Integrating sustainable practices into your procurement strategy

Sara Redmond-Neal Oil & Gas Procurement Leaders Forum

25 November 2013

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• Not-for-profit organisation with a mission to increase procurement of more sustainable products and services

• Over 12 years’ experience in sustainable procurement with government and business clients

• Now part of the Net Balance Management Group

Capacity Building

Knowledge Base & Advisory

Training & Events

Tools & Resources

Peer Learning & Networks

What is sustainable procurement?

Using procurement to support wider social, economic and environmental objectives, in ways that offer real long-term benefits.

Sustainable Procurement Task Force (UK DEFRA 2006)

Objectives: • Minimising resource use (demand management, recycled

content) • Minimising negative impacts of products (pollution, energy

use, waste) • Ensuring fair terms and ethical labour standards are met • Providing opportunities for small, diverse and social benefit

organisations

Why do it

• Aligning with company sustainability policy and objectives

• Value for money

– Resource efficiency

– Achieving community objectives through procurement

Corporate reputation

• Customer expectations – social media

• Employee engagement – walking the talk

• Shareholders – nonfinancial risk

Competitive advantage

• Meeting sustainability specifications in customer tenders

• Working with suppliers to innovate, offer preferred product

• Prepared for regulation – staying ahead of the curve

Best practice procurement

Combining strategic sourcing practice with sustainable procurement

excellence achieves the best outcome and maximum business value.

Context

• Demand from buyers in tenders - TfNSW

• Lack of sustainable suppliers available – long-term supplier engagement and partnership

• Lack of influence over suppliers – collaboration

• Key risk categories

– Exploration

– Asset construction

– Production & Transmission

– Greenhouse gas emission

– Water use

– Health & safety

– Community

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Embedding sustainable procurement

Procurement Process

Source: Forum for the Future

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Supplier engagement

Signalling – London 2012

Potential first steps

1. Update procurement policy to include sustainability considerations

2. Use a code of conduct to give guidelines on issues relating to purchasing management

3. Internal training and education to equip purchasing employee with sufficient knowledge to work with suppliers

4. Monitor suppliers 5. Draw up improvement plans 6. Educate, inform and support suppliers 7. Reject less responsible suppliers, reward leaders 8. Report on efforts and performance 9. Join and promote industry collaboration efforts.

Last word

• Long-term process

• Improve your suppliers, they will theirs, and on

• Start the conversation

Workshop Wednesday to learn more!

Sara Redmond-Neal Business Program Manager

sredmondneal@ecobuy.org.au 8641 6442

Check out our website for loads of resources

www.ecobuy.org.au

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