Procurement and Contract Management Unit Procurement Meeting Targets

Procurement and Contract Management Unit Procurement – Meeting Targets in Social Responsibility 1

Procurement is Special! • Key strategic tools for delivering desired Government outcomes – Regulation – Procurement John Robertson Executive Director ACT Procurement Solutions 2

Background • What is it? – Management process used to acquire goods and services that ensures value for money decision making that incorporates appropriate consideration of a supplier’s social and environmental impacts • Youth Challenges – November 2006 – Social Responsibility – March 2007 – Green Procurement • Senior Executive – May 2007 – Approved social responsibility in procurement policy 3

Why bother? Kristy Jennings, Senior Manager, Environment and Sustainability 4 Services, Ernst & Young

UK Sustainable Procurement • Sustainable procurement: – – – carbon neutral office estate by 2012 30% reduction in carbon emissions by 2020 recycling 75% of waste by 2020 reducing waste generation by 25% by 2020 reducing water consumption by 25% by 2020 increasing energy efficiency by 30% per square metres by 2020. Mike Burt, MCIPS OGC Director, Government Estate Transformation 5

Why bother? – The average South Australian Aboriginal life expectancy is 25 to 30 years less than non Aboriginal South Australians. 6

Principles • Question whether the procurement is necessary • Consider if our citizens or environment can be supported • Consider earlier rather than later • Implement in a flexible and targeted way • Utilise whole of life costing 2004 - The State of Green Procurement in Australia “It is always important for procurement officers to consider the overall environmental impacts from product conception to consumption and then disposal” • Ensure value for money is achieved 7

Kristy Jennings, Senior Manager, Environment and Sustainability Services, Ernst & Young 8

Financial Benefits • Achievements already rolled out – DFC Print Policy requires all new print devices to be duplex enabled and network capable – Management of print devices centralised to facilitate reuse • Some thoughts on where social responsibility in procurement can further deliver financial benefits – Use of remanufactured toner cartridges – Demand management - Surplus equipment database 9

Environmental Benefits • Achievements already rolled out – Hybrid/ LPG Vehicles – Cleaning – Stationery • Some thoughts on where social responsibility in procurement can further deliver environmental benefits – Develop markets for sustainable products 10

Social Benefits • Initiatives completed or underway – Disability employers register – Traineeships in Ernabella Aboriginal Community – Encouraging employment of disadvantaged groups • Some thoughts on where social responsibility can further deliver social benefits – Support vulnerable groups • Preferred panel of builders for APY Lands – NGO access to DFC contracts 11

Management Benefits • Some thoughts on where social responsibility in procurement can deliver management benefits South Australian Strategic Plan DFC Strategic Plan State Procure. Act 2004 – Help attract and motivate staff – Enhance DFC reputation – Build closer connections with businesses and community organisations DFC Green Procure. Action Plan Greening DFC Greening of Govt (Go. GO) Framework National Strategy for Eco. Sustain. Develop 12

Impact on Suppliers • Lyreco – new DFC stationery supplier – Offerings • Back to school stationery needs for children under the guardianship of the Minister • After hours provision of vans and drivers during State declared emergency • Disadvantaged groups targeted to fill casual employment positions • Outsource processing projects to organisations such as Bedfords and Phoenix – Benefits • marketing • employee satisfaction • Improved customer understanding and relationship 13

Implementation • Develop an Action Plan for Social Responsibility in Procurement – Preferred products and suppliers database – Specification development • Incorporate social responsibility criteria • Utilise environmental checklists and performance criteria – Evaluation techniques • Give preference to environmentally friendly goods • Use life cycle costing – Educate and recognise staff and suppliers 14

Challenge – SASP Targets Target Description: How DFC Procurement can help T 1. 26 Aboriginal Unemployment: Reduce the gap between Aboriginal and non. Aboriginal unemployment rates each year. Traineeships in Ernabella Aboriginal Community Preferred panel of builders for APY Lands T 3. 7 Ecological Footprint: Reduce South Australia’s ecological footprint by 30% by 2050. All new print devices duplex enabled/ network capable Management of print devices centralised Use of remanufactured toner cartridges Surplus equipment database Use of Hybrid/ LPG vehicles Cleaning – reduce use of harmful chemicals Stationery – increase use of recycled and remanufactured products and packaging T 5. 6 Volunteering: Maintain the high level of volunteering in South Australia at 50% participation rate or higher. Stationery – Provide drivers/ vehicles during State declared emergency T 6. 5 Economic Disadvantage: Reduce the percentage of South Australians receiving government benefits (excluding age pensions) as their major income source to below the Australian average by 2014. Disability employers register Encourage employment of disadvantaged groups Target disadvantaged groups to fill casual employment positions Processing projects to organisations such as Bedfords and Phoenix 15

Summary • Get excited about Social Responsibility in Procurement • Get active and surprise your CE with the sorts of government targets that Procurement can support 16