Sustainable Procurement (3)

How to implement your Responsible Procurement Policy

 

1. Create a responsible procurement policy
You will need a simple, clear policy statement easily understood by employees and suppliers alike  that explains your vision and objectives. Make sure it supports the property's overall sustainability objectives.
For example, you may list your criteria when considering potential suppliers from form of delivery and packaging to a supplier’s energy and water consumption initiatives and its recycling policy at the end of a product’s life.

2. Putting it into effect

• Make a list of all the products and services that your hotel purchases from outside the establishment—from agency staff to detergents, electricity to appliances, furniture to office equipment—and prioritise which areas you could be buying more sustainably. You could use your main corporate social responsibility (CSR) commitments as your guide: if your hotel is trying to reduce CO2 emissions, target those procurements that can help you achieve these goals (e.g. energy-efficient appliances, renewable energy).

• Identify the people and resources accountable for the implementation of your policy. You will need to allocate responsibilities for everything from updating standards to providing support material to coordinating supplier and staff training and evaluating suppliers’ performance over time.

• Invite key suppliers, staff and a wide base of stakeholders, perhaps local authorities responsible for waste disposal, to participate in the policy and planning stages. It will enhance your policy’s applicability, legitimacy and efficacy.

• Translate your sustainable procurement expectations into a clear set of guidelines or a Supplier Code of Conduct, setting out your minimum expectations with a requirement that suppliers confirm that they are in compliance. This may cover your expectations of suppliers on everything from labour and human rights to environmental protection and the conduct of its subcontractors and suppliers. Explain the policy and what you are aiming to achieve face to face with your suppliers and arrange briefing sessions and workshops.

• Set yourself measurable goals. As part of its sustainable procurement policy, an Indian Hotel Group sets its properties targets that include ensuring that 75% of each of its hotels’ purchasing on "ongoing consumables" (products with a low cost per unit that are regularly used and replaced, including paper, toner cartridges, folders and batteries) should contain the following: at least 10% post-consumer and/or 20% post-industrial material; at least 50% materials harvested or extracted and processed should be within 500 miles of the establishment; and at least 50% paper products and wood should be Forest Stewardship Council (FSC)-certified.

• Integrate your sustainability criteria into your purchasing and contracting procedures. Contract clauses can be used to include environmental or social considerations; for example, the requirement that goods be delivered outside peak traffic times or that suppliers take back packaging that comes with the product.

3. Selecting your products and services
Be clear with suppliers about the information you require about their goods and services in your request for proposal (RFP) or tender. You can choose to use a pre-qualification questionnaire (PPQ) to check your suppliers’ credentials before shortlisting interested suppliers.
You might want to consider the following:

• What are the impacts of the product or service you plan to purchase at the various stages of its life cycle?
• Does the supplier have its own environmental or social objectives and criteria, such as becoming a signatory of any Ethical Trading Initiative? Does it set environmental and social criteria for its suppliers/subcontractors?
• Are they compliant with environmental and social legislation?
• Does the supplier use a certified environmental management system (EMS), such as ISO 14001, to assess and monitor its environmental impacts and maintain legal compliance?
• Collect both qualitative data (e.g. via simple yes/no questionnaires) and quantitative data (on waste generation, energy consumption, etc). Then you can evaluate the information you have collected and determine which of the suppliers is performing well in relation to your standards.
• Keeping track of the real costs: areas to consider at various stages of a product or service’s life cycle

Raw materials

• Do any of the raw materials involve environmentally sensitive issues?
• If so, have appropriate measures been taken to minimise environmental problems?
• Do they damage the local environment when they are extracted?
• Does extraction require a high energy input?
• Are long distances involved in transporting raw materials or inefficient modes
• Method of transport of materials involved? (e.g. road or air versus train)
• Does the product contain any recycled or post-consumer waste?
• Were any exploitative practices such as child labour or poor rights/safety for workers involved?

Manufacture

• Does the manufacturer have an environmental policy and programme in place?
• Does the manufacturing process involve high energy input?
• Is current, energy-efficient equipment in use?
• If waste is produced, have efforts been made to reduce it?
• If the generation of liquid effluent is involved, is the supplier working to reduce this?
• Are solvents, glues, chemicals, varnishes, paints or other finishes (e.g. chrome) used that are toxic or pollute the air?
• Are any heavy metals released during manufacture?
• If refrigerants (e.g. CFCs, HCFCs, HCs) are used, are they the least environmentally damaging?
• Is waste or effluent recovered for re-use in the process or for recycling?
• Are any exploitative practices such as child labour or poor rights/safety for workers involved?
• Does the manufacturer offset the carbon emissions created during production?
• Does the product carry an ecolabel or other guarantee that it has been responsibly produced?

Transport and delivery

• Will the product have to travel a long distance from the manufacturer/supplier to the property?
• Is the most efficient mode of transport being used over this distance?
• Are any hazards created during transport?
• Have efforts been made to minimise packaging?
• Will the supplier collect used packaging to re-use/recycle?

Use

• Does the product have a good energy efficiency rating?
• Does it minimise water consumption?
• Does it have a negative effect on indoor air quality?
• Will replacement parts have to travel a long distance?
• Will it give long service before it needs replacing?

End of life

• Does the product pose a threat to the environment at the end of its useful life?
• Are there any special requirements for safe disposal that you doubt can be properly met?
• Can you re-use all, most, or some of the material or components?
• Can you recycle all, most, or some of the material or components?
• Is it possible to return the product to the supplier for recycling or reuse?

4. Engaging with and helping your suppliers
Agree realistic targets or key performance indicators (KPIs) with suppliers to help you evaluate suppliers. Evaluate suppliers’ progress with respect to targets and inform them as to whether expectations are being met. There should be clear and structured action plans for non-compliance; use "probation periods" to allow suppliers time to address issues and implement plans of action. Hospro also makes regular site visits to key suppliers to ensure compliance with its code of conduct and that procedures work in reality, as well as using face-to-face meetings to communicate relevant social and environmental concerns with suppliers.
Engage with underperforming suppliers to help them improve their sustainability performance via workshops and/or forums on key issues, such as water and waste management or energy efficiency, or by face-to-face meetings to discuss how improvements can be made. If it is done well, it can result in product, service and process innovations that will benefit both partners.
To maintain momentum and support for your programme, acknowledge sustainability improvements by suppliers. For example:

• Introduce supplier recognition and reward programmes;
• Make the best performers your preferred choice when contracting;
• Offer them long-term contracts;
• Organise special events to showcase your best performing suppliers.

5. Monitoring progress
You should monitor your suppliers’ performance against the various indicators agreed, including KPIs, paper evidence of supplier claims, third-party verification, or via an external audit. Meet up regularly with suppliers to assess progress and anticipate potential problems, and encourage and communicate feedback to and from suppliers. Finally, report on the progress of your sustainable procurement policy. If you are doing this publicly through a sustainability report or within your annual report, remember to communicate the result to your suppliers first.

The hospitality industry constantly yearns for innovation, with each hotel brand and independent operator seeking ways in which they can differentiate themselves to gain their own unique space in a very crowded marketplace. However, 'out of the box' thinking must always be balanced with economic pragmatism. Ultimately, hotels, as a real estate asset class, are challenging. Any investment risk must be justified by the requisite financial rewards.

About Hospro

HOSPRO|Hospitality Procurement prides itself on being a bit different. Traditional values are sustained and a good reputation is something to be proud of. Good business is building lasting relationships, helping us to grow our assets together. With a background in international hospitality and procurement services for some 30 years, our combination of market knowledge and expertise ensures the best possible service for our business relations. We support our clienteles with specific recommendations and references to stay focused on the total process. 

(Source: Greenhotelier.org)