mayor of london s green procurement code progress review September 2012-13

mayor of london s green procurement code progress review September 2012-13

Executive Summary The Mayor of London s Green Procurement Code was launched, in 2001, as a ground-breaking government-funded programme to help create markets for products containing recycled materials. The Code has evolved over the years into a service which provides advice on procuring all types of green products and services, in addition to monitoring waste, water and energy savings. The Code benchmarks an organisation s procurement process and helps them to develop policies, train staff, affect behaviour change, engage suppliers and develop procurement specifications. In 2010, the changing economic climate saw the introduction of a fee-based membership programme for the Code, and expansion of its geographic reach, enabling any organisation or business in the UK to participate. It is encouraging to see that sustainable procurement has remained a key element for members, through a turbulent economic climate. We are finding that green procurement has now become firmly embedded in members policies and processes and is supporting improved business performance. This year (2012-2013), the Code had 64 members which included both small businesses and international corporations. 23 participated in the 2013 Progress Review survey and qualified for bronze, silver or gold certification. The following were awarded: Gold 7 Silver 8 Bronze 6 Entry level 2 These members reported over 111 million of spend that addressed environmental issues, which represented 131 individual green purchases across 23 different product categories. 1

Table 1: 2013 members of the Mayor of London s Green Procurement Code. AA Security Amey LG Ltd Approved Inspector Services Ltd Arnold Laver & Co. Ltd Balfour Beatty Workplace (MET Police Contract) Bam Nuttall Bam Nuttall Kier JV (Crossrail) C501 BBMV JV (Crossrail) C510 Balfour Beatty, ALPINE BeMo Tunnelling, Morgan Sindall and VINCI Construction" BBMV JV (Crossrail) C512 Balfour Beatty, ALPINE BeMoMorgan Sindall and VINCI Construction" Bechtel Limited Cambridge Environmental Research Consultants Ltd Cappagh Contractors Construction (London) Ltd Carillion (Crossrail) C272 Clancy DOCWRA Clifford Chance Commercial Group Computacenter Copper Consultancy Costain Skanska JV (Crossrail) C405 Costain Skanska JV (Crossrail) C411 Dawson Contract Piling Ltd DG3 Group (Holdings) Limited Donaldson Associates Limited Dragados-Sisk JV (Crossrail) Eclat Events Emerald House Global Engineering Ltd Fisher Meredith Fortel Services Galldris Construction Limited GreenZone Cleaning and Support Services Ltd I. Waterman Ltd. (Box Makers) Idox Information Innovision Iris Collection Group J B Riney & Co. Ltd John Robertson Architects Kapsch TrafficCom Ltd Laing O'Rourke LDA Design Leeming Pilkington Limited Links Signs Limited London Fire Brigade London School of Economics and Political Science Millards Cleaning Services Ltd Morgan Sindall Group Plc Morrison Utility Services O'Donovan (Waste Disposal) Ltd PCG Associates PCS Union Potensis Limited Prospects Services Ltd Renewal Programme Ricoh UK Ltd S W Bruce & Co Ltd Skanska UK Specialist Engineering Services Limited Tate Taylor Woodrow (civil engineering division of VINCI Construction UK) Thames Clippers The Sourcing Team VGC Labour Solutions Wagstaff Interiors Group Wiles Greenworld Workspace Group 2

Highlights from the 2013 Progress Review The Progress Review reports on the annual achievements of the Mayor of London s Green Procurement Code members. It represents one of the most comprehensive studies on sustainable procurement in Europe, reflecting both the financial and environmental savings that membership organisations have achieved. 23 members of the Code submitted data and were audited against the five themes of the government s Flexible Framework maturity model, and were eligible for bronze, silver, or gold certification. Seven members achieved the gold level, including four large private sector company and three small and medium sized enterprises (SMEs) Eight organisations achieved the silver level Six achieved bronze Two entry level The total procurement budget reported by the members for 2012/13 was 555 million. Over 111million was reported on purchases that addressed an environmental issue ( qualified green spend ). 131 individual purchases were reported across 23 different product categories. Members recorded a total spend of over 318,000 on recycled content products, and resulted in the following environmental savings: 4,729 tonnes of material diverted from landfill. 43 tonnes of CO 2 emissions avoided. Over 6.7 million of spend was reported on waste management for eight major contracts. A total of 129,612 tonnes of waste have been diverted from landfill. In 2012/13, 13 members purchased over 4.4 million of energy-efficient products. The highest proportion of this amount was spent on Energy Star products. 3

Contents Executive Summary... 1 Highlights from the 2013 Progress Review... 3 The Progress Review... 5 Introduction to the 2012-2013 Progress Review Results... 5 Progress Review: Part one... 7 Benchmarking your performance... 7 Overview of results by section... 11 People... 11 Policy, strategy and communication... 12 Procurement process... 13 Engaging suppliers... 14 Measurement and results... 15 Progress Review: Part two... 16 Procurement overview... 16 Category overview... 16 Calculating the benefits of green procurement... 20 Recycled content products and waste management... 20 Environmental benefits of recycled content products... 21 Waste management... 21 Paper... 21 Energy efficient products... 22 Sustainable Natural Resources - Ecolabels... 23 Appendix 1: Eco-labels... 24 Appendix 2: Methodology... 26 Appendix 3: Case studies... 27 Balfour Beatty Workplace (MET Police Contract)... 27 Wagstaff Interiors Group case study... 28 4

The Progress Review The annual Progress Review assesses how well organisations are incorporating environmental considerations into their procurement activities. In addition, it aims to track the outcomes of those green procurement activities in terms of the number, value and type of green products and services purchased. The survey was not designed to be an end in itself, it aims to reward and encourage leading practices. Organisations that submitted their survey data for review by an independent auditor are eligible for Gold, Silver or Bronze levels of accreditation. The first part of the survey that focuses on green procurement processes was based on the Flexible Framework model of leading practice from the government s 2006 Sustainable Procurement Task Force 1. This model identifies five key themes of good practice in green or sustainable procurement: people; policy, strategy and communications; procurement process; engaging suppliers; and measurement and results. Finally, the annual Progress Review provides the basis for an action plan for Code members to implement over the rest of the year with the aim of progressing from entry level to bronze and then ultimately to gold. Introduction to the 2012-2013 Progress Review Results This year s Progress Review report covers green procurement activity undertaken between, the 1 st April 2012 to 31 st March 2013. This year, 23 of the 64 Green Procurement Code members provided data for the 2012-2013 Progress Review. A breakdown of members by sector is shown in Table 1. In total, 12 large organisations and 11 small and medium sized enterprises completed the Review and audit. Table 2: Organisations reporting in the 2013 Progress Review survey by sector Sector Number of Members Large 12 SMEs 11 Total 23 1 Procuring the Future (2006). Sustainable Procurement National Action Plan. Recommendations from the Sustainable Procurement Task Force (SPTF). p.68. 5

In 2012-2013, 21 members of the Green Procurement Code achieved a gold, silver or bronze level of certification. Two members achieved entry level. Gold Level: 7 members Approved Inspector Services Ltd Balfour Beatty Workplace (Metropolitan Police Contract) GreenZone Cleaning & Support Services Ltd London Fire Brigade LRS Consultancy Morgan Sindall Group Plc Taylor Woodrow (civil engineering division of VINCI Construction UK) Silver Level: 8 members Arnold Laver Timberworld Ltd BBMV Joint Venture C510 (Balfour Beatty, ALPINE BeMo Tunnelling, Morgan Sindall and VINCI Construction) BBMV Joint Venture C512 (Balfour Beatty, ALPINE BeMo Tunnelling, Morgan Sindall and VINCI Construction) DG3 Group (Holdings) Ltd John Robertson Architects LDA Design London School Economics and Political Science Wagstaff Interiors Group Bronze Level: 6 members Amey LG Ltd Clifford Chance Leemington Pilkington Limited O Donovan (Waste Disposal) Limited Potensis Limited Workspace Group Plc 6

Progress Review: Part one The first part of the Progress Review consists of 20 questions linked to the five themes of the Flexible Framework model 2. The questions require a self-assessment on a scale of 1 to 10; members aiming to achieve the bronze, silver or gold level certification must provide evidence of their scores for an IEMA qualified auditor at LRS Consultancy. The following section is a brief summary of the scores, by sector, against each of the five themes of the Flexible Framework. The table below displays a summary of all results for part one for all 23 organisations that completed the self-assessment questions. Table 3: Part one results for all 23 organisations Number of members Average total Part 1 scores (%) Average people scores (%) Average policy scores (%) Average procurement process scores (%) Average engaging supplier scores (%) Average measurem ent and results scores (%) Large 12 74% 69% 80% 73% 54% 52% SMEs 11 71% 66% 77% 71% 51% 50% Total average of all members 23 73% 67% 79% 72% 52% 51% Benchmarking your performance Graphs 1 and 2, below, display the average scores for each of the 20 questions in part 1 and allow organisations that have undertaken the progress review to benchmark their performance. Table 4 highlights some key activities by area that organisations should undertake to improve performance. 2 https://www.gov.uk/government/publications/sustainable-procurement-in-government-guidance-to-theflexible-framework 7

Graph 1: Average scores for questions 1 to 10 by sector Q1 Q2 Q3 Q4 Q5 Q6 Q7 Q8 Q9 Q10 Is there a sustainable procurement champion identified in your organisation? What sustainable procurement training have your key procurement staff received? What sustainable procurement training have all your procurement staff received? Is sustainable procurement included in your procurement staff s personal development and appraisal process? Do you publicise your achievements in sustainable procurement? Does your organisation have agreed sustainability objectives? Does your organisation have a sustainable procurement policy? Does your organisation have a sustainable procurement strategy? How is your sustainable procurement strategy linked with other organisational strategies and management system such as corporate strategy and EMS? Is your sustainable procurement strategy (or action plan) scrutinised? 8

Graph 2: Average scores for 11 to 20 questions Q11 Q12 Q13 Q14 Q15 Q16 Q17 Q18 Q19 Q20 Have you done expenditure analysis? Do you know what your organisation s procurement s sustainability impacts are? To what extent do you consider sustainability in contracts? Are sustainability risks in your supply chain managed effectively through the procurement contracts? Do you have targets to improve sustainability with your suppliers? How does your organisation communicate with suppliers? How does your organisation engage with its suppliers on sustainability in procurement? Do you measure your current sustainable procurement performance? Do you compare your organisation s performance in this area with others? How do you measure your achievements/performance in sustainable procurement? 9

Table 4: Illustrative Activities to Improve Performance Section Key activities People Provide sustainable procurement training Embed sustainable procurement objectives in procurers personal development plans Policy, strategy & communication Procurement process Publicise achievements in sustainable procurement Sustainable procurement strategies or action plans are scrutinised Effectively identify and manage sustainability risks across the supply chain Monitor suppliers performance and set targets Suppliers Engage suppliers on sustainability in procurement and embed in contracts Monitoring Measure sustainable procurement achievements and use results to inform management actions Benchmark of performance against other peer organisation Balfour Beatty Workplace The Mayor of London s Green Procurement Code has enabled our business to build a formalised approach to sustainable procurement which complements our existing sustainability strategy. The Code has reduced our impacts on the environment whilst helping us to demonstrate to our clients that we are serious about the topic and we are actively improving our service. Jamie Quinn, Head of Sustainability and Assurance 10

Overview of results by section People The people section of the survey includes five questions which consider aspects such as whether or not there is a sustainable procurement champion in the organisation, the level of sustainable procurement training provided to staff, as well as the objectives and incentives for procurement staff. Organisations that score well typically have a broad accountability for sustainable procurement, provide regular training to staff and embed sustainability in an individual s annual personal development plans. Large organisations and SMEs have similar average scores for the People section of the review (see Graph 3). Graph 3: Average people scores Q1 Q2 Q3 Q4 Q5 Is there a sustainable procurement champion identified in your organisation? What sustainable procurement training have your key procurement staff received? What sustainable procurement training have all your procurement staff received? Is sustainable procurement included in your procurement staff s personal development and appraisal process? Do you publicise your achievements in sustainable procurement? Illustrative activities: A construction company achieved high scores for the section on people in the progress review by: Having a clear sustainable procurement strategy in place that included a detailed staff training programme Evidence was provided that showed the level of training that had been undertaken and who had attended The Head of Procurement was the organisation s sustainable procurement champion and was this was reflected in his job description and personal objectives 11

Policy, strategy and communication This section asks about the organisation s sustainability objectives and about the policies and strategies in place to deliver these objectives. Higher scores are awarded where policies and strategies are linked and related to other organisational objectives. The average scores are shown in Graph 4. Graph 4: Average policy scores Q6 Q7 Q8 Q9 Q10 Does your organisation have agreed sustainability objectives? Does your organisation have a sustainable procurement policy? Does your organisation have a sustainable procurement strategy? How is your sustainable procurement strategy linked with other organisational strategies and management system such as corporate strategy and EMS? Is your sustainable procurement strategy (or action plan) scrutinised? Illustrative evidence: An SME had a clear and well-structured sustainable procurement strategy that was being used to embed sustainability throughout all processes and procedures The strategy also had objectives and targets which included the promotion of the sustainable procurement achievements of the organisation through attendance and presentations at events and conferences and development of the relevant internet and intranet pages 12

Procurement process The procurement process part of the survey aims to establish the extent to which green procurement is embedded within an organisation. It includes questions about expenditure analysis and asks how well the organisation has assessed its sustainability impacts. It goes on to assess how these impacts are addressed in contracts, supply chain management, and through setting targets with suppliers. The average scores are shown in Graph 5. Graph 5: Average procurement process scores Q11 Q12 Q13 Q14 Q15 Have you done expenditure analysis? Do you know what your organisation s procurement s sustainability impacts are? To what extent do you consider sustainability in contracts? Are sustainability risks in your supply chain managed effectively through the procurement contracts? Do you have targets to improve sustainability with your suppliers? Illustrative activities: A large signatory had carried out a prioritisation exercise to determine the key areas of risk and then developed its strategy to minimise these Processes were implemented so that all contracts were assessed for risk The procurement team worked closely with suppliers and sub-contractors to ensure contract requirements were met and risks reduced 13

Engaging suppliers In this section, members are asked questions relating to their understanding of their supply base and the process of supplier engagement. It begins with an analysis of their expenditure as this is considered a pre-requisite of the process, and goes on to ask about specific types of engagement activity. The average scores are shown in Graph 6. Graph 6: Average engaging supplier scores Q16 Q17 How does your organisation communicate with suppliers? How does your organisation engage with its suppliers on sustainability in procurement? Illustrative evidence: With Senior Management approval and involvement an engineering firm runs annual meet the buyer events which include presentations and discussions on sustainable procurement As part of the supplier relationship management process, regular review meetings are scheduled with key suppliers Sustainability is part of the meeting agenda, and suppliers are expected to report back on sustainable procurement targets that are detailed in the contracts key performance indicators (KPIs) 14

Measurement and results In the measurement and results section, the questions aim to assess how far organisations have been able to measure performance and results. This, together with the People section of the Review, provides the greatest opportunity for many of the members of the Code to improve their practices. The average scores are shown in Graph 7. Graph 7: Average measurement and results scores Q18 Q19 Q20 Do you measure your current sustainable procurement performance? Do you compare your organisation s performance in this area with others? How do you measure your achievements/performance in sustainable procurement? Illustrative evidence: A large signatory was able to evidence regular sustainable procurement performance reviews and the findings were reported to the Head of Procurement who presented them to the Board Benchmarking against peer organisation was undertaken through website research, comparison of awards and certifications 15

Progress Review: Part two Procurement overview This year, 35% of the 64 Green Procurement Code members completed the purchase report. In total, the combined spending power reported was 555 million. Spend on qualified green purchases or contracts, was 111,571,454. Green purchases are products and services that most effectively minimise environmental impacts over the life cycle or contract period. Table 5: Total spend and qualified green spend for 2012/2013 Total qualified Group Total spend in categories ( ) green spend in categories ( ) SMEs 15,682,189 4,384,846 Large 539,901,115 107,186,608 TOTAL 555,583,304 111,571,454 Category overview In part two of the Progress Review, members are asked to provide a breakdown of their spending according to the Pro-Class procurement classification system 3. One of the aims of the Progress Review survey is to assess the proportion of total purchasing by members that is spent on green products and services. Of the 555 million total procurement budget reported by the members, 38 individual product categories were reported, as shown in table 4. Building Construction Materials, Environmental Services, Custom category raw materials, Highway equipment and materials, Catering and Stationery were the categories with the highest percentage of green spend. Table 6: Total spend and qualified green spend by product category Product Categories Total Spend in this Category Total Qualified Green Spend Percentage of qualified Green Spend Aggregate 0 171,359.00 0% Building Construction Materials 81,171,236 64,264,496 79% Business travel 7,911,021 0 0% Catering 4,117,909 705,780 17% Cleaning & Janitorial 7,234,072 136,515 2% Clothing 3,593,922 29,440 1% Construction 0 188.00 0% Consultancy 9,155,170 0 0% Custom category - Raw materials 6,271,838 3,099,441 49% Domestic Goods 46,623 0 0% Education Supplies 2,757,629 0 0% Environmental Services 6,601,510 185,367 3% 3 http://websites.uk-plc.net/proclass/index.htm 16

Product Categories Total Spend in this Category Total Qualified Green Spend Percentage of qualified Green Spend Facilities & Management Services 101,318,388 52,180 0% Financial Services 5,056,378 0 0% Furniture 960,982 6,138.00 1% Health & Safety 592,166 1,500.00 0% Highway Equipment & Materials 11,875,000 3,748,000 32% Horticultural 7,880 0 0% Human Resources 49,556,550 6,211.00 0% ICT (Information Communication Technology) 12,297,185 90,038 1% Insurance 26,257,506 0 0% IT 23,055,157 0 0% Legal Services 1,267,845 0 0% Leisure Services 1,240 0 0% Library 8,464,782 0 0% Mail Services 3,037,504 20 0% Medical 335,051 0 0% Professional services 8,143,484 0 0% Rates 1,578,335 0 0% Repairs 619,125 0 0% Stationery 1,006,497 518,694.60 52% Timber 68,793,612 463,061.00 1% Traffic Management 3,885,971 400,000.00 10% Transport 1,203,131 86,701 7% Utilities (not Telephones - see ICT) 7,702,566 2,018,214 26% Vehicles (not Buses - see Transport) 30,852,869 10,675,4500 35% Waste 0 6,567,659 0% Works (Construction / Repair / Maintenance) 58,853,170 18,345,000 31% TOTAL 555,583,304.00 111,571,454 20% As part of the data analysis methodology, which is explained in Appendix 3, the exact value of the green elements of reported contracts and purchases has been calculated. However, it should be noted that LRS is limited to the data and information provided to them by the participating organisations. For example, if service support forms part of a green contract and the Team have not been notified of the support element this may have been included in the total green spend figure. 17

Graph 8: Total spend (left axis) and qualified green spend (right axis) by product category The two highest areas of spend on green products and services are in the facilities and management services and building construction materials categories. Facilities and management services include the waste and recycling services provided to clients, which was a significant spend especially for the large organisations that manage multiple sites. The building and construction category included aggregates, FSC timber, water saving and energy-efficient electrical fittings. It should be noted that in some purchasing categories that have significant levels of purchasing there is minimal scope to address an environmental impact. This is typically the case in services categories such as financial and professional services, consultancy and recruitment or employment services. These categories may represent a very high proportion of the procurement budgets of many organisations. The breakdown for the top 20 categories by the value of spending reported on green products and services in 2012-13 is as follows: Table 7: Top spend by category Product Category Total Value of Green Purchase / Contract ( 's) Total Number of Qualified Green Purchases Recorded (product or service contract) Average Value of qualified Green Spend per Purchase Building Construction Materials 64,264,496 7 9,180,642 Works (Construction / Repair / Maintenance) 18,345,000 2 9,172,500 Vehicles (not Buses - see Transport) 10,675,450 5 2,135,090 Waste 6,567,659 16 410,479 Highway Equipment & Materials 3,748,000 5 749,600 Custom category - Raw materials 3,099,441 3 1,033,147 18

Product Category Total Value of Green Purchase / Contract ( 's) Total Number of Qualified Green Purchases Recorded (product or service contract) Average Value of qualified Green Spend per Purchase for manufacturing Utilities (not Telephones - see ICT) 2,018,214 7 288,316 Catering 705,780 12 58,815 Stationery 518,695 22 23,577 Timber 463,061 1 463,061 Traffic Management 400,000 1 400,000 Environmental Services 185,367 4 46,342 Aggregate 171,359 1 171,359 Cleaning & Janitorial 136,515 8 17,064 ICT (Information Communication Technology) 90,038 16 5,627 Transport 86,702 8 10,838 Facilities & Management Services 52,180 2 26,090 Clothing 29,440 4 7,360 Human Resources 6,211 2 3,106 Furniture 6,138 2 3,069 Health & Safety 1,500 1 1,500 Construction 188 1 188 Mail Services 20 1 20 Total 111,571,454 131 24,207,790 Graph 9: Top 20 Green Spend and number of purchases 19

Calculating the benefits of green procurement This year, Green Procurement Code members reported spending of 111,571,454 on green products and services. 131 individual purchases were reported across 23 different product categories. It is not possible to calculate environmental benefits for every individual purchase reported in the progress review survey. This is down to a number of factors including data quality, products containing mixed materials and in some cases the research on environmental benefits of a product or material having not yet been carried out. We have however been able to quantify the environmental benefits for products which represents a total of 6,737,877, 4% of the overall value of purchases submitted. Recycled content products and waste management The table below shows the recycled content materials reported: Table 8: Recycled content materials Material Total Value Reported Aggregates 171,359 Other consumables 1,226 Other manufacturing materials 3,100 Paper 85,395 Total 261,080 A total of 261,080 was reported on recycled content materials. Aggregates accounted for over 66% of the total spend. Graph 10: Proportion of spend in recycled content products by material 20

Environmental benefits of recycled content products The table below shows the measurable savings made from purchasing recycled content products. Table 11: Measurable savings from Recycled Content Products Material Cost of Material Purchased Tonnage of Material Purchased Tonnage CO 2 Emissions Saved Tonnage of Waste Diverted from Landfill Aggregates 171,359 4,729 24 4,729 Other consumables 1,226 Unknown Unknown Unknown Other Unknown Unknown Unknown manufacturing materials 3,100 Paper 408,683 80 19 0 Totals 584,368 4,852 43 4,729 Through the recycled content purchases made by Green Procurement Code members the following savings have been made: 4,729 tonnes of material diverted from landfill 43 tonnes of CO 2 emissions avoided Waste management The nine members that reported waste management services recycled 352,800 tonnes of waste, spending a total of 4,926,968. Purchased Table 12: Measurable savings from waste management services Total Tonnage Waste Diverted from Landfill Total Spent on Waste Management services 129,612 6,737,877 Paper Specifying paper with a high percentage recycled content will generate a market for the recycled content paper industry and reduce environmental impacts such as water use, greenhouse gas emissions and air pollutants. A study from WRAP showed the environmental benefits of recycling paper compared with using virgin paper. For example, manufacturing 1 tonne of 100% recycled content paper saves the environment an average of 1.32 tonnes of CO 2 compared to the manufacture of virgin paper. The study took into account the complete lifecycle including the assumption that the paper might otherwise be disposed of in either landfill or by being incinerated. This year Green Procurement Code members purchased a total of 80 tonnes of paper and card with recycled content. The majority of the recycled content paper reported (76%) is of 100% recycled content and 24% is below 70% recycled content. The table below compares the breakdown of recycled content paper for this year s data against the 2008/2009 and 2011/2012 data. As can be 21

seen the quantities have not changed significantly even with the removal of M-Reals Evolve paper from the market, which was substantially purchased by a lot of members. Table 13: Breakdown of recycled content paper for 2008/09, 2011/12 and 2012/13 2011/2012 2012/2013 100% recycled content paper 75% 76% 70-99% recycled content 6% 6% <70% recycled content 19% 18% The table below shows the environmental savings from buying recycled content paper compared to buying paper from virgin sources. The data is broken down by sectors and the majority is based on copier paper and paper for publications. The savings only capture a fraction of the savings generated from purchasing recycled content paper, as members also recorded large amounts of paper-based stationery where savings could not be calculated because the weight was not specified. Table 14: Environmental savings based on paper purchases reported (excludes tissue paper) Tonnage of Material m 3 diverted from Tonnage CO 2 Emissions Litres of water saved Air pollutants in Kg saved Sector Cost of material purchased Purchased Recycled content tonnage landfill Saved SMEs 21,197 1.4 0.0088 0.0017 0.0116 264.11 2 Large 387,486 59.6 0.5966 0.1193 0.78757 17,899 16 TOTAL 408,683 80 0.699 0.140 0.922 20,693 18 Energy efficient products Initiatives to promote energy-efficiency can be classified in two ways: those that focus on reducing energy use during a company s operations or activities, and those that focus on reducing energy use associated with the product life-cycle. 1. Buildings and Operations Since 2008, Display Energy Certificates (DECs) have been required for buildings with a total useful floor area over 1,000m 2 that are occupied by a public authority providing a public service. The DECs show the actual energy usage of a building. The Carbon Reduction Commitment (CRC) is a cap and a trade emissions scheme which was launched in January 2010. It will be mandatory for all organisations whose electricity use is greater than 6,000 MWh in 2008. 2. Products There is a growing commitment from the UK government and the European Union, to recommend and promote minimum energy efficiency standards for an increasing number of product categories. For example the European Commission has developed the Energy Using Products Directive 4 and, in the UK, Defra promotes its Government Buying Standards 5. This push for energy efficiency in products is supported by certification schemes such as Energy Star 6, EPEAT 7, ISO14025 8 and BREEAM 9. 4 http://ec.europa.eu/enterprise/policies/sustainable-business/ecodesign/index_en.htm 5 http://sd.defra.gov.uk/advice/public/buying/ 6 www.energystar.gov/ 7 www.epeat.net/ 22

In 2012/13, 13 members of the Code reported purchases of energy-efficient products totalling 4,490,406. The four main product categories reported are: ICT (ICT hardware, reprographics equipment) and building and construction materials. Sustainable Natural Resources Eco-labels A range of different eco-labels has been established by the EU and the UK Government that covers: energy labels, organic and food labels, product specific labels and timber products such as FSC and PEFC Trademark. In 2009, Defra published an updated guide of European Eco labelled products and services including cleaning and janitorial, copying and graphic paper, tissue paper, soil improvements, textiles and paints. 10 The total value reported in 2012-2013 for sustainable and eco products reached 65,192,717. The highest proportion of this amount was spent on FSC certified products. The amount spent on eco-label products, by type of organisation, is presented in the following table: Table 15: Spend by sector for the main Eco-labels SMEs Large TOTAL Energy Star 25,744 35,307 61,051 FSC 12,526 10,297 22,823 FSC or PEFC 2,835,570 723,561 3,559,131 FSC - 64,155,206 64,155,206 PEFC - 214,000 214,000 EU Flower 39,000 54,346 93,346 TOTAL 2,912,840 65,192,717 68,105,557 8 www.iso.org/iso/home/standards/management-standards/iso14000.htm 9 www.breeam.org/ 10 http://ecolabel.defra.gov.uk/ 23

Appendix 1: Eco-labels Eco-labels usually cover a wide range of environmental impacts across the lifecycle of a product, from production and use through to disposal. Eco-labels help to ensure the protection of natural resources or habitats, and/or the minimisation of energy consumption in manufacture or use. A number of labels focus mainly on the agricultural or ethical aspects of the product. In the Progress Review survey members reported on their green across a number of different categories, which included building construction materials, furniture and stationery. Within these categories many of the purchases recorded have been awarded eco-labels. Eco-label or green label products must be independently certified and have to meet strict criteria for all the main environmental impacts across the product lifecycle. The main eco-label products that were recorded in the Progress Review are outlined below: Timber Products: FSC (Forest Stewardship Council) PEFC (Programme for the Endorsement of Forest Certification schemes) The Trademark of the Forest Stewardship Council indicates that the wood used to make a product comes from a forest which is well managed according to strict environmental, social and economic standards. The forest of origin has been independently inspected and evaluated according to the principles and criteria for forest management agreed and approved by the FSC. www.fsc-uk.org FSC-GBR-669 FSC trademark Forest Stewardship Council A.C. The PEFC Council (Programme for the Endorsement of Forest Certification schemes) is an independent organisation whose logo provides an assurance that its certified wood and paper products have been independently audited as coming from sustainably managed forests. PEFC/16-44/01 www.pefc.org There are FSC or PEFC-certified products available in the UK in all the following categories: Construction materials (including board materials used for form work) Street and landscape furniture (including seats, bollards and bus shelters) Office furniture Office paper Graphic papers Biomass for heating and power generation (including wood pellets) 24

Organic Labels The word organic is defined by law. One characteristic of organic farming is that it strictly limits use of artificial chemical fertilisers and pesticides. The word organic can be used on food products only if they are produced according to regulations, and farmers and processors must be certified by an approved organisation. Organic standards don t just apply to food. Additional private standards used by authorised bodies increasingly cover other products, including textiles, cosmetics, wood products and composts. The Soil Association organic standard is the most widely known in the UK but there are many others. European Eco-labels The EU Flower label is an official Europe-wide award for non-food products that minimise impacts on the environment. Products must be independently certified, and have to meet strict criteria for all the main environmental impacts across their whole life cycle. Defra runs the scheme in the UK, where the Flower s range includes cleaning and detergent products, paints, toilet tissue, clothing and tourist accommodation. Some countries or areas also have national schemes, like the Nordic Swan in Scandinavia and the Blue Angel in Germany, shown below. Eco-certification Eco-certification is one of the key supports for green markets along with greener public policy and reliable public information systems that inform about basic issues related to sustainability. Eco-certification is where an independent agency tests or verifies that a certain more sustainable practice has been followed in the production of a given good or service. 25

Appendix 2: Methodology When organisations become members of the Mayor of London s Green Procurement Code, they make a commitment to complete the annual progress review survey. This involves reporting on their green purchasing practices (part one) and providing details of green purchases or contracts in a range of product categories (part two). Those members that wish to achieve the bronze, silver or gold level of the Green Procurement Code must submit their survey data for review by an IEMA qualified auditor. The 2012/13 progress review survey relates to activities and purchases or contracts for the period from April 2012 to March 2013 inclusive. Following the submission of data by individual organisations, it is aggregated by the Mayor of London s Green Procurement Code team at LRS Consultancy. This involves downloading the data from the online survey tool into individual spreadsheets for each member, and then populating master databases with part one and part two data. The data is analysed to provide the results that are set out in this report. During the data analysis, it is not uncommon to find errors or discrepancies in the data that must be checked with individual members. An example may be a large contract where the full contract value has been recorded but the relevant green element is only a proportion of that contract. Where possible we have tried to identify the value of the green elements of reported contracts and purchases. We may also adjust the data so that purchases can be analysed in consistent units. For example, a simple product such as copier paper may be recorded as sheets, boxes, reams or packs. We convert these disparate units to one standard unit (in this example it is reams) that can then be converted to a more meaningful measure (in this case tonnes) for the calculation of environmental benefits. All adjustments made to the original data are recorded in the master database. The last stage of the process is to conduct a peer review of the part one scores and to calculate the environmental savings from information that could be used in part two. The single biggest challenge in analysing the environmental benefits is that many of the purchases recorded do not contain sufficient detail to make a meaningful assessment. We have used a variety of sources to calculate the carbon emissions savings of the recorded purchases. These savings generally fall into two categories: savings from products in use due to energy or fuel efficiency and savings in embodied energy, typically due to use of recycled materials in the production of the products. The main reference sources for calculations of carbon savings are as follows: Defra s greenhouse gas conversion factors (2012), used for savings from purchases of renewable energy, combined heat and power, steel and aggregates. 11 WRAP s Environmental Benefits of Recycling report (2010) used for savings from purchases of recycled paper and card. 12 University of Bath s Inventory of Carbon and Energy v.1.6, used for savings from purchases of cement and concrete. 13 PWC Sustainability s report for the European Commission: Collection of statistical information on Green Public Procurement in the EU: Report on methodologies, used for benchmarking purchases of energy efficient products against industry averages. 14 11 www.defra.gov.uk/publications/2012/05/30/pb13773-2012-ghg-conversion/ 12 www.wrap.org.uk/sites/files/wrap/environmental_benefits_of_recycling_2010_update.3b174d59.8816.pdf 13 http://perigordvacance.typepad.com/files/inventoryofcarbonandenergy.pdf 14 http://ec.europa.eu/environment/gpp/studies_en.htm 26

Appendix 3: Case studies Balfour Beatty Workplace (MET Police Contract) Company Overview: Balfour Beatty WorkPlace (BBW) specialises in delivery of sustainable total facilities management solutions to over 7,000 client sites across the UK, including commercial enterprises, schools, industrial locations, hospitals and government contracts. Why Balfour Beatty Workplace (MET Police Contract) participate in the Mayor's Green Procurement Code? Sustainability performance is a benchmark that sets one facilities management (FM) service provider apart from the next and participating in the Green Procurement Code demonstrates to their stakeholders that sustainability is embedded into their procurement strategy. In addition to this, they are keen to support the sustainability objectives of their client, the Metropolitan Police Service, a Gold level signatory in the Green Procurement Code. In 2012, Balfour Beatty Workplace (BBW) spent 260 million on goods and services with their supply chain, representing just over 40% of their annual turnover. This highlights the contribution that procurement makes to their own sustainability performance, and why they ensure that they consider the impacts of their procurement decisions on local communities and environments. How Balfour Beatty Workplace (MET Police Contract) has benefited? By collaborating with their suppliers, BBW has increased their spend on green products, introduced products and services with reduced environmental impacts, reduced waste production, increased recycling rates, and improved management of health and safety (H&S) risks. On a wider scale, BBW has rolled out advanced sustainable procurement training to all of their supply chain team and introduced supplier heat map assessments to assist in identifying key areas of risk to achievement of their sustainability targets and drive sustainability down through their supply chain. What next? BBW is now looking at closed-loop recycling opportunities, with a view to repurchasing their waste paper as washroom consumables. In addition to this, they continue to actively engage with their supply chains on their sustainability targets and encourage innovation in product design and lifecycle and is in the early stages of creating a BBW sustainable procurement catalogue. Their success in achieving a gold standard has encouraged them to scale up the implementation of the Code across the whole of the business. What Balfour Beatty Workplace say The Green Procurement Code has enabled our business to build a formalised approach to sustainable procurement, which complements our existing sustainability strategy. The Code has reduced our impacts on the environment whilst helping us to demonstrate to our clients that we are serious about the topic and are actively improving our service. Jamie Quinn, Head of Sustainability and Assurance Contact: Candice Guerreiro, Sustainability Advisor, Candice.guerreiro@bbwworkplace.com 27

Wagstaff Interiors Group case study Company Overview: Wagstaff Interiors Group is the largest independent commercial furniture dealership in the UK. Established in 1903, Wagstaff has been at the forefront of the commercial furniture and fit out market for many years. With this Heritage and experience comes financial security, which in times of instability is high on people s priorities when enlisting a furniture and fit-out company. They have a national presence and service the public and private sectors up and down the country from our seven regional offices. They are a single source supplier and have complete product independence, which means their customers benefit from dealing with one company to manage their project from start to finish and can entrust them to provide the most competitive prices as they are not tied to any one manufacturer. Their core services include Workplace consultancy, Interior design, Interior fit-out, Furniture solutions, move management, Furniture Hire, re-use and recycle facilities and an e- commerce division. Why Wagstaff participate in the Mayor's Green Procurement Code? Wagstaff initially participated in the Mayor s green procurement code as part of their commitment to the Metropolitan Police Service (who they hold the contract with to supply office furniture and services). The Green Procurement Code has strengthened their existing, strong corporate social responsibility and has helped them to analyze and assess the procurement of more sustainable products and materials. How Wagstaff has benefited? They feel that demonstrating their commitment to buying more sustainably and being able to use the Green Procurement Code logo adds to demonstrate a rounded awareness of the impacts their company has socially and environmentally. Committing to the Code also demonstrates their commitment of continual improvement in line with and beyond current legislation. What next? They are working hard to improve their current Silver accreditation to Gold, as well as implementing further good practice to reduce their company s overall carbon footprint at the same time as setting a positive example to their suppliers and other businesses. Contact: Ben Jackson ben@areabe.co.uk 28