Research to inform FM Strategy Group activities

Transcription

1 Research to inform FM Strategy Group activities Summary WRAP identified Facilities Management as an area where key resource and cost savings could be made. This note provides information on research and practical activity commissioned by WRAP to build the evidence base. Evidence document Objectives Summary and key conclusions / learnings Review of current procurement practice in the Facilities Management sector Opportunities for resource savings in the FM sector Provide an overview of procurement and contract management processes in the FM sector; Identify how performance (including resource efficiency) is currently specified, measured and reported; Highlight the key opportunities to introduce more effective requirements for resource-efficient practice. Provide WRAP with a high level summary of key impact areas across the sector, and to identify cost saving or cost neutral resource efficiency opportunity areas. This report: Identified the scale of the FM sector and potential for WRAP to work with the industry; FM industry work to small profits margins resource efficiency a good way of increasing margin; Identified opportunities through collaboration with the FM industry; Identified challenges for the industry in adopting resource efficiency The Executive Summary of the report can be found at: This report identified indicative hotspots within a model representative facility for a number of metrics (as shown below) and it also estimated that for each of the resource intensive services provided to facilities substantial savings were possible. Metric Hotspot service Weight of materials Catering (50%) Waste Furniture (50%) Energy in-use HVAC (70%) Embodied CO 2 HVAC (45%) In-use CO 2 HVAC (60%) Water Kitchen and washrooms (90%) Cost ICT (30%) Executive Summary of the report can be found at:

2 Resource Optimisation Reviews Developing new resource efficient ways of doing business To review the services of Facility Management companies, their clients and supply chains to improve resource efficiency and reduce costs. This will help secure corporate commitment to embedding the measurement and reduction of resource impacts as well as generating learning on the largest opportunities for savings across the sector. To support Business to Business companies to innovate financially beneficial business models that save resources Over 20 reviews took place with 18 different organisations in 2011/12 across the private and public sectors. In total a potential 1m in annual savings were identified, including: BBC Media Village, TV Centre and Broadcasting House 94k Loughborough University 84k Scottish Government, Saughton House and Victoria Quay 89k BP North Sea HQ, Aberdeen 103k Over 800 tonnes of carbon savings were identified. Further Resource Optimisation Review are planned for 2012/13. Support work has been undertaken on a pilot basis with major retailer and a couple of FM companies to develop business ideas into financial models. Further work in this area will be undertaken this year in the form of an innovation challenge project. WRAP has also launched a Waste Prevention Loan Fund which can help to support emerging resource efficient business models. The fund will support organisations to develop innovative, more resource-efficient ways of doing business in England. This includes: innovative business models to reduce the products and resources consumed increasing re-use, repair and recovery capacity, this is open to a both commercial and third sector businesses. Textiles, electricals and furniture are the priority materials to reduce their environmental impacts, the quantity of products going to waste and the UK s reliance on the resources required to make these products. However WRAP will consider applications of other materials that also demonstrate significant environmental benefits. Loans are available of between 100,000 and 1 million.

3 Development of model wording for use in FM contracting Development of indicators for the FM sector to measure resource efficiency Enable clients and contractors for facilities management services to specify resource-efficient outcomes in their procurement and contract management processes. The work will add value by providing a practical and cost-effective approach by ensuring that service delivery uses products and resources in the most efficient way. Develop a user-friendly and practical set of indicators that when implemented will help demonstrate that FM providers are continually improving the resource efficiency of their service over time. Building upon the Review of current procurement practice in the Facilities Management sector this project developed a number of outputs that could be used by both end-user clients and FM contractors and sub-contractors to deliver a more resource efficient service. The FM procurement toolkit: Includes model wording for service briefs, PQQ S, ITT s and contract documents Covers the following services: o Catering, o Furniture o Maintenance and refurbishment o ICT o Textiles o Waste management Includes templates to assist FM companies and their clients to set targets and implement actions to deliver increased resource efficiency, reduce waste and reduce costs. The FM procurement toolkit received positive feedback from England, Scottish and Welsh Governments, Transport for London, Environment Agency Wales, BIFM and four leading FM suppliers. WRAP is now looking for companies and organisations to pilot the model wording and use the templates for monitoring and reducing resource use. The FM procurement toolkit can be downloaded from This research identified a set of indicators that are high level and broadly appropriate to a wide range of facility types. Indicators were developed for both operational and industrywide use. In addition, indicators were recommended to be implemented through a staged approach, building from a basic, simple to collect data (Tier 1) selection to a more sophisticated analysis over time (Tier 2). The indicators were developed in consultation with a number of FM

4 suppliers. Operational indicators are summarised below: Service Catering Food waste ICT Asset utilisation Building services electricity consumption in use Total facility water consumption Total WEEE produced Total waste Percentage recycled Indicator kg / meal served Equipment x / fte kwh / m 2 GIFA / operational hours / annum kwh / fte / operational hours / annum L (or m 3 ) / fte kg / m 2 GIFA / annum kg / m 2 GIFA / annum % of waste diverted from landfill Industry wide indicators are summarised below: Service Catering Food waste Total electricity consumption Total carbon emissions Total water consumption Waste from refurbishment projects Total waste Recycling Indicator kg / meal served Total kwh / total m 2 GIFA / annum Total kg CO2e / total m2 GIFA / annum Average m 3 / fte / annum; Total m 3 / m 2 GIFA /annum Total kg / 10,000 project spend; Average % total waste recycled; % of total materials used Total tonnes / m 2 GIFA / annum Total % recycled Case studies demonstrating resource efficiency in FM services The aim of this project is to provide an evidence base for good practice in improving resource efficiency in the areas of facilities management, The executive summary of the report can be downloaded from The good practice examples identified came from both the private and public sector and covered resource efficiency in the provision of furniture, catering and textiles including: Stansted Airport Limited worked with catering outlets to fit food waste recycling

5 providing an answer to the question what does good look like, supported by credible cost-benefit data. collections into their busy schedule, helping to cut costs and meet landfill diversion targets. The WARPit furniture re-use scheme saved Sunderland City Council 45,000 in nine months and diverted more than nine tonnes of material from landfill Furniture procurement options The aim of this piece of work was to demonstrate the options available to companies when they are procuring furniture. A re-use scheme for furniture and other fittings has saved Carillion plc more than 250,000 in the last five years, and diverted a vast number of items from landfill. When The Oracle Shopping Centre set out to meet challenging recycling targets, it quickly discovered that the segregation of food waste not only had a major impact on landfill diversion, but also improved the quality of other waste streams. Separate food waste collection has saved the Centre 6000 a year. All ten case studies are available at The project outcomes are an editable spreadsheet that allows users to examine profit and loss accounts on four furniture procurement routes: purchasing new purchasing remanufactured furniture purchasing new furniture and remanufacturing it remanufacturing and hiring furniture. Three case studies that look at examples of a business that carry out furniture re-use, remanufacture and hiring respectively have also been developed. Project outcomes available on the WRAP website shortly.