Paul Worland, Director of Business Development at Emcor & Mark Turner, Consultant at ActionSustainability - Sustainable Supply Chains

Sustainable Supply Chains
Paul Worland –EMCOR
Mark Turner-Action Sustainability

Our paper today
• Sustainable Supply Chains and FM
• Sustainable Procurement- BS8903
• Supply chain collaboration-BS11000
• The Sustainability School

Sustainable Supply Chains & FM
• Who is the customer?
• Who can impact consumption?
• What is the role of FM?
• How is the supply chain
engaged?
• Can FM make a difference?

52% of CO2 emissions from buildings
45% of CO2 emissions from buildings
supplychainschool.co.uk – building sustainability

FM Matters
Energy
The
Facility
Water
Waste
Raw
Materials
• The Facility is at
the heart of
consumption
• Do you know
what your facility
manager buys
• Do you know how
sustainable your
supply chain is

Sustainable Procurement
Procuring the Future –
June 2006
• “Sustainable Procurement is a process whereby
organisations meet their needs for goods, services,
works and utilities in a way that achieves value for
money on a whole life basis in terms of generating
benefits to society and the economy, whilst minimising
damage to the environment”.
• Sustainable Procurement should consider the
environmental, social and economic consequences of:
• Design;
- Non-renewable material use;
- Manufacture and production methods;
- Logistics;
- Service delivery;
- Use; operation; maintenance;
- Reuse; recycling options; disposal;
- ... and suppliers' capabilities to address these
consequences throughout the supply chain.”

BS 8903
Principles & Framework for Procuring
Sustainably – Guide
• World first standard for sustainable procurement practice
• Builds on current thinking
• Drafted by Action Sustainability
• Published September 2010

Objectives
Examples of Key Sustainability Issues
Environmental Issues Social Issues Economic Issues
•Emissions to air (e.g. greenhouse
gases, such as carbon dioxide, and
other pollutants)
•Releases to water (e.g. chemical
pollution of water courses)
•Releases to land (e.g. chemical
fertilizers)
•Use of raw materials and natural
resources (e.g. sustainable forestry,
biodiversity)
•Use of energy (e.g. renewables)
•Energy emitted (e.g. heat, radiation,
vibration, noise)
•Waste and by-products (e.g.
recycling and waste prevention)
•Encouraging a diverse base of
suppliers (e.g. minority or under-represented
suppliers)
•Promoting fair employment
practices (e.g. fair wages, avoidance
of bonded labour, workforce equality
and diversity)
•Promoting workforce welfare (e.g.
health and safety, trade union
membership)
•Enabling training opportunities and
skills development (e.g.
apprenticeships)
•Community benefits (e.g. supporting
community groups, volunteering)
•Fair trade and ethical sourcing
practices (e.g. fair pricing policies)
•Job creation (e.g. green
technologies, creating markets for
recycled products)
•Whole life costing
•Achieving value for money
•Supporting small and medium
enterprises (SMEs) (e.g. facilitating
opportunities for small businesses)
•Reducing entry barriers (e.g.
facilitating open competition)
•Ensuring operating business
remains a viable operation able to
provide employment
•Ensuring suppliers’ agreements are
at fair and viable margins

BS 8903 Process
Foundation
Level 1
Embed
Level 2
Practice
Level 3
Enhance
Level 4
Lead
Level 5
People Sustainable procurement
champion identified. Key
procurement staff have
received basic training in
sustainable procurement
principles. Sustainable
procurement is included as part
of a key employee induction
programme.
All procurement staff have
received basic training in
principles. Key staff have
received advanced training on
principles
Targeted refresher training on
latest sustainable procurement
principles. Performance
objectives and appraisals include
sustainable procurement factors.
Simple incentive programme in
place
Sustainable procurement
included in competencies and
selection criteria. Sustainable
procurement is included as part
of employee induction
programme.
Achievements are publicised and used to
attract procurement professionals. Internal
and external awards are received for
achievements. Focus is on benefits
achieved. Good practice shared with other
organisations.
Policy, Strategy &
Communications
Agree overarching
sustainability objectives. Simple
sustainable procurement policy
in place endorsed by CEO.
Communicate to staff and key
suppliers.
Review and enhance
policy, in particular consider
supplier engagement. Ensure
it is part of wider Sustainable
Development strategy.
Communicate to staff,
suppliers and key
stakeholders.
Augment the sustainable
procurement policy into a
strategy covering risk, process
integration marketing, supplier
engagement, measurement and
a review process. Strategy
endorsed by CEO.
Review and enhance the
strategy, in particular recognising
the potential of new technologies.
Try to link strategy to EMS and
include in overall corporate
strategy.
Strategy is: reviewed regularly, externally
scrutinised and directly linked to
organisations EMS. The Sustainable
Procurement strategy recognised by
political leaders, is communicated widely.
A detailed review is undertaken to
determine future priorities and a new
strategy is produced beyond this
framework.
Procurement
Process
Expenditure analysis
undertaken and key
sustainability impacts identified.
Key contracts start to include
general sustainability criteria.
Contracts awarded based on
value-for-money, not lowest
price. Procurers adopt Quick
Wins
Detailed expenditure analysis
undertaken, key suitability
risks assessed and used for
prioritisation. Sustainability is
considered at an early stage
in the procurement process of
most contracts. Whole-life-cost
analysis adopted.
All contracts are assessed for
general sustainability risks and
management actions identified.
Risks managed throughout all
stages of procurement process.
Targets to improve sustainability
are agreed with key suppliers.
Detailed sustainability risks
assessed for high impact
contracts/ Project/ contract
sustainability governance is in
place. A life-cycle approach to
cost/ impact assessment is
applied.
Life-cycle analysis has been undertaken
for key commodity areas. Sustainability
Key Performance Indicators agreed with
key suppliers. Progress is rewarded or
penalised based on performance. Barriers
to sustainable procurement have been
removed. Best practice shared with other
organisations.
Engaging
Suppliers
Key supplier spend analysis
undertaken and high
sustainability impact suppliers
identified. Key suppliers
targeted for engagement and
views on procurement policy
sought.
Detailed supplier spend
analysis undertaken. General
programme of supplier
engagement initiated, with
senior manager involvement.
Targeted supplier engagement
programme in place , promoting
continual sustainability
improvement. Two way
communication between procurer
and supplier exists with
incentives. Supply chains for key
spend areas have been mapped.
Key suppliers targeted for
intensive development.
Sustainability audits and supply
chain improvement programmes
in place. Achievements are
formally recorded. CEO involved
in the supplier engagement
programme.
Suppliers recognised as essential to
delivery of organisations’ sustainable
procurement strategy. CEO engages with
suppliers. Best practice shared with other/
peer organisations. Suppliers recognise
they must continually improve their
sustainability profile to keep the clients
business.
Measurements &
Results
Key sustainability impact of
procurement activity have been
identified.
Detailed appraisal of the
sustainability impacts of the
procurement activity has
been undertaken. Measures
implemented to manage the
identified high risk impact
areas.
Sustainability measures refined
from general departmental
measures to include individual
procurers and are linked to
development objectives.
Measures are integrated into a
balanced score card approach
reflecting both input and output.
Comparison is made with peer
organisations. Benefit statements
have been produced.
Measures used to drive organisational
sustainable development strategy
direction. Progress formally benchmarked
with peer organisations. Benefits from
sustainable procurement are clearly
evidenced. Independent audit reports
available in public domain.

Supply Chain Collaboration
• Bringing together two world class
standards BS 11000 – BS 8903
• Collaboration is the only way we
can meet the sustainability challenge
• Open communication and shared
objectives important
• Changing behaviours
• It is not just about cost reduction
“FM can make a difference”

BS 11000
Prepare Partner
Awareness Executive sponsor
Business objectives
Business case
Identify focus
Initial risk assessment
Key individuals
Working Relationship Governance
Partnering charter
Joint objectives
Processes and plan
Joint risk management
Measurement
Knowledge Identify drivers
Benchmark
Knowledge map
Strategy
Risk management
Exit strategy
Additional Value Creation Define value
Functional improvement teams (FIT)
Continuous improvement process
Innovation groups
Staff development
Future options
Plan Part
Internal Assessment Self assessment
Constraints
Skills / processes
Appoint a leader
Partner profile
Action plan
Staying Together Key performance indicators
Performance monitoring
Health checks
Improvement plans
Dispute management
Escalation
Partner Selection Assess partners
Strength analysis
MAP assessment
Evaluate
Select partner
Joint objectives
Exit Strategy Set boundaries
Monitor change
Establish change
Assess liabilities
Manage knowledge
Review future

Introduction to the School
and what it can do for FM and Property
FMP event
29th November 2014
Supplychainschool.co.uk/FM
Sustainable
Supply
Chains

....... On the positive side
 We know that healthy
high quality working
environments help
deliver a healthy
happy workforce.

The Supply Chain Sustainability School
 a virtual learning environment that helps suppliers
and sub-contractors develop their sustainability
knowledge and competence
 making us all able to operate more sustainable,
more productive and more efficient built assets for
our clients and an improved experience for their
customers and stakeholders
 and importantly to help suppliers benefit from the
many new business opportunities emerging for
businesses who understand this agenda

Some key principles
 Confidential to each supplier
 Voluntary
 Develop at a pace to suit the user
 Develops the business by developing the knowledge
of key people
 Based on trust
 Free at the point of use: lots of free resource

What are our plans for FM?
 Developing quality resources to support FM
 Supplemented by existing resources
 More partners coming on board – FM clients, FM
contractors, key FM suppliers
 Ready for launch in January 2015.

Online learning environment
• Over 2,750 company members
• Over 6,000 individual members

100’s of the best resources

Reward and Recognition
 Able to use logos in bids, website and
promotion
 Listed on web site with level
 Access to members my account dashboard
 Gold members enter annual School award

A smart sustainability assessment
Each supplier who becomes a
member undertakes a
sustainability assessment
tailored to their area of supply

Bespoke action plans for each supplier
After assessment each supplier gets
a prioritised sustainability action
plan based upon their knowledge
and level of sustainability risk in
their category

Free access to over 50 workshops p.a.

Supplier dashboards
Each supplier who becomes a member
gets their own sustainability dashboard
to track progress and action plans

Benefits of partnership
Use of learning management system to track staff
progress on wide range of e-learning modules
Industry wide recognition of leadership
Hosting /attendance at supplier days and sustainability
workshops
Client and stakeholder recognition of engagement in
agenda and development of supply chain
Ability to steer direction of the School
Supply chain performance dashboard – anonymous data
25 Supplychainschool.co.uk/FM

Partner dashboard
Suppliers active in the School are increasing their sustainability skills quicker than
the industry average
Measurable improvements in
sustainability knowledge
26 Supplychainschool.co.uk/FM

Information by supplier category
We see where
weaknesses lie in your
supply chain
* Graph above shows hypothetical school outputs. May be subject to minor content changes as school resources are
developed

Information by sustainability issue
Seeing what sustainability
expertise is lacking in Partners’
supply chains
* Graph above shows hypothetical school outputs. May be subject to minor content changes as school resources
developed

Thank you
Register your interest in the School via:
www.supplychainschool.co.uk/fm
supplychainschool.Supplychacion.suckh –oobul.icldoi.nugk s/uFsMtainability
Mark Turner
mark@actionsustainability.com
07972 398 256

Where are we on the journey
Collaboration behavioural change
• 150 people through KAM training
• 700 people through customer excellence programme
• Customer feedback reviews
• Staff feedback reviews
• Personal Performance Plans to 85% of staff
Sustainable Procurement
• Application of BS 8903 to our supply
chain
• Embedding procedures in our business
• Measuring our performance

Sustainability leaders in FM
• First FM company to achieve BS8903
• Use sustainability criteria in our buying process
• Educate our supply chain
• Monitor supplier performance
• Develop and demonstrate a whole life cost approach
• Sustainability appraisals in key decisions
• Meet Government buying standards
• First FM company to achieve BS 11000

Paul Worland, Director of Business Development at Emcor & Mark Turner, Consultant at ActionSustainability - Sustainable Supply Chains

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Paul Worland, Director of Business Development at Emcor & Mark Turner, Consultant at ActionSustainability - Sustainable Supply Chains