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28. June 2007 by admin.
Supply Management.com - for purchasing and supply management professionals
Brown urged to reform ethical trade profile
By Paul Snell
Gordon Brown is being called on to improve the public sector’s record on ethical sourcing.
Charity Oxfam has produced a “manifesto” for Brown, who takes over as prime minister today, for him to carry out during his first 100 days in office. The proposals include starting a Treasury review of public procurement guidelines to “create a more enabling environment for ethical trading and fair trade”.
The manifesto also urges Brown to declare the UK’s intent not to impose higher export tariffs on goods from countries in Africa, the Caribbean and the Pacific. The EU has already made a tentative offer to scrap tariffs and quotas on a number of goods, such as fruit and cereals, from these countries (News, 26 April).
The Ethical Trading Initiative (ETI), an alliance of companies that includes Boots, Marks & Spencer and The Body Shop, supports the manifesto.
Dan Rees, ETI director, said: “The private sector is used to the government preaching to them about sustainability. It’s now time for the government to catch up with the private sector in ethical sourcing. Until the public sector starts practising what it preaches any progress we make will continue to be limited.”
Posted in Ethical Sourcing, Sustainable Procurement | No Comments »
22. June 2007 by admin.
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Date: |
June 15, 2004 | |
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Author: |
Larry Berglund | |
| Phone No.: | 604-873-7254 | |
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RTS No.: |
RTS04225 | |
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CC File No.: |
3501 | |
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Meeting Date: |
June 22, 2004 |
| TO: | Vancouver City Council |
| FROM: | General Manager of Corporate Services |
| SUBJECT: | Implementation of a Sustainable/Ethical Procurement Policy |
RECOMMENDATION
A. THAT Council direct staff as Phase I of the development of a Sustainable and Ethical Procurement Policy, to prepare and present a draft policy to Council on the purchase of apparel and fair trade agricultural products. The policy is to be based on best practices of similar organizations and to be implemented by December, 2004. Staff will also report on resources required to implement the policy.
B. THAT Council direct staff, on a Phase II work plan to report back by December, 2004 including resource requirements for developing and implementing a comprehensive Sustainable and Ethical Procurement Policy that incorporates environmental and social objectives as well as aligns with other sustainability initiatives including the Downtown Eastside Economic Revitalization Plan, the City of Vancouver Sustainability office objectives and objectives of the Inner City Inclusive Commitment Statement for the 2010 Winter Games.
On April 8, 2004, Council resolved that The City of Vancouver will have a Sustainable and Ethical Procurement Policy in place by December, 2004. Council directed appropriate staff to report back with answers to six specific questions in relation to the resolution.
CITY MANAGER’S COMMENTS
The City Manager concurs with the recommendations in this report.
The scope of a Sustainable and Ethical Procurement Policy is very large, potentially affecting all City operations and affecting every purchasing decision of all goods and services. The development of a Sustainable and Ethical Procurement Policy must be aligned with values of other initiatives such as the 2010 Olympics Sustainability Objectives, the City of Vancouver Sustainability office objectives and the Vancouver Agreement’s DES revitalization program. The City will need time and resources to build internal capacity to implement and administer a sustainable procurement strategy.
At the same time, organizations have just begun to develop procurement practices that address sustainability issues so there is limited experience and knowledge to draw upon. Existing experience indicates that implementation of a Sustainable and Ethical Procurement Policy is a long term undertaking. A well developed strategy that is meaningful and effective will require that the City take an incremental approach establishing clear objectives, realistic targets and achievable time lines.
The implementation of a Sustainable and Ethical Procurement Policy over two phases starting with a focus on Ethical Procurement as defined in this report. This approach is consistent with the strategy of other municipalities that have only focused on purchasing apparel and related products that have been manufactured in a way that does not violate standards set by the International Labour Organization.
There will be a need for additional staff resources to assist with the implementation of an Ethical and Sustainable Procurement Policy. The resources will be used to develop mechanisms to monitor compliance and for working collaboratively with suppliers to ensure there is no disruption of goods and services critical to the City’s operations.
One year after implementation, staff will report back to Council on the financial and service impacts of the policy on City purchases.
COUNCIL POLICY
Council policies indirectly related to the issue of sustainable and ethical procurement include:
· Contracts Goods and Services Policy - Environmentally Sound Purchasing
In order to contribute to waste reduction and to increase the development and awareness of environmentally sound purchasing of goods and services, contracts and tender specifications should be reviewed to ensure that wherever possible and economical, specifications provide for expanded use of durable products, reusable products, and products that contain the maximum level of post-consumer waste and/or recyclable content or that minimize environmental impacts.
This Report is submitted in response to Council direction to report on questions related to implementation of a Sustainable and Ethical Procurement Policy.
On April 8, 2004, Council declared “its intention to implement a Sustainable and Ethical Procurement Policy for the City of Vancouver before the end of the 2004 calendar year”, and resolved that “appropriate City staff be directed to report to Council within two months of the passage of this resolution on questions related to implementation of such a policy for City purchases of apparel, coffee and related items”.
DISCUSSION
1. Introduction
This report answers the questions asked by Council. It is understood that the intention of Council is to adopt a Sustainable and Ethical Procurement Policy “that will ensure that all items, including apparel, coffee and related items, purchased by the City are manufactured or grown in accordance with established international codes of conduct regarding wages, workplace health and safety, forced labour, child labour and freedom of association, as embodied in the United Nations Declaration on Human Rights and International Labour Organization Conventions”.
2. Staff Investigations and Research
As a part of the context for drafting a response to the Resolution of April 8, 2004 the following actions were taken:
On April 27, 2004, the City purchasing department convened a panel consisting of representatives from Vancouver Fire and Rescue, Vancouver Park Board, Vancouver Public Library, the Office of Sustainability, the Office of the Mayor, Purchasing, Central Stores, and Business Support Services. The purpose was to provide administration staff with increased awareness and sensitivity directly from a diverse set of stakeholders on the subject of ethical procurement and sustainability.
Presentations were made by local and national apparel suppliers, along with the Vancouver Fair Trade Coffee & Network, the BC & Yukon Building & Construction Trades Council, the BC Ethical Purchasing Group, the Social Purchasing Portal, Mountain Equipment Co-op, Vancouver City Savings Credit Union, and corporate social responsibility advisors.
Policies and practices of other local governments have been reviewed including Seattle’s innovative Copernicus model for local economic, environmental, and social development and policies of Toronto, Thunder Bay and Nanaimo as specific Canadian-based references. Experiences of Canadian universities were analyzed as well.
City Staff also attended the Simon Fraser University Ethical Purchasing Conference on May 7-8, 2004 to discuss the issues related to ethical purchasing policy development and implementation.
Discussions were held with other City departments regarding complimentary initiatives that related to ethical and sustainable purchasing to identify common interests, potential alliances and operational synergies.
3. Definitions
There is no single definition of Ethical Procurement. Ethical Procurement has been defined by the Ethical Trading Action Group as practices that “promote humane labour practices based on accepted international labour standards.” Usage varies, but ethical purchasing policies consistently include “no sweat”, often extend to “fair trade” and sometimes include sustainable practices.
The Canadian Labour Congress has described “no sweat” as follows: “Retailers and manufacturers are increasingly outsourcing the manufacture of their apparel products, searching the globe for the lowest waged production facilities and the most lax enforcement of labour regulations; and this race to the bottom is negatively affecting the jobs and bargaining power of Canadian organized garment workers and encouraging the spread of sweatshop practices in Canada; and employers purchase a significant amount of apparel products, including staff uniforms, and could therefore help eliminate sweatshop abuses by requiring that those products are made under humane working conditions, preferably in union shops.”
Fair Trade principles address the purchase of agricultural products, primarily coffee, tea, cocoa and sugar grown in Latin America, Africa and Asia. Transfair Canada states that “Canadian importers and distributors must follow certain criteria: pay a set minimum price that covers the costs of production, advance payments or extend credit to producers to help avoid debt while financing next year’s production, agree to longer term trading relationships that provide producers with added security to plan for the future and promote sustainable production practices.” Sustainable practices would include “shade grown” coffee plants grown with organic farming methods.
Sustainable Procurement has been defined by the United Nations Environment Programme (UNEP) as “the process in which organizations buy supplies or services by taking into account: the best value for money considerations such as, price, quality, availability, functionality, etc.; environmental aspects (”green procurement”: the effects on the environment that the product and/or service has over its whole lifecycle, from cradle to the grave); the entire Life Cycle of products; social aspects: effects on issues such as poverty eradication, international equity in the distribution of resources, labour conditions, human rights.”
Environmental/Green Procurement means goods and services purchased must be evaluated by environmental criteria that address recycled content, efficient use of resources, use of renewable rather than non-renewable resources, energy efficiency and waste and emissions in their manufacture. Food products purchased must be healthy - without biological or chemical contaminants, environmentally beneficial or benign in their production, and compliant with animal welfare standards.
Social and local procurement considerations state that ethical, fair trade and environmental principles apply most directly at home - within and around the City of Vancouver. Effective procurement can stimulate economic development in City communities such as the Downtown Eastside by integrating supply chain economics with corporate social responsibility to achieve community benefits.
Answers to Council Questions
The April 8 Council Resolution asked staff to report back with answers to six specific questions:
The City purchases about $3.7 million in food each year. The principal corporate buyers of food are Parks and Recreation, which sells food products through park concessions and golf courses, and the Community Services Group, which provides meals at Carnegie and Evelyn Saller Centres and at Gathering Place.
A comprehensive sustainable and ethical procurement policy could potentially apply to all City purchases, of all commodities, across all City Boards and Departments, amounting to between $150 million to $200 million each year.
ii) “What information does the City have now on the place and conditions of manufacture of these items?”
Current information is very limited. A few direct suppliers of apparel and apparel-related products (Claymore Clothes (1982) Ltd., Logotex Mfg. Ltd. and Tristart Cap & Garment Ltd.) have voluntarily provided information. The information provided by the suppliers gave no indication of any problems related to ethical purchasing. This information has not been verified because the City does not currently have a mechanism to do the verification.
The number of companies that report voluntarily is growing. The feasibility of obtaining third-party verification of these reports has yet to be determined. Mountain Equipment Co-op uses inspectors to review the manufacturing processes of suppliers, but such a commitment from the City would be extraordinary and likely not practical given the relatively small scale and scope of City procurement.
iii) “What would be the procedures under which a Sustainable and Ethical Procurement Policy for the City of Vancouver could be implemented?”
A policy addressing “no sweat” and “fair trade” can build upon the work of other organizations and adopt generally accepted standards. Existing policies of other organizations, such as the Maquila Solidarity Network’s “Model No Sweat Municipal Purchasing Policy” or Mountain Equipment Co-op’s “Sourcing Policy” can be customized and adapted to meet specific City of Vancouver requirements.
Initial implementation steps include requiring suppliers to sign off on the policy to create awareness and secure consent, obtaining disclosure of subcontractors and manufacturing locations and resolving related issues, establishing principles for monitoring and verification, defining reporting requirements, establishing complaint and investigation processes, and defining corrective action plans.
A policy cannot reasonably extend to every product and every supplier in every area of the City simultaneously. Effort must be initially concentrated on those procurement areas where worthwhile results may be achieved directly and immediately. These areas are to ensure that apparel purchased by the City is manufactured in conditions compliant with International Labour Organization conventions1, and that coffee and other food purchased by the City is produced under Fair Trade conditions.
Legal review and participation is an essential element in procurement policy formulation.
A broad policy that additionally encompasses environmental and green procurement and social and local procurement would require a more sophisticated development process, featuring extensive consultation and participation among both internal and external City stakeholders.
iv) “What mechanisms, if any, are in place now to ensure that suppliers to the City of Vancouver are in compliance with International Labour Organization standards?”
The City purchasing department primarily focuses attention on direct suppliers, ensuring that where required they have a local business licence and have WCB clearance. No mechanisms are in place to ensure suppliers and any foreign or domestic subcontractors or distributors in the supply chain are in compliance with international labour standards.
v) “What other relevant factors or costs might be involved in the implementation of such a policy?”
A measured and cautious approach and carefully phased implementation will be necessary to address the sheer scale and distributed nature of City procurement activities adequately, and ensure that the critical supplier relationships essential for effective service delivery are not disrupted.
Also time must be given and assistance provided to help suppliers develop policy and reporting capabilities. City suppliers generally express willingness to comply with an ethical procurement policy, but request a notification period to give time to prepare. Suppliers caution that a too-sudden policy introduction could leave the City without sources of fully-compliant products. An additional supplier concern is the cost of compliance, particularly if certification must be purchased from third-party compliance auditors.
Cost may be incurred by the City as assistance may be required from auditing agencies, if feasible, to ensure that products supplied from third world countries meet international standards.
Leading organizations such as Mountain Equipment Co-op have begun to address the full range of ethical practices of their suppliers. The scope of this industry scrutiny is evolving, but so far is applied to few suppliers, and across a narrow range of products. However, a City effort could potentially gain considerable leverage by coordinating policy implementation phases with the steadily developing efforts of other organizations.
In addition to a phased approach, a second essential implementation requirement is pro-activity - working incrementally with a deficient supplier to encourage and reward improved practices. This approach can prevent disruption of the supplier relationships essential for City service delivery, and is ultimately more effective in achieving policy goals. Otherwise, if the City takes its business elsewhere, supplier practices will probably remain unchanged.
An illustration of the difficulty in applying a broader scope policy is purchase of jackets. Jackets must be manufactured under conditions compliant with International Labour Organization conventions. Embroidered crests must be similarly ILO compliant. But additionally, the jackets include components such as zippers, manufactured by another supplier. Fabric involves yet another supplier. Each individual supplier must be identified and evaluated not only on an ethical “no sweat” basis.
An ethical procurement policy could potentially have financial consequences. Cost of purchases may increase, and so may the time required to obtain those purchases. Additional administrative staff resources may be required, and it may be necessary to purchase third-party verification of vendor reports.
vi) “How are other municipalities/cities, such as Nanaimo and Toronto, and universities, such as Simon Fraser University, implementing a similar policy?”
Ethical procurement policies of Toronto, Thunder Bay and Nanaimo focus exclusively on banning the purchase of sweatshop-manufactured apparel. Policies are generally applied by requiring vendors to certify, when tendering, that apparel products are not produced under sweatshop conditions. The policies do not contain enforcement mechanisms beyond the legal principles that underlie any contract. Similarly, the policies do not provide for audit, verification or inspection of vendor certification. The policies were recently introduced, mostly in the past year, and infractions have yet to be encountered. Presumably any future complaints will be reviewed with the vendors by the municipality, with further escalation to legal avenues if required.
Nanaimo City Council passed a policy in 2003 which states that the City will “place a
Also in 2002, Thunder Bay Council passed a resolution requiring a “condition of contract” with respect to No Sweat Procurement. This condition of contract would advise suppliers that the City of Thunder Bay does not wish to encourage the purchase of products manufactured in factories where children are used as slave labour or other exploitive circumstances which impedes child development. The recommended condition of contract holds the supplier to this commitment by asking them to confirm in writing, compliance of this directive in their bid response. The City of Thunder Bay requires bidders for the supply of linens, textiles, uniforms, shoes or any product where possible exploitation of children in sweat shops exist to sign the “condition of contract” as part of their bid.
As of May 2004, ten universities across Canada have adopted ethical procurement policies. The majority of policies apply to retail book store operations only. Simon Fraser University has appointed an Ethical Purchasing Policy Task Force to work towards adopting a “No Sweat” and Fair Trade purchasing policy for products bought and sold at the university.
The University of Toronto became one of the first Canadian universities to develop a code of conduct for trademark licensees to ensure that manufacturers and suppliers of trademarked merchandise for resale through retail operations meet minimum employment standards regarding wages and benefits, working hours and overtime compensation. The code also has specific prohibitions on child labour, forced labour and harassment and requires licensees and their contractors to recognize and respect the right of employees to freedom of association and collective bargaining. The University of Toronto’s code, and the parallel efforts of McMaster University took more than three years to develop. The University adopted an approach that engages with current suppliers and uses the code for future contracts, once current contracts expire. Compliance and disclosure requirements have been implemented throughout the acquisition process. The university places an emphasis on working with non-compliant suppliers to address concerns and issues.
The City can, as a first phase, adopt the same approach as other organizations to focus first on an Ethical Procurement policy. This policy requiring vendors to certify that apparel is “no sweat” can readily be extended to certification that agricultural products are “fair trade”, and enforced in the same manner.
Such a policy would be “sustainable” as well as “ethical” in the sense that fair trade practices are not just fair to growers but also environmentally-friendly, and sweatshops may abuse not just their workers but the environment as well.
CONCLUSION
Council has resolved that the City will have a Sustainable and Ethical Procurement Policy in place by the end of 2004. It is evident that the policy must address the basic principles of ethical purchasing, by ensuring that apparel is not purchased from sweatshops and that coffee and other agricultural products are acquired from fair trade suppliers.
It is suggested that Council direct staff to prepare and present a draft policy for Council review to address the purchase of apparel and fair trade agricultural products in a manner similar to that of other local governments. Staff can report back at the same time on resources required to implement the recommended policy. After the policy has been in effect for one year, staff will be in a better position to assess the financial and service impact the policy has had on City purchases and report back to Council.
Council can direct staff, as a subsequent phase to prepare a procurement policy that includes not only sweatshops and fair trade, but goes much further to integrate a comprehensive range of environmental and broad social objectives. Such a policy is a considerably more complex undertaking, and will require a coordinated effort with other ongoing City initiatives and organizations.
The City will also need time and resources to build the internal capacity necessary to develop, implement and optimize a comprehensive sustainable and ethical policy. Efforts must be cautious and aim at making steady incremental change in supply chain relationships over time.
Key stakeholders must be engaged in policy development and implementation and suppliers must become partners in solutions. A stakeholder approach to policy development will ensure that the complementary and competing interests of key groups will be considered and that an approach to implementation can be agreed upon that will ultimately be both administratively practical and meaningful.
A Sustainable and Ethical Procurement Policy will be complimentary to other City initiatives such as the Sustainability strategic action plan, green building policy and Corporate Climate Change Action Plan. Therefore, the development and implementation of a comprehensive procurement policy will depend in part on coordination with the work being done on these other initiatives.
Posted in Government Procurement, Local Procurement, Social Procurement, Ethical Procurement, Green Procurement, Sustainable Procurement | No Comments »
19. June 2007 by admin.
Buying from social enterprises simple, effective and positive
| Shelagh Hayes |
| Special to the Sun |
For example, the Potluck Cafe on East Hastings has a regular, competitively priced restaurant and catering business. At the same time, it also trains and employs at-risk, hard-to-employ residents of the Downtown Eastside. On top of that, the cafe provides 3,000 free meals and 600 subsidized meals a month to low-income members of the community. Potluck invests 100 percent of the proceeds earned through its catering business into its employment and meal service programs.
Now, compare the overall value of awarding a major city catering contract to the Potluck Cafe versus a regular caterer. The owners and employees of any business would benefit from a sizable contract with a stable client. If the city awarded its contract to the regular caterer, the economic benefits would end there. By directing that purchase to a business like Potluck, the city could put money into an economic development and social program without increasing its budget.
This practice is called social procurement, and it’s catching on in other parts of the world. The United States has a federal program that allows businesses from disadvantaged communities to submit a higher bid on a contract and receive preference over traditional competitors. Britain has several national procurement strategies to aggressively target social enterprise.
Ottawa has shown no such leadership in social purchasing. It is up to the municipalities, arguably the most innovative and resourceful governments in this country, to take action to generate societal benefits through purchasing. Municipal governments are also closer to the community and can offer smaller contracts suitable for social enterprise.
Vancouver is regarded as a leader in responsible procurement because of its commitment to purchasing products that are environmentally sound, fairly traded and ethically produced. Yet it lacks a policy that rewards suppliers that generate positive societal impacts.
Social enterprises like the Potluck Cafe have mandates that are driven by a social or environmental purpose rather than a profit-making goal. Other local examples are Starworks Packaging and Assembly, Landscaping with Heart, and the Cleaning Solution, all of which employ workers with mental or developmental disabilities.
Social enterprises face barriers to securing contracts, as they are often small and lack the capacity to bid on a large city contract, and Vancouver does not incorporate social impact criteria into its bid evaluation process.
My research on social procurement in other jurisdictions points to solutions. Contracts can be broken down into smaller, more accessible components; social enterprises can team up with conventional enterprises in a bid; explicit points can be awarded to bidders for social benefits; targeted training can enable social enterprise managers to traverse the contracting minefield, and social enterprises can propose to the local government areas of work that they believe they could fill.
Vancouver needs to step up to the plate and preserve its reputation as a leader in responsible procurement. It has the opportunity to be the first municipality in Canada to encourage its suppliers to generate societal benefits.
Once businesses begin to realize that the city will reward them for socially conscious actions, maybe they will start to incorporate a social hiring policy or community benefit plan into their operations. In the end, won’t we all benefit?
Shelagh Hayes is a graduate of the master’s degree program in public policy at Simon Fraser University.
Posted in Government Procurement, Responsible Procurement, Social Procurement, Sustainable Procurement | No Comments »
17. June 2007 by admin.
Scoop: Sustainability to guide govt spending Dalziel says
Sustainability to guide govt spending Dalziel says
Thursday, 14 June 2007, 3:39 pm
Press Release: New Zealand Government
14 June 2007
Sustainability to guide govt spending Dalziel says
Commerce minister Lianne Dalziel has welcomed the establishment of a New Zealand branch of an international organisation for procurement professionals.
The Chartered Institute of Purchasing and Supply (CIPS), which held its inaugural New Zealand conference in Auckland today, aims to promote best practice and quality standards as well as raising awareness of the effective contribution the management of supply markets makes to corporate, national and international prosperity.
“Linking New Zealand practitioners into a global community of over 42,000 members in 120 countries has got to be good for the profession,” Lianne Dalziel told the conference.
“The Labour-led government is looking to the procurement professional community as a whole to help achieve our sustainable development goals.
“We’re integrating sustainability into a single government procurement policy and implementing a national framework for sustainable procurement by setting standards and developing sustainability performance indicators, targets and reporting mechanisms, and developing a carbon costing methodology for procurement decisions.
“In some areas, government is the single biggest customer in the domestic market,” Lianne Dalziel said.
“We’re looking at different ways New Zealand companies can benefit from the opportunities offered by government procurement.
“Procurement decisions should be based on best value for the taxpayer’s dollar over whole-of-life and this won’t always mean the lowest price is the determining factor.
“New Zealand companies sometimes feel they are overlooked because they represent local innovation rather than a well known international brand.
“One option for ensuring New Zealand companies get full and fair consideration is to require departments to give reasons for rejecting a local tender, signed off at senior management level,” Lianne Dalziel said.
“We need to consider the additional benefits that arise when home-grown innovation can foot it on home ground as a step up to the world stage.”
Posted in Government Procurement, Sustainable Procurement | No Comments »
16. June 2007 by admin.
Think through green initiatives, execs told : Industry News : News : BCS
Think through green initiatives, execs told
15/06/2007
Business executives are being urged to pay close attention to environmentally aware initiatives and play a leading role in the development of energy-saving practices.
Speakers at the recent Kyocera Green Card conference, Victoria Barber of energy firm Centrica recommended that business leaders to commit to energy saving and sustainable procurement in an attempt to achieve positive environmental benefits among their organisations, reports IT Week.
To this end a number of ways in which IT can be used to help meet these goals were outlined, with businesses able to reduce paper consumption and travel, both of which can have definite environmental benefits in the long-term.
In doing this, Nick Harwood of Sustainable Energy Developments advised chiefs to carefully access the long-term benefits before committing to new, green processes. Stuart Williams of environmental charity Forum for the Future echoed these views.
‘IT represents a quick win as it has sizable environmental impacts, but there is a clear cost case for buying kit that uses less energy over its lifetime,’ he said.
The government recently launched a green IT taskforce designed to reduce CO2 emissions in the IT industry.
Posted in Sustainable Procurement, Green Purchasing | No Comments »
14. June 2007 by admin.
Ottawa takes step toward ‘ethical purchasing’ policy
Tobin Dalrymple, Ottawa Citizen
A report outlining the city’s ethical purchasing policy, which aims to ensure a “sweat-free” and fair-trade friendly Ottawa, was accepted Tuesday by a committee without any issue or debate.
The policy will now go to council later this month, and if it passes that point, will set-up a criteria for who the city will deal with. The policy makes clients who make clothing and agricultural products disclose the location and standards of its factories to make sure they are in line with international human-rights standards.
The city spends about $1.7-million a year on garments for its workers, including bus drivers, firefighters and by-law officers. Stakeholders who wrote the “no sweat” policy say it will focus primarily on preventing companies using sweat-shop labour from winning city contracts.
But the policy will also bring fair-trade products, such as coffee and tea, to municipal cafeterias.
Ottawa could be the fourth major city in Canada to adopt an ethical purchasing policy if it gets council’s green light following Vancouver, Toronto and Calgary.
Posted in Government Procurement, Ethical Procurement, Sustainable Procurement | No Comments »
14. June 2007 by admin.
New Zealand ‘CIPS’ Strategic Procurement Forum opening address: Excerpts
Hon Lianne Dalziel
Minister of Commerce
SkyCity Convention Centre , Auckland
Good morning. It is a pleasure as Minister of Commerce to welcome everyone to this, the first New Zealand Chartered Institute of Purchasing and Supply ‘CIPS’ Conference.
I accepted the invitation to do so, in order to say how pleased I am that New Zealand now has its own branch of CIPS, and how important that is to the government’s agenda – both in terms of procurement generally and in terms of sustainability in particular. Linking New Zealand procurement practitioners into a global community of over 42,000 members in 120 countries has got to be good for the profession…..
Key priorities for the group this year include incorporating sustainability principles into the government procurement policy and extending the scope of this policy beyond core departments….
To guide the application of sustainability principles, a national sustainable procurement framework leveraging off best-practice initiatives overseas is being developed. This framework will help provide consistency across government and guide the implementation of initiatives that relate to sustainable procurement.
Sustainable procurement is one of a package of six projects developed in the context of the government’s aim to make New Zealand the first truly sustainable nation, and the need for long term sustainability strategies to meet the challenges New Zealand faces in the 21st century….
the project that will be of particular interest is enhanced sustainable procurement. This is again led by the Ministry of Economic Development. It builds on progress made by the Ministry for the Environment’s Govt3 programme in achieving the necessary “cultural change” within the public sector to recognise and embed sustainability factors in procurement decisions.As well as integrating sustainability into a single government procurement policy and implementing a national framework for sustainable procurement, this project involves setting standards for sustainable procurement; developing sustainability performance indicators, targets and reporting mechanisms; and implementing a carbon costing methodology for procurement decisions.
By September this year specific standards will be mandated across public service departments. These include: paper (including recycled content and default duplexing); timber and wood products (to ensure they are legally sourced); travel (for motor vehicles and air travel versus video conferencing); and light fittings (for energy efficiency). These will be rolled out to the wider state sector over longer timeframes. A wider range of sustainability standards will be developed over time targeting areas of greatest impact, such as buildings, ICT equipment, white goods, textiles, uniforms and cleaning products.
The Ministry of Economic Development will work closely with the Ministry for the Environment, the State Services Commission, and the Treasury to develop sustainable procurement key performance indicators and targets for inclusion in agency performance agreements….
We know that building capability is critical for the successful implementation of the new single procurement policy and creating a shared understanding of sustainable procurement across the wider state sector. Adoption of the existing government procurement policy has not been as fast as we would like, and adherence to it has been somewhat patchy, largely as a result of the variation in procurement practice and capability amongst departments.
The Government Procurement Development Group understands the need to attract and retain procurement professionals and raise their professional status. The Group is working closely with CIPS as the peak procurement professional body for New Zealand procurement practitioners and professionals. It also endorses the MCIPS International Standard as a certification level that procurement practitioners will be encouraged to aspire to….
I hope you get a lot out of today’s forum and I look forward to seeing the results of your determination to lift the bar when it comes to sustainable government procurement.
Full transcript of the speech available at:
http://www.scoop.co.nz/stories/PA0706/S00252.htm
Posted in Government Procurement, Sustainable Procurement | No Comments »
14. June 2007 by admin.
WASHINGTON (Army News Service, June 13, 2007) - Fort Hood, Texas; Fort Rucker, Ala.; and Department of the Army were awarded for contributions to the environment at yesterday’s 2007 White House Closing the Circle Awards ceremony.
“Acceptance of these prestigious awards confirms that Army sustainability is on the move and gaining momentum. We’re building green, buying green and going green,” said Tad Davis, deputy assistant secretary of the Army for Environment, Safety and Occupational Health. “I’m confident this recognition will spark others to action.”
Department of the Army received the “Sowing the Seeds” award for its leadership in setting a future vision with the Army’s “Strategy for the Environment.” The strategy outlines the Army’s vision for the next 20 years and how its goals will impact the Army’s mission, the environment and local communities. It transitions the Army’s compliance-based environmental program to a mission-oriented approach based on the principles of sustainability.
Posted in Sustainable Procurement, Green Purchasing | No Comments »
13. June 2007 by admin.
“Most folks don’t think of that I do as environmental – to a lot of people, we just buy stuff,” Lyons said. “But I tie the two together.”
Lyons is one of many at Rutgers committed to making the university a leader in “green” initiatives – environmentally sound policies beneficial to the university community, New Jersey, the nation and the world. His work takes him to universities around the nation and international conferences in Latin America and northern Europe.
New Jersey has been a leader in the United States in the area of environmentally responsible business practices. State laws passed in the late 1980s – when Lyons first came to Rutgers as a buyer – compelled businesses and institutions to recycle at least 25 percent of their waste. Rutgers recycles nearly three times that amount, Lyons said, and the university has always been a few steps ahead other institutions in terms of sustainable practices.
Lyons recognizes that the items Rutgers University needs to operate – from rubber bands to rubber tires, from lab chemicals to cleaning chemicals – have to come from somewhere. Lyons wants to know everything about how the product is made, as well as the best way to reduce the product’s impact on the environment at Rutgers, in New Jersey, and on the world.
By the end of the semester, Lyons hopes to have funding in place to establish the Green Purchasing Institute at Rutgers. The organization would do formal research into a practice prevalent at Rutgers for years: incorporating “green” language into purchasing contracts.
Doing so ensures that Rutgers does business with environmentally and socially responsible corporations. “If you are just buying rubber bands, we want those rubber bands to be made with environmentally responsible products, we want some information about where they come from, and if it’s stripping rubber off trees in Brazil,” Lyons said. “We want to know what the conditions are and how the folks down there are being treated in order to make those rubber bands.” Lyons is also a research professor of supply chain environmental management on the New Brunswick Campus. The purchasing department is located in the Office of Administration and Finance.
The key to identifying environmentally and socially progressive companies is not to demand certain practices. Lyons said his flexible approach provides potential vendors with a list of environmentally responsible products and behaviors, and allows companies to be creative in identifying how they can comply. “We don’t dictate . . . They know that they want this contract with the university, so in most cases they are knocking themselves over, versus trying to figure out ways not to be environmentally responsible.”
Further, Lyons sees benefits in using Rutgers’ size and scope to convince industry to adopt green practices, even in small ways. One of the university’s most recent accomplishments was convincing Staples, Inc., to use a biodiesel fuel made of 20 percent soybean oil in company trucks making deliveries to Rutgers campuses.
Rutgers Environmental Health and Safety, Facilities Maintenance Services, Material Services, and Procurement Services worked together to ensure that all 55 diesel-fueled vehicles used at the New Brunswick Campus use B20, the soybean oil-diesel blend.
“Biodiesel can be made from various plants, or from processed food wastes such as used cooking oils,” said Richard Bankowski, manager of environmental services at Rutgers Environmental Health and Safety. “The advantages are threefold. It burns cleaner than regular diesel, it reduces our use of fossil fuels, and it is domestically produced, which helps us reduce our dependence on foreign oil.” Using B20 in place of standard diesel reduces carbon dioxide emissions by 56 tons each year.
Rutgers’ environmental expertise crosses borders
Lyons’ work has taken him from his office in the Administrative Services Building III to Asia, northern Europe, South America, and all over the country. Through his travels, Lyons researches the environmental impact of institutions, borrows the best practices from schools and governments worldwide, and shares his expertise with counterparts in other states and countries.
“A lot of my research is in South America and northern Europe . . . They just happened to be a little bit more progressive. So I did a lot of work in Bogotá, and a lot of extensive work in England, Wales, and Ireland.” In 1990, Lyons attended an international summit in Rio de Janeiro, where he connected with educators from around the world. Tufts University invited him to advise more than 120 colleges and universities on environmentally sound purchasing.
Residents of the United States have slowly awakened to the threats posed by global warming and environmental issues. One reason for the delay is that the problem is not staring most Americans in the face, Lyons said. Garbage landfills, for example, are physically far removed from most people in a country as large as the United States.
“Most people in the United States don’t see this issue, because you put the garbage out on the curb and it goes away magically,” Lyons said. “When you go to Peru, the garbage is there. People throw it out and eventually it just starts to pile up all over the place.”
In the latter half of this semester, companies will be invited to a green purchasing supplier fair, where contracted companies and potential vendors display their environmentally sensitive products. At the same time, a committee on sustainability will produce an environmental report that will become an annual practice.
“The goal is to get people at Rutgers energized about what we are doing,” Lyons said. “We’ll target the general community, legislators, other universities and colleges, as well as corporations.”
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12. June 2007 by admin.
To find answers to those questions, Forrester Research surveyed 125 operations and procurement professionals in enterprise IT shops in the US and Europe.
What did we learn? The survey results showed fairly broad awareness of green IT, an interest in energy-efficient IT systems and a strong desire to hear more from vendors on these topics. What our survey did not find was broad-based activity by user firms to translate their green awareness and concerns into tangible action in IT procurement or operations.
For example, 85% of respondents told us that environmental concerns were “somewhat important” or “very important” in planning IT operations. As with the vendors, this awareness is driven by regulatory requirements and corporate responsibility, but even more important are growing concerns about power availability and costs. A number of companies considering changing their purchasing or operations practices will be driven solely by a desire for greater efficiencies and the resulting cost reduction. Green benefits like reductions in carbon dioxide emissions may result, but these are seen as by-products of hard-headed, ROI-driven business practices.
A few companies told us that their green IT efforts were driven from the top of the company. Acting more environmentally responsibly is a high priority, especially for European companies, US energy or recreation businesses, and government agencies.
For them, green IT is part of a strategy to improve how they’re perceived by customers, investors, regulators and employees.
But awareness has not yet been translated into action. Only a quarter of companies surveyed have written recycling, energy efficiency or clean manufacturing criteria into their IT procurement processes. When we asked their procurement and operations people what vendors could do to increase their green purchasing, the resounding response was that they’d like vendors to give them more information. Only 15% of the companies surveyed said they had a “high level of awareness” of IT vendors’ green initiatives, and most told us that they were hearing little or nothing from top-tier vendors on this topic.
When I read that, I got an image of someone waving a red cape in front of a herd of snorting bulls. Get ready for the IT vendors to charge. The best of their efforts to educate customers will have these characteristics:
• A CFO perspective. Green development and marketing by IT vendors to date has been a geekfest. The smart ones will stress the business benefits of green policies — not just cost reduction, but risk reduction, brand enhancement and growth opportunities. All of these appeal to the CFO and other executives.
• A “hard green” emphasis. User organisations are clear about this: green is nice, but it’s the long view that matters. Vendors will break through the messaging clutter with tangible ROI, complete with calculators and cost studies to mitigate customers’ doubts.
• A holistic approach. The most effective vendors will take a wide-angle view of green IT rather than getting mesmerised by one aspect like energy efficiency or product recycling. Weaving together the disparate elements of a green IT strategy — and practising what they preach in their internal IT operations — will bring credibility and punch to vendors’ marketing efforts.
• A well-tuned set of messages. The best messages will resonate with various customer motivations for going green. Customers’ receptivity will differ by industry, geography and individual role.
Green IT is no bubble. Companies’ awareness and interest will only slowly translate into concrete actions to lessen the environmental impact of their IT operations.
Vendors can speed up that translation by recognising that for most companies, it’s business first and green second.
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