Select Committee on Environmental Audit Minutes of Evidence


Memorandum submitted by the Department for Environment, Food and Rural Affairs (SP 10)

DEFRA'S ROLE AS SUSTAINABLE DEVELOPMENT CHAMPION

  1.  Defra champions sustainable development nationally and internationally. It works with other government departments to seek to embed sustainable development into all areas of business, including the way in which departments manage their land and buildings and purchase the goods and services they need. It has secured the commitment of all government departments and their executive agencies to publish their own sustainable procurement strategies this year.

  2.  Defra has taken the lead for government in co-ordinating preparations for the new UK Sustainable Development Strategy to be published in March. In consultation, stakeholders have said that the Government should do better to exemplify sustainable procurement in practice. We accept this challenge and the new Strategy will chart the way forward.

DEFRA'S ROLE ON SUSTAINABLE PROCUREMENT

  3.  The October 2003 joint statement on sustainable procurement by the Secretary of State for Environment, Food and Rural Affairs and the Chief Secretary committed the Government to sustainable procurement. It followed on from the report of the cross-government Sustainable Procurement Group established by the Secretary of State and the Chief Secretary. The report set out how central government procurement can and should support sustainable development and how whole-life costing and the principles of sustainable development are consistent with value-for-money and EC procurement rules. Both Defra and OGC officials were involved in the work of the Group, which was chaired by Dr Clare Poulter, Deputy Chief Executive of OGC.buying solutions (OGC.bs).

  4.  At the same time, OGC and Defra jointly published revised guidance on Environmental Issues in Purchasing and Ministers committed government departments to apply minimum environmental standards in new contracts when purchasing certain types of product, the so-called "Quick Wins" list.

  5.  Since October 2003, Defra's contribution to sustainable procurement has focussed on:

    —  setting targets within the Framework for Sustainable Development on the Government Estate ("the Framework");

    —  exploring the scope to expand and keep updated the current list of products meeting minimum environmental standards;

    —  promoting the Public Sector Food Procurement initiative;

    —  supporting the Government's commitment to purchase timber from legal and sustainable sources;

    —  exploring, through the joint Defra/DTI Environmental Industries Unit, the potential for public procurement to bring innovative environmental goods and services to market;

    —  developing the evidence base to identify future sustainable procurement priorities; and

    —  working with the EU on plans to encourage environmentally sensitive procurement, in particular in relation to environmental technologies, through an EU-wide benchmark target.

FRAMEWORK FOR SUSTAINABLE DEVELOPMENT ON THE GOVERNMENT ESTATE

  6.  Defra has been the lead department in drawing up the Framework. The Framework was completed in October 2004 with the publication of sections on estates management, procurement and social impacts.

  7.  The procurement section of the Framework takes forward the recommendations from the Sustainable Procurement Group report. The key commitment on procurement requires all government departments and their executive agencies to draw up a Sustainable Procurement Strategy, or review that already in place, by 1 December 2005. The departmental strategies must put in place (alongside other requirements) systems to take account of government-wide initiatives, which include the commitments on the minimum environmental standards ("Quick Wins") products, on food and on timber. Other sections of the Framework address other aspects of sustainable procurement, for example the purchasing of renewal energy, and the replacement of ozone-depleting fixed refrigeration, air-conditioning and fire protection equipment.

  8.  Defra has monitored performance against Framework targets in the annual Sustainable Development in Government reports. In 2004, for the first time, the report was based on an independent analysis by external consultants. The report and departmental returns to the questionnaire are available online. The returns relate to the financial year April 2003 to March 2004 so that only limited information is available in relation to the October 2003 and more recent procurement commitments. The returns show that most departments have begun to implement the "Quick Wins" list.

  9.  In consultation with government departments and other interested bodies, Defra is undertaking a review of the Framework during 2005 to seek ways to strengthen performance in all operational areas, including procurement.

MINIMUM ENVIRONMENTAL PRODUCTS LIST

  10.  The October 2003 products list is published online on the OGC.bs website. The Government is committed to keeping the list under review and to widen its coverage over time. Defra is undertaking this work which will be managed as part of a wider Sustainable Consumption and Production agenda to raise eco-design standards.

  11.  Work is already underway to extend the list in 2005 to 50 products. Candidates for the list include a variety of products such as office computers, photocopiers and other office equipment, paper, refrigerators, lighting, air conditioners, paints, detergents, hydraulic fluids and lubricants.

  12.  This activity is supported by the Market Transformation Programme (MTP) and links with wider product policy measures such as European mandatory labelling, standards and industry voluntary agreements, and with the innovation initiatives below. The overall aim is to establish an integrated approach for setting and raising product eco-design standards in line with the Government's policy objectives for climate change, waste, water and hazardous substances. MTP will help to establish areas where procurement could make an effective contribution to delivering those standards.

PUBLIC SECTOR FOOD PROCUREMENT

  13.  The Public Sector Food Procurement Initiative (PSFPI), launched in August 2003, is co-ordinated by Defra and a cross-government implementation group. It is designed to encourage public sector bodies to procure their food in a manner that promotes sustainable development and encourages more small and local farmers, producers and suppliers to compete to supply them with food.

  14.  Key government departments have produced action plans for implementing the initiative and local authorities are being encouraged to follow suit. A national conference was held in November 2003 to raise awareness. This was followed in 2004 by regional workshops, guidance on best practice and the establishment of mechanisms for monitoring and reviewing performance across government. Defra has contributed funds towards regional pilot projects. These will encourage more small and local suppliers to compete to supply the public sector with food and catering services.

  15.  Defra has worked with DfES and the Department of Health on the Healthy Living Blueprint for Schools and Food and Health Action Plan. The Department has helped farmers and growers meet PSFPI requirements by, for example, publicising the grants and support available to producers) and it has liaised with various trade and NGO stakeholders.

  16. Defra has also developed a communications action plan to help forge a closer relationship between key departments on promotional activities. It has collaborated with the major food service companies to establish their role in implementing this policy and has liaised with the Devolved Administrations.

PURCHASE OF SUSTAINABLE TIMBER

  17.  Defra has been responsible for taking forward the Government's commitment of 2000, to seek actively to procure products made from timber that has been legally harvested and grown in a sustainably managed forest or plantation.

  18.  In January 2004 Defra published revised timber procurement guidance for central departments. This includes an explanation of the constraints that EU public procurement directives have had on implementing this policy. Defra has also commenced development of the planned Central Point of Expertise on Timber (CPET) which should accelerate progress and encourage the wider public sector to follow central government's lead. Phase 1 assessed five major forest certification schemes and was completed in November 2004. Defra is now working to set up the second phase of the CPET which will provide a helpline service for public sector buyers and their suppliers. A pilot scheme is currently in operation.

INNOVATION

  19.  The Government is also looking at how public procurement can be used to drive markets for innovative environmental goods and services. Through the Environmental Industries Unit, Defra and DTI are working on a "Forward Commitment" project with the Environmental Innovations Advisory Group that aims to demonstrate how public sector purchasers can draw environmental innovations into the market through the procurement process. In order to encourage action in the UK public sector, we are looking to:

    —  work with a government agency or department to produce a model for replication in other parts of the public sector; and to

    —  develop a training programme covering the key issues purchasers need to consider when making purchasing decisions on environmental technologies, products and services.

EVIDENCE BASE

  20.  Research for Defra, looking at the ways of and factors influencing consumer behaviour in support of our environmental goals, has shown that achieving change requires a sophisticated approach, and that policy plays a vital role in shaping the social context in which consumers act. One of the key components is Government setting a good example. The research has found that public sector consumption constitutes a significant proportion of total consumption; that it can play a significant role in stimulating markets for sustainable products and services; that it can provide valuable lessons to policy-makers; and that government policies and practices send important signals to people about priorities.

  21.  Defra has also commissioned a study to look at the evidence base for sustainable procurement to inform the department's future priorities for public procurement. The research is seeking to determine when and in what areas public procurement is an effective and efficient tool for delivering sustainability outcomes. In particular the research aims to:

    —  identify and provide an overview of the evidence of what approaches to sustainable procurement have worked and why, and the barriers that may exist, or have been overcome, in implementation;

    —  examine the experience of UK Government sustainable procurement by reviewing the environmental and other outcomes that are likely to be delivered, and the net costs and benefits of these policies;

    —  identify in what product/service categories public sector procurement is most likely to be able to influence directly the market-place through the scale of its purchasing power, and where that power is concentrated;

    —  identify in what product/service categories public sector procurement is most likely to influence corporate and household consumer behaviour through leading by example; and to

    —  identify what outcomes the UK Government should be aiming to achieve and the costs and benefits of different options.

  The research is being carried out by Green Alliance and should report by April 2005.

SUSTAINABLE PROCUREMENT WEBSITE

  22.  The Sustainable Procurement Group recommended that OGC, OGC.bs and Defra should collaborate on drawing together advice and best practice into a single web-based tool to support sustainable procurement. Defra has worked with OGC on the "sustainable solutions" pilot website, which combines detailed sustainable procurement advice for buyers. OGC.bs is responsible for overseeing this service, and Defra will continue to work with OGC.bs on it.

  23.  Defra also has plans for a new service—Environment Direct—which will give all consumers information about the effects which different consumption choices have. The department has done some initial feasibility work and will be consulting on how to take it forward. If there is broad agreement, it is hoped to have a service up and running in 2006. Defra will be working with OGC on Environment Direct and will make appropriate links between the new service and the "sustainable solutions" website.

EU INITIATIVES ON PUBLIC PROCUREMENT

  24.  In partnership with the European Commission, the UK is leading work under the Environmental Technologies Action Plan (ETAP) to encourage public procurement practices that support environmental goals, especially the development and deployment of environmental technologies.

  25.  The UK would like to see the average level of "green" public procurement achieved in the European Union in 2010 equal to that currently achieved by the best performing Member States. Defra is supporting the Commission in an EU-wide study to define and measure EU environmental public procurement, and to identify and assess current EU-wide best practice. Initial results are expected in October 2005. The evidence will provide a basis for discussion with Member States of any possible future EU target, and inform development of national action plans where they are not already in place.

15 February 2005


 
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