Sustainable Event Management: EVT61704 Purchasing & Resource Use PDF

EVT61704 Sustainable Event Management Chapter 10 Purchasing & Resource Use Learning Outcomes 01 Impact of Consumption 02 Sustainable Procurement Policy & Supplier Management 2 1. Impact of Consumption A mountain of “stuff” is needed to run most events. Events use countless types of materials and sup...

EVT61704 Sustainable Event Management Chapter 10 Purchasing & Resource Use Learning Outcomes 01 Impact of Consumption 02 Sustainable Procurement Policy & Supplier Management 2 1. Impact of Consumption A mountain of “stuff” is needed to run most events. Events use countless types of materials and supplies, of which many are single use and disposed off at the end of the event. This contradicts the foundation of sustainability. Sustainability = to use resources at a rate within the carrying capacity of the planet – which includes the available land, water, energy, renewable and nonrenewable resources Source: Event Sustainability Management (Jones, 2018) 3 1. Impact of Consumption Major environmental crisis facing mankind which are related to our consumption pattern and waste management. Global Warming https://www.universetoday.com/1 44652/according-to-nasa-2019was-the-second-hottest-year-onrecord/ Resource Depletion http://globetamk.weebly.com/blog/naturalresource-depletion Eco System Damage https://youtu.be/7cRgK0qG00E 4 1. Impact of Consumption Continuous and unrestrained consumption will impact the availability and fair distribution of resources across the globe. ECOLOGICAL FOOTPRINT PER PERSON The Ecological Footprint per person is a nation's total Ecological Footprint divided by the total population of the nation. To live within the means of our planet's resources, the world's Ecological Footprint would have to equal the available biocapacity per person on our planet, which is currently 1.7 global hectares. So if a nation's Ecological Footprint per person is 6.8 global hectares, its citizens are demanding four times the resources and wastes that our planet can regenerate and absorb in the atmosphere. http://data.footprintnetwork.org/?_ga=2.110903493.1724173886.1577784945-932972446.1577784945#/ 5 1. Impact of Consumption Earth Overshoot Day is an estimate, not an exact date. It’s not possible to determine with 100 percent accuracy the day we bust our ecological budget. Adjustments of the date that we go into overshoot are due to revised calculations, not ecological advances on the part of humanity. https://youtu.be/jgbY79Opn34 https://www.footprintnetwork.org/our-work/earth-overshoot-day/ As Global Footprint Network methodology changes, projections will continue to shift. But every scientific model used to account for human demand and nature’s supply shows a consistent trend: We are well over budget, and that debt is compounding. It is an ecological debt, and the interest we are paying on that mounting debt—food shortages, soil erosion, and the build-up of CO₂ in our atmosphere—comes with devastating human and monetary costs. 6 1. Impact of Consumption Events have an impact through direct Apart from direct purchases, event organisers also engage in the use of purchases, such as: Paper and printing items and related services such as: Ticketing, lanyards or other accreditation items Branded event merchandise, promo items, gifts, awards, giveaways Signage décor, props and dressings Timber, paints, varnishes Cleaning products and toilet paper Food, beverage, drinking water, serviceware Scrim, masking, wrap-arounds or overlays Event or office consumables and supplies Grounds-keeping materials and equipment Source: Event Sustainability Management (Jones, 2018) Furniture, flooring, carpets and plants Staging and associated infrastructure (marquee, entrances, dance floors, scaffolding, stadium seating) Lighting, sound and visual effects (pyrotechnics) Fencing, traffic signages, pedestrian and vehicle barriers, temporary roadways, surface protection Amenities, temporary buildings and structures Temporary power providers Waste infrastructure and cleaners Temporary water supply and distribution 7 1. Impact of Consumption Even with options to hire, the purchase of items and materials could be controlled by third parties such as: venue owners caterers sponsors service providers or contractors Event organisers’ decisions may have impact through other non-material items or event inputs include: Services – security, welfare, safety and medical Performers or talents Caterers, bars, stall vendors, exhibitors Program content and activities Sponsors, partners and product activations Source: Event Sustainability Management (Jones, 2018) 8 1. Impact of Consumption Life Cycle Assessment (LCA) – Definitions Life cycle assessment determines the environmental impacts of products, processes or services, through production, usage, and disposal. What is LCA? Life Cycle Assessment (LCA) is a technique for assessing the potential environmental aspects and potential aspects associated with a product (or service), by:  compiling an inventory of relevant inputs and outputs,  evaluating the potential environmental impacts associated with those inputs and outputs,  interpreting the results of the inventory and impact phases in relation to the objectives of the study. ISO 14040.2 Draft: Life Cycle Assessment - Principles and Guidelines http://www.gdrc.org/uem/lca/lca-define.html 9 1. Impact of Consumption Life Cycle Assessment (LCA) - Components Life Cycle: Consecutive and interlinked stages of a product or service system, from the extraction of natural resources to the final disposal. - ISO 14040.2 Draft: Life Cycle Assessment - Principles and Guidelines The "life-cycle" or "cradle-to-grave" impacts include the extraction of raw materials; the processing, manufacturing, and fabrication of the product; the transportation or distribution of the product to the consumer; the use of the product by the consumer; and the disposal or recovery of the product after its useful life. There are four linked components of LCA: 1. Goal definition and scoping: identifying the LCA's purpose and the expected products of the study, and determining the boundaries (what is and is not included in the study) and assumptions based upon the goal definition; 2. Life-cycle inventory: quantifying the energy and raw material inputs and environmental releases associated with each stage of production; 3. Impact analysis: assessing the impacts on human health and the environment associated with energy and raw material inputs and environmental releases quantified by the inventory; 4. Improvement analysis: evaluating opportunities to reduce energy, material inputs, or environmental impacts at each stage of the product life-cycle. 10 - Tellus Institute http://www.gdrc.org/uem/lca/lca-define.html 1. Impact of Consumption Life Cycle Assessment (LCA) - Drivers Life-cycle assessment has emerged as a valuable decision-support tool for both policy makers and industry in assessing the cradle-to-grave impacts of a product or process. Three forces are driving this evolution. Together these developments have placed LCA in a central role as a tool for identifying cradle-to-grave impacts both of products and the materials from which they are made. 1. First, government regulations are moving in the direction of "life-cycle accountability”; the notion that a manufacturer is responsible not only for direct production impacts, but also for impacts associated with product inputs, use, transport, and disposal. 2. Second, business is participating in voluntary initiatives which contain LCA and product stewardship components. These include, for example, ISO 14000, which seek to foster continuous improvement through better environmental management systems (EMS). 3. Third, environmental "preferability" has emerged as a criterion in both consumer markets and government procurement guidelines. - Tellus Institute http://www.gdrc.org/uem/lca/lca-define.html 11 1. Impact of Consumption Closed Loop – A Sustainable Business Process Moving towards a sustainable business approach businesses reuse the same materials over and over again to create new products for consumers. It’s a way to conserve natural resources and divert waste from the landfill Reduces overall resource costs for companies Related business models working to close the loop are: CRADLE-TO-CRADLE design - works towards “designing with the next life in mind.” CIRCULAR SUPPLIES: Using renewable, bio-based or fully recyclable materials to replace single-lifecycle inputs. RESOURCE RECOVERY: Recover useful resources/energy out of disposed products or by-products. PRODUCT LIFE EXTENSION: Extend the working lifecycle of products and components by repairing, upgrading and reselling. SHARING PLATFORMS: Enable increased utilisation rate of products by making possible shared access PRODUCT AS A SERVICE: Offer access or outcomes, while retaining product ownership Traditional business models based on a linear system (‘take-make-use-waste’) assume the ongoing availability of unlimited and cheap natural resources. This is risky as nonrenewable resources are declining. https://www.greenmatters.com/business/2018/08/15/Z16xhYS/closed-loop-system-sustainability-production http://breakthrough.unglobalcompact.org/breakthrough-business-models/closed-loop/ 12 1. Impact of Consumption Closed Loop – A System for Sustainable Consumption What is the closed-loop system? A closed-loop system is technically the production process of circular economy – allowing for the recycling of products and packaging into new ones.1 Instead of dumping waste or used materials into the bin or in landfills, these are processed and made into the same type of materials or repurposed as new products. The closed-loop system is aptly represented by the chasing arrows recycling symbol. According to Earth 911, each of the arrows represent a step in the system made 1 up of the following: Step 1: Collection - the process of collecting recyclable 3 materials from consumers & recycling facilities. Step 2: Manufacturing - the process of creating new products from recycled materials. 2 Step 3: Purchasing - when consumers “close the loop” by purchasing the newly-recycled materials. It must be noted that the important elements of this system are the manufacturers and the consumers. The manufacturers are the ones processing recyclables into new products and the consumers are involved from the first step of the process – turning in recyclables – and the last step – purchasing recycled products. https://ecowarriorprincess.net/2017/04/how-closed-loop-systems-contribute-to-a-sustainable-future/ 13 1. Impact of Consumption Evaluating Footprint To evaluate the “footprint” is a popular concept which provides a picture (visualization) of the impact of a product or activity in physical proportions. It is a useful tool when evaluating products or materials to buy in order to compare competing products on their impact. Source: Event Sustainability Management (Jones, 2018) 14 1. Impact of Consumption Footprint - Types The Carbon Footprint – The total GHGs emissions generated from power used during production and transport needed throughout a lifecycle The Water Footprint – The amount of water used throughout a lifecycle for the production of an item or material The Ecological Footprint – The total equivalent bio-capacity a material or product needs for its creation throughout its entire lifecycle Source: Event Sustainability Management (Jones, 2018) 15 1. Impact of Consumption Source: Global Footprint Network 16 Learning Outcomes 01 Impact of Consumption 02 Sustainable Procurement Policy & Supplier Management 17 2. Sustainable Procurement Policy & Supplier Management Event Purchasing Events uses countless types of materials and supplies. Profit-focused events could minimize budget by Reducing disposability Opting for items that can be stored and re-used Hire, instead of “buy and throw” items Examples of Sustainable Sourcing Choices and Resource Use include: Increased support of sustainably produced goods and materials that are made locally Purchase of materials that reduce the use of toxic chemicals Support innovation in sustainable materials Use of recyclable, repairable or re-usable items Organic or Low carbon products Closing the loop by using products designed for disassembly, repair or recycling Production of materials or goods that doe NOT involve in forced or child labour, and unsafe working conditions (harvesting, mining or making of items purchased) Cleaning products that does NOT poison or pollute waterways Source: Event Sustainability Management (Jones, 2018) 18 2. Sustainable Procurement Policy & Supplier Management Indirect purchasing by third parties can also have a direct effect on the event’s sustainability performance. For sustainable events, purchase decisions need to be made event organisers to: reduce the impacts of procurement and, consequently, the impact of the event. Commitment to sustainable and responsible event management can be public statements made through sourcing choices and resource use. Source: Event Sustainability Management (Jones, 2018) 19 2. Sustainable Procurement Policy & Supplier Management Conscious Consumption = taking the time to think and investigate the environmental, health and socio-economic impacts of purchases. To adopt a conscious consumption approach, consider the following when making buying decisions: 1. Do you really need it? Where does it comes from? What is it made of? Is it built to last? Can it be re-used? Is there an end-of-life strategy for it? Are there better alternatives? Is it produced with sustainability principles and values? What packaging does it comes in and how is it delivered? Will your purchase decision support the local economy? Are the people who produce the items treated and compensated fairly? Source: Event Sustainability Management (Jones, 2018) 20 2. Sustainable Procurement Policy & Supplier Management Purchase Considerations When starting on a procurement plan, review purchasing needs and consider the following: 1. Alternate non-purchase solution  Is there a better alternative than buying? 2.    Necessity and options to acquire Is the item really needed? Can it be hired instead? Is it possible to salvage materials for future use when it breaks down? 5. Discouraging Consumerism  Are event activities promoting needless consumption to attendees?  Are vendors selling useless items?  Are the products from reputable brands or sustainable organisations? 4. Responsible Disposal  Is it one step from being waste?  How will it be treated as waste? Sustainability Credentials What is it made from? What is the extent of toxicity and resources used for extraction of raw materials? Does the product meet expected standards in responsible manufacture, waste management and human rights?  Is it made locally or from local materials?  Can it be recycled or made from recycled products? 3.    Source: Event Sustainability Management (Jones, 2018) 21 2. Sustainable Procurement Policy & Supplier Management Sustainable Procurement - Definition  the inclusion of certain environmental and socio-economic criteria into the procurement process; and  Products, works and services will be assessed based on these criteria, which focus on sustainable product attributes, the production process and its performance outcomes “Procurement” covers all aspects involved in the purchase of materials and services – from identifying a need, through sourcing, evaluation and making the final supplier selection. Usually include a formal specification and tender/bidding process. Tender criteria would specify product features, timely delivery, budget appropriateness and overall value for money Source: Event Sustainability Management (Jones, 2018) https://youtu.be/t1P3lXP7iXY 22 2. Sustainable Procurement Policy & Supplier Management Sustainable Procurement - Objectives The objectives of Sustainable Procurement are:  Only procure what is really needed, and by ensuring to be always resourceefficient, by not contributing to resource depletion or intensify unfair or restrictive resource access.  Avoid or minimize the environmental impacts of purchases (items, works, services) across its lifecycle, including considerations for supply chain and end-of-life disposal.  Ensure that purchase decisions do not allow involvement in human rights abuse, unfair labour practices, or negative impacts on individuals or communities, through the extraction, production, manufacture of sale of items, completion of works or provision or services  Positively support fair and equitable economic development, offering opportunities to SMEs (Small Medium Enterprises) and to local providers, as well as to support job creation, access to market by diverse range of providers, by ensuring fair prices and contract conditions are in place all along the supply chain 23 Source: Event Sustainability Management (Jones, 2018) 2. Sustainable Procurement Policy & Supplier Management Sustainable Procurement – Benefits Potential benefits of sustainable procurement include:  long-term efficiency savings  more efficient and effective use of natural resources  reducing the harmful impact of pollution and waste  reducing the impact of hazardous substances on human health and the environment  encouraging innovation  providing strong signals to the sustainable products market  practical expression of organizations’ commitment to sustainable development. READING: Sust Purchasing Key Benefits and Factors https://www.ungm.org/Areas/Public/pph/ch04s05.html 24 2. Sustainable Procurement Policy & Supplier Management Benefits of Sustainable Purchasing - Sustainable purchasing means making sure that purchased goods and services generate benefits, not only for the organization, but also for the environment, society and the economy. Leadership therefore requires thinking expansively and holistically about the full range of benefits that an organization may be able to achieve through strategic sustainable purchasing. The lists below includes opportunities for both increasing (▲) benefits and reducing (▼) negative impacts. READING: Sust Purchasing Key_Benefits_and_Factors https://www.sustainablepurchasing.org/wp-content/uploads/2018/03/SPLC_Worksheet_2014001Key_Benefits_and_Factors_COMBINED.pdf 25 2. Sustainable Procurement Policy & Supplier Management Sustainable Procurement – Barriers The main barriers to achieving sustainable procurement appear to be:  habit and the difficulty in changing procurement behaviour  lack of suppliers of sustainable assets, suppliers or services  complexity of comparing costing/value for money assessments  the difficulty of including factors broader than environmental considerations  a perception that the process and outcomes are more costly or time consuming. https://www.ungm.org/Areas/Public/pph/ch04s05.html READING: UN Sustainable Procurement 26 2. Sustainable Procurement Policy & Supplier Management Events uses countless types of materials and supplies. Materials and supplies will undergo a sustainability assessment process, which includes consideration of raw materials, components or ingredients that make up the items to be purchased. Source: Event Sustainability Management (Jones, 2018) BUYING LOCAL Sustainable Procurement Policy 27 2. Sustainable Procurement Policy & Supplier Management Identify Purchasing Approach The purchasing approach used by event organisers will depend on: The type of organisation The Budget The existing procurement frameworks and policies Event organisers may use several approaches, with budget limits or supplier categories dictating the approach. Some examples of Purchasing Approach include:  Working with existing suppliers  Having a preferred suppliers list  Several quotes strategy  Open tender and formal evaluation Source: Event Sustainability Management (Jones, 2018) 28 2. Sustainable Procurement Policy & Supplier Management Sustainable Procurement - Steps 1. Purchasing Needs Identify materials and products, works and services to be procured Consider whether it is really needed Identify alternatives to buying Identify ways to reduce resource use and waste creation, including end-of-life disposal Consider ‘forward commitment procurement’ – is there a need for sustainable solution that is currently not available (not yet provided by the market)? 2. Identify Sustainability Issues Identify at-risk categories and determine the sustainability issues including the supply chain Identify optimal sustainable solutions in relation to the organisation’s sustainability commitments and context. Refer to Sustainability Procurement Policy to review commitments made regarding specific sourcing category Establish scrutiny levels of supply chain impacts, and the degree of adherence to sustainability commitments for each category. Also include thresholds for further scrutiny, such as percentage of total sourcing budget, and degree of potential risk. Source: Event Sustainability Management (Jones, 2018) 29 2. Sustainable Procurement Policy & Supplier Management Sustainable Procurement - Steps (cont’d) 3. Set Sustainability Criteria Set sustainability specifications to embed into purchasing process (tender, bid, or basic supplier communications) 4. Sourcing Identify sourcing approach – pre-selected supplier list, quotations requests, or setting up a tender process. Review current suppliers for sustainability credentials, or their ability to adjust Identify solutions available locally and engage in dialogue with suppliers on potential provisions of products and services to meet sustainability requirements. Identify the level of control you have over sourcing decisions and establish techniques for control to influence purchasing by other parties on your behalf (indirect purchasing). Source: Event Sustainability Management (Jones, 2018) 30 2. Sustainable Procurement Policy & Supplier Management Sustainable Procurement - Steps (cont’d) 5. Supplier Management Communicate the specifications and evaluation process to suppliers/tenderers Carry out supplier management, support and guidance to enable them to deliver to specifications 6. Evaluation and Selection Set the evaluation process to include scoring systems and decision filters. Identify any competing/conflicting criteria that may neutralize sustainability requirements Supplier selection – use the evaluation tools to make purchasing decisions Justify choices, especially if not meeting specifications or the event’s commitments. Provide feedback to unsuccessful suppliers if they do not meet sustainability requirements Source: Event Sustainability Management (Jones, 2018) 31 2. Sustainable Procurement Policy & Supplier Management Sustainable Procurement - Steps (cont’d) Purchasing Need Sustainability Criteria Request for Quote Open Tender 1 Existing Supplier Evaluate Specifications Rate and Weigh Scoring Supplier Selection Source: Event Sustainability Management (Jones, 2018) 2 Preferred Supplier List 32 2. Sustainable Procurement Policy & Supplier Management Supplier Management  Supplier management is an important part of sustainable procurement process  The objective is to have suppliers and contractors to offer their products and services with relevant sustainable choices required for the event  This may involve:  a substantial amount of engagement, liaising, briefing, requesting, negotiating and even cajoling (sweet talking)  Working together to source new sustainable options  Adjustment on current processes  Supporting their journey towards meeting sustainability criteria Example:  Working with suppliers to reduce packaging, or to take back packaging  Working with contractors on transition to renewable energy for an event Source: Event Sustainability Management (Jones, 2018) 33 Discussion #1 Calculate your ecological footprint at the link below Discuss how you can reduce the size of your footprint and what impact that will have http://www.footprintcalculator.org/ 34 Discussion #2 Life Cycle Assessment (LCA) – Holistic Commitment Discuss how the 3 forces are involved in the various stages of a product’s life cycle 1 1 3 3 1 2 Who are the 3 forces driving LCA? 2 3 1 2 3 1 1 2 3 http://www.gdrc.org/uem/lca/lca-define.html 2 2 1 Government 2 Corporates 3 Consumer 2 3 1 3 35 Discussion #3 Select an event and discuss how to influence suppliers for sustainability procurement process 36