Green California Summit 2015 Sustainable Purchasing Mini-Summit Jason Pearson President & CEO Sustainable Purchasing Leadership Council Charleen Fain-Keslar Standards & Quality Control Manager State of CA Department of General Service
S TAT E O F C A L I F O R N I A
Green California Summit 2015 Sustainable Purchasing Mini-Summit Creating a Sustainable Purchasing Program Jason Pearson President & CEO Sustainable Purchasing Leadership Council
3
4 Analysis by TRUTHstudio based on US Bureau of Economic Analysis 2011 Summary Use Annual I-O Table
5
“ Our acquisition of goods and services creates a carbon footprint nine times that of our buildings and fleet, put together.”
Dan Tangherlini Administrator US General Services Administration
DEFORESTATION
SWEATSHOPSDISCRIMINATION
OVERFISHING
6
7
8
9
10
11
Could we collaborate to launch a shared program for guiding, measuring, and recognizing leadership in sustainable purchasing?
12
13
The timeline!
14
2013 2014 2015
Launch Event Launch Event
Viewed by 1000+ organizations in 46 countries. Hosted at American University. Moderated by Joel Makower and broadcast by
15
2013 2014 2015
City of Portland, OR
City of San Francisco, CA
City of Washington, DC
State of California
State of Michigan
State of Minnesota
U.S. DEPARTMENT
of AGRICULTURE
Founders Circle formed
16
2013 2014 2015
Strategic Partners engaged
17
2013 2014 2015
Founding Summit Founding Summit
18
2013 2014 2015
Website launched Website launched
www.sustainablepurchasing.org
19
2013 2014 2015
Membership opens Membership opens
A big tent.
20
2013 2014 2015
Membership opens Today: ~140 members; > $200bn in spend Membership opens Accenture Aflac Alameda County, CA American Chemistry Council American Clean Skies Fdn American Coatings Assoc. American University Apex Clean Energy Aramark Arizona State University Arlington County, VA Asia Pulp & Paper ASSA-ABLOY AASHE Belk, Inc. Best Buy Biosynthetic Technologies Bloomberg BSR BuildingWise, LLC Business & Institutional
Furniture Manufacturers Association
Caesars Entertainment California DGS CalRecycle Canadian Aboriginal and
Minority Supplier Council CBRE CEGESTI Center for Resource Solutions CIPS Sustainability Index CRG SustainableSolutions
Citi City & County of Denver, CO City of Cleveland City of Portland, OR City of San Francisco, CA City of Santa Monica City of Seattle, WA Coalition of Immokalee
Workers Code Earth Group Consumer Specialty Products
Association Dell Domtar EcoBuilder Consulting Ecoinstitut EcoLab EcoVadis Edelman EI Analytics Elliott Affiliates, Ltd. Emory University FairTrade USA FedEx Forest Stewardship Council Goodyear Green Electronics Council Green Seal, Inc. GreenCircle Certified Haworth Inc. HDR Architecture, Inc. Health Care Without Harm
IERS iFixIt Interface Americas, Inc. International Campaign for
Responsible Technology Int’l Labor Rights Forum ISEAL Alliance JCPenney King County, WA Kohler Company Kuhn Associates Sustainability
Advisors Leonardo Academy LittleFootprint Lighting Lockheed Martin Mahindra Sanyo Special Steel
Pvt. Ltd. Massachusetts Operational
Services Division Massachusetts Water
Resources Authority Michigan Department of
Environmental Quality Michigan Department of
Technology, Mgmt & Budget Michigan State University MindClick Group Minnesota Materials
Management Division Minnesota Pollution Control
Agency Multnomah County, OR Municipal Collaboration for
Sustainable Procurement
North Shore LIJ Health Sys Northbound Ventures, LLC Northeast Recycling Council Office Depot Pacific Gas & Electric PE International Perlmutter Associates Portland Community College Portland State University Practice GreenHealth PROSOCO Province of Nova Scotia PRé Sustainability re:sustain RepRisk AG Resource Recycling Systems Responsible Purchasing Net. REUSA-WRAPS Reusable
Logistics Solutions, LLC Rivanna Natural Designs Roundtable on Sustainable
Biomaterials SciQuest SCS Global Services Snohomish County Social Hotspots Database
Project Sound Transit Southern Connecticut State
University
Sphere E Sustainable Flows Sustainable Forestry Initiative,
Inc. Sustainable Green Printing
Partnership, Inc. Sustainable Methods Inst. Sustrana TD Bank Group The CarbonNeutral Co. The District of Columbia The George Washington
University TreeZero Paper Trucost UL Environment United Soybean Board University of California, Santa
Barbara University of Pennsylvania University of Texas, Austin UPS US Department of Agriculture US Department of Energy US EPA US GSA US Green Building Council Venable LLP Waste Management World Resources Institute World Wildlife Fund
21
2013 2014 2015
Principles released Principles released
www.sustainablepurchasing.org/principles/
22
Annual Summit
2013 2014 2015
175 Attendees, 121 Organizations, 20 Workshops
23
Program Committees formed Program Committees formed
Technical Advisory Committee (TAC)
Ad Hoc Work. Groups
Purchasing Category TAG
Purchasing Category TAG
Purchasing Category TAG
SPLC Staff
SPLC Board
2013 2014 2015
24
2013 2014 2015
Guidance v1.0 Release Guidance v1.0 Release
www.sustainablepurchasing.org/guidance/
25
2013 2014 2015
www.sustainablepurchasing.org/guidance/
Pilot phase Pilot phase
SPLC Connect May 26, 2015
SPLC Connect
2013 2014 2015
26
www.sustainablepurchasing.org/connect/
SPLC Summit May 26-28, 2015
SPLC Summit
2013 2014 2015
27
www.sustainablepurchasing.org/summit/
28
Rating System begin development
2013 2014 2015
29
W W W. S U S TA I N A B L E P U R C H A S I N G . O R G
30
31
32
33
34
35
36
37
38
39
40
41
42
43
44
45
46
47
48
49
Key Terms
Sustainable Purchasing Program: A sustainable purchasing program that has all four components the Council considers essential for a program to be capable of achieving genuine leadership. Achieving genuine leadership means taking meaningful responsibility for all the significant environmental, social, and economic consequences of the organization’s purchasing.
50
51
Key Terms
Champion(s): The person(s) who volunteers or is tasked with building organizational support for creating and implementing a Sustainable Purchasing Program Plan. In practice, sustainable purchasing advocates come from all types of roles within organizations: procurement professionals, sustainability staff, senior leaders, operations staff, budget holders, and so on.
Management: An organization's senior decision-makers. Depending on the decision to be made and the size and type of organization, “management” could be a Chief Executive Officer, President, Mayor, Chief Procurement Officer, Chief Operating Officer, Vice President, Dean, Commander, Director, Manager, and so on.
52
Key Terms
53
54
Why and How?
Why does the organization need a Sustainable Purchasing Program? What organizational needs, values, or priorities would it serve? How would a Sustainable Purchasing Program meet those needs? How would it be organized? What would it do?
55
56
Why? Benefits of a Program
• Financial • Management • Environmental • Socioeconomic See Guidance page 15 for link to case studies supporting each item in the list.
57
Why? Avoid Many Common Pitfalls
Typical outcomes! With a Program (all 4 components) Without a Program (< 4 components)
58
How? An Integrated Program
59
Scenario 1: Build on an Existing Initiative
How? An Integrated Program
60
Scenario 2: Respond to Management
How? An Integrated Program
61
Scenario 3: Start with Prioritization
How? An Integrated Program
62
Scenario 4: Start with Resources
How? An Integrated Program
How? Create a Vision Summary
63
Proposal for a Strategic Sustainable Purchasing Program
Our organization should establish a Sustainable Purchasing Program modeled on current best practices (as defined by the Sustainable Purchasing Leadership Council), because it would produce the following benefits:
•! (itemize benefits)
This would advance the following current or future organizational priorities established by management:
•! (list organizational priorities)
There are many ways such a Program could be organized. Here is one possible vision for how it could work at our organization:!
(describe vision)
One possible pathway by which the organization could build up to that vision is as follows:!
(describe pathway)
64
How? Vision Using the Principles
65
Identify Key Stakeholders
66
!!People with influence
!!People already doing a piece of the work
!!People with specialized skills or wisdom
!! The management decision-maker(s)
Plan Engagement Process •! Get input that can refine the vision for the Sustainable
Purchasing Program into a formal Program Plan
67
Plan Engagement Process •! Get input that can refine the vision for the Sustainable
Purchasing Program into a formal Program Plan Step 1. Provide process for giving input
68
Plan Engagement Process •! Get input that can refine the vision for the Sustainable
Purchasing Program into a formal Program Plan Step 1. Provide process for giving input Step 2. Convince stakeholders to participate in that process
69
Communicate!
•! Why the Program would benefit the organization.
•! How such a Program could work.
•! Why it would benefit the key stakeholder’s own professional work.
•! An invitation to and expectations for the stakeholder engagement process.
Plan Engagement Process •! Get input that can refine the vision for the Sustainable
Purchasing Program into a formal Program Plan Step 1. Provide process for giving input Step 2. Convince stakeholders to participate in that process
•! Obtain support of key stakeholders for the Program Plan
70
Plan Engagement Process •! Get input that can refine the vision for the Sustainable
Purchasing Program into a formal Program Plan Step 1. Provide process for giving input Step 2. Convince stakeholders to participate in that process
•! Obtain support of key stakeholders for the Program Plan Build a sense of ownership with! •! Dialogue •! Plan Revisions
71
72
Design Process 1.! Kick-off Meeting 2.! Develop Shared Program Vision 3.! Determine the Best Pathway for Starting the Program 4.! Draft the Program Plan
73
Kick Off the Planning Process
Kick-Off Meeting Agenda SAMPLE •! Introductions
•! Goals for the Meeting
•! Background Presentation The case for why the organization needs a Sustainable Purchasing Program
•! Introduction of Sustainable Purchasing Program planning tools & resources • SPLC Guidance v1.0
• SPLC Principles
• Four Essential Program Components
• Strategy Cycle
• Multiple Pathways to Build a Program
•! Champion’s vision for how the Program could work
•! Explain the planning process next steps
•! Invite Stakeholder Feedback
•! Next Steps
74
Develop a Shared Vision
•! What would the Program’s objectives be?
•! How would success be measured?
•! How would it fit into the organizational structure and culture?
•! What resources would it need?
•! Does the envisioned program need an overarching Sustainable Purchasing Policy?
75
Develop a Shared Vision
76
PROGRAM VISION – SUSTAINABLE PURCHASING PROGRAM SAMPLE Program Objectives To continuously monitor and proactively manage the environmental, social, and economic performance of the organization’s purchasing in order to reduce costs, mitigate supply chain risks, protect brand reputation, and demonstrate leadership.
Metrics for Success - Supply chain environmental, social, and economic performance is well understood and monitored. - Performance in each of the top 10 areas of concern is industry-leading. - Strategies have saved the organization substantially more than the program has cost. - The organization is engaged in collaborative efforts to support marketplace innovation. - The organization is reporting publicly its supply chain performance and promoting transparency throughout its supply chain.
Program Commitment The Program has the visible support of the organization’s management thanks to a purchasing policy modeled on SPLC’s Principles, which was adopted at the same time as the Program Plan.
Resource Commitment - The Procurement department has a dedicated full-time employee to coordinate the Program. - The coordinator has an annual Program budget to host meetings, hire expert consultants, buy tools, access training. - A Sustainable Purchasing Subcommittee of the Sustainability Committee supports and advises the coordinator.
Prioritization The organization uses the Strategy Cycle to regularly evaluate its spending data to identify the most promising opportunities for further performance improvement.
Continuous Improvement The organization has developed proficiency in convening teams as-needed to implement Strategy Cycles and create new Strategy Plans for improving supply chain performance in priority areas.
Program Structure The org-wide Sustainability Committee has a Sustainable Purchasing Subcommittee to oversee the Program. The subcommittee includes people doing pre-existing related work, such as supplier diversity, ethical sourcing, energy management, environmental health & safety, etc
Determine the Best Pathway to Start the Program
77
Putting Pilot Projects in a “Trial Phase”
Benefits •! Puts pilot projects within a larger context where management is the customer. •! Makes the long-term vision clear, but only requires an immediate commitment of the
resources required for the Trial Phase. •! Allows management to make a long-term commitment that is provisional upon their
concerns being addressed. Agreeing on trial phase projects clarifies their concerns.
78
Draft the Program Plan Program Plan Purpose 1.! Describe how the Program will work, once it is in place; and 2.! Provide a detailed roadmap for getting the Program up and running.
Program Plan Outline (see page 30) •! Introduction
•! Statement of the Plan’s origins, objectives, and expected benefits. •! Explain “Trial Phase”, if any. •! List of the resource commitments required for the Trial Phase and for the full Program. •! A list of any other requests of management (e.g., policy sing-off, communications about the
Program, engagement in next steps, etc.)
•! Program Plan •! Overview: Program Goals and Objectives •! Program Structure: Program Leader, staff, advisory committee, etc. •! Implementation Plan
•! Trial Phase plan and associated resource requirements •! Full Program plan and ongoing resource requirements
•! Reporting Structure
•! Appendix: Process Overview
79
80
Plan the Request
•! Who has the necessary authority to approve the allocation of the financial, political, and staff resources necessary to implement the Program Plan?
•! Who should present the team’s work and the Program Plan to the management decision-maker?
•! How would the team like to see management express its commitment to the Program Plan?
81
Tips for Planning the Request
!! Lead with the business case
!! Be clear that the Plan is a process commitment
!! Target only the level of management required
!! Leverage stakeholder engagement
!! Include sign-off on implementation steps
!! Explain the benefits of the chosen implementation pathway
!! Seek management ownership
82
Commit to the Program !!Make the request
!!Announce the commitment !! Have management announce with a memo from their office
!! Consider press release
!! Newsletters, blog, social media, etc
!!Celebrate the accomplishment with those who made it possible!
83
84
Ways to engage. www.sustainablepurchasing.org!
"!Become a member of the Council. ! /membership
"!Download the Guidance. ! /guidance
"!Participate in piloting the Guidance. ! /pilot
"!Submit a case study for an Award. ! /awards
"!Attend or present at the 2015 Summit. ! /summit
"!Participate in buyer-supplier matchmaking ! /connect
"!Apply for a technical committee. ! /tags
"!Stand for election to the Board. ! /governance
85
