Part 1 - Open to the Public ITEM NO. Report of the Strategic Director for Customer and Support Services To the Assistant Mayor for Finance and Support Services On Monday 22 October 2012 TITLE: Review of recycled paper policy RECOMMENDATION: To approve the amendment of the recycled paper policy by removing the requirement that all paper should have a minimum 50% recycled content and replacing it with a requirement that all paper be procured from FSC accredited sources. EXECUTIVE SUMMARY: The recycled paper policy currently states that all paper used by the city council must have a minimum 50% recycled content. Recycled paper costs are generally greater than those for papers using virgin fibres. This cost differential has increased greatly in recent years. The same period has seen a growth in papers which are made from virgin fibre but have more robust environmental accreditations than they previously had. The most notable of these are FSC accredited papers which have a ‘chain of custody’ from forest to final use. Using FSC papers would enable a continued commitment to environmental procurement whilst realising efficiency savings. Using FSC papers offers a saving of £16,000 against an annual spend of £110,000 on the cut paper used in MFPs by the council. It would also offer the opportunity for additional savings within the council’s print procurement framework, with an initial full year saving of £6,000 on print purchased from external printers, with the potential to increase in future years. BACKGROUND DOCUMENTS: Environmental Procurement Policy, 2005. Recycled Paper Policy, 2005 – revised in 2007. Establishment of a framework agreement for the supply of print services for the period 1 November 2011 to 31 October 2013. KEY DECISION: Yes DETAILS: The recycled paper policy was drafted in September 2005 to reinforce a greener approach to paper procurement as set out in the Environmental Procurement Policy. It was created in consultation with the government agency Waste and Resources Action Programme (WRAP) as part of their campaign to reduce waste paper going to landfill. The policy states that all paper specified for use by Salford City Council must have a minimum 50% recycled content (this applies to all paper used by MFP’s and the Print Centre as well as offset litho print runs produced by external printers on our behalf). Recycled paper costs are generally higher than those for papers using virgin fibres. In recent years prices in the paper market have been particularly volatile with the gap between the cost of paper produced using virgin fibres as opposed to recycled fibres growing further. This same period has also seen the growth of papers with a more robust environmental accreditation. The most notable of these are FSC accredited papers. The Forestry Stewardship Council (FSC) promotes responsible management of the world's forests. Forests are inspected and certified against ten principles of forest stewardship taking into account environmental, social and economic factors. The FSC Chain of Custody tracks timber from forest, to paper mill, to paper merchant and to printer ensuring a complete audit trail. Whilst it wasn’t a requirement of the tender for the print framework, seven of the ten printers on the framework hold FSC Chain of Custody certification. Using FSC papers would enable us to maintain our commitment towards protecting the environment whilst realising efficiency savings. A move to FSC accredited papers would offer savings in two areas: Cut paper for use in MFPs and by the Print Centre – a price comparison analysis of cut paper products on the ESPO framework contract indicates a saving of £16,000 will be made in this area on an annual spend of £110,000. Paper used for all our offset litho printed publicity by external printers – a cost analysis of print projects completed earlier this year indicates that changing the paper specification from the current minimum 50% recycled content to an FSC equivalent paper would save a further 5% in Lots 2 and 5 of the framework (where we could apply this immediately). This translates into a full year saving of £6,000. This figure will increase in future as the remaining three suppliers gain Chain of Custody certification and it can be applied across all lots. Recommendation To approve the amendment of the paper policy by removing the requirement that all paper should have a minimum 50% recycled content and replacing it with a requirement that all paper be procured from FSC accredited sources. KEY COUNCIL POLICIES: Environmental Procurement Policy, November 2005; Marketing and Communications Strategy 2007-2009; Seven pledges. EQUALITY IMPACT ASSESSMENT AND IMPLICATIONS: There is no known adverse impact on the accessibility of the council’s printed publicity by the change in the fibre content of the papers used. ASSESSMENT OF RISK: Low – the savings are through an approved framework agreement against existing spend. SOURCE OF FUNDING: Individual directorate revenue budgets. LEGAL IMPLICATIONS Supplied by: FINANCIAL IMPLICATIONS: The savings will be achieved using the fixed prices on the ESPO framework and are based on last year’s spend. Product samples have been reviewed and the quality of the paper currently used will be maintained. Supplied by Peter McMullan, Supplier Manager, Procurement. OTHER DIRECTORATES CONSULTED: CONTACT OFFICER: Jeff Millington WARDS TO WHICH REPORT RELATES: All TEL NO: 0161 793 3761