sustainable procurement practices for the three es

8/4/2019 Sustainable Procurement Practices for the Three Es

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Sustainable Procurement Practices for the Three

Es: Environment, Economy and EquityA Literature Review

Name: Dr. Kishore Pankan, Ph. D, MBA

AlHosn University, Abu Dhabi, UAE

Date:


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Objectives of Sustainable

Procurement

To make the lifestyle of human beings conservative to remain

within permissible limits of the local, regional and global

environment.

To contribute to achievement of a sustainable economy of thenation.

To achieve good health and well being of the natives of the

nation.

To develop and promote good governance in the society. To employ good scientific innovations with responsibility.

(National Health Services UK, 2005, supported by UNDP, 2008)


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The Three Es

Environment friendliness of products.

Economic viability of end to end product lifecyclefrom inception to disposal.

Equitable opportunities to local communities, and

conservation of natural resources.

(National Health Services UK, 2005, supported by UNDP, 2008)


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Ground rules of the three Es

Every company is accountable and responsible for environmentprotection.

Every company will take the environmental impacts into account intheir product design, development, manufacturing, packaging anddelivery efforts.

Every company will ensure that practices pertaining to energyefficiency and conservation are implemented.

Every company will ensure implementation of best practices indisposal and recycling of wastes.

Every company will give opportunities to local communities in theirbusiness.

Every company will discourage the suppliers that employ badhuman resource practices like unfavourable working conditions,inadequate focus on occupational health and safety, child labour,poor wages, less or no overtime payments, etc.

(Li and Geiser, 2005)


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What happens when it becomes a

national and global initiative?

It will be percolated in the entire supply chainnetwork, across hierarchies of multiple suppliers.

It will facilitate better co-ordination between

suppliers and buyers. Greedy and irresponsible elements in the global

supply chain systems will diminish gradually.

The profession of procurement management will

be viewed with much more respect. The culture of consultation, knowledge

enhancement and knowledge management willimprove in procurement management.


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Let us summarise!!

(Jackson and Roberts, 2000)


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Steps to sustainable procurement

maturity

(DEFRA, 2006)


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The IBMs Model of sustainable

procurement maturity

(Bobis and Staniszewski, 2009)


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What should we Evaluate?

The manufacturing process of the products.

Suppliers genuine efforts are the committed?

Cost of owning the product handling costs, maintenanceand operating costs, storage costs, technical support costs,

and disposal costs. Level of conservation of energy that can be achieved in the

product.

Compliance to regulatory requirements achieved by the

supplier in sourcing raw materials, manufacturing, storing,packaging and delivering.

Has the supplier given chance to local communities in hismanufacturing process?


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What should we Evaluate? Contd.

Level of compliance to global environmental protectionstandards.

Level of carbon and other emissions that the product willgenerate and tally with the acceptable levels.

How the product can be recycled or whether if it can berecycled at all?

Has the supplier violated human rights in manufacturing hisproducts like employment of children in the labourworkforce?

Internal supplier processes for sustainable procurement andproduct development.

initiatives taken by the supplier to carry out innovativepractices for protection of environment and natural resources.


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Thank You

Many thanks for your patience. Kindly present

your questions, and comments.

Please feel free to get in touch with me for the

list of references used in this presentation.

sustainable procurement practices for the three es

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