BSO Paper 45/2014
To:
From:
Subject:
Status:
Date of
Meeting:
BSO Board
Director of Human Resources & Corporate
Services
Sustainable Development Report
For Noting
30 April 2014
The Board is asked to note that the attached Sustainable
Development Report which has been communicated to DHSSPS.
Board Paper
Page 1
BSO Paper 45/2014
Business Services Organisation
Director of Human Resources and Corporate Services
SUSTAINABLE DEVELOPMENT: REPORTING FRAMEWORK FOR DHSSPS
ARMS LENGTHS BODIES
The Health Estates Investment Group has requested that Trusts and Arm’s Length
Bodies, including BSO, demonstrate how they make an appropriate contribution to
the achievement of sustainable development. This report sets out the efforts of BSO
in working towards sustainable development.
Background
The purpose of the reporting framework is to enable the Department of Health,
Social Services and Public Safety ALBs to demonstrate that they are making an
appropriate contribution to the achievement of sustainable development, and to allow
the DHSSPS to provide evidence of progress on the delivery of the six priority areas
for action, as identified in the OFMDFM Sustainable Development Strategy and
Implementation Plan.
The Statutory Duty for Sustainable Development applicable to public authorities is
set out at section 25 of the Northern Ireland (Miscellaneous Provisions) Act 2006 and
applies to all Northern Ireland departments and District Councils
The six priority areas are:
1. Building a dynamic, innovative economy that delivers the prosperity required
to tackle disadvantage and to lift communities out of poverty;
2. Strengthening society so that it is more tolerant, inclusive and stable and
permits positive progress in quality of life for everyone;
3. Driving sustainable, long-term investment in key infrastructure to support
economic and social development;
4. Striking an appropriate balance between the responsible use and protection of
natural resources in support of a better quality of life and a better quality
environment;
5. Ensuring reliable, affordable and sustainable energy provision and reducing
our carbon footprint;
6. Ensuring the existence of a policy environment which supports the overall
advancement of sustainable development in and beyond Government.
As the BSO is the administrative support arm of Health & Social Care, there are a
limited number of keys areas that we can impact upon. We are, however, committed
to making a contribution to those areas which we can influence as we recognise that
the current requirements on the planet’s natural resources are not sustainable. As
such, we realise that our Organisation has its role in the protection of this resource
Board Paper
Page 2
BSO Paper 45/2014
and have implemented various methods in the achievement of our goals as set out
below.
Priority Area One – Building a dynamic, innovative economy that delivers the
prosperity required to tackle disadvantage and lift communities out of poverty
As part of the procurement process, sustainability requirements relating to energy or
resource efficiency of a potential supplier can be included, particularly where delivery
of the product or service will have a significant environmental impact. These
requirements can form part of the pre-qualification stage or be included in the
specification, award criteria or contract clauses
As part of the evaluation process, tenderers where asked to describe, using
quantitative measures where possible how they proposed to improve the carbon
footprint in delivery of the service during the contract period. Furthermore, the actual
running costs for the range of oxygen concentrators was included in the evaluation of
price based on the actual power wattage of the equipment and the estimated total
hours of operation. As a result, in 2013 alone this amounted to a total carbon
reduction of ~ 226,000kgs CO2 equivalent and electricity cost savings of ~ £92,000
per annum. In 2014 this is expected to meet the target of ~ 545,000kgs C02
reduction and electricity cost savings of £118,000 per annum respectively.
Priority Area 2 – Strengthening society so that it is more tolerant, inclusive and
stable and permits positive progress in quality of life for everyone
Community benefits are economic, social and environmental benefits required by
PaLS in the delivery of contracts for supplies and services. Some examples that are
included in relevant contracts that suppliers must comply with include:






ensuring equality in the workplace;
requiring best practice in Health and Safety;
promoting ‘Fair trade’ products;
minimising and manage waste;
requiring recycling and reuse of materials and facilities
requiring the reduction in energy and water consumption and carbon
emissions
 compliance with a range of EU energy directives
We are also working to include CPD model social clauses relating to
Employment/Training opportunities for apprenticeships and the economically
inactive.
Board Paper
Page 3
BSO Paper 45/2014
Priority Area 3 – Driving sustainable, long-term investment in key
infrastructure to support economic and social development
As a CoPE, we promote the inclusion of sustainable procurement considerations
with our HSC customers as part of the tender and contract management process.
This includes the use of various policy and best practice guidance to consider
relevant sustainability aspects as follows:
(i) Pre-Qualification
Take into account specific experience and competence of suppliers related to
environmental aspects which are relevant to the subject matter of the contract and
their ability to apply environmental management measures when carrying out the
contract. This is particularly important where the environmental impact of the
contract is considered high risk.
(ii) Specification
What a product is made of, how it is produced or how a service is performed, can
form a significant part of its environmental impact. Materials and production methods
can be taken into account when defining technical specifications. The use of relevant
standards e.g. Government Buying Standards or EU Green Public Procurement
(GPP) criteria consist of both mandatory minimum standards for central government
and best practice specifications which are voluntary and recognise ‘best in class’
products in certain areas. They can also be used as contract conditions or award
criteria were appropriate.
(iii) Life Cycle Costing
It is important to evaluate all associated costs and not just initial purchase
price/capital cost. For example, in terms of the purchase of vehicles, the EU
Directive on the Promotion of Clean and Energy Efficient Road Transport Vehicles
requires that energy and environmental impacts are taken into account and lifetime
costs are included in the purchase of all new vehicles within the public sector.
(iv) Contract Clauses
Use social, economic or environmental clauses in T&C’s of contract where relevant
e.g. use of model clauses produced by CPD which are monitored as part of the
contract management process.
BSO PaLS also continue to work to increase access to public sector procurement
opportunities for SMEs and SEEs. As a result of reviewing both perceived and real
barriers to such opportunities a number of recommendations were implemented
including:
Board Paper
Page 4
BSO Paper 45/2014
(i) Involvement in meet the buyer events
PaLS continue to work with the SME and Social Economy sectors to assist these
organisations in accessing tender opportunities. This has included regular
attendance and contribution to various events and workshops throughout the island
of Ireland. A survey of attendees at the InterTradeIreland events highlighted that:

35.7% of companies stated that they have submitted more tenders
since attending the events

4% of suppliers were encouraged to tender by talking to buyers

Contracts won by participants are currently worth over £2 million with

55% of those stating that without the advice and guidance provided at
the event they would not have won these contracts

90% of the buyers surveyed stated that they would do business with
the suppliers that they met either now or in the future
In addition to these multi-disciplinary events BSO PaLS food sourcing team, for
example working with colleagues in the HSC Board, continues its programme of
engagement with producers/suppliers on a tender by tender basis to encourage new
entrants to the public sector market. This approach is now well developed and has
seen PaLS attend food specific events across Northern Ireland.
Priority Area 5 – Ensuring reliable, affordable and sustainable energy
provision and reducing our carbon footprint
The BSO introduced an Environmental and Waste Management Policy in 2013
setting out the Organisation’s commitment to environmental issues and the
responsible management and disposal of waste.
Priority Area 5 – Ensuring reliable, affordable and sustainable energy
provision and reducing our carbon footprint
The BSO introduced an Environmental and Waste Management Policy in 2013
setting out the Organisation’s commitment to environmental issues and the
responsible management and disposal of waste.
Electricity/Energy
The BSO has recently installed LED lighting in its Franklin Street building.
Movement sensors have also been fitted to ensure that lights are not in use
Board Paper
Page 5
BSO Paper 45/2014
unnecessarily and it is calculated that the installation of these lights will reduce our
carbon foot print by 7% with over 300K in savings estimated, over a 10 year period.
Due to the improvement in light technology, we have been able to reduce the
number of fittings in the building by one third.
Other proposals for 2014/15 will include:


a reduction in the number of paper towels by introducing energy efficient hand
dryers and;
improving our gas usage by introducing a condensing multi pump boiler which
could increase performance by 30%.
The BSO Headquarters is a climatically controlled building with energy readings
closely monitored in a constant drive to improve our efficiency.
Transport
The Procurement and Logistics Service (PALS) is the sole provider of professional
supplies services to all public Health and Social Care Organisations in Northern
Ireland. It is recognised that a large percentage of our work will have an impact on
carbon emissions. PaLS has just received a Euro Cargo Iveco Ford EEV
6(Enhanced Environmental Vehicle) into the Fleet. EEV 6 is the highest standard
available in terms of reduced emissions and enhanced environmental Performance.
This vehicle is part of the first batch produced in January by Ford.
The current Distribution and Route Scheduling to the Current Customer Base has
been reviewed and a Draw Bar Trailer and Vehicle is now used to deliver goods to
some Hospital sites which has reduced the number of vehicles on site and created
approx. 20% in fuel savings through reduced journeys.
Efforts are made to maximise loads from suppliers by ordering, where practical ,full
container loads, which as well as obtaining price efficiency, is also contributing to the
environmental footprint by reducing supplier journeys through greater load
management.
Tele-conferencing and Video-conferencing
In the last financial year, the BSO has introduced 2 designated Video Conferencing
suites designed to reduce travel, expense and carbon emissions as a result of that
travel. We are also in the process of installing VOIP telephones, which incorporated
with a desk top camera, will further reduce the need for unnecessary travel.
Cycle to work scheme
In the interests of sustainable transport, the BSO introduced and administrates this
scheme which is open to our partner organisations of clients. This scheme is a UK
Government tax exemption initiative introduced in the Finance Act 1999 to promote
Board Paper
Page 6
BSO Paper 45/2014
healthier journeys to work and to reduce environmental pollution. It allows BSO, in
effect, to provide cycles and safety equipment to employees as a tax-free benefit
with a nominal sum payable at the end of the agreement to transfer ownership. The
exemption was one of a series of measures introduced under the Government's
Green Transport Plan and has the following benefits for our staff:





Savings of up to 42% on a new bike and accessories
Regular exercise to keep fit and healthy
Reduces commuting costs
Helps beat congestion
Helps minimise carbon footprint
Bus/Rail Translink TaxSmart scheme
If staff are unable to avail of the Cycle to Work scheme, BSO encourages staff to use
bus/rail services to commute, rather than using less environmentally friendly
methods of transport such as a private car.
With TaxSmart; BSO staff save money on Income Tax and National Insurance
contributions by paying for bus travel directly from their salary. By doing so, they can
save up to 32% on annual bus travel. This is an additional discount already available
to staff who purchase Translink annual bus travel cards outside the TaxSmart
scheme.
Board Paper
Page 7
BSO Paper 45/2014
Recycling
The BSO recycles all possible waste in relation to:




Tins
Plastic
Non confidential paper waste
Cardboard
HRPTS/e-Procurement
The BSO introduced new systems to handle our HR, Payroll, Travel, Finance and
Procurement needs. These new systems involve the scanning of documents which
are then sent electronically for approval. This reduces, and in many cases,
eliminates the need for the printing, enveloping and posting of documents, therefore
reducing the amount of paper/consumables used and negating the requirement for
transporting and posting which will have a knock on effect on carbon emissions.
Printing
The BSO procured and facilitated the introduction of the Xerox Multi-functional
devices. The fleet encompasses energy efficient models which enter sleep mode
when not in use and additionally reduce our carbon footprint by using less machines
and more efficiently, which at present has realised 37% in savings on our printing
costs. The BSO has set double sided printing as default to reduce the amount of the
printed pages which in turn, reduces the amount of paper required and ordered.
Board Paper
Page 8
BSO Paper 45/2014
Appendix A
Sustainable Procurement Initiatives
(i) Pre-Qualification
Example 1;Collection and Disposal of Clinical Waste from Chemists
All candidates had to demonstrate compliance with an Environmental Management System
e.g. ISO 14001 or equivalent to proceed in the tender process. This provided an assurance
that the contractor had the necessary technical competence in minimising environmental
impact of the service.
(ii) Specification
Example 1; Copier Paper
The current regional contract includes mandatory GBS standards as follows;
-
Requirement that all virgin (non-recycled) paper must have fibre derived from an
independently verified legal and sustainable source or from a licensed Forest Law
Enforcement Governance and Trade (FLEGT) source.
- All virgin paper must be elemental chlorine free (ECF) and all recycled paper must be
from mills which are process chlorine free and have a minimum 100% recycled
content.
In addition to meeting the mandatory standards, the current product also meets the best
practice standard in terms of the ecological criteria of the European Eco label and Nordic
Swan.
Example 2; Staff Uniforms ( warehouse)
The current regional contract includes relevant GBS contract clauses as follows:
-
The contractor must have a CSR policy, which covers both their own organisation
and that of their sub-contractors.
Ethical Trading Initiative (ETI) - The contractor is required to ensure effective
systems are in place to provide assurance that labour standards, in the contractors
operations and those of its supply chain(s), are being maintained in line with the
Ethical Trading Initiative Base Code, as a minimum. The contractor will be required
to report progress against key performance parameters set out in the initiative and
will be required to provide progress reports on the measures they have taken to
support and assure the maintenance of labour standards (in line with the ETI Base
Code)
Board Paper
Page 9
BSO Paper 45/2014
Example 3; Food and Catering Services
-
All regional contracts for fresh food meet overarching GBS commitment in terms of
UK production standards or equivalent and must state origin of meat, meat products
and dairy products
-
Regional contract for Fresh Shell Eggs and Pasteurised Liquid Eggs compliant with
mandatory standard on animal welfare by adherence to EU Council Directive
1999/74/EC on the Welfare of Laying Hens Jan 2012
-
As part of the evaluation process for Tea and Coffee contract suppliers submitted
details of sustainability accreditations for each product line. As a result a number of
awarded contract products carry the labels of Beyond the Cup: The Nescafe Plan,
Fair Trade, Rainforest Alliance and the Ethical Tea Partnership.
-
The specification for all tinned fish (part of Tinned Foodstuffs contract) requires the
product to be sustainably sourced and carry the relevant accreditations. For salmon
this is the ‘Marine Stewardship Council’ logo and for tuna it is ‘Dolphin Friendly’ logo.
Example 4; Waste Collection Services
The current contract for collection and disposal of clinical waste from chemists
Included relevant EU GPP criteria requiring all vehicle engines meeting minimum EURO IV
standards and driver training on eco-driving to increase fuel efficiency. All new vehicles now
meet Euro V higher standard and as a result of this and better route planning fuel efficiency
has been increased by approx. 22% which is equivalent to a C02 saving of around 30% per
annum.
Example 5; Office Furniture
The current regional office furniture contract includes relevant GBS contract clause for wood
and wood based products as follows:
-
The Contractor must be able to provide evidence to the Organisation that the wood
timber products, that they supply, are from legal, and if promised by the supplier,
sustainable sources.
Board Paper
Page 10
BSO Paper 45/2014
Example 6; Cleaning Products
The current regional contract includes mandatory GBS requirements in specification as
follows:
-
products must be delivered with clear dosing instructions to avoid over-application by
the user
products must be supplied as concentrates requiring dilution before use except for
trigger sprays which may be supplied containing ready-to-use products, provided
they are part of a product range where reuse of trigger sprays with concentrated
refills is intended.
Example 7; Electricity
The current regional contract on behalf of all HSC NI meets the EU GPP comprehensive
criteria for Electricity in that 100% of supplied electricity comes from renewable energy
sources as defined by Directive 2009/28/EC.
(iii) Life Cycle Costing
Example 10; Home Oxygen Services
The new regional contract included the evaluation of running costs of equipment which is
used in a patient’s home. As a result, the winning bid offered more energy efficient
equipment that uses up to 25% less electricity reducing the overall environmental impact of
the service. In 2013 alone, this amounted to a total carbon dioxide reduction of ~
226,000kgs CO2 equivalent and electricity cost savings of ~ £92,000 per annum. In 2014
this expected to meet the target of ~ 545,000kgs C02 reduction and electricity cost savings
of £118,000 per annum respectively.
(iv) Contract Clauses
Example 11; Social Clauses
In 2012/13 PaLS included relevant clauses regarding contractors’ use of apprentices in a
total of 15 contracts with a combined value in excess of £9m. These included maintenance
of security systems, building management systems, fixed medical gas installations and
uninterruptable power supply contracts.
Example 12; Other Clauses
Other environmental clauses are included as standard in all relevant contracts including
compliance with Packaging (Essential Requirements) Regulations 1998 and the Waste
Board Paper
Page 11
BSO Paper 45/2014
Electrical and Electronic Equipment Regulations (WEEE Directive).
Appendix B
Sustainable Infrastructure Initiatives
Example 1; Improvements to our Belfast warehouse and offices site
-
Installation of a more environmentally friendly and efficient gas boiler as the main
source of heating
Installation of fast doors in warehouse to reduce heat loss
-
Recently refurbished areas now include energy efficient sensor lighting installed in
changing rooms and some office spaces
-
Upgrade to a more environmentally friendly air conditioning system
Posters to raise awareness with staff of energy efficiency issues throughout the
building e.g. Carbon Trust – Act on CO2 campaign
On site fuel tank and use of a real time, web based fuel management system for all
delivery vehicles (effective from 1/4/12)
Automatic meter reading equipment installed on gas, water & electricity meters. This
enables these meters to produce consumption data every half hour for analysis
purposes (effective from 1/4/12).
Use of green tariff for 100% of electricity requirements.
Installation in 2013 of water efficient sanitary ware including sensor taps and half/full
flush toilets.
-
-
-
Example 2; Fleet and Transport Strategy
We have a strategy that includes necessary actions to minimise environmental impact
including:
-
-
well maintained fleet to ensure that the environmental impact of transport service is
minimised
procuring vehicles that operate to the highest environmental standards
BSO PaLS warehouse services are split across two sites which reduce the carbon
footprint by reducing the overall distance travelled by our vehicles; this is supported
by consolidated trunking between the warehouse sites.
To further reduce adverse environmental impact BSO PaLS service seeks to manage
Board Paper
Page 12
BSO Paper 45/2014
-
the supply chain in order to minimise the carbon footprint, this is done through use of
consolidated deliveries using BSO PaLS vehicles and cross-docking supply
arrangements key supply partners. Management of vehicle capacity will avoid
unnecessary vehicle use and hence cut down carbon footprint. Management of the
supply chain extends further to the strategic management of the placement of stock
so as to reduce the transportation mileage of product by locating it closer to the
customer.
Fleet selection is also key and BSO PaLS will review its fleet at regular intervals to
ensure that vehicles are appropriately deployed and to keep under review the use of
alternative technologies in vehicles such as electric and hybrid sources along with
alternative vehicle body design to reduce vehicle drag.
Monitoring of driver performance also contributes to the environmental impact by
enabling BSO PaLS to monitor vehicle speeds, braking and fuel consumption and
where necessary link with the 3rd party contractor to ensure that where performance
is of concern driver training can be initiated.
Board Paper
Page 13