HIGH IMPACT PROCUREMENT Supporting sustainable development
UNOPS would like to acknowledge the contributions of the various authors to this supplement to the 2016 Annual Statistical Report on United Nations Procurement. The views expressed in this publication are those of the authors and do not necessarily reflect those of the United Nations. Furthermore, the views expressed in this publication are not necessarily shared by each of the authors.
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Thematic Supplement to the 2016 Annual Statistical Report on United Nations Procurement Foreword by UNOPS Executive Director
©Government of Norway/ Torgeir Haugaard
ith the latest edition of the This year’s publication focuses on how W Thematic Supplement to the procurement can have a high impact 2016 Annual Statistical Report, we on sustainable development – and in look ahead to 2030. achieving the Global Goals.
When the world came together To achieve the Sustainable and adopted the 17 Sustainable Development Goals, new thinking is Development Goals, it put into action essential. This applies to everyone, a roadmap to achieving a better world including UNOPS. So in the spirit of by 2030. The world gathered behind a exploring new and innovative areas, universal call to action to end poverty, we will close this series of publications, protect the planet and ensure that all and instead follow the principle people enjoy peace and prosperity. this final edition embraces: to now look towards new ideas, through Procurement is a vital component to which we can showcase how central achieving these goals. procurement is to delivering on Agenda 2030. It connects goods and services to the people who need them most. It’s I would like to thank all of the an area where improved efficiency authors for their contributions to this and innovation can have a long-term publication and for sharing their ideas. positive impact on development. And, it can open the doors of opportunity to I hope that these articles will serve traditionally disadvantaged groups – as inspiration for us all as we work encouraging equality and stability. together towards building a better world for all.
Grete Faremo Executive Director, UNOPS
Table of contents
Efficient public Five rules for powerful procurement is necessary partnerships 24 for reducing poverty 7 By Jeanne Kling and Kate Vitasek By José Moscoso Rethinking procurement The SDGs, human rights for a circular economy 28 and procurement: An By Catherine Weetman urgent need for policy coherence 10 Promoting the By Olga Martin-Ortega participation of micro- and Claire Methven O’Brien and small enterprises in procurement 32 Promoting sustainable By Danielle Carvalho Ribeiro public procurement through demand Health sector aggregation 14 public procurers By Gian Luigi Albano as SDG pioneers 36 By Lorea Coronado-Garcia, Choosing the right Rosemary Kumwenda and Mirjana Milic colour condom: Green! 18 By Eric Dupont Blockchain: The missing piece? 41 Enabling carbon By Harry John reduction through health procurement 20 By Jerome Baddley, Simon Briggs and Eleni Pasdeki-Clewer 6 High impact procurement High impact procurement 7
Efficient public procurement is necessary for reducing poverty
By José Moscoso, UNOPS
he world’s poorest and most government. But these reforms were T vulnerable populations are the slow to make a tangible difference. most dependent on public goods and Why? services. They feel the brunt of waste and corruption in public procurement Previous procurement reforms often more than anyone else. Here’s how disrupted entire procurement systems we can contribute to making it better. – and daily work. Frequently, such reforms met with so much resistance Public procurement has evolved that they were given up on or watered from being merely a back office down. So how do you change not only supply function to the public sector, the systems, but also the workflows, to now being considered a key tool individual conduct, tools and, most in economic policy – and arguably importantly, minimize costs – all the most visible beacon of the while managing the resistance to quality of governance. Efficient change inherent in nearly all public public procurement also has a direct bureaucracies? impact on poverty reduction. As such, efficient public procurement is vital for The answer is to initiate major changes achieving Sustainable Development through targeted reforms – surgically Goal (SDG) 1 of ending poverty. Sound removing outdated, inefficient practices public investment and spending is and recognizing proper existing unquestionably an important factor practices to preventing disruption to in attaining the other 16 SDGs. the whole procurement system. The smart way of doing this is by building The world’s most vulnerable populations depend on goods The first wave of procurement reforms, blocks of competence (which includes and services purchased which started almost 20 years ago, people, resources and workflows), by public entities. Making focused on improving the regulatory targeting those areas where the biggest targeted reforms in public framework and building skills. Later improvements are possible, with the procurement processes can reforms combated corruption and largest combined impact. This requires save money that could be waste by improving accountability, a smart methodology to diagnose re-invested into key areas. transparency, and better integrating where you stand, before any changes ©Getty Images/MShep2 public procurement across are considered. 8 High impact procurement
Changes that have the by analyzing the strengths and UNOPS helped the government of biggest impact weaknesses of their procurement Jalisco save 24% – which translated into systems. This tailored approach $13 million – on the purchase of new UNOPS considers procurement enables them to identify what needs light rail wagons for public trains. reform to be a dynamic, iterative to be changed without throwing out process – testing and improving on what works, minimizing the overall cost UNOPS also supported the what already exists – to help the of the reform. This helps governments establishment of long-term agreements quality and efficiency of procurement focus their efforts on those actions that for the Instituto de la Infraestructura systems to leap forward. will have the biggest potential impact, Fisica Educativa del Estado de Jalisco improving procurement efficiency and for the procurement of educational At UNOPS, we’ve examined how we reducing costs. supplies for 27,000 students. The can help governments improve their government reduced administrative procurement systems as well as show and logistics costs, as well as a received the concrete advantages to doing so. Jalisco: An example the best value-for-money. The UNOPS ‘Procurement Efficiency of realizable savings Assessment Tool’ (PEAT) helps In 2016, UNOPS supported the In addition, UNOPS used the PEAT minimize disruptions to day-to-day Mexican State of Jalisco with methodology with other public entities work and validates existing effective promoting efficiency, transparency to develop recommendations on how practices, through a forward-looking and sustainability in public to enhance competition, increase (instead of a retrospective audit-like) procurement. The Jalisco project efficiency, and use currently available process that is carried out jointly with showed how UNOPS helped the state technologies to improve procurement an organization’s top and middle government to improve their public planning and execution. management. procurement processes, produce substantial savings – both in the short This unique tool uses a set of and long terms – prevent corruption, Seeing long-term gains, today questions, data and process reviews and increase accountability in the use Often, the benefits of more efficient to help governments set the of public funds. public procurement aren’t immediate. foundation for a targeted reform And if the benefits will be reaped High impact procurement 9
after the current decision maker’s administration is over, these reforms In Mexico, UNOPS helped the State of Jalisco promote may be less likely to be given priority. efficiency, transparency Hence, we see a lot of patchwork and sustainability in public attempts at improving the performance procurement. ©Getty of public procurement systems, which Images/RonBailey – after failure or limited results – delay a serious and comprehensive reform programme. José Moscoso is the Lead for Advisory Using PEAT methodology can Services in UNOPS concretely show a public manager Procurement Group. how much money could be saved An economist by in the short, medium and long term, education, José has simply by making a few changes. extensive formal training in public These savings could then be re- procurement. He joined UNOPS in invested into key areas identified 2008 as the Deputy Regional Director by the tool to achieve sustainable for Latin America and the Caribbean. improved performance. Prior to joining UNOPS, José worked as an independent consultant for A more efficient procurement system the UN system, the World Bank, the can also help governments save Global Fund and the Inter-American money and make sure they’re buying Development Bank, among other the right things at the best prices, as international financial institutions. well as attracting the best suppliers. His professional career began in 1991 Ultimately, this helps them buy more with the World Bank’s Africa Region, of the things that the world’s poorest and later in Latin America where he depend on was Senior Operations Officer. 10 High impact procurement
The SDGs, human rights and procurement: An urgent need for policy coherence
By Olga Martin-Ortega, University of Greenwich and Claire Methven O’Brien, Danish Institute for Human Rights
overnment purchasing comprises public policy goals, for example, by infrastructure, the failure of G a significant share of the global integrating disadvantaged groups public authorities to avert human economy. Worldwide, it accounts into the labour market. Yet previously rights abuses by suppliers or their for €1 trillion per year, while across little consideration was given to public subcontractors is being regularly Organisation for Economic Co- bodies’ impacts on human rights highlighted. operation and Development (OECD) via purchasing. A number of recent countries, it comprises an average developments have, however, brought On the other hand, new standards 12 percent of gross domestic product such impacts into focus. have signalled the human rights (GDP).1 As ‘mega-consumers,’ consequences of public buying. governments hence have the power On the one hand, the involvement Foremost are the UN Guiding Principles to shift markets towards sustainable of public institutions in supply chain on Business and Human Rights production. abuses now attract increasing civil (UNGPs), endorsed by the UN Human society, media and public attention. Rights Council in 2011.2 The UNGPs For decades, governments have From surgical instruments and clarify that governments have a duty sought to use procurement to advance personnel uniforms, to mega- to protect human rights that extends High impact procurement 11
Sustainable Development Goal 8 aims to eliminate all forms of child labour by 2025. Achieving this requires leveraging public spending to drive respect for human rights in the private sector. ©Ananta Chowdhury
to procurement. At the same time, the aims to align with them. In addition, sustainable public procurement UNGPs underscore that all businesses, the International Labour Conference5 practices and to implement sustainable including supplying governments, and the Group of 7 (G7)6 now public procurement policies and have a responsibility to respect human emphasize the need for responsible action plans.7 rights. This responsibility requires global value chains as drivers of decent that they monitor and manage human work, as well as sustainable and But governments have failed to rights risks along their supply chains. inclusive growth. recognize, or take adequate steps to address, the human rights dimension The OECD,3 European Union (EU),4 Adopted in 2015, the Sustainable of sustainability in public buying. As international financial institutions, Development Goals (SDGs) reinforced indicated above, this is despite the fact investors and many global companies the role and significance of public that human rights abuses are endemic have committed to upholding the purchasing in securing a global in the production of goods (for instance, UNGPs. The International Organization transition to sustainable consumption electronics, foodstuffs and apparel), for Standardization’s new 20400 and production. In particular, SDG as well as the delivery of services, Sustainable Procurement standard 12 calls on all countries to promote from construction to cleaning, 12 High impact procurement
that are routinely purchased by If in the past sustainable procurement contract clauses including a Code public bodies.8 efforts often focused on green of Labour Practices. These encourage considerations, it is imperative that suppliers to disclose factory locations There is evidence that procurement public buyers now adopt a joined-up so that labour conditions can laws and practices currently do as approach, by integrating business be monitored. much to undermine business respect respect for human rights as a fully- for human rights as to promote it. fledged sustainability criterion when Urgent action by governments and Legal rules requiring buyers to select implementing SDG 12. other stakeholders is needed to speed the cheapest – or best value – bid up and scale up such innovations, may have a chilling effect on public In this regard, efforts by first-mover to remove residual legal and policy sustainability initiatives. Buying officers public buyers can provide inspiration. barriers to integrating human rights fear that tenders that include human Sweden’s county councils spend into public purchasing. Only by rights-related conditions in selection €13 billion per year via collective achieving respect for human rights or award criteria will be contested as procurement. Since 2010, they have – and policy coherence – in public discriminatory. used a common code of conduct for purchasing will the SDGs be realized suppliers, followed up on by supplier It can also be questioned to what questionnaires and targeted factory extent it is permitted to link the audits. A 2015 study found these award of public contracts to bidding measures significantly reduced serious companies’ efforts to implement labour rights abuses in workshops in corporate human rights due diligence Pakistan supplying the councils with as required by the UNGPs. Equally, it is surgical instruments, while workers unclear how governments can leverage in neighbouring facilities did not procurement to reward corporate experience similar improvements.9 efforts on supply chain transparency or non-financial reporting, as now New rules have also been introduced envisaged by legislation in many in Norway that obliges public countries. Even where public buyers authorities to include clauses on benefit from a permissive legal and wages and decent working conditions policy environment, the vast majority when purchasing construction, appear to lack the awareness, tools facility management and cleaning and resources needed to effectively services. Buyers must follow up on exploit this. the performance of such clauses, for instance by requiring supplier self- Once human rights are acknowledged declarations.10 as a dimension of sustainable procurement, it becomes clear that In the United Kingdom, universities are this situation obstructs the required to report under the Modern achievement of SDG 12. SDG 8 aims Slavery Act (2015) on their efforts to to eradicate forced labour, slavery identify, prevent and mitigate modern and trafficking, to eliminate the worst slavery, human trafficking and forced forms of child labour and to ensure labour in their supply chains.11 decent work for all. Given the heavy footprint of public purchasers across An EU-wide collaboration of public global markets, a continued failure bodies, Electronics Watch, seeks to leverage public spending to drive to address human rights abuses respect for human rights in the private in government ICT supply chains.12 sector will also exact high costs there. Participating buyers receive template High impact procurement 13
1 OECD, ‘Public Procurement:’ http://www.oecd. LexUriServ/LexUriServ.do?uri=COM:2011:0681: blog/reports/public-procurement-and-human- org/gov/ethics/public-procurement.htm. FIN:EN:PDF. rights-a-survey-of-twenty-jurisdictions/. 2 ‘United Nations Guiding Principles on 5 International Labour Organization, ‘Decent 9 SwedWatch et al., ‘Healthier procurement: Business and Human Rights: Implementing Work in Global Supply Chains,’ Report prepared Improvements for working conditions for the United Nations “Protect, Respect and for 105th Session, International Labour surgical instruments manufacture in Pakistan Remedy” Framework,’ U.N. Doc. A/HRC/17/31, Conference, 2016, p. 18: http://www.ilo.org/ (2015)’: http://www.swedwatch.org/sites/ (June 2011) [hereinafter UNGPs]: http:// ilc/ILCSessions/105/reports/reports-to-the- default/files/healthier_procurement.pdf. www.ohchr.org/Documents/Publications/ conference/WCMS_468097/lang--en/index.htm. 10 International Learning Lab on Public GuidingPrinciplesBusinessHR_EN.pdf and 6 The G7 Leaders’ Declaration called for tools Procurement and Human Rights, supra note 8. ‘Protect, Respect and Remedy: A Framework to support public procurers in meeting social 11 O. Martin-Ortega (2016), ‘Modern slavery for Business and Human Rights,’ UN Doc and environmental commitments. ‘G-7 Leaders’ and human rights in global supply chains: A/HRC/8/5, (April 2008): https://business- Declaration,’ Schloss Elmau, Germany (June 8, Roles and responsibilities of public buyers. humanrights.org/sites/default/files/reports-and- 2015): https://www.whitehouse.gov/the-press- Policy and practice insights for higher materials/Ruggie-report-7-Apr-2008.pdf. office/2015/06/08/g-7-leaders-declaration. education institutions in the framework of 3 The OECD Guidelines were updated in 2011 7 G.A. Res. 70/1, ‘Transforming our world: the their obligations under the UK Modern Slavery to align with the UNGPs: ‘OECD, Guidelines 2030 Agenda for Sustainable Development’ (25 Act,’ BHRE Research Series, Policy Paper No.2: for Multinational Enterprises’ (2011): http:// September 2015): http://www.un.org/en/ga/ https://static1.squarespace.com/static/56e9723 mneguidelines.oecd.org/text/. search/view_doc.asp?symbol=A/RES/70/1. a40261dbb18ccd338/t/5857c23dcd0f68bab21a 4 European Commission, ‘Communication from 8 International Learning Lab on Public 76b6/1487000267236/Modern+Slavery+and the Commission to the European Parliament, Procurement and Human Rights (C. Methven +Human+Rigths+Risks+in+Global+Supply+ the Council, the European Economic and Social O’Brien et al.), ‘Public Procurement and Human Chains+Insights+for+HEIs+2016.pdf. Committee and the Committee of the Regions: Rights: A Survey of Twenty Jurisdictions,’ 12 Electronics Watch: http://electronicswatch. A Renewed EU Strategy 2011-14 for Corporate 2015 Danish Institute for Human Rights org/en. Social Responsibility,’ COM (2011) 681 final and International Corporate Accountability (25 October 2011): http://eur-lex.europa.eu/ Roundtable: http://www.hrprocurementlab.org/
Olga Martin-Ortega Claire Methven (co-author) is a O’Brien (lead author) Reader in Public is the Strategic Adviser International Law on Human Rights and at the University of Business at the Danish Greenwich’s School Institute for Human of Law (United Kingdom), where she Rights where she provides expert leads the Business, Human Rights support to multinational corporations, and the Environment Research multilaterals, governments, civil Group. Her research focuses on the society and human rights responsibilities of business and public organizations, including in the area authorities concerning human rights of procurement and supply chain in global supply chain. She has also management. She is founder of the conducted research on post-conflict International Learning Lab on Public reconstruction, transitional justice and Procurement and Human Rights and international criminal law. Olga is a a Member of the Sustainable Public member of the Board of Trustees of Procurement Working Group of UN Electronics Watch, Board of Directors Environment’s 10-Year Framework of the London Universities Purchasing for Programmes on Sustainable Consortium, and Steering Committee Production and Consumption. In of the International Learning Lab on 2016, she was winner of Ireland’s Public Procurement and Human Rights. Procurement Leader Award. 14 High impact procurement
Promoting sustainable public procurement through demand aggregation
By Gian Luigi Albano, Consip S.p.A
n 2015, world leaders gathered bodies at the central government level I at the United Nations to reshape – would make the implementation of the Millennium Development Goals sustainability strategies more effective. into a global vision for sustainable development. The resulting Sustainable What is sustainable public Development Goals1 provide the procurement? overarching development framework for the world. Public organizations Sustainable public procurement (SPP) are on the frontline to put that can be defined as a: “process whereby framework into action. public organizations meet their needs for goods, services, works and utilities Using procurement for objectives in a way that achieves value for money beyond the mere acquisition of works/ on a whole life-cycle basis in terms products/services is a quite recent of generating benefits not only to intellectual achievement. the organization, but also to society and the economy, whilst significantly Thanks to a profound reformulation reducing negative impacts on the of public procurement regulations environment.”2 at a global level, promoted by forward-looking policymakers, and The fundamental ambition of SPP the emergence of a more qualified is to expand the scope of public procurement workforce, as well as of procurement by including a potentially specialized procurement organizations, wider array of externalities, be they we are in the historically most towards the environment or the favourable conditions to use public welfare of stakeholders, who are not necessarily parties to the public procurement for social objectives. Demand aggregation could contract. Some of those externalities be an important incentive In the remainder of this short paper, cannot properly be taken into account for economic operators to we shall emphasize how demand without evaluating the life-cycle costs pursue innovation focused aggregation – be it among separate (LCC) of any acquisition, which includes on environmentally friendly purchasing units belonging to a single the purchasing price, operating costs products and processes. public organization or among distinct (for example, energy, spares and ©Getty Images/lovelyday12 High impact procurement 15 16 High impact procurement
maintenance) and end-of-life costs demand aggregation could take place Indeed, especially when the political (for example, decommissioning within a single organization whenever a cycle tends to be short at the local and removal). single operational centre acts on behalf level, public decision makers, including of several procuring units. procuring organizations, tend to Stretching the time horizon for overestimate the impact of decisions evaluating the financial dimension(s) In this last case, SPP becomes in the very short term with respect of the value for money makes all easier to implement when separate to those generating their effects in a financial components more visible decision centres, managing different more distant future. As a result, the and transparent, thus allowing buyers budget items, are merged into one foundations themselves of the LCC to trade-off, say, a higher purchasing single procurement unit. If capital risk being undermined. cost today with a lower maintenance expenditures (such as computers or cost tomorrow. Expenditures at vehicles) and current expenditures When pursuing SPP strategies any different stages of the life cycle are (such as electricity and fuel) are small public buyer – such as a local emphasized, allowing public buyers to managed by different organizational municipality – reaps only a tiny fraction better plan – whenever admissible by units, the LCC approach may be hardly of the overall reduction of negative public accounting rules – budgetary implemented, as the unit in charge externalities (for example, carbon predictions over several years. These of purchasing a computer would not dioxide), so it is likely to be affected by potential advantages require, though, internalize the electricity consumption, a standard free-riding problem, that is, the ability to evaluate intrinsically more which affects another unit’s budget. to underestimate the value it attaches uncertain cost dimensions arising in Linking these two budget items is to lower pollution. When demand of the future. quintessential to the application of several public bodies is aggregated the LCC approach. – for instance, by means of a central purchasing body – the overall value of The role of demand Even when a single organization – lower externalities can be internalized aggregation in promoting such as a small municipality – adopts by a single (framework) contract sustainable public a centralized procurement structure, awarded on behalf of several final procurement it is far from being clear that it will users. Demand aggregation may then Public procurement procedures are be able to approach and solve the become an effective tool to (almost) often carried out by those procuring trade-off between more expensive fully internalize social benefits. entities that are also the final users of investments today, and lower operating the to-be-purchased goods/services/ costs and/or higher benefits for the Finally, demand aggregation could works. While this model is fairly environment tomorrow. This also come into play as an important widespread, novel organizational requires setting the ‘optimal’ discount incentive for the economic operators forms have emerged during the last rate to weight and value future benefits to pursue innovation focused on few decades, mainly consisting of a from sustainable strategies. To carry environmental friendly products separation between the organization(s) out such tasks a specialized know-how and processes. Most importantly, the in charge of preparing and running the is of paramount importance, which ‘pull’ effect triggered by centralized tender and the organization(s) making is not likely to be within the reach agencies is likely to provide more use of the awarded contract(s). of small public agencies. clear and coherent signals to the supply market on the most profitable kinds For instance, several centralized Moreover, it seems reasonable that of investments. On the other hand, procurement agencies are now active a central purchasing agency would low-value independent procurements in many countries, and are entrusted plan its procurement strategies over carried out by a large number of small with the (almost exclusive) mission to a longer time horizon, as it is less public organizations would run the risk aggregate the needs of central and/or sensitive to the political cycle than any of not generating the pull effect for local government bodies by awarding single public organization. This implies making firms’ investments viable, and, often sizeable framework agreements that the discount rate set by a central even worse, may send contradictory on their behalf. Less visible, albeit not agency may result in a discount rate signals to the supply market as to the necessarily less effective, forms of closer to one that is socially optimal.3 kind of the required investments High impact procurement 17
1 You can see all 17 UN Sustainable and consumption led by UNEP and UN Development Goals here: https:// DESA: http://www.unep.fr/scp/marrakech/ sustainabledevelopment.un.org/sdgs. taskforces/pdf/Procurement2.pdf. The concept 2 Definition adopted by the Task Force on is very much linked to that of sustainable Sustainable Public Procurement led by development, which requires the present Switzerland. Membership includes: Switzerland, generation to pursue its own needs without United States, United Kingdom, Norway, the compromising the ability of future generations Philippines, Argentina, Ghana, Mexico, China, to meet their own needs. Czech Republic, State of Sao Paolo (Brazil), 3 Defining the socially optimal discount rate is UN Environment, International Institute for not an easy task. A fair amount of literature Sustainable Development, International exists dealing with the concept of social Labour Organization, European Commission discount rates and their relations with global (Directorate-General-Environment) and warming and climate change. See: P. Dasgupta, International Council for Local Environmental ‘Discounting climate change,’ Journal of risk and Initiatives. Adopted in the context of the uncertainty, 2008, 37, pp. 141-169. Marrakech Process on Sustainable Production
Gian Luigi Albano is Head of Research at Consip, the National Central Purchasing Body (Italy) and Adjunct Professor of Economics at Libera Università Internazionale degli Studi Sociali (LUISS) Guido Carli (Italy). He obtained his Ph.D. in Economics from Université catholique de Louvain (Belgium) and a B.A. (Hons) from Università Bocconi (Italy).
He is the co-author of The law and economics of framework agreements – designing flexible solutions for public procurement, Cambridge University Press, 2016. He is an expert on public procurement for the European Commission, the Inter-American Development Bank, the Organisation for Economic Co-operation and Development, the World Bank and the United Nations. 18 High impact procurement
Choosing the right colour condom: Green!
By Eric Dupont, UNFPA
he Sustainable Development In 2016, UNFPA procured more than response to the long- and short-term T Goals (SDGs) are ambitious, 420 million male latex condoms that environmental goals of UNFPA. UNFPA and they will require enormous have efficiently protected people then monitored the implementation of efforts across countries, continents, against sexually transmitted infections suppliers’ action plans and suggested industries and disciplines – but they and HIV/AIDS. Yet despite the profound improvements. are achievable. UNFPA, United Nations social benefits of the work of UNFPA, Population Fund is working with male condoms remained the least Following the implementation of the governments, partners and other UN environmentally sustainable product UNFPA Green Procurement Strategy, agencies to directly tackle many of due to the quantities of water, all long-term agreement suppliers of these goals – in particular SDG 3 (good chemicals and raw material required male latex condoms are now ISO 14000 health and well-being), SDG 4 (quality for their production. Condoms also certified.1 As a result, UNFPA has seen a education) and SDG 5 (gender equality). have a large environmental footprint reduction in the environmental impact due to the type and amount of of these products, including monthly In 2016, for example, contraceptives resources used for packaging savings of: supplied by UNFPA reached 20.9 and shipping. million people, helping prevent an • 7.8 metric tonnes of carbon dioxide estimated 11.7 million unintended The high environmental impact of • 11.8 million kilograms of pregnancies, nearly 3.7 million unsafe condoms, which are leverage products solid waste abortions and an estimated 29,000 (high relative spend and low supply • 587,598 cubic metres of water used maternal deaths. risk) for UNFPA, led the organization • 995,397 cubic metres of to explore the possibility of procuring water treated UNFPA is proud to have enabled a more sustainable product via a four- • 1,301,554 kilowatt hours millions of women to exercise their point strategy with measurable goals of electricity fundamental human right to decide, to reduce: free of coercion, discrimination and The success of this initiative has violence, when or how often to have • Carbon dioxide emissions demonstrated that market-shaping children – and to have helped to nearly • Water consumption activities are not only limited to double modern contraceptive use • Hazardous chemical impacts bringing prices down. Other important worldwide from 36 percent in 1970 • Raw material consumption considerations can be taken into to 64 percent in 2016. account. UNFPA continues to monitor In implementing the strategy, the results regularly UNFPA is also committed to UNFPA communicated with donors, contributing to the achievement governments and beneficiaries, and of SDG 12 (responsible consumption engaged suppliers on a collaborative and production). Since UNFPA launched basis, focusing on long-term benefits 1 ISO 14000 certifications refers to its Green Procurement Strategy in and clearly communicating the what, environmental management 2013, one of the first objectives was why and when of the plan. to collaborate with its suppliers to reduce the environmental impact Suppliers were asked to define of the UNFPA supply chain. an action plan in their tenders in High impact procurement 19
High quality condoms are particularly important for guarding against unintended pregnancies and life-threatening sexually transmitted infections. ©UNFPA
Eric Dupont joined the United Nations in January 1993 and has been the Chief of the UNFPA Procurement Services Branch since November 2010. He has more than 25 years of experience in procurement and supply chain, both at UNFPA headquarters and in the field. Prior to joining UNFPA, he worked with UNOPS, UNICEF and for the European Union in Niger as a project manager on a water dam construction project. He is the current Chair of the UN High Level Commission on Management- Procurement Network. 20 High impact procurement
Enabling carbon reduction through health procurement
By Jerome Baddley, Simon Briggs and Eleni Pasdeki-Clewer, the Sustainable Development Unit for the National Health Service, public health and social care system
he United Kingdom’s (UK) employed by the National Health In 2009, SDU published the NHS T Climate Change Act (2008)1 forms Service (NHS) or other public sector Carbon Reduction Strategy for the backbone of the Government’s health and social care6 organizations England.10 This strategy articulated plan to reduce current and future – more if we include private and third a commitment by the NHS to be a carbon emissions. The Act was the first sector7 staff that deliver NHS services. leading sustainable and low carbon national legislation worldwide to set The health and social care system organization, fully supporting the targets and create policy instruments is a significant consumer of goods carbon reduction objectives set by to support carbon reduction. The aim and services. It also faces increasing the Climate Change Act. The strategy is to reduce greenhouse gas (GHG) financial pressures due to population identified key areas for action, emissions by at least 80 percent by growth, increasing life expectancy and including procurement, with specific 2050 (against a 1990 baseline). efficiency targets. recommendations for improvement and anticipated corresponding The UK’s carbon footprint peaked at The global impacts of GHG emissions carbon benefits. Bespoke tools and nearly 1.3 million tonnes of carbon are shared by all of us. Recent analysis guidance were developed to support dioxide equivalents (CO2e) in 2007. into the effects of travel on the local implementation. Procuring for Carbon In 2013, it was 19 percent lower than environment and corresponding Reduction11 (P4CR) provided a tailored this.2 While every sector is expected health impacts further connected maturity matrix12 to drive policy to play their part, the public sector is local travel decisions and people’s changes across organizations, as well looked upon to take a leading role. health and health quality.8 Delivering as tools13 to prioritize expenditures This is not only in terms of managing high-quality healthcare is incompatible based on carbon impacts and to track its own operations, but also in its wider with unsustainable practices that may progress with implementation.14 reach. With a population of over 65 result in ill health. million,3 nearly 5.5 million4 of whom Developing the evidence base are public sector workers,5 the public Establishing the policy sector’s direct influencing potential, In 2012, the world’s first combined framework and its associated ripple effect, is health, public health and social care quite significant. To manage these impacts in 2008, carbon footprint for a national health a publicly funded national unit – the system was published. The analysis Sustainable Development Unit (SDU) – estimated the health and social care Why health procurement was established to work on behalf of, system carbon footprint to be 32 matters 15 and in support of, the health and social million tonnes of CO2e. Breaking Over 1.8 million people in the UK are care system in England.9 down that figure suggested that there High impact procurement 21
NHS, Public health and social care carbon footprint breakdown of procurement 2015
Building energy 4.9
Travel 3.5 Commissioned health services from outside system 3.1 Pharmaceuticals excluding Meter Dose Inhalers) 2.8
Business services 2.8
Medical instruments/e uipment 2.6