CIPS Sustainable procurement review

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1 CIPS Sustainable procurement review Chartered Institute of Purchasing & Supply September 2011

2 Contents Content What is sustainable procurement? Relevance and impact Links with other standards and models An overview of CIPS Sustainable procurement review Recommended next steps

3 What is sustainable procurement? Sustainable procurement isn t simply about being green It s about: Socially and ethically responsible purchasing Minimising environmental impact through the supply chain Delivering economically sound solutions Good business practice

4 Sustainable procurement relevance & impact Reputation - with customers, stakeholders and staff 91% (of UK customers) believe the way a company behaves towards its customers and communities is influential when making a purchase. 74% want to know more about the behavior of a company before buying. 60% say a company s environmental record, sourcing and employment policies affect their purchase decision. Ref: 23red research, July s-ethics-before-buying-studyfinds/ article

5 Sustainable procurement relevance & impact Resource efficiency Sustainable procurement saves costs and resources by reducing or eliminating waste by: Questioning the need to buy Reducing quantities Saving energy and water Promoting re-use and recycling Minimising packaging Optimising transport efficiencies A private sector company replaced 1,582 laptops with more energy efficient models, achieving savings of 92,000 KWh of electricity, 42 tonnes of CO 2 emissions and 10,010 per year

6 Sustainable procurement relevance & impact Minimising risk Environmental risks in the supply chain Greenhouse gas emissions Water consumption Resource scarcity Illegal and unsustainable use of timber and natural resources Waste and pollution

7 Sustainable procurement relevance & impact Minimising risk Social risks in the supply chain Bribery and corruption Sweat-shop labour Poor working conditions Discrimination Child labour Ethical standards

8 Sustainable procurement relevance & impact Gain market share and deliver better service provision Commercial opportunities driving sustainable procurement Develop innovative, more sustainable products and services Improve brand value Increase sales with ethical consumers Meet corporate social responsibility objectives Avoid negative publicity

9 Sustainable procurement relevance & impact Improving public sector service provision Greening of Public Procurement is a major challenge for Europe's public administrations, but also a major opportunity to boost Europe's competitiveness and stimulate the market for environmental technologies past EU Commissioner, Stavros Dimas

10 Sustainable procurement relevance & impact Improving public sector service provision Now more than ever we need to be thinking about balancing environmental, social and economic needs... Whilst finding cash savings is important in the short term, it also is imperative that what we buy now is cost effective during its lifetime Today s savings must not be tomorrow s costs Lord Henley, Defra

11 Standards Sustainable procurement is good procurement practice, as represented by: The UK Government s Flexible Framework model British Standard BS 8903:2010 Principles and framework for procuring sustainably Guide At present there is no International Standard, so BS 8903 is considered to be the globally recognised standard To support good practice CIPS has introduced the Sustainable procurement review

12 CIPS Sustainable procurement review CIPS Sustainable procurement review is: Designed around the Flexible Framework and BS 8903 An independent, rigorous audit linked closely to these two models Delivers: A comprehensive audit report compiled by LRS Consultancy including observations and recommendations Certificate of sustainable procurement to gold, silver or bronze level

13 CIPS Sustainable procurement review The CIPS Sustainable procurement review: Has two parts Part 1: Practices review Part 2: Expenditure review Each part consists of : An online questionnaire An audited review (which takes 2 days)

14 Part 1: Practices review Part 1: Practices review: An online self assessment questionnaire Followed by a one day audit

15 Part 2: Expenditure review Part 2: Expenditure review: Identifies outcomes being achieved by practices identified in Part 1 In Part 2, for each spend category with some element of sustainability, the client records the socio-economic and sustainability risk, which automatically gives an overall sustainability risk rating by category via the online tool.

16 Part 2: Expenditure review Then, for each contract within each spend category the client records the sustainability information relating to each contract. This then undergoes a rigorous one day audit.

17 Outcomes Sustainable procurement certificate valid for 18 months from date awarded Achievement is aligned to key guidelines - BS 8903 and Flexible Framework Independently audited Delivered by world s largest professional body in purchasing and supply Provides evidence of sustainable procurement for shareholders, customers and staff Delivers comprehensive report with recommendations for continuous improvement

18 Certificate of sustainable procurement

19 Next steps. Ask yourself Are you concerned about your organisation s reputation and brand value? Do your suppliers meet your corporate social responsibility objectives? Could you improve resource efficiency in your supply chain? Would you like to save costs and secure supplies? If you answered yes to any/all of these questions then your next steps are Register for the CIPS Sustainable procurement review at Achieve your CIPS Sustainable Procurement certificate

20 Register today Register online: CIPS will then request a purchase order number and send you an invoice Once payment has cleared you will be sent log-on details and the auditor will contact you to arrange audit dates

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