEs

21. National Sustainability Network – Nov 2009 Supplier Analysis - Comparisons 9% of the council’s suppliers are from the third sector. 33% of suppliers have set a target for reducing their carbon emissions by 2010 12% of suppliers have an EMS 81% of suppliers provide their employees structured development and/or training programmes

22. National Sustainability Network – Nov 2009 Supplier Analysis - Carbon

23. National Sustainability Network – Nov 2009 Supplier Analysis - Equality & Diversity

24. National Sustainability Network – Nov 2009 Supplier Categories “What is the real CSR opportunity?” Category Area Opportunity Rating (Low 1-High 5) Agriculture, Beverages and Food3 Construction and Property5 Consultancy and Professional Services2 Education and Training2 Energy, Fuels and Related Services5 Environment and Waste Management5 Finance and Related Services2 Health Services2 IT Equipment, Systems and Software5 Legal Services2 Materials and Products5 Medical Equipment2 Mining, Ores and Aggregates5 Printing, Publishing and Related Services4 Research and Development4 Vehicles and Transport5 Identify the sustainability opportunity by category Considers the high priority category areas highlighted within the SPTF Where opportunity rating is high there is greater potential for impact through supplier engagement

25. National Sustainability Network – Nov 2009 Score vs Opportunity Matrix “What is the real CSR opportunity?” Leverage Maintain Status Develop Case Studies Develop Support Development Encourage Improvement Maintain Educate CAESER Score Opportunity of Impact 135 100% 0% Suppliers can be categorised based on their CAESER score & the opportunity impact Position on matrix will define the type of engagement received Focus initially on the Leverage and Develop with specific tailored initiatives

26. National Sustainability Network – Nov 2009 Top 100 Opportunity Analysis Top 100 suppliers who completed the CAESER return Identified by score and by industry category Opportunity impact from low to high (left to right) TOP SUPPLIERS Consultancy & Professional Services Health Services Agriculture, Beverages & Food Research & Development Vehicles & Transport Construction Supplier A 23.2 Supplier B 96.3 Supplier C 76.8 Supplier D 11.9 Supplier E 22.7 Supplier F 57.5 Supplier G 25.6 Supplier H 49.45 Supplier I 70.1 Supplier J 18.4 Supplier K Supplier L 30.7 Supplier M 24.87 Supplier N 21.6 Supplier O 5.17 Supplier P 10 Supplier Q 26.9 Supplier R 12 29 Supplier S 29 Supplier T 32.7

27. National Sustainability Network – Nov 2009

28. Regeneration for Wales  Local Government  Higher Education  Further Education  Central Government Top 50 Suppliers £122K

29. National Sustainability Network – Nov 2009

30. Agenda like this Housekeeping & Introduction Defining sustainability Public Policy & Drivers Sustainable Procurement in Practice ESE challenges Next Steps Q & A “Use this font for page sub-headings” Housekeeping & Introduction Defining sustainability Public Policy & Drivers Sustainable Procurement in Practice ESE challenges Next Steps Q & A

31. National Sustainability Network – Nov 2009 Page headings like this Use these bullets “Sub heading like this” Images should be on the left where possible, with a 10 point soft edge and a green border as above.

32. National Sustainability Network – Nov 2009 Additional styling “ Use this font for bold” “This is the right shade of CAESER green” “This is the right shade of CAESER grey” “Sub heading”