Realising Aspirations

Or, Using Value for Money to Make the Public Sector More Sustainable

A report from the Accounting for Sustainability Group convened by HRH The Prince of Wales

Contents

FOREWORD BY HRH THE PRINCE OF WALES 2

PART 1 To whom is this paper addressed and why? 4

PART 2 What is sustainability, do people want it and how can the 7 Public Sector make a difference?

PART 3 The barriers – and how to overcome them 15

PART 4 Suggestions for action 31

PART 5 Links and further information 34 2 Realising Aspirations Realising Aspirations 3 1 To whom is this paper addressed, and why?  Government initiatives to increase the efficiency of the Public Sector can go hand in hand with those to enhance sustainability. Public Sector business managers and advocates of sustainable development therefore have common ground.

 Accountants have an important role to play in helping to demonstrate this link.

 The focus of this paper is on public procurement, as this is the area in which this link is most clearly understood.

4 Realising Aspirations This paper has been written for leading to greater costs. Meanwhile, Following the Gershon Review, public three groups: sustainability specialists often believe, bodies have to deliver efficiency especially when considering the savings of over £20 billion by 2008.  Public Sector managers – at potential effects of climate change, Can they really achieve this and all levels, from departments that sustainability ought to be the increase their sustainable purchasing? through to schools and hospitals; Public Sector's most important  sustainability specialists – both priority, and that it cannot afford to The answer is yes, because efficiency those working within the Public think differently. and sustainability can go hand in Sector, and from independent hand. In fact, the Gershon Review sustainability groups; The Government has clearly signalled offers increased opportunities to the extent of its commitment to mainstream sustainable procurement,  accountants and auditors sustainability in its recent Sustainable given its potential to achieve greater – those working in or with Development Strategy. In his efficiency. Hard-pressed business the Public Sector, and those Foreword, the Prime Minister writes managers can welcome advocates developing methodologies for that the "Government will lead by of sustainability as their natural allies, taking sustainability into account. example…. We want to ensure that while sustainability specialists can 1 Though not mutually exclusive, the we spend your money sustainably". progress their objectives by using the first two groups do not often overlap. language of value for money. At the same time, the efficiency Public Sector managers already have targets announced by the Accountants also have a central role to a host of targets and agendas to meet Government in the wake of Sir Peter play not only in understanding, – which they must deliver within Gershon's Efficiency Review in 2004 demonstrating and achieving the budget, while demonstrating value for might seem to risk increasing the efficiencies that can be gained from money. Sustainability may be one of a potential divergence of priorities sustainable practices, but also in the number of different policy objectives between full-time sustainability wider field of sustainability in general. they have to take into account, and specialists and those who see it as To be successful sustainability depends one they may see as inherently more tangential to their everyday job. on the generation, analysis, reporting

1 Securing the Future – The UK Government Sustainable Development Strategy, March 2005, CM6467, http://www.sustainable-development.gov.uk/publications/uk- strategy/uk-strategy-2005.htm

Realising Aspirations 5 and assurance of robust and accurate One particular area, however, where What is in this paper? information (both financial and non- there is already clear and practical The paper is focused on Public Sector financial). It is vital that the scope for progress is procurement. procurement – on making it more accountancy profession understands When it comes to purchasing goods sustainable, and saving money at the the concepts of sustainability, and the and services, organisations have clear same time. It has three main sections: challenges and opportunities it poses calculations to make, based on a set of in achieving long-term value for public factors which should and can take into  What is sustainability, do people money, and provides the systems and account aspects which go beyond want it and how can the Public information required. fitness for purpose and capital and Sector make a difference? running costs. For example, in  The barriers – and how to weighing-up which vehicles to The focus of this paper is overcome them. sustainable procurement purchase, an organisation should not only examine factors such as initial  Suggestions for action. As discussed in Section 3 of this cost, maintenance costs, fuel costs and paper, putting monetary values on fitness for purpose, but also the impact wider, longer term and less tangible of both carbon emissions and travel consequences of decisions is patterns on the local economy. In this notoriously difficult, and as a result way, procurement activities should sustainable accounting is a nascent naturally be focusing organisations on field, with many different approaches the wider and longer term costs and and much potential for future benefits of their decisions. development.

6 Realising Aspirations What is sustainability, do people want it and 2 how can the Public Sector make a difference?  Sustainability means taking into account the wider and longer term consequences of decisions.

 However, there are considerable practical difficulties.

 The public is keen that there should be greater attention to sustainability issues and believes that it is principally the Government's responsibility.

 Public sector procurement has a significant role to play in increasing the sustainability of the UK economy and fulfilling this responsibility.

Realising Aspirations 7 What is sustainability? Sustainability is, consequently, a 'negative externalities'. The problem concept with an enormously wide often is that costs which threaten Sustainability means thinking about application, and with, in principle, sustainability are either not known the impact of economic activities enormous appeal. If activities are or not given full consideration. When – things bought, investments made, unsustainable then the world will the costs become apparent, the waste thrown away, pollution be left a poorer place for future activity may collapse or be seen to generated – on the natural and generations. Why, then, is there so be too costly to continue. History has human resources on which they much unsustainable activity? provided many examples where an ultimately depend. activity thought to be sustainable Every day, thousands, perhaps even was, in fact, unsustainable. A good It means ensuring that the productive millions, of decisions are taken which example is that of over-fishing. The capacity of these resources is not will affect the lives of people who Canadian cod fisheries in the North irreparably damaged, or that they are had no direct role in taking those Atlantic used to be among the richest not depleted faster than they can be decisions. The decisions range from in the world, but as a result of a replenished. To put it another way, issues such as the building of a new short-term approach stocks collapsed an activity is unsustainable if, when airport or a new hospital, to a change in the 1990s, and the industries and continued, it would undermine and in the opening hours of a library. Even communities which once profited by eventually exhaust the basis for its when taken for very good reasons, them have suffered accordingly. own existence. In practical terms, these decisions will usually have this means taking into account the unintended or hidden effects. The case of over-fishing clearly consequences of economic decisions demonstrates how economic activities on the natural environment, on People can take decisions without have an impact on the environment, regional economic development, realising that they themselves will which can have a corresponding and on the social conditions in which later pay a high cost. In other cases impact back on the economy, and people live and work. the costs will fall on people who which in turn can have an impact on were not part of the decision process. local communities. Economists call these latter costs

8 Realising Aspirations That is to say, an economic decision of toxic gases, which sometimes led collection rate for fares would have – for example, to buy the cheapest to fatal results. CFCs are inert and been very appealing to the company goods rather than those from local non-toxic, and so were considered accountants. However, this policy suppliers – will often have major an immense improvement on what considerably slowed buses down, knock-on effects on the local preceded them. In these respects they especially during the rush hour, with economy and community. What may were. Now it is known that they also the buses stationary at each stop seem to make economic sense in have very serious hidden costs, but it while passengers queued to pay. But the short term to those making the has taken decades to discover this. not only were the buses stationary, decision, may in the long run end up so very often were the cars behind costing much more to society as a Activities which are so unsustainable them, unable to overtake on crowded whole. Sustainability is all about taking that they cause themselves to collapse city streets. This increased congestion, these knock-on effects into account at in the short term are, thankfully, pollution and irritation, and a decision, the time the initial decision is made. relatively rare. More common is a perfectly sensible in business terms, situation where an activity is carried had much wider negative social This is not to accuse decision makers out in the way it is only because costs. These costs did not fall to the of recklessness. Knowledge is hard to the real costs – known or unknown bus companies, but were more than acquire and decisions always have to - have not been taken into account in apparent to everyone else. be made on the basis of incomplete assessing its desirability or feasibility. information. Consider the issue of To take another example, some years The first step towards accounting CFCs, now known to damage the ago a number of bus companies for sustainability is to attempt to ozone layer. However, when CFCs began to phase out bus-conductors, come to an understanding of all the were introduced in the late 1920s replacing them with driver-only buses, potential costs and benefits of an it was considered not only a major collecting fares as people boarded activity and its alternatives. Once this scientific breakthrough but an the bus. The business case for this was is done a fully informed decision can advance in sustainability. Previously, no doubt very strong. The saving of be made. However it is one thing to cooling systems had used a range the conductors' salary and a higher have the information; it is another to

Realising Aspirations 9 be able to afford to act on it. While The sustainable option can be the saves money across the Public Sector. there may be a growing consensus least expensive or cost neutral even This includes subsidising public that sustainability is an enlightened in the short term, for example when transport, thus enabling key workers goal, there is also a common belief buying recycled paper or toner to get to their workplaces, reducing that it costs more money. Choosing cartridges. In other instances it may congestion, and improving air quality. organic food, ordering from small local cost more in the short term, but Another is where the Government suppliers, buying renewable energy: at least the organisation incurring buys renewable energy, thereby to many people, not least Public the initially higher cost receives mitigating global warming and, as a Sector managers, they are often seen the cost saving in the longer term. result, preserving the environmental as luxury choices, more to do with Buying energy efficient buildings and basis of economic and social life. lifestyle preferences and less to do equipment is an example of this. with business decisions. Of course, within the Public Sector A more difficult example is when the there is always only a limited amount Such views are understandable, in that benefits of acting in a sustainable of money available to spend at any sustainability can involve higher initial manner fall not to the organisation one time, just as is there is within costs. But this is not the end of the meeting the costs but across the the wider economy. This means that, story. Sustainability is about avoiding Public Sector or society more other than when buying sustainably short-term behaviour that can lead generally. Enabling sustainable yields an instant saving or is no to costly consequences in the future, decision making under these more expensive in the short term, and therefore has value for money circumstances is a serious challenge. it is obviously impossible for public at its core. In other words the most Yet governments have a duty to act bodies to pursue all the potential sustainable option should also be the in the general public interest and opportunities for sustainable option with the lowest costs in the governments themselves have special purchasing available to them. Each long term. reasons to act in a sustainable way. organisation must necessarily One example is where an individual prioritise among a number of choices, public body bears the costs, but giving proper weight to the potential

10 Realising Aspirations for long term savings and wider organisation to question whether How can the Public benefits for each option. But this also it really needs everything that it is Sector make a means that public bodies should planning to purchase. Choosing not difference? consider in some cases whether they to buy something, or to buy less need to make a certain purchase at all. of it, may sometimes be the most The Public Sector has both the Being conscious of the environmental sustainable option – and one which duty and the opportunity to impacts of its activities may lead an yields an instant saving. make a difference. As the MORI survey indicates, the public As the Government's new Do people want more believes that the Government has Sustainable Development Strategy sustainability? primary responsibility for tackling underlines, sustainability can make environmental issues. solid business sense. In the private The answer is a clear "yes". As part of sector, for instance, "Some 85 per this review, the National Audit Office Sustainable thinking ought to cent of studies on the subject show engaged MORI in early 2005 to survey come naturally to the Public Sector, a positive correlation between the public's attitudes to sustainability. since it is Government that has the environmental governance… and The full report of this survey is available overall job of representing the company financial performance. on the internet: www.princeofwales. interests of communities. It is also Managing sustainability gov.uk/speeches/asg.html. It the taxpayer that tends to pick up performance can improve risk shows that 70 per cent of people are the bill when local environments are management, identify cost savings, concerned about non-sustainable spoilt, local economies decline, and improve reputation and aid activities, with 85 per cent agreeing local communities are beset with communication with shareholders that we "cannot afford not to look after social problems. and other stakeholders." the environment". Securing the Future - UK Sustainable Development Strategy, CM6467, March 2005

Realising Aspirations 11 When it comes to acting sustainably, the role of Government is not MORI survey on attitudes to sustainability confined to regulating the economic For this pamphlet the National Audit Office  One of the themes covered by the activities of private companies and engaged MORI to survey the public's attitudes survey was the question as to who individuals, or responding to their to sustainability – including opinions as has responsibility for tackling social and environmental impacts. to what actions Government ought to be environmental issues. This showed that carrying out. The full report of this survey is people look to the Public Sector, Government itself is a major economic available on the internet: www.princeofwales. in particular central government, to player. Public Sector procurement gov.uk/speeches/asg.html. take a lead: – the purchasing of goods and services by all types of Government Q From this card, which one do you think should be mainly body – has a significant role to play responsible for tackling environmental issues? in increasing the sustainability of the And, which others, if any? entire economy. First/other priorities % The Public Sector combined has First priority % 82 an enormous purchasing power. The government 50 Altogether the UK Government The general public 24 75 buys £13 billion worth of goods and Local councils 20 72 services each year, with this figure Businesses 3 37 rising to £125 billion when the wider Schools 2 18 public sector is taken into account.2 Government influence through its Charities >1/2 8 spending is arguably on a par with its None 1 1 influence through policies, taxation, and legislation. Base: All respondents (2,017), 17-21 February 2005

2 Securing the Future – The UK Government Sustainable Development Strategy.

12 Realising Aspirations To take one example, central civil Government buys 21,000 tonnes of copier paper each year. A Government- Over four in five (82%) state that the Government  The strength of this goodwill towards should be responsible for tackling environmental acting sustainably might contrast with the wide commitment to buy recycled issues, with 50% stating it should be mainly widespread persistence of unsustainable paper would save 350,000 trees, responsible. In addition, seven in ten (72%) state behaviour. But it also suggests that, where enough energy to heat 10,000 average that local councils should take responsibility. it is made easy for people to act sustainably, A similar proportion said that the general public they will naturally tend to do so. homes, and 300 million gallons of should take responsibility. In contrast, less than water every year. Waste would also be Conclusion four in ten (37%) state that business should be greatly reduced – an existing contract responsible, with only 3% believing that the  If the general public care strongly about of the Department for Transport, for private sector should be mainly responsible. protecting the environment, this will be reflected in the attitudes of Public instance, has already saved 11,500  On the question of what should be the Sector staff. Senior managers ought tonnes from going to landfill.3 priorities for the Government, the survey to acknowledge this – and use it as an identifies providing financial support to opportunity to make their organisations activities that can help the environment Public Sector procurement is, then, a more sustainable. as people's first priority, followed very special case. by regulation. A significant minority  Government ought to concentrate on also prioritise: paying for information making it easy to choose the sustainable  The public expects Government campaigns; leading by example through option – making both the processes simple to take a lead, and, leading by procurement of sustainable goods and and the costs competitive. example, it can be extremely services; and using taxation as a tool.  All things being equal, the public prefer to effective.  Overall, the survey highlights a consistent be environmentally friendly: thus there are message that the public care strongly competitive advantages for all sustainable  Public Sector procurement about protecting the environment – for products which can compete on costs. makes up a significant part of the example, three times as many people said Conclusions are the work of the Accounting UK economy. the environment was personally important for Sustainability group, not MORI. to them, compared to those who said the  Procurement is the area where same for economic growth. sustainability is currently most practically integrated into public policy.

3 OGC Buying Solutions.

Realising Aspirations 13 Public sector procurement has the The new UK Sustainable Development potential to influence the whole Strategy acknowledges the role to be economy in a more sustainable played by Public Sector procurement. direction. It can do this in three ways. In his Foreword, the Prime Minister writes that the "Government will lead  By sending a clear message by example…. We want to ensure that by buying sustainably – in we spend your money sustainably". other words, practising what Elsewhere in the Strategy, the it preaches. Government announces its new goal  By the direct effects of its of being recognised as amongst the purchasing decisions in leaders in sustainable procurement themselves – on the across EU member states by 2009. environment, regional The Strategy further announces development, and social a new, business-led Sustainable conditions. Procurement Task Force, to develop

 By stimulating the market a national action plan for sustainable for sustainable products and procurement across the Public Sector 4 services, making these more by April 2006. economic to produce, and hence increasing the general demand for them.

4 Securing the Future – The UK Government Sustainable Development Strategy.

14 Realising Aspirations 3 The barriers – and how to overcome them  Why isn't public procurement more sustainable?

 Government efforts to increase sustainable procurement continue to be hampered by a number of common barriers at a working level.

 These can be divided into attitudinal and cultural barriers, organisational barriers and economic barriers.

 A number of case examples are presented here, to show how these barriers have been tackled in practice.

Realising Aspirations 15 In recent years the Public Sector has sustainability or whole life costs.6 There are, needless to say, no simple made great strides in highlighting While the Government's Framework answers to these questions, with a the importance of sustainable for Sustainable Consumption and number of obstacles to the practical procurement. The principle that Production reported in 2003 that: implementation of the Government's environmental, regional, and social aspirations. issues should be taken into account "The scope for using government in procurement decision-making, purchasing actively to help None of these barriers is as part of the balance of costs and deliver sustainable development insurmountable, and much is benefits, is increasingly reflected in objectives is greatly under-utilised already being done to find innovative official guidance, such as The National at present. A number of specific ways of overcoming them. But Procurement Strategy for Local green procurement commitments very often these are local or piecemeal Government and a joint publication have been made by the initiatives, without the lessons of their by the Office of Government Government in recent years – on success being widely learned and Commerce and the National Audit paper, timber, renewable electricity implemented. It is perhaps this lack Office which states that "Value for and alternatively fuelled vehicles of information which is the greatest money is not about achieving the – but a much more ambitious and barrier of them all, and which this lowest initial price: it is defined as the coordinated approach is needed." 7 paper seeks to address. Accordingly, optimum combination of whole life this section will not just dwell on the Why is this? If sustainable procurement costs and quality."5 Yet progress in problems but also give examples, in is focused on achieving the greatest turning this guidance into reality is the boxes accompanying the text, of overall value for money, why isn't it still patchy. The Byatt Report (2001) organisations which have pioneered being implemented as a matter of on local government procurement, solutions. (Further details of these course? Why is it too often dismissed for example, found that too many and other case examples are on the as a fad; or acknowledged as desirable, decisions were still being taken internet at www.princeofwales.gov. but rejected as costing too much? on the basis of the lowest price uk/speeches/asg.html.) tender, without taking account of

5 Getting Value for Money from Procurement (joint publication by the NAO and OGC), http://www.nao.org.uk/guidance/vfmprocurementguide.pdf 6 Delivering Better Services for Citizens – A review of local government procurement, June 2001, http://www.odpm.gov.uk/stellent/groups/odpm_localgov/documents/ page/odpm_locgov_605089.hcsp 7 Changing Patterns - UK Government Framework for Sustainable Consumption and Production, September 2003, http://www.defra.gov.uk/environment/business/scp/ changing-patterns.pdf

16 Realising Aspirations Among other research, the following Brundtland Commission, only dates Barrier 1: Ignorance identification of barriers and solutions from 1987 ("Sustainable development It was evident that the term draws on three sets of interviews is development that meets the needs "sustainability" had limited impact carried out in late 2004. One set of of the present without compromising on many of those we spoke to in our interviews was carried out by David the needs of future generations to interviews, and that there would be Aeron-Thomas (Forum for the Future), meet their own needs"). value in giving extra thought as to and Mike Peirce and Maya Forstater how best to explain the concept in a Because of this relative novelty, there (University of Cambridge Programme language that is readily understood is plenty of scope for staff at all levels for Industry), with policy-makers and by all as being relevant to their core to be uninterested in sustainability, sustainability experts; a second by work. But even those who are aware sceptical of its rigour as a practical George Martin (Building Research of sustainability may lack basic concept, or unsure of how they should Establishment) with public officials and and important knowledge about apply it in their work. This is in part private sector experts engaged in the issues, such as global warming a reflection of a lack of clarity as to construction projects; and a third by and other environmental factors, what it means. As one sustainability Ruth Morgan with UK business leaders. that make sustainability especially website reports, "There may be as Views reported are not necessarily important today. those of the interviewers, or their many definitions of sustainability and parent organisations. sustainable development as there are The Government, however, is offering 8 groups trying to define it." Meanwhile, an increasing amount of information Attitudinal and a DEFRA survey found that while and guidance to help address this 28 per cent of people claimed Cultural Barriers shortfall in knowledge. For instance, awareness of the term "sustainable the Office of Government Commerce The term sustainability is of quite development", 20 per cent of them has recently produced a guide 9 recent origin. The most quoted could not explain what it meant. to sustainable construction that definition of what "sustainable breaks the concept of sustainability development" means, coined by the down into a series of practical

8 http://www.sustainablemeasures.com/Sustainability/Definitions.html 9 Progress: Sustainable Development Commission Critique 2004, http://www.sd-commission.org.uk/news/resource_download_search.php?attach_id=A8WN800-VH0A9R4- BA0JCXB-HTVF81N

Realising Aspirations 17 considerations and offers a valuable source of joined up information Overcoming Ignorance – St Peter's Primary School (UK) on relevant targets, policies, and At St Peter's primary school in Nottingham, the take up of school dinners was variable, further sources of guidance.10 and the meals which the children ate were often unhealthy. Jeanette Orrey, the catering Meanwhile, the Government's new manager, decided to take action to improve matters, despite having no prior knowledge or training to assist her in changing her suppliers. What counted in her case was the Sustainable Development Strategy commitment to making a difference. promises a new information service, As she explains: "I literally got in the car and went round to the farm shops and asked if "Environment Direct", to "fill an they were interested." She found it was possible to agree a competitive price for meat information gap for both individual because she could offer a 38-week contract. "The farmers already had a market for the more consumers and procurement expensive cuts, so this was a good way for them to sell off their cheaper meat. It was worth the risk for them since it was a long-term contract." She then took the same approach with professionals, and expose the whole milk, eggs, and vegetables. As with the meat suppliers, the other suppliers were able to supply chain to information about the supply the school at a competitive price in exchange for the long-term contract. performance of goods and services."11 Since starting this transformation in the food at St Peter's, school meal uptake has increased by 40 per cent. In addition to reducing costs and packaging waste, increased Barrier 2: Suspicion meal uptake has also generated employment and improved staff morale. As Jeanette Orrey The next stage after ignorance about explains: "This kind of work also gave self-respect back to those working in the kitchen; people knew they were actually achieving something." sustainability is for staff at all levels to be quite aware of it, even to feel under some pressure to incorporate it into environmentalists, regional politicians, the latest buzzword to sweep through their work, but not to be convinced of organic farmers, diversity groups, etc. the Public Sector only to disappear its merits – to treat it with suspicion, – for special interests. The suspicion again after a few years. in fact. is that such interests and aspirations might be thoroughly admirable, but The pervasiveness of this resistance Scepticism in such cases often focuses not necessarily justifiable as business to taking sustainability seriously was on the suspicion that sustainability is cases. In addition, staff may treat referred to by one of our interviewees: promoted by special interests – sustainability as something of a fad, "Spending money now to save overall

10 Achieving Excellence in Construction Procurement Guide 11: Sustainability, http://www.ogc.gov.uk/sdtoolkit/reference/achieving/AE11.pdf 11 Securing the Future - UK Sustainable Development Strategy.

18 Realising Aspirations in the future still seems to be a hard felt that an excess of guidance on  More training and personal concept to get over for something as sustainability added to this sense of support (e.g. provided by straightforward as energy efficiency, complexity. For example, as of 2003 departmental or regional where the economic argument has the Office of Government Commerce Centres of Excellence) rather been proved time and time again!" had produced over 2,300 pages of than written guidance, including advice and guidance in 170 different networks of peer-to-peer The overall view that sustainability documents, which included a growing support for practitioners. is something of a superficial add-on, body of guidance on sustainability  More practical examples of rather than a core concern of public and procurement.12 best practice. In particular, bodies, can be reinforced by the construction interviewees lack of a consistent message from Although interviewees did not stress highlighted the shortage of senior levels within the Public Sector. the quality of the current guidelines robust and fully transparent case For example, Sir Peter Gershon's as a key obstacle to progress, they did studies illustrating Whole Life Efficiency Review, published by the suggest ways in which they could be Costing (WLC). Linked to this Treasury alongside the 2004 Spending improved: was the request for publication Review, was not asked to address  Less focus on advocating of WLC calculations; currently sustainability. why sustainability should be these are considered to be Barrier 3: Confusion integrated into procurement commercial in confidence. and more on how. Individuals may be aware of On the theme of the need for more sustainability and willing to  More tailored guidance for training, the Government's new implement it, but too often they are different users: budget holders, Sustainable Development Strategy still confused as to what exactly they procurement personnel, senior promises a number of measures to should be doing. To an extent this is management, chief executives increase skills in the public sector. because of the inherent complexities and so forth. These include the promise to place involved. But many interviewees also sustainable development in the

12 Peter Gershon at Government Procurement Conference, 2003, http://www.ogc.gov.uk/index.asp?docid=1001389

Realising Aspirations 19 Overcoming Ignorance, Suspicion and Confusion – The Overcoming Suspicion and Confusion – Hamilton City Federal Buildings Initiative (Canada) Council (New Zealand) Under the Federal Buildings Initiative (FBI), specialist Energy Hamilton City Council has successfully established a scheme for Service Companies (ESCos) carry out energy efficient retrofits of recycling printer toner cartridges, which has reduced both waste Government buildings, reducing both utility bills and greenhouse and costs. Not only are the recycled cartridges 13 per cent gas emissions. cheaper, the Council has also negotiated a financial bonus scheme with the supplier, based on performance targets for recycling. One of the features of this Canadian programme is its emphasis on staff training. FBI projects include a skills audit to identify The Council has had to overcome two main barriers. The first was staff training needs, which are met using established links with staff perception that the quality of refilled cartridges would be community colleges. FBI head John Brennan estimates that such inferior. This was largely overcome by working with a supplier training delivers a 10 per cent increment to identified savings. that staff perceived as reputable, and through experience of the recycled cartridges in operation. In addition, awareness training helps to win the hearts and minds of building-users to the projects' aims. One participating energy Another key barrier was a decentralised purchasing system service provider is Centrica's Direct Energy. As Jeff Weir, of Direct whereby staff from the Council's 22 different units were able Energy, puts it: "If you have 25,000 people on a university campus, to make purchases. This was largely overcome by making it and you can motivate 10 per cent to be looking out for energy simple to buy recycled, and hard to buy new by reducing the waste, you've got 2,500 people going about their ordinary day opportunities for staff to make ad-hoc purchases, and developing being extra eyes and ears for the project – and they can take this an intranet ordering system which automatically replaced staff awareness home with them to use in their private lives. You get orders for original cartridges with recycled cartridges. this by showing people how their organisation impacts on the In addition, the Council sought to win over staff through the environment." staff intranet notice board and articles in staff publications, and through pointing to the cheaper cost of buying recycled.

20 Realising Aspirations mainstream of the Civil Service decision-making is widely devolved the annual Report on Sustainable through the Professional Skills In within organisations, and managers Development in Government, which Government programme and the often lack information on exactly who is part of the National Framework curriculum of the National School of is spending how much on what. In for Sustainable Development on Government (to be launched in the addition, and as the NAO's Improving the Government Estate. But this first half of 2005), and the Procurement report (2004)13 found, only covers central government establishment of an Academy for in many cases procurement decisions spending, missing out the NHS, Sustainable Communities and a are still made without the advice or schools, and local government, "How To" programme to promote involvement of procurement experts. amounting to less than a quarter of the take up and use of new and overall public spending, and has been existing powers to transform the These problems are not confined to criticised by the House of Commons local environment. the UK Public Sector. The US Environmental Audit Committee Government Accountability Office, for for inadequate and inconsistent Barrier 4: Lack of information example, reported in 2002 that it data. Some improvement, however, and accountability "could not determine the extent to is to be expected following the While there may be a thicket which the large procuring agencies announcement, in the new UK of guidance on sustainable purchase recycled products because Sustainable Development Strategy, procurement, the lack of the right most lack reliable and complete data that the Sustainable Development kind of information is also a problem. on such purchases…[T]heir Commission will in future report While many public bodies subscribe procurement systems are generally not on departments and "act as the 14 to the principles of sustainable designed to track these purchases". independent "watchdog" of development, they lack the tools to government progress." The Monitoring of progress towards integrate this aspiration within their more sustainable procurement has internal structures for accounting, Related to this lack of information is also been limited. The main method performance targets, and staff a lack of accountability. One major of monitoring to-date has been incentives. For example, procurement example is the absence of targets

13 Improving Procurement, HC361-1, March 2004, http://www.nao.org.uk/publications/nao_reports/03-04/0304361-i.pdf 14 Federal Procurement – Government Agencies' Purchases of Recycled Content Products (GAO-02-928T), http://www.gao.gov/new.items/d02928t.pdf

Realising Aspirations 21 for each Government department fleets, the proportion of vehicles procurement. Similarly, most of the to reduce its carbon emissions, even running on alternative fuels ranges construction interviewees suggested though the Government has set itself from 22 per cent to less than 1 per cent. that the biggest single barrier was the one overall target, and the nation as a inertia of those involved in the whole another. More generally, a lack Organisational Barriers industry, especially those who may of performance targets specifically not see themselves as being directly related to sustainability means that Even where staff are familiar with involved, for example, clients, progress within the Public Sector is the principles of sustainability, investors, and bankers. left to the chance that individuals will aware of its potential to save money, be sufficiently highly motivated to and committed to incorporating it The emergence of more champions achieve it; however, very often "if it into their organisation's business throughout the Public Sector isn't measured it doesn't happen". decisions, there may still be recurring would help to remedy the cultural organisational constraints that stand and attitudinal barriers referred to The effects of this are reflected in in their way. above, signalling that sustainability is the variable performance of different important, thereby "getting it on an departments in meeting the targets Barrier 5: Lack of leadership organisation's radar"; rewarding those of the Framework for Sustainable There are, for example, too few who take it seriously, thus breaking Development on the Government champions to help spread the down suspicion as a practical barrier; Estate.15 For example, the proportion message and take action on and giving a clear lead for people to of recycled paper bought by sustainability within their follow, thereby reducing confusion. departments ranges from 100 per cent organisations. At a recent workshop of to 0 per cent; the proportion of energy sustainability experts, held by the purchased from renewable sources Sustainable Development ranges from over 90 per cent to less Commission (SDC) and HM Treasury, than 10 per cent; and, amongst the lack of leadership was the most three departments with the largest frequently identified barrier to achieving sustainable public

15 Sustainable Development in Government – second annual report - 2003, http://www.sustainable-development.gov.uk/publications/report2003/foreword.htm

22 Realising Aspirations Demonstrating Leadership – Alameda County (US) Demonstrating Leadership – British Telecom (UK) In 1990 residents of Alameda County, California, passed a Measure requiring County government offices to reduce material going to landfill by 75 per cent by 2010, British Telecom is a company with enormous with a specific requirement to reduce paper consumption. In response, County purchasing power, and a commitment to officials not only demonstrated leadership but acted to encourage leadership at all procurement practice which is alert to the levels by adopting a train-the-trainers approach. Liaison officers in every team were long-term potential of sustainable solutions. given central training on ways to reduce paper use, before training their own teams However, when BT sought to reduce the impact – backed up by a short video and leaflet. of their energy use they found that they could not find enough willing green energy suppliers. Numerous individual staff members used their initiative to implement the policy. For example, one woman in the tax department reformatted a property tax form, Working with Forum for the Future, the saving £14,300* and 2.5 tonnes of paper. company decided to take the initiative and alter its relationship with the green energy market. And the County has continued to drive forward progress. In 2004, for instance, it They did this by, first, gaining a detailed record conducted an audit of the 70 dumpsters at its offices, to find out how much of the of their energy use. They were then able to use waste it was throwing away could be recycled. Following this exercise, it was able to the certainty of their energy requirements to save over £50,000* per year from its waste collection bill. negotiate contracts which were both attractive * Rate of exchange as of 4 April 2005, $1 US = £0.53. to suppliers and competitively priced. After two years of presenting their requirements to the market, their levels of detailed understanding could be translated into key contract terms Demonstrating Leadership – Civil Service Diversity Champions Network (UK) and Key Performance Indicators. This resulted Diversity is in some ways analogous to sustainability as a policy agenda. The in a Green Energy Contract which provides Civil Service Diversity Champions Network gives an example of such an agenda for 98% of the company's domestic electricity being taken seriously at the highest levels, and the message this sends requirement to be met from environmentally throughout Government. sound sources. The Network comprises the respective Diversity Champions for all departments, The environmental benefit of this move is plus a number of other Government bodies. Chaired by Martin Narey, Chief a reduction in CO2 emissions of more than Executive of the National Offender Management Service, it also includes senior 325,000 tonnes a year or the "equivalent to the figures such as the Permanent Secretary of the Department for Transport, and the amount of carbon dioxide produced by almost Chief Executive of the Pension Service. 50,000 homes or more than 100,000 cars."

Realising Aspirations 23 Barrier 6: Supply chain size Economic Barriers cycles. This is to say, sustainability demands that people are guided by a Sustainable procurement depends on There are a number of economic longer term and wider perspective, changing the supply chain – indeed barriers which result from the whereas the existing financial modus this is one of the intended benefits mismatch of priorities when operandi can encourage a more short – but it is a major task. Such change sustainability is grafted onto the term, compartmentalised outlook. takes time, especially where procurers working practices of an organisation and suppliers have long established used to operating within its own networks, where contracts may be set annual budgeting and reporting for a number of years (or decades in the case of PFI, and other contracts which require the supplier to invest Overcoming Supply Chain problems – B&Q heavily in infrastructure), and where B&Q are a retailer whose complex international supply base gives them a myriad of issues Public Sector bodies act individually to deal with when making procurement decisions. In 1990 a journalist called B&Q head as merely single buyers in a national office wanting to find out how much tropical timber they sold. The company realised that or transnational market. Changing it could not easily answer this question, which could prompt the response that if they did not know then they probably did not care. the supply chain involves, not just the The potential cost to the business of failing to act in this area was perceived as far suppliers, but the suppliers' suppliers outweighing the immediate investment required to change its procurement practices. It and beyond. The £120 billion plus was apparent to decision-makers at B&Q that: "Customers expect us to ensure that their spent annually by the UK Public Sector expectations on timber sourcing are met, in the same way that they expect us to get it feeds into supply chains worth many right on quality issues". times this amount. Keen to find a solution to independent forest certification, the company formed a partnership with the WWF to work towards the establishment of an independent organisation. The Forest Stewardship Council (FSC) grew out of this project, and is now able to provide the type of independent assessment sought. About 75 per cent of B&Q products now carry FSC approval , with remaining suppliers either working towards this certification with B&Q's assistance, or operating under other certification schemes appropriate to specific timber types.

24 Realising Aspirations Barrier 7: Long term versus that only 37 per cent of Overcoming Supply Chain problems – Royal Cornwall Hospitals NHS Trust short term departments had made use of new flexibilities and secured Royal Cornwall Hospitals NHS Trust has made Though there are clear benefits in great efforts to use high quality, local food, making decisions based on a long Treasury approval to carry at a competitive cost. One example is ice term view, several factors contribute forward underspends. cream, which they sourced from a quality local company. Prices were initially too high, to public bodies often having a  Split between capital and because the company was used to supplying more short term outlook. Examples operational budgets nationally, in higher volumes. But the Trust include: Investment in capital works found an innovative solution: removing packaging reduced the cost of the ice cream  Annual budgeting and to improve energy efficiency to an affordable price, while decreasing the reporting cycles should lead to a reduction environmental impact that packaging waste in future years' operational causes. Because public bodies have been used to receiving their costs, but the split between In addition, the Trust found that the nutritional budgets discourages public content of the ice cream was higher than funds in yearly tranches, some of the nutritional supplements used. So with little flexibility to retain bodies from doing this; and the ice cream was not only enjoyable to eat unspent funds at the end of while in theory PFI makes but also an important source of nutrition for the integration of capital patients. This also meant that the Trust could year, an ingrained tendency and operational costs easier, reduce expenditure on future nutritional towards short term spending supplement costs, more than offsetting the continues. Even where difficulties still remain in investment in ice cream. This is without even departments are given the practice. taking into account: flexibility to act differently,  Four or five yearly  the benefits of improved patient morale and recovery times; many do not take up this electoral cycles opportunity. For instance, the  the benefits of reduced future hospital There are well-known, and admissions through reduced malnutrition; NAO's report on Managing widely acknowledged, Resources to Deliver Better  the benefits of sourcing locally. limitations to operating across Public Services (2003) found electoral cycles.

Realising Aspirations 25 Overcoming Short-termism – Princess Margaret Overcoming Short-termism – the Federal Buildings Initiative Hospital (UK) (Canada)

In a major project to renovate and increase in-patient The Canadian Federal Buildings Initiative (FBI) was established in 1991, capacity at Princess Margaret Hospital, Swindon, a number making it one of the most established programmes of its kind in the of innovations were used. These included using "super world. Under the FBI private Energy Service Companies (ESCos) carry insulation" – by doubling the amount of roof insulation, out energy and water efficient retrofits of Government properties, at an extra (once-off) cost of £24,000, developers Carillion while raising the upfront investment for this work themselves. ESCos estimate that the hospital's energy bills will be reduced by are repaid over a number of years from the resulting savings to the £250,000 over the next 27 years. building's utility bills, with the Government body keeping all the In addition, even the upfront expense was recouped by savings thereafter. FBI contracts ensure that ESCos guarantee net installing fewer radiators (not needed because of the savings to the contracting body. improved insulation), saving £26,000, thereby making a net The FBI method is a proven way of overcoming the split between initial saving of £2,000. operational and capital budgets. Under the FBI, Government bodies Not only did innovation and a focus on longer term costs are able to pay for capital renovations over the long term, out of the lead to better value for money, but these measures will also annual savings in their utility bills. cut the carbon dioxide emissions associated with this part of While programmes like this exist in other countries, the Canadian FBI the hospital's operation by 2,150 tonnes over 27 years. stands out, both for the support it gives to individual Government bodies and for its established record. Since its inception in 1991, it has addressed 35 per cent of all Canadian Government properties. Currently, there are 80 energy efficiency contracts in place, covering some 7,500 buildings. To date, this has resulted in £14.2 million* in annual savings, and reductions of approximately 200 kilotonnes of greenhouse gases. * Using the exchange rate as of 10 February 2005: $1 Canadian = £0.43.

26 Realising Aspirations Barrier 8: External benefits versus internal costs Overcoming Externalisation of Benefits – the Surplus Federal Real Property for Homelessness Initiative (Canada) In making a decision based on The Surplus Federal Real Property for Homelessness Initiative (SFRPHI, pronounced "Surfi") wider benefits, an organisation may is a key programme of Canada's National Homelessness Initiative. The programme buys also benefit directly itself; for example, suitable surplus properties or land from Government departments at market value, and when buying recycled products is transfers them at nominal cost to not-for-profit community organisations and provincial and municipal governments/agencies, to be used to alleviate and prevent homelessness. also cheaper, or buying from local farmers also results in better quality For government bodies to give away surplus properties or land to be turned into homelessness services and affordable housing may often be, not just an enlightened food. But on other occasions, an thing to do, but also value for money to the public sector as a whole – especially where it organisation might receive no direct improves the physical and mental wellbeing of the neediest individuals, thereby reducing benefits from such a decision and their call on a variety of public services. Often, however, while these gains would outweigh would bear the costs. the costs for the public sector as a whole, this would not be the case for the individual body with the property to dispose. Even in cases where the Public Sector SFRPHI's arrangements help to overcome this barrier by creating a central fund to buy surplus real properties from departments at full market rates. This enables the disposing as a whole would save money over department to create external benefits but not to suffer internal costs. Meanwhile the the long term, such decisions might programme that is incurring the costs is directly accruing benefits in terms of meeting not be taken if they do not meet the its given objectives. In this way government becomes joined up – essentially a "win-win" objectives of a particular organisation arrangement. As of 2003, 49 properties worth £4 million were approved for transfer to help with homelessness and affordable housing projects. Between 2003 and 2006 SFRPHI will within the Public Sector. Here, the assist in the transformation of surplus property worth a further £4 million. problem is the lack, not just of joined up policies, but of joined up budgets; or the lack of mechanisms allowing for specific budgetary transfers between public bodies.

Realising Aspirations 27 Some of the construction interviewees Sustainable accounting expressed frustration that this

problem was often exacerbated Sustainable accounting is a nascent field.  the reporting of initiatives which by a lack of joined up thinking; for Consequently, the phrase "sustainable demonstrate that an organisation is taking accounting" does not refer to a single, its social and environmental impacts into example, when public bodies allow commonly understood practice, but to account in making business and policy energy bills to be a "pass through a number of diverse approaches. As the decisions (which could be called cost" on a project. Where an NHS Association of Chartered Certified Accountants "environmental / social / sustainable (ACCA) puts it: reporting, or Corporate Social Trust takes responsibility for the Responsibility reporting"); "the term 'sustainability accounting' encompasses provision of energy free of charge to a range of new accounting and reporting tools  the reporting of such initiatives the contractor for the building period, and approaches which are part of a transition together with an organisation's towards a different kind of organisational decision- financial accounts (sometimes called there is little or no incentive for the making focused not just on economic rationality, "triple bottom line" reporting); contractor and its supply chain to do but consistent with ecological and social  the reporting of information within key 1 anything to minimise energy use. sustainability." indicator criteria, reflecting progress towards the sustainability of an Often what is referred to as sustainable organisation or government (sometimes accounting is not a form of accounting as it is A number of respondents also called "sustainable development commonly understood – i.e., a form of financial indicators"). highlighted a particular case in which accounting. Instead it may refer to: In addition to these approaches, there are Government itself adds internal costs  the public reporting of data on an attempts to make sustainable accounting organisation's carbon emissions, energy to external benefits, by levying VAT on a true form of financial accounting. Some use, pollution, impact on the local groups – such as the Sustainability Integrated refurbished buildings but not on new economy, etc (sometimes called "physical Guidelines for Management (SIGMA) Project – environmental or social accounting"); buildings, creating a fiscal disincentive have developed methodologies to translate to adopting the sustainable option.  the use of such data as part of a external or intangible costs and benefits management system, to enable an Research shows that refurbishment of into internal monetary terms, and to organisation to make its facilities and incorporate these within an organisation's existing buildings has around 80-85 production processes more sustainable financial accounts. To differentiate this per cent of the environmental impact (sometimes called "environmental or approach from the others listed above, SIGMA sustainability management systems"); define this as "sustainability financial of new building, especially when accounting". the new building is preceded by the demolition of an existing structure.16

16 Anderson J & Mills K, Refurbishment or redevelopment of office buildings? Sustainability case studies, BRE Information Paper 9/02, BRE Bookshop, Garston, 2002.

28 Realising Aspirations Barrier 9: Intangible benefits versus monetary costs Roger Adams, ACCA's Technical Executive As the ICAEW's report argues, however, Director, describes this approach as "the the accounting profession's skill-set in It is no surprise that representing holy grail for those interested in pursuing information analysis and reporting, and in the external costs and benefits of an sustainable development."2 This indicates the assurance process, make it well-placed not just the desirability but the difficulty of to help organisations meet the challenges of organisation's activities in monetary attaining a methodology which can accurately sustainability. It is for accountants to recognise terms, thereby fully integrating them incorporate external and intangible costs into this and assume this role, building their into its accounts, has been described an organisation's balance sheet. Currently it knowledge of sustainability and drawing on remains an objective to be worked towards, other expertise where necessary. as the holy grail of sustainable more than a mature practice to be applied. accounting. The ICAEW's report shows that the profession Sustainability and accountants is taking this seriously. Taking a market-based It is, however, a very difficult thing to Notwithstanding the difficulties in arriving at approach, it starts from the fact that individuals, a fully mature and viable methodology for societies and governments are interested in the do. An example to illustrate this might "sustainability financial accounting", it is still environmental, social and economic impacts of be the difficulty of demonstrating important for accountants to be aware of enterprises, and that professional accountants sustainability issues in their work. As a paper in business and in practice are likely to have an in clear financial terms the benefits by the Institute of Chartered Accountants in increasing role in meeting those concerns. of providing high quality and more England and Wales (ICAEW), Sustainability: 1 Ball, A, ACCA Research Report No. 78 (2002), http:// expensive school meals. If such meals the role of accountants,3 describes, the www.accaglobal.com/research/summaries/735754 business drivers of sustainable development 2 Advances in Environmental Accounting (2004) helped to improve children's long (accountability and transparency, governance http://www.accaglobal.com/pdfs/environment/ term eating habits, it might create a and reporting, risk management, finding other/tech-ea2-001b.pdf sources of competitive advantage) impinge on 3 Sustainability: the role of accountants (2004) http:// significant monetary benefit for the the accounting profession. www.icaew.co.uk/index.cfm?AUB=TB2I_71159,M NXI_71159&CFID=1831247&CFTOKEN=49896486 National Health Service; it is estimated that obesity already costs the NHS directly around £1 billion per year and the UK economy a further £2.3 to £2.55 billion in indirect costs.17 The potential savings in this case might dwarf the extra costs borne by school

17 House of Commons Health Committee, Third Report of 2003-04, HC 23-1, http://www.parliament.the-stationery-office.co.uk/pa/cm200304/cmselect/cmhealth/23/2309.htm

Realising Aspirations 29 budgets. However, as there would be many uncertainties about the exact Summarising the Barriers impact of improved of school meals Cultural and Attitudinal Barriers on future public health and rates 1 Ignorance of obesity, it would be very difficult 2 Suspicion to estimate a supportable financial 3 Confusion saving for the Public Sector as a whole. 4 Lack of information and accountability

Organisational Barriers 5 Lack of leadership 6 Supply chain size

Economic Barriers 7 Long-term versus short-term 8 External benefits versus internal costs 9 Intangible benefits versus monetary costs

30 Realising Aspirations 4 Suggestions for action  Six suggestions for action are given for a variety of public bodies, plus the accountancy profession. The focus is on helping the Public Sector to identify the opportunities for increasing value for money and sustainability at the same time.

Realising Aspirations 31 The previous section identified Six Suggestions:  Better data: the Treasury several recurring barriers to the Public could work towards  On-the-ground Sector procuring more sustainably developing the systems to experimentation: all Public in practice. This section sets out six enable the joint publication Sector bodies could identify suggestions, both for the Public Sector of each Department's annual one area where value for money and the accountancy profession, for procurement expenditure in would be increased if the costs practical actions which could help to a number of key areas where and benefits that currently fall address these barriers and contribute Government can exert clear between different departmental to progress. The suggestions offered influence and leverage – for budgets were linked together; here are focused on helping to create instance, energy, water, and they could then implement joint a climate in the Public Sector for vehicle fuel, and it is understood action as a result, and publicise sustainable procurement in which: that they would be willing to the outcome. consider this.  the benefits are widely - Among the barriers this would - Among the barriers this recognised and demonstrable; help to tackle is Ignorance, in would help to tackle is Lack of that it would lead individuals  the priorities to be pursued and Information, in that identifying to find out for themselves how practical steps to achieve them and drawing attention to sustainability might work for them are widely understood; and such spending would signal in practice.  the relative progress of different the potential opportunities for bodies towards doing so is sustainable suppliers, and aid the clearly assessed. scrutiny of costs and so help drive efficiencies.

32 Realising Aspirations  Improved skills: the  New accounting systems: - Among the barriers this would Sustainable Procurement the accountancy profession help to tackle is Short-termism, Task Force could include in could work with economists, in that it would focus attention on its national action plan the academics and the Treasury, the trends in performance towards objectives of: creating extra to build on work such as the meeting long term targets. training, tailored for senior Treasury's Green Book, and  Clear strategic vision: the managers, procurement identify how the Public Sector Sustainable Procurement Task specialists, and general staff; can bring externalities into Force could suggest targets to and maximising the take up account in decision-making. all public bodies for percentage of training, both that which is - Among the barriers this increases or decreases of key planned (such as announced would help to tackle is the purchases per year – e.g. for in the new Sustainable Externalisation of Benefits, in increases in the proportion of Development Strategy) and that that it would help to ensure that green energy, and decreases in which is already offered (such as the whole life costs and benefits of the volume of paper. by the Centre for Management decisions are accounted for, and - Among the barriers this and Policy Studies). fall on those responsible for them. would help to tackle is Lack of - Among the barriers this would  Closer oversight: the Leadership, in that it would help to tackle is Confusion, in Sustainable Development reinforce the messages being sent that it would help more people Commission could assess and by central Government, with the to internalise and implement the rank major public bodies against effort required to meet specific good practice recognised and a small number of high profile targets helping to foster leadership recommended by Government. key indicators each year – e.g., within each public body. percentage change in energy use since the previous year.

Realising Aspirations 33 5 Links and further information The Accounting for Sustainability Group ('the Group') was convened by HRH The Prince of Wales in 2004, as a result of concern that procurement (and disposal) decisions taken in the public and private sectors might be unavoidably short-term or narrow in perspective. The Group consists of:

 David Aeron-Thomas (Forum for the Future)

 Sir John Bourn (Comptroller and Auditor General)

 Alun Bowen (Senior Partner, Sustainability Advisory Services, KPMG)

 Polly Courtice (Director, University of Cambridge Programme for Industry)

 Mark Davies (National Audit Office)

 Paul Druckman (President, Institute of Chartered Accountants in England & Wales)

 Jim Haywood (Director, Business in the Community)

34 Realising Aspirations  Professor Sir Andrew Likierman The Group decided to focus initially Justin Sacks (nef – the new economics (Professor of Management on the quality of procurement and foundation) also contributed to the Practice in Accounting, London disposal decision-making in the UK paper. Business School) Public Sector, by encouraging the This report, plus the full body of  Ruth Morgan application of measurement and accounting approaches that consider supporting evidence, is available on  Sir Michael Peat (Chairman of all significant costs and benefits The Prince of Wales's website www. the Group and Private Secretary – including social, environmental and princeofwales.gov.uk/speeches/ to TRH The Prince of Wales and economic impacts – in the short and asg.html. The Duchess of Cornwall) longer-term.  Mike Peirce (University of The further documents available on Cambridge Programme for The Group commissioned detailed the website are: Industry) research from Forum for the Future  list of sustainable procurement  Michael Whitehouse (Assistant (carried out by David Aeron-Thomas) initiatives, Auditor General, National Audit and the University of Cambridge  MORI Survey on Public Attitudes Office) Programme for Industry (carried out to the Environment conducted  Professor Jonathan Wolff by Mike Peirce, and also by Maya in February 2005, and (Department of Philosophy, Forstater). Research and papers were University College London) also kindly provided by Professor Wolff,  detailed case studies. Ruth Morgan, and Richard Douglas  James Eady, from The Prince of (National Audit Office). Wales's Office, was the Group's Secretary

Realising Aspirations 35

Printed by Heronsgate on Consort Renew Satin Printer Heronsgate has been accredited with ISO14001. ISO14001 is an internationally recognised environmental management system (EMS) standard. It provides a framework for controlling environmental impacts and promoting continuous improvement in environmental performance. Three key areas must be managed: 1. Compliance with environmental legislation 2. Prevention of pollution 3. Improvement in environmental performance. Paper Consort Renew-Satin is 50% recycled fibre, 30% of which is de-Inked and 20% broke. The mill is accredited with ISO 9001, which provides the highest standard of quality assurance. All grades contain TCF pulp and are manufactured through a totally acid-free process. All pulp is sourced from sustainable managed forests. DG Ref: 5561RF