Press Release - Addressing the environmental
impacts of Government procurement
29 April 2009
A National Audit Office report has found that government has
strengthened its drive to purchase more environmentally sustainable
goods and services. In 2005 the government set a target to be
recognised by 2009 as one of the leaders in the EU in sustainable
procurement. However a number of departments are not yet on course
to be practising sustainable procurement across their businesses by
the end of 2009.
The NAO report, which reviewed actions taken by the Office of
Government Commerce (OGC) and five of the largest spending
departments, found that some have introduced initiatives which are
reducing environmental impact and in some cases also saving money.
For example, the DWP estimates that it has saved £3.6 million and
3,000 tonnes CO2 in 2007-08 by reducing the business miles
travelled by department staff in their own vehicles. The OGC is
collaborating with departments in the establishment of framework
contracts for sustainable products, to drive sustainable outcomes
and achieve savings.
Government has yet to set quantifiable targets for departments,
who instead assess their progress in embedding sustainable
procurement practices against the "Flexible Framework" model.
According to their self-assessments for 2007-08, 8 out of 22
departments reported that they are only at level one of the
Framework (out of five) indicating that they have laid only the
foundations of good practice. Of the departments that the NAO
examined, only the NHS Purchasing and Supply Agency (NHS PASA)
reported that it is practising sustainable procurement across its
business, although the DWP is close to achieving the same
level.
The government has also set itself mandatory minimum
environmental standards for the procurement of goods - “Quick
Wins”. In 2007-08, 15 out of 21 departments reported that they were
compliant with these standards, although six of these 15 did not
have systems to measure their compliance. Methods of assessing
environmental costs and benefits are complex and hence expensive,
and are not being used frequently by departments. The Office of
Government Commerce needs to clarify how these evaluation methods
should be used.
Tim Burr, head of the National Audit Office, said
today:
"Minimising environmental impact is recognised by
government as a key criterion of good procurement. In 2008 progress
was made by departments, but only some are on target to be
practising sustainable procurement across their business by the end
of this year. Procurement decisions need to be supported by a more
thorough understanding of environmental benefits and costs, so that
departments can show that their procurement meets the twin
requirements of sustainability and value for
money."
Notes for Editors
Central government and its agencies, excluding the NHS, spent
£54.7 billion in 2007-08 on the procurement of non-capital goods
and services. In March 2008 the government created the post of
Chief Sustainability Officer, supported by a Centre of Expertise in
Sustainable Procurement at the Office of Government Commerce.
- The five departments examined in the report are the Department
for Work and Pensions, HM Revenue and Customs, the Ministry of
Defence, Ministry of Justice, and the Department of Health
(primarily covering the remit of the NHS Purchasing and Supply
Agency).
- The five categories that are covered by OGC’s collaborative
projects are energy, fleet, ICT, office solutions, and travel.
- The Flexible Framework was designed in 2006 by the Sustainable
Procurement Task Force as a tool with which departments can measure
themselves against a model of best sustainable procurement
practice. The framework covers people; policy, strategy and
communication; procurement process; engaging suppliers; measurement
and results.
- Press notices and reports are available from the date of
publication on the NAO website, which is at www.nao.org.uk. Hard
copies can be obtained from The Stationery Office on 0845 702
3474.
- The Comptroller and Auditor General, Tim Burr, is the head of
the National Audit Office which employs some 850 staff. He and the
NAO are totally independent of Government. He certifies the
accounts of all Government departments and a wide range of other
public sector bodies; and he has statutory authority to report to
Parliament on the economy, efficiency and effectiveness with which
departments and other bodies have used their resources.
Press Notice 25/09
All enquiries to Sarah Farndale, NAO Press Office:
Tel: 020 7798 5350
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