Procuring for Carbon Reduction (P4CR) Carbon Intervention Plan Template Step Notes 1 Procurement Project Title – 2 Hierarchy Intervention: Reduce Demand – Reduce In Use emissions – Substitution and Innovation – Supply chain management – 3 What do we know about carbon life cycle impacts: Capital , Consumable , Service 4 Prioritise carbon hotspots to address: 5 How to address in contract: Pre advert – 100913 Version 1 Procuring for Carbon Reduction (P4CR) PQQ – ITT – Specification – Conditions of contract and contract management KPIs - To pursue via voluntary initiatives - Other - 6 Benefits Tracking approach Other Notes 100913 Version 1 Procuring for Carbon Reduction (P4CR) Example procurement project Carbon Intervention Plan Step Notes 1 Procurement Project Title – Poultry Meat 2 Hierarchy Intervention: Reduce Demand – limited scope, volumes based on fixed menu. Reduce In Use emissions – limited scope as food preparation units are set up to cook from raw as opposed to cook-chill / cook-freeze systems. Substitution and Innovation – limited scope given fixed menu requirement and patient expectation. Some potential may exist to focus on packaging to reduce material use and disposal. Supply chain management – proposed form of intervention by working closely with suppliers to identify opportunities for emissions reductions in supply chain. 3 What do we know about carbon life cycle impacts: Product is a consumable item so typically would have most impact in production and disposal phases of life cycle. Defra PAS2050 Carbon lifecycle study has been undertaken for poultry meat. This indicates that the carbon hotspots are: 1. Feed 53 % of emissions (56% including compounding of feed) 2. Incineration of slaughter house waste (heads, feet, offal etc.) 17 % of emissions 3. Nitrous oxide emissions from manure storage & application 6 % of emissions 4. Production of day old chicks (egg production & hatchery) 6 % of emissions 4 Prioritise carbon hotspots to address: Feed – potential to work with suppliers to shift to less carbon intensive sources of feed however it is recognised that this may increase feed costs and / or impact on yield, placing pressure on product pricing. Incineration – encourage adoption of ‘energy efficiency management plans’ by slaughterhouses. Manure storage and application – seek evidence of effective emissions controls on manure stores by producers. Production of day old chicks – limited scope identified for improvement. 5 Packaging – is assessed as being less than 1% of emissions however some scope may exist to target pack weight reductions as part of contract KPIs. How to address in contract: Pre advert – dialogue with market to highlight importance of carbon emissions, risks of climate change and proposed inclusion of clauses aimed at reducing emissions in the contracting process. PQQ – question asking for description of plans and controls in place to mitigate against energy security of supply risks, energy price volatility and impacts of climate change. ITT – Specification – no requirements 100913 Version 1 Procuring for Carbon Reduction (P4CR) Conditions of contract and contract management KPIs Feed – Condition of contract for suppliers to work on reducing the overall carbon intensity of feed over the period of the contract and to report on progress every 6 months. This measure will also mitigate against known security of supply risks and price volatility. Packaging – Contract KPI for suppliers to reduce packaging weight by 5% within the first year of contract and by 10% by the end of year 2, without endangering product quality, safety or increases in wastage. To pursue via voluntary initiatives Incineration – voluntary initiative working with suppliers, slaughterhouses and trade bodies to increase adoption of energy efficiency management plans’. Manure storage and application – Seek voluntary commitment by suppliers to adopt good practice on manure storage and emissions control. 6 Benefits Tracking approach: Suppliers to provide baseline carbon emissions figures within 3 months of contract award. Suppliers to report carbon emissions figures related to Feed and Packaging within 2 months of annual anniversary of contract award. Suppliers to make available on request all raw data, calculations, factors and assumptions applied. Feed – suppliers to use agreed factors to calculate current carbon intensity of feed used in production. Factors to be applied to any changes in feed introduced during the contract period and difference in emissions to be calculated at annual anniversary of contract award. Packaging – suppliers to use agreed factors to calculate current carbon intensity of packaging used in relation to embedded carbon and packaging disposal. Factors to be applied to any changes in packaging introduced during the contract period and difference in emissions and disposal costs (accruing with client) to be calculated at annual anniversary of contract award. Client to report on carbon emissions reductions (increases) realised under the contract annually. 100913 Version 1 Procuring for Carbon Reduction (P4CR) Step Notes 1 Procurement Project Title – Infusion Pumps 2 Hierarchy Intervention: Reduce Demand – demand determined by ward bed space and occupancy – explore scope for greater use of Medical Engineering ‘equipment library’ system and redeployment of surplus equipment. Review potential for product lease/rental that allows for flexibility in equipment levels. Reduce In Use emissions – Focus on electricity consumption in use of pumps. Substitution and Innovation – limited scope, no new or alternative delivering the need available on market. Supply chain management – limited scope initially given that market is dominated by large global businesses. 3 What do we know about carbon life cycle impacts: Product is a capital (equipment) item so typically would have most impact in use. Suggested focus on demand reduction and improving efficiency of equipment in use. Disposal impacts can be reduced if there is greater reconditioning / remanufacture of products at end of life, or if materials recovery is maximised. Note that some equipment may not be accepted as WEEE due to infection concerns. 4 Prioritise carbon hotspots to address: Suggested focus on demand reduction and improving efficiency of equipment in use. a) explore opportunities for equipment sharing and re-allocation ahead of new procurement. b) Emphasis on consumption of electricity (and associated carbon emissions) in use – this information can be monetised and incorporated into whole life cost evaluations. c) Explore potential for equipment re-conditioning / remanufacturing with suppliers that reduces carbon impacts of disposal. d) Assess EBME needs to ensure equipment is disposed in line with WEEE regulations, ensuring sound environmental disposal of product at end of life to maximise materials recovery. 5 How to address in contract: Pre advert – dialogue with market to highlight importance of in use carbon emissions. Explore alternative supply approaches (lease / rental), potential for reconditioning / remanufacture, and design for materials recovery (WEEE). PQQ – question asking for description of plans and controls in place to mitigate against energy security of supply risks, energy price volatility and impacts of climate change. ITT – Specification – Equipment energy performance to be referenced in specification. Requirements around design for disassembly. Energy in use costs to be monetised and included within whole life cost calculations which will be evaluated with price submissions. 100913 Version 1 Procuring for Carbon Reduction (P4CR) Conditions of contract and contract management KPIs Improvements in energy performance or changes in design for disposal should be reported by suppliers during contract but no specific improvements would be sought over the comparatively short period of the contract (2 years). 6 Benefits Tracking approach: Average baseline energy performance data to be established with EBME on current stock of infusion pumps in use. Monitor how new purchases impact on this baseline. It is hoped that the introduction of newer more energy efficient models will bring down the average energy and carbon figures for the stock of equipment in use. Establish with EBME the current proportion of infusion pumps being disposed of as WEEE and landfill. Measure future split with a view to increasing the proportion of equipment being channelled away from landfill to WEEE approved disposal or into reconditioning and remanufacture. Step Notes 1 Procurement Project Title – Cleaning Services 2 Hierarchy Intervention: Reduce Demand – New infection control protocols and requirement for programme of deep cleans will increase demand for cleaning services under this contract. Reduce In Use emissions – Cleaning contractors will be required to provide method statements for undertaking a range of cleaning activities. These method statements should identify how energy, water and materials consumption can be minimised without compromising quality of service. Tenderers will also be required to identify how the energy and materials efficiency (and associated carbon) will be supported through staff training and communications with Trust staff. Substitution and Innovation – All contractors will be required to ensure cleaning materials used comply with Trust specifications however innovative approaches and materials are invited where these can be shown to meet or exceed specified minimum standards. Supply chain management – proposed to work closely with supplier to ensure sub contractors are compelled to support carbon and efficiency aims and also to identify opportunities for further emissions reductions in supply chain. 3 What do we know about carbon life cycle impacts: Procurement is of a service so typically would have most impact in delivery of the service. Most significant impacts will arise from delivery of the service through the use of machinery and utilities (electricity, water, waste services) on site. In addition the embedded carbon within materials used in the delivery of the service should not be overlooked. There is understanding of the carbon impact of cleaning products and paper products available through Defra (Government Buying Standards) as well as water. 100913 Version 1 Procuring for Carbon Reduction (P4CR) 4 Prioritise carbon hotspots to address: Energy and Water consumption on site during service delivery. Contractors staff should be made aware of the impact of cleaning activity on energy and water consumption and trained in simple methods of eliminating unnecessary waste. Materials efficiency during service delivery. Contractors staff should be made aware of the impacts of not using cleaning materials efficiently and trained in simple methods of eliminating unnecessary waste. Waste segregation. Contractors staff should be trained in correct segregation of wastes, the procedures for the safe handling and storage of different waste streams on site and the health and environmental impacts of failing to segregate waste correctly. Note on contractor travel and transport – it is envisaged that the majority of cleaning staff will be sourced from the locality limiting the scope to improve travel and transport emissions associated with the delivery of the contract. In addition nature of cleaning requirement and hours of work may restrict the practical adoption of lower carbon means of transport. 5 How to address in contract: Pre advert – dialogue with market to highlight importance of carbon emissions, risks of climate change and proposed inclusion of clauses aimed at reducing emissions in the contracting process. PQQ – tenderers will be requested to describe what systems they have in place to ensure staff training on working procedures, carbon and efficiency. In addition they will describe what management systems they have in place to ensure compliance with procedures and identification of areas for improvement. ITT – Specification – tenderers will be required to submit method statements on how they will undertake all specified cleaning activities. Method statements must meet minimum standard requirements but will be scored more highly where innovative approaches are proposed that help to address energy, water or materials efficiency. Specifications for cleaning products and paper hygiene products will be based on Governent Buying Standards minimum level. Bids will score more highly where materials proposed for use exceed the minimum GBS specification. Conditions of contract and contract management KPIs Contractors will be required to submit information on the: a) Proportion of waste by waste stream b) Proportion of staff trained on carbon, water and materials efficiency c) Proportion of sub contractors trained on carbon, water and 100913 Version 1 Procuring for Carbon Reduction (P4CR) materials efficiency d) The carbon and cost savings achieved trough implementation of efficiency programmes. To pursue via voluntary initiatives - Contractor will be encouraged to monitor and report on Scope 1 and 2 carbon emissions for its business for each year of the contract starting no later than year 2. 6 Benefits Tracking approach: Suppliers to develop baseline information on materials consumed over year 1, relative to activity, and then track progress against these over the remainder of the contract. Supplier to aggregate carbon reductions achieved through different initiatives (as related to the delivery of the cleaning contract) for each year of the contract 100913 Version 1