1. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Sustainable Public Procurement in EU Member States: Case Studies & Synthesis Presentation given at the 16th Meeting of the EU High-Level Group on CSR Brussels, 16 October 2007 Reinhard Steurer Gerald Berger RIMAS - Research Institute for Managing Sustainability Vienna University of Economics and Business Administration www.sustainability.eu www.sustainability.eu/csr-policies www.sustainability.euwww.sustainability.eu/csr-policies

2. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Orientation 1.Context and general remarks … About the project, the survey, the case studies 2.Some survey results commemorated Types of instruments etc. 3.The three case studies The „legal framework“ on SPP in France The „strategic framework“ on SPP in the UK Guidelines on SPP/GPP in Austria 4.Conclusions Synthesis of survey & case study results

3. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Orientation 1.Context and general remarks … About the project, the survey, the case studies 2.Some survey results commemorated Types of instruments etc. 3.The three case studies The „legal framework“ on SPP in France The „strategic framework“ on SPP in the UK Guidelines on SPP/GPP in Austria 4.Conclusions Synthesis of survey & case study results

4. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Context 1.The project: „Analysis of national policies on CSR, in support of a structured exchange of information on national CSR policies and initiatives“ is commissioned by DG Employment (Tender No VT/2005/063; www.sustainability.eu/csr-policies)www.sustainability.eu/csr-policies 2.The survey results: Presented at CSR HLG Meeting on 7 May 2007 3.Final report on SPP in Europe summarises survey results (part I), case studies (part II) and synthesis (part III) 4.The case studies & synthesis:  Describe selected policy approaches in more detail  Highlight relevant success factors and challenges/obstacles  Facilitate an in-depth discussion of different approaches

5. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 General remarks on the case studies 1.Cases selected based on survey, in cooperation with DG Employment (most relevant instruments in countries that make extensive use) 2.Cases considered … …but not selected also briefly described in final report EKU Tool in Sweden (hybrid instrument: internet platform) NAP on SPP in the Netherlands Informational instruments in Denmark, in particular the websites www.ski.dk (GPP) and http://www.udbudsportalen.dk/socialaftaler (the “Danish Public Procurement Portal on Social Clauses”) 3.Sources of information: Documents (incl. websites) on the initiatives 2 interviews per case (from ministries and procuring agency) Interview partners and questions: Annex IV of final report

6. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Orientation 1.Context and general remarks … About the project, the survey, the case studies 2.Some survey results commemorated Types of instruments etc. 3.The three case studies The „legal framework“ on SPP in France The „strategic framework“ on SPP in the UK Guidelines on SPP/GPP in Austria 4.Conclusions Synthesis of survey & case study results

7. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Countries covered in the survey Green: survey Orange: other studies Grey: not covered

8. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Overview of 103 SPP initiatives found in the survey Educational activities, e.g. conferences, seminars, trainings; 3.9% Government-sponsored guidelines; 13.6% Information resources, e.g. websites, studies, reports, etc.; 11.7% Information/awareness raising campaigns; 1.9% Networks/partnerships/ agreements; 1.0% Decrees, resolutions; 4.9% Circulars; 4.9% Action plans/ programmes/strategies for CSR; 27.2% Platforms/centres/ institutions; 5.8% Informational instruments Partnering instruments Legal instruments Hybrid instruments Laws; 25.2%

9. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Overview of SPP initiatives Educational activities, e.g. conferences, seminars, trainings; 3.9% Government-sponsored guidelines; 13.6% Information resources, e.g. websites, studies, reports, etc.; 11.7% Information/awareness raising campaigns; 1.9% Networks/partnerships/ agreements; 1.0% Decrees, resolutions; 4.9% Circulars; 4.9% Action plans/ programmes/strategies for CSR; 27.2% Platforms/centres/ institutions; 5.8% Informational instruments Partnering instruments Legal instruments Hybrid instruments Laws; 25.2% Economic/financial instruments are missing, but…

10. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Overview of SPP initiatives Educational activities, e.g. conferences, seminars, trainings; 3.9% Government-sponsored guidelines; 13.6% Information resources, e.g. websites, studies, reports, etc.; 11.7% Information/awareness raising campaigns; 1.9% Networks/partnerships/ agreements; 1.0% Decrees, resolutions; 4.9% Circulars; 4.9% Action plans/ programmes/strategies for CSR; 27.2% Platforms/centres/ institutions; 5.8% Informational instruments Partnering instruments Legal instruments Hybrid instruments Laws; 25.2% Indirectly: All SPP initiatives foster CSR by providing economic/ financial incentives

11. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Target groups of SPP initiatives Public sector in general; 66.0% Business; 10.7% Regional and/or local level; 6.8% National/federal level; 19.4% not identified; 8.7% Others; 1.9% „Direct“ target group: 92.2% public sector „Indirect“ target group 100% businesses „Direct“ target group: 92.2% public sector „Indirect“ target group 100% businesses

12. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Focus of SPP initiatives: Environmental and/or social? Environmental & social (47.6%) Environmental only (41.7%) Social only (6.8%) Focus not identified (3.9%)

13. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Orientation 1.Context and general remarks … About the project, the survey, the case studies 2.Some survey results commemorated Types of instruments etc. 3.The three case studies The „legal framework“ on SPP in France The „strategic framework“ on SPP in the UK Guidelines on SPP/GPP in Austria 4.Conclusions Synthesis of survey & case study results

14. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Overview of SPP initiatives Educational activities, e.g. conferences, seminars, trainings; 3.9% Government-sponsored guidelines; 13.6% Information resources, e.g. websites, studies, reports, etc.; 11.7% Information/awareness raising campaigns; 1.9% Networks/partnerships/ agreements; 1.0% Decrees, resolutions; 4.9% Circulars; 4.9% Action plans/ programmes/strategies for CSR; 27.2% Platforms/centres/ institutions; 5.8% Informational instruments Partnering instruments Legal instruments Hybrid instruments Laws; 25.2% The legal framework for SPP in France

15. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 EU Directives* on PP: Status of implementation 19: implemented 2 (Es, Lux): in preparation 1: not implemented 5: status unclear * „Procurement directive“ 2004/18/EC „Utilities directive“ 2004/17/EC

16. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 The legal framework for SPP in France TypeLegal instruments: laws, ordinances, decrees, circulars Key activities Public Procurement Contracts Code/PPCC (“Code des marches publics”): requirements for public procurement have to be defined “by taking into account the objectives of SD” Ordinance 2005-649 and decrees (target public entities with commercial purpose) Circulars on wood & energy efficiency (give guidance) Timing2005-2006 ResponsibilitiesMinistry of Ecology/SD & Min. of Economy & Finance Website PPCC: http://www.minefi.gouv.fr/directions_services/daj/marches_publics/code2 006/comparatif_cmp2006-cmp2004.pdf

17. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Success factors & recommendations Too early to assess the impact of the French legal framework on SPP, but the following points were mentioned: Political backing and constitutional basis (“Charter for the Environment” as Annex to French Constitution) Follow up: Procurers must state how they have integrated SD or justify why they did not (statistical analysis possible) Legal framework rather than single law: General legal provisions are complemented with more specific guidelines (circulars) Consultation of other public authorities and businesses

18. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Challenges Legal framework is an important basis for SPP, but fostering SPP also requires: TTraining TTraining TTraining

19. Challenges Legal framework is an important basis for SPP, but fostering SPP also requires:  Training of public procurers to help them understand the integrative nature of Sustainable Development  Training

20. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Challenges Legal framework is an important basis for SPP, but fostering SPP also requires:  Training of public procurers to help them understand the integrative nature of Sustainable Development  Training of public procurers to help them implement the new legal requirements/possibilities  Training

21. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Challenges Legal framework is an important basis for SPP, but fostering SPP also requires:  Training of public procurers to help them understand the integrative nature of Sustainable Development  Training of public procurers to help them implement the new legal requirements/possibilities  Training of public procurers so that they understand the economics/efficiency of SPP

22. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Orientation 1.Context and general remarks … About the project, the survey, the case studies 2.Some survey results commemorated Types of instruments etc. 3.The three case studies The „legal framework“ on SPP in France The „strategic framework“ on SPP in the UK Guidelines on SPP/GPP in Austria 4.Conclusions Synthesis of survey & case study results

23. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Overview of SPP initiatives Educational activities, e.g. conferences, seminars, trainings; 3.9% Government-sponsored guidelines; 13.6% Information resources, e.g. websites, studies, reports, etc.; 11.7% Information/awareness raising campaigns; 1.9% Networks/partnerships/ agreements; 1.0% Decrees, resolutions; 4.9% Circulars; 4.9% Action plans/ programmes/strategies for CSR; 27.2% Platforms/centres/ institutions; 5.8% Informational instruments Partnering instruments Legal instruments Hybrid instruments Laws; 25.2% The strategic framework for SPP in the UK

24. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Member States with National Action Plans on SPP/GPP 9: NAP adopted 7: NAP in preparation/ drafted 3: No (draft) NAP 8: Status unclear

25. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 The strategic framework for SPP in the UK TypeHybrid instruments: strategies and action plans Key activities UK Government Sustainable Procurement Action Plan (“the UK aims to be a leader in SPP by 2009”; it contains quantified goals on CO2, energy efficiency and waste reduction) Transforming Government Procurement (aims to build capacity and capability for SPP) SD Action Plans of Government Departments (assessed by SD Commission) TimingFirst two: 2007; departmental plans: 2005 ResponsibilitiesDEFRA (Environment Dep), Treasury, others Website UK Action Plan: http://www.sustainable- development.gov.uk/publications/pdf/SustainableProcurementActionPlan.pdf

26. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Success factors & recommendations Too early to assess the impact of the strategic framework, but the following points were mentioned: Political commitment to make SPP a government priority Experience and good track record in strategic management Consultation of stakeholders (other departments and businesses) Strategies on SPP should also aim to build evidence about the economic advantages of SPP

27. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Challenges  “Value for money” (“cost-benefit ratio”) of SPP still not quantified …  … thus, potentially higher costs often regarded as unjustified strains on the budget  Building capacity and capability for SPP with guidelines, trainings etc.

28. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Orientation 1.Context and general remarks … About the project, the survey, the case studies 2.Some survey results commemorated Types of instruments etc. 3.The three case studies The „legla framework“ on SPP in France The „strategic framework“ on SPP in the UK Guidelines on SPP/GPP in Austria 4.Conclusions Synthesis of survey & case study results

29. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Overview of SPP initiatives Educational activities, e.g. conferences, seminars, trainings; 3.9% Government-sponsored guidelines; 13.6% Information resources, e.g. websites, studies, reports, etc.; 11.7% Information/awareness raising campaigns; 1.9% Networks/partnerships/ agreements; 1.0% Decrees, resolutions; 4.9% Circulars; 4.9% Action plans/ programmes/strategies for CSR; 27.2% Platforms/centres/ institutions; 5.8% Informational instruments Partnering instruments Legal instruments Hybrid instruments Laws; 25.2% Guidelines for SPP/GPP in Austria

30. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Guidelines on SPP/GPP in Austria TypeInformational instruments Key activities General Government Guidelines on GPP from 1998; update from 2004 not adopted by government because of “unclear follow-up costs of GPP” “Check it” criteria catalogue for GPP: LIFE project, 11 modules provide detailed information on various product groups “Greening events”: guideline for sustainable event management that covers 10 environmental and 2 social topics, followed by similar initiatives Timing1998 – 2001 (“Check it”) – 2005 (“Greening Events”) Responsibilities Environment Ministry, in cooperation with other Ministries and, more recently, with Federal Procurement Agency Website “Check it” (only document in English) http://www.ifz.tugraz.at/oekoeinkauf/index_en.php

31. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Success factors & recommendations Develop practical and easy to use guidelines … … through a close cooperation between sustainable development experts, procurement practitioners and businesses Address the issue of “value for money” (also in guidelines)

32. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Challenges  Develop practical and easy to use guidelines …  … through a close cooperation between sustainable development experts, procurement practitioners and businesses  “Value for money” argument  Broaden focus from Green to Sustainable Public Procurement

33. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Orientation 1.Context and general remarks … About the project, the survey, the case studies 2.Some survey results commemorated Types of instruments etc. 3.The three case studies The „legal framework“ on SPP in France The „strategic framework“ on SPP in the UK Guidelines on SPP/GPP in Austria 4.Conclusions Synthesis of survey & case study results

34. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Conclusions  Policies on SPP are dominated by laws, action plans and guidelines  The number of SPP initiatives seems to relate to the actual GPP performance  SPP is dominated by GPP (8 of 16 NAPs focus on GPP)  Value for money is a guiding principle of public procurement and SPP These 3 complementary instruments have developed into a standard set of SPP policy-making across the EU But: the effectiveness of the different SPP instruments should be assessed in depth Sustainable PP should reflect economic, social and environmental aspects SD SPP initiatives should pro- actively use the value for money argument for their own purposes

35. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 Conclusions II  SPP initiatives often fail because of a lack of relevant (legal) knowledge and expertise among procurers  Respective capacities for SPP can be built with many complementary informational instruments, such as campaigns, guidelines and trainings  High-level political commitment, the involvement of procurers and other stakeholders and bottom-up ownership are key success factors for SPP Procurers must be educated and trained to implement laws and NAPs on SPP But: these initiatives are only effective if they address the needs and concerns of public procurers NAPs and other strategic approaches to SPP should focus also on how to secure these success factors

36. Sustainable Public Procurement in Europe – Case Studies & Synthesis CSR HLG Meeting on 16 October 2007 reinhard.steurer@wu-wien.ac.at RIMAS - Research Institute for Managing Sustainability Vienna University of Economics and Business Administration www.sustainability.eu www.sustainability.eu/csr-policies Thanks for your support so far --- and for the upcoming final study on SRI!