Sustainable Procurement GroupAn update

Tiernan HumphrysSustainable Development UnitDepartment for Environment, Food & Rural Affairs (England)

Background

• Established in 2001 by Defra Secretary of State• Senior officials across Government:Ø Procurement policy & practiceØ Sustainable development

• Remit across public sector, focussing on central Government

Sustainable Procurement in Government

Sustainable Development Unit

Sustainable Procurement Group

Office of Government Commerce

Dept. ProcurementDivisions

OGCbuying.solutions

Dept. Framework Contracts

Government procurement card

Progress so far……

• Reported to Ministers January 2003• Made public October 2003• 4 headline recommendations• 35 supporting recommendations• Next meeting November 2003

Putting Public Procurement into Context

• 16% of EU Gross Domestic Product• £13 billion by British central civil Government:Ø 21,000 tonnes of paperØ £193 million on energy

• 4 million public sector meals a day in England = £1.8 billion per annum

Main messages of SPG Report

• Sufficient scope to pursue environmentalobjectives in public contracts under current EU Directives

• Use of whole life costing would lead to the purchase of sustainable products without any change in policy

• Continuing confusion between value for money and lowest price

Headline Recommendations

• Revision of Joint Note on Environmental Issues in Purchasing

• Rolling out “green” procurement across the Government Estate

• “Quick Win” product categories• Online advice for buyers

Defra/OGC Joint Note on Environmental Issues in Purchasing

• Statement to Parliament• Replaces 1999 HMT/DETR guidance• Clarifies definition of value for money• Embeds environmental objectives into

procurement process• Use of case studies & practical examples

“Green” Procurement on the Government Estate

• Part of Framework for Sustainable Development on the Government Estate covering:Ø Environmental purchasing strategiesØ Risk assessmentØ Checklist of environmental principles

• Centralised vs decentralised procurement

“Quick Wins”

• Identifies standards that products must meet:Ø Energy efficiency / carbon emissionsØ Recycled contentØ Organic ingredientsØ Chemical contentØ Biodegradability

• Contracts initiated from 1st November

Online Advice for Buyers

• Embedding sustainable development into central procurement catalogues

• Pilot run by Defra & OGCbuying.solutionsØ Aim to be live early 2004Ø Roll-out depends on success & demand

• Opportunities for other organisations?

Supporting Recommendations

• Working with suppliers• Product information & standards• Embedding the environment in procurement• Supporting buyers• Construction• Public sector food

Public Sector Food Procurement InitiativeOverview

• Part of Sustainable Farming & Food Strategy• Priority objectives:Ø Raise standardsØ Increase consumption & demandØ Reduce adverse impactsØ Increase local capacity

Public Sector Food Procurement InitiativePutting it into Practice

• High level Government implementation group• Dissemination of guidance & best practice• Pilot studies & research• Discussions with major suppliers

Upcoming SPG Workstreams

• Social issues in procurementØ Not as easy to relate to end productØ Learning from the private sector

• Innovation in procurementØ Specify outcomes not productsØ Incentives to take risks on innovation

Training & Awareness

• Essential to meet objectives• Awareness through internal/external publications• Training of procurement staff & customersØ Chartered Institute of Purchasing & SupplyØ Civil Service CollegeØ Departmental workshops

Where Next?

• SPG headline recommendations early 2004• Supporting recommendations ongoing• Social & innovation guidance 2004/05• Continue raising awareness• Continue to improve training

Questions?

www.sustainable-development.gov.uktiernan.humphrys@defra.gsi.gov.uk+44 (20) 7082 8626