Embedding sustainability in NHS Procurement...Procurement (Scotland) Regulations 2016 Procurement Reform (Scotland) Act 2014 • Procurement Strategy & annual report, • Sustainable

Embedding sustainability in NHS Procurement

Today

• Policy drivers from Scottish Government.

• What does it mean for you? • Will it change contracts ? • Will it cost more ? • Opportunity to share expertise. • What is the circular economy? • Procurement as the enabler. • How do we take advantage of

CE initiatives ?

Social Investment,

employment and fair work practices

Environmental Least impact &

improving public health

Financial Best value, cost savings & whole

life costing

Benefits to NHS Scotland

Regulatory Drivers

SCOPE Procurement Reform (Scotland) Act 2014

•Sustainable economic growth, benefits of growth shared more equally to generate a stronger more sustainable and resilient economy. •Greater efficiencies, the role of public bodies in supporting national strategic objectives. •Encourage innovation, boost training, apprenticeships and employment •Help business, particularly SMEs, 3rd sector and supported business

Support

The Procurement

(Scotland) Regulations

2016

Procurement Reform

(Scotland) Act 2014

•Procurement Strategy & annual report, •Sustainable Procurement Duty •2015 - guidance relating to ‘Fair Work Practices, including the Living Wage’ (section 29)

Links to National Outcomes & Indicators REF: NATIONAL INDICATOR REF: NATIONAL INDICATOR 1 Increase the number of businesses 29 Reduce the percentage of adults who smoke

2 Increase exports 30 Reduce alcohol related hospital admissions

3 Improve digital infrastructure 31 Reduce the number of individuals with problem drug use

4 Reduce traffic congestion 32 Improve people's perceptions about the crime rate in their area

5 Improve Scotland's reputation 33 Reduce reconviction rates

6 Increase research and development spending 34 Reduce crime victimisation rates

7 Improve knowledge exchange from university research 35 Reduce deaths on Scotland's roads

8 Improve the skill profile of the population 36 Improve people's perceptions of the quality of public services

9 Reduce underemployment 37 Improve the responsiveness of public services

10 Reduce the proportion of employees earning less than the Living Wage 38 Reduce the proportion of individuals living in poverty

11 Reduce the pay gap 39 Reduce children's deprivation

12 Increase the proportion of pre-school centres receiving positive inspection reports 40 Improve access to suitable housing options for those in housing

need

13 Increase the proportion of schools receiving positive inspection reports 41 Increase the number of new homes

14 Improve levels of educational attainment 42 Widen use of the Internet

15 Increase the proportion of young people in learning, training or work 43 Improve people's perceptions of their neighbourhood

16 Increase the proportion of graduates in positive destinations 44 Increase cultural engagement

17 Improve children's services 45 Improve the state of Scotland's historic sites

18 Improve children's dental health 46 Improve access to local greenspace

19 Increase the proportion of babies with a healthy birth weight 47 Increase people's use of Scotland's outdoors

20 Increase the proportion of healthy weight children 48 Improve the condition of protected nature sites

21 Increase physical activity 49 Increase the abundance of terrestrial breeding birds: biodiversity

22 Improve self-assessed general health 50 Increase natural capital

23 Improve mental wellbeing 51 Improve the state of Scotland's marine environment

24 Reduce premature mortality 52 Reduce Scotland's carbon footprint

25 Improve end of life care 53 Increase the proportion of journeys to work made by public or active transport

26 Improve support for people with care needs 54 Reduce waste generated

27 Reduce emergency admissions to hospital 55 Increase renewable electricity production

28 Improve the quality of healthcare experience

Links to Local Delivery Plan

Demonstrating Best Practice...

SCOPE

Life cycle mapping

Life Cycle Mapping

Flexible Framework

Assessment Tool

•Assessment or organisations capabilities, processes and communication in relation to sustainable procurement.

•Criteria are: People, Process, Engaging Stakeholders and Monitoring & Reporting

•There are five levels of assessment:

•Level 1 - ‘The basics’ – key staff have basic training, objectives and policy in place, prioritisation undertaken, stakeholders identified and reporting needs identified and reporting in place.

•Level 5 – Publicised achievements, sharing of good practice, external verification (scrutiny) of policy, identification of future priorities, delivery of sustainability outcomes consistently across organisation, benchmarking and independent audit reports.

Contract Level

Procurement professionals are required to review the life cycle of products and services. This mapping process identifies areas of concern e.g. Fair work practices, use of scarce resources, generation of hazardous waste. ALL CONTRACTS.

Life Cycle Mapping

Sustainability Test

This builds on the life cycle mapping and uses a pro-forma produced by Scottish Government considering environment and socio-economic risks and opportunities .

ALL CONTRACTS and LINKS TO SCOTTISH NATIONAL OUTCOMES

Whole Life Costing

Outcome of sustainability test

Life Cycle Mapping

Sustainability Test

http://www.gov.scot/Topics/Government/Procurement/policy/corporate-responsibility/Sustainability/ScottishProcess/SustainableProcurementTools

Claire Guerin Sector Manager – Sustainable Procurement [email protected]

zerowastescotland.org.uk @zerowastescot

Procurement as an enabler for the circular economy

What is the circular economy? Why is it needed?

80% of a product’s lifetime environmental impact is decided by its design

Types of Circular Business Model

5 CE Business Models 1. Product-Service System 2. Product Life Extension 3. Sharing Platforms 4. Resource Recovery 5. Circular Supply of Materials & Energy

Community Benefits: Role of 3rd Sector in the Circular Economy

Supplier products and services:

– Provision of second hand, refurbished or remanufactured products

– Maintenance and repair services – Leasing products – tools, components, equipment – Logistics services – ‘take back’ schemes

The circular shift is in motion

We are making great progress. Circulars Award 2017

• Research – Create & Refine Guidance

• Practical support (Public Sector) – Mentoring – Online Resources

• European Engagement – Knowledge exchange

We help buyers….

We help businesses

http://ec.europa.eu/environment/gpp/pdf/Public_procurement_circular_economy_brochure.pdf

Case Studies

Sharps Boxes - Life cycle mapping

Life cycle mapping

•Single use product made from non-renewable resource. •Energy intensive production process.

•Two significant suppliers both manufacturing in UK. •Identified significant of material use and climate change.

•ITT attributed 20% of marks to environmental considerations focusing on recycled material content and carbon emissions, based on international standards and independent verification.

Sustainability Test

Carbon

First NHS contract (UK –wide) to consider Scope 3 in contract scoring

Single Use Podiatry Instruments

£0.45m pa, 4 years to July 2021. Single use instruments made mainly of metal sourced from Pakistan, China & Malaysia. Material extraction, manufacture and disposal. Working conditions.

Sustainability questions were included as part of the evaluation questions and formed 10% of the scoring. In addition to standard conditions regarding working conditions, carbon impacts were identified as a key area. Mixed results with no suppliers providing objective carbon date. Setting Expectation Supply Chain Considerations

Value & Duration

Sustainability Test

Factors

Outcome

Healthcare Waste – work in progress

Circa £80m, 10 years from April 2019. Energy intensive, logistics requirements, crime, impact on communities, corporate risk. Duopoly in market – limited competition. Work in progress. Focus on Scottish economy, skills and training and reducing the environmental impact. Current in discussion with a number of potential bidders working on options to increase material re-use (remanufacture) and recovery with energy recovery the last resort.

Value & Duration

Sustainability Test

Outcome (to date)

Sharing platform Internal redeployment &

donation equipment. 8 NHSScotland Boards (only

3 v. active) Saved £865K ( avoided

purchase costs & waste disposal costs)

166 tonnes of waste and 419 tonnes of CO2e avoided

c£35m over 4 years 2 Lots – new & re-used (CRNS Reuse Consortium) Electrical, floor coverings, hard & soft furnishings

In 6 months with 1 local authority (Fife)… 1782 items diverted from landfill, 400 kg CO2e reduction 726 families/individuals assisted. Customer satisfaction 97% £185 K consortia trading income. 7 new jobs 12% saving on Community Care Grant expenditure (£238K) Issues: Adequate supply of high quality white goods Overcoming perceptions around offering 2nd hand goods > uptake. E Renfrewshire & Aberdeen pilots

Domestic Furnishings

• c£250m over 4 years • Mobile/Desktop/Workstation/Tablets

Influencing design: • Products: Modular design enables component reuse • Primary Packaging: Biodegradable (bamboo, mushroom)

Take back schemes: • Product: aligned with Framework replacement cycles, re-use of

devices or parts or re-conditioning of devices. • Packaging: Re-usable crates for tablet devices

National ICT

• c£28-56m over 4 years • Multi-Functional Devices/Printers/Scanners

Products • Maintenance & repair service: installation, training, preventative,

breakdown. Spare parts available for at least 5 years • Design for disassembly. Modular design extends useful life. • EU GPP & GBS Criteria part of specification requirements • Remanufactured/refurbished: ‘standard’ & quality as new • Re-use and reconditioning - contract management monitoring. Packaging: Take-back schemes. Minimum 50% recycled content.

National Office Equipment

Challenges Ahead

SCOPE

Market Influence

• Significant spend but relatively small on global market. • Opportunities to work with suppliers, as Scotland will not be the

only geography looking for change.

• Current OJEU requirements make it difficult to work with suppliers and engage with SMEs who are often unable to provide national solutions?

• NHSS and NHS Highland are currently working with Highlands and Islands Enterprise & ZWS to develop a regional hub to work with suppliers (often multi-national) and SMEs.

• NHS budgets focus on short-term (circa 1 year) capital expenditure.

• No easy answer but there is a national shift and revaluation in the way goods and services are procured.

OJEU & SMEs

Budget

Q & A

Claire Guerin, Procurement Sector Manager 07816224290 [email protected] www.zerowastescotland.org.uk

@ZeroWasteScot

Talk to us to find out more

Wendy Rayner

NHSScotland National Services Scotland

National Sustainability Manager

[email protected] Tel: 07891 081636

.