POL_SU3 Socially Responsible and Sustainable Procurement Policy
Version: V2
Active Date: 23/10/24
Document Owner: Head of Decarbonisation
Does this policy relate to me:
This policy relates to everyone that procure materials, good and services, on behalf of the Authority. From small items under £1 to large scale capital projects.
Quick Reference – Key Policy Messages:
Delivering long-term sustainable social and economic value outcomes from National Park Authority spend
Use Procurement to support delivery of our corporate strategy, aims and values and wellbeing objectives.
The Authority will ensure that all its business activity, including procurement, is carried out in a transparent, robust and cost-effective manner.
This policy is also available in Welsh.
Contents
Policy Statement
Aim of Policy
Scope of Policy
Definitions
Legislation and Guidance
Value for money
Decarbonisation and Nature Recovery
Community Benefits and Social Value
Local Purchasing
Equality and Fair Work
Roles and Responsibilities
Monitoring and Assurance
Related Policies and Operational Procedures
Appendix 1 – Pembrokeshire Coast National Park Authority Modern Slavery Statement
Policy Control Sheet
1. Policy Statement
1.1 This policy sets out the general principles that the Pembrokeshire Coast National Park Authority will follow across all its procurement and commissioning activities to ensure that it is undertaken in a socially responsible and sustainable manner.
1.2 The Authority will plan and manage its procurement activities to meet corporate aims and objectives and comply with regulatory and legislative requirements.
1.3 This policy supports the commitment and objectives to socially responsible and sustainable procurement which is set out in the Socially Responsible Procurement Strategy 2024 to 2029:
• Ensuring legal compliance and robust transparent governance
• Contribute to the Authority’s aim to be carbon neutral by 2030 and support the Park to achieve carbon neutrality
• Contribute to the Authority’s aim to deliver nature recovery and connectivity
• Make procurement spend more accessible to local small businesses
• Improving fair work and equality practices adopted by suppliers
• Increasing community benefits and social value delivered by suppliers
• Securing value for money and managing demand
1.4 Before commencing any commissioning or procurement activity, consideration must first be whether there is an alternative approach to delivering the outcome without the need for the Authority to spend at all.
2. Aim of Policy
2.1 Pembrokeshire Coast National Park Authority spends public money each year on a diverse range of goods, services and works from third parties. It is important therefore that this spending power is aligned with our corporate well-being objectives.
2.2 Carrying out public procurement in a socially responsible way, in accordance with the sustainable development principle and socially responsible procurement duty is one of the ways the Authority can seek to improve economic, social, environmental and cultural well‑being.
2.3 The supply chain is the Authority’s biggest source of carbon emissions and as a result procurement practices play a central role on our pathway to net zero.
3. Scope of Policy
3.1 This policy covers all procurement of materials, goods and services, across the Authority.
4. Definitions
4.1 Procurement is the process of acquiring goods, works and services, covering acquisitions from third parties. The process spans the whole cycle from identification of needs, through to the end of a services contract or the end of the useful life of an asset. The difference between procurement and commissioning is as follows, Procurement is the process of acquiring services through tendering. Commissioning is the broader process of planning and ensuring services are available, including pre-procurement activities.
4.2 Social Value and Social benefit in public procurement ensures that the needs of the community and environment are met and considered along with other desired contract values, such as value for money.
4.3 Decarbonisation is the process of stopping or reducing greenhouse gases, especially carbon dioxide, being released into the atmosphere as the result of a process, for example the burning of fossil fuels.
4.4 Circular economy is a model of production and consumption, which involves sharing, leasing, reusing, repairing, refurbishing and recycling existing materials and products as long as possible. In this way, the life cycle of products is extended. In practice, it implies reducing waste to a minimum.
4.5 Value for Money is defined by the Authority as the optimum combination of whole-of-life costs in terms of not only generating efficiency savings and good quality outcomes for the organisation, but also benefit to society, the economy, and the environment, both now and in the future.
4.6 MAT Most Advantageous Tender. The Procurement Act 2023 places an emphasis on social and environmental criteria in contracts. The new approach to corporate responsibility and greater weighting of sustainability strategies shifts the tender assessment method from the Most Economically Advantageous Tender (MEAT) to the Most Advantageous Tender (MAT). The Authority may award a public contract to the supplier that submits the most advantageous tender in a competitive tendering procedure. Most advantageous means the tender best satisfies the award criteria not just the most economically advantageous.
5. Legislation and Guidance
5.1 Controls within the procurement and financial processes exist to promote good practice and not only help the prevention of fraud but also protect the individuals concerned against allegations of fraud.
5.2 All procurement of goods and services must be carried out in accordance with:
• Authority’s Financial Standards and Standing Orders relating to Contracting Procedures
• Procurement legislation and regulations including Social Partnership and Public Procurement (Wales) Act, 2023 and Procurement Act 2023.
• Wales Procurement Policy Statement
• Well-being of Future Generations (Wales) Act 2015. Procurement is one of the seven corporate areas for change in the Act’s statutory guidance.
• Welsh Language Standards – promote and facilitate the Welsh language and ensure that the Welsh language is not treated less favorably than the English language in Wales.
• Equality Act / Equality Act (Statutory Duties) (Wales) Regulations 2011- the Authority must have due regard to whether equality considerations should be included in award criteria to help meet the general equality duty. When we specify performance conditions in our agreements, we must have due regard to whether these conditions should include equality considerations to help meet the general duties. Supporting social value clauses, community benefits and fair work practices within the supply chain can also contribute to the Authority’s compliance with the Socio-Economic Duty under the Equality Act.
5.3 Our approach will take into consideration the following guidance and policy areas:
• Ethical employment in supply chains: code of practice – Sets out Welsh Government’s 12 commitments expected from recipients of public money when procuring goods and services.
• Net Zero Carbon Status by 2030 – sets out the Welsh Government’s route map for decarbonisation across the Welsh Public Sector. Procurement is identified as a priority area for action. WPPN 01/20 Social value clauses/community benefits through public procurement.
• A guide to fair Work, Welsh Government.
6. Value for money
6.1. The Authority defines Value for Money as the optimum combination of whole-of-life costs in terms of not only generating efficiency savings and good quality outcomes for the organisation, but also benefit to society, the economy, and the environment, both now and in the future.
6.2 The Authority has a finite resource and spends public money. It must therefore ensure that value for money is a key consideration. It is important also to consider wider implications of spending for social, community, economy and the environment for future generations.
6.3 The Authority will ensure Value for Money in the procurement process using the MAT (Most advantageous tender) method of procurement which places an emphasis on social and environmental criteria in contracts. See point 4.6
6.4 The Authority will establish criteria by which the social and environmental impact can be considered during tender evaluation and this will be clearly identified in tender documentation. The weight given to the social and environmental impact of the tender will be dependent on the Authority’s perception of the risks, opportunities and priorities associated with that purchase. The Authority will review its contract specifications and assess them to ensure they comply with new environmental legislation and reflect current best practice.
6.5 Collaboration, networks and links with other organisations, can provide benefits to the Authority. Combining buying power with other organisations to procure or commission goods, works or services jointly or to create shared services should be seen as advantageous. This form of public-public partnership should, in appropriate circumstances, be regarded as an option capable of delivering economies of scale. Where there is a suitable Framework Agreement available, that Framework may be used.
6.6 The Authority should consider all aspects of costs including running and disposal costs and the initial purchase price. The main elements to include when considering Whole Life Costs are:
• Direct running costs – e.g. resources used over the lifetime of the product or service such as energy, water;
• Indirect costs – e.g. loading on cooling plant arising from energy inefficient equipment, maintenance costs, training
• Administration costs – e.g. COSHH overheads from buying hazardous products requiring additional controls and special handling and disposal;
• Invest to save – e.g. investing in higher levels of insulation to save heating and reduce bills;
• Recyclability – e.g. creating markets for our own waste by buying recycled products, to promote the development of long-term markets for localised recycling activities; and
• Cost of disposal – e.g. paying a premium at the outset to reduce waste by choosing a product which is more durable, re-usable and recyclable and does not contain hazardous substances requiring disposal in a special way.
• Consideration should be given to current UK and Welsh waste regulations.
6.7 After considering these aspects it may mean value for money is provided by investing in a more expensive product or service initially, to reduce costs and increase sustainability in the long-term.
7. Decarbonisation and Nature Recovery
7.1 The best environmental option is to use and therefore procure less. This will conserve resources, reduce pollution, and significantly reduce the waste produced. Before buying any goods consideration should be given to whether consumption can be reduced by reusing or repairing existing materials and goods. Investigations should include whether alternative procedures can be put in place to remove the need to buy goods and services. For example, can goods be shared, borrowed or loaned rather than purchased.
7.2 The Authority will take a positive lead by carrying out its procurement activities in an environmentally responsible manner. The Authority will therefore work to:
• Reduce the number of goods and services procured by cutting down on waste and repairing or reusing existing goods;
• Simplify stock holdings and reduce over-ordering;
• Reduce single use items and work with suppliers to minimise/ eliminate single use items;
• Purchase products that can be recycled or disposed of with minimal environmental damage;
• Purchase products and services that use fewer natural resources in production and distribution and promote Fairtrade products;
• Take account of whole-life costs, quality, environmental impacts and other benefits and not just the initial price;
• Buy the most energy-efficient products where they give value for money, taking account of whole-life costs,
• Purchase locally where possible, to reduce the impact of transport.
• Purchase goods and services in a manner that supports the preservation and effective management of natural resources.
7.3 Wherever possible and practical the Authority will work with its suppliers, to decarbonise the supply chain by, working within the MAT approach:
• Promoting environmental awareness amongst suppliers and ensuring they are aware of the Authority’s Socially Responsible and Sustainable Procurement Policy;
• Asking for a carbon reduction plan in all tenders and contracts above £100,000
• Including environmental specifications in all contract documentation and ensuring environmental criteria are used in the award of contracts;
• Encouraging suppliers to introduce more environmentally friendly processes and goods (which can be verified) at competitive prices;
• Assessing the environmental credentials of major suppliers and their goods by requesting a sustainability statement for items above £25,000.
8. Community Benefits and Social Value
8.1 In tendering for work above £25,000 value we will ask for community benefit and social value in the invitation to tender.
8.2 In line with MAT we will consider weighting for social value.
8.3 Community benefits can be
• Local (Pembrokeshire);
• National (Wales/UK) or
• Global (e.g. fairly traded and ethically sourced goods)
8.4 Examples of community and social value (not an exhaustive list) are
• Environmental Measures (biodiversity / decarbonisation)
• Fair Work Practices/Real Living Wage
• Promotion of the Welsh language
• Equalities
• 3rd Sector Support
• Apprenticeships and work placements
9. Local Purchasing
9.1 The Authority encourages local businesses to compete for goods, services and works.
9.2 The Authority’s contracts for goods, services and works cover a wide range of requirements and local suppliers already account for a significant level of expenditure. Local business that can meet Authority’s social and environmental objectives should be able to compete for work alongside contractors from outside the area.
Our Socially Responsible Procurement Strategy will support actions that help
• Have visibility of and access to opportunities to bid for Authority contracts
• Find it easier to bid for opportunities to work with the Authority
• Better understand where opportunities exist to supply through the Authority’s existing suppliers and contractors
10. Equality and Fair Work
10.1 The Equality Act 2010 requires the Authority to adhere to the Public Sector Equality Duty through all its functions and services by
• Eliminating discrimination, harassment and victimisation
• Advancing equality of opportunity
• Fostering good relations
10.2 In Wales there is a specific equality duty focused on procurement. When procuring works, goods or services from other organisations on the basis of a relevant agreement, as a public body we must: have due regard to whether it would be appropriate for the award criteria for that contract to include considerations to help meet the general duty have due regard to whether it would be appropriate to stipulate conditions relating to the performance of the contract to help meet the three aims of the general duty.
10.3 Any external bodies or businesses that provide services on behalf of the Authority are expected to do so in accordance with the Welsh Language Standards that are placed on the Authority. Expectations will be clearly expressed in service level agreements and proper monitoring procedures will be put in place in regards to the use and status of the Welsh language.
10.4 Fair work is the presence of observable conditions at work which show workers are fairly rewarded, heard and represented, secure and able to progress in a healthy, inclusive working environment where rights are respected. In support of fair work, the Authority will put steps in place to eradicate unlawful and unethical practices from its supply chain, in line with best practice outlined in Welsh Government’s Ethical employment in supply chains: code of practice and code of practice toolkit.
10.5 Procurement can play a crucial role in addressing modern slavery risks within supply chains. Assessment of suppliers and contractors is required to identify potential modern slavery risks, this could be done by
• Examining supplier practices, labour conditions, and human rights policies.
• Engaging with suppliers to raise awareness about modern slavery.
• Encouraging suppliers to adopt ethical practices, comply with relevant laws, and implement anti-slavery measures.
• Including anti-slavery clauses in contracts.
• Encouraging suppliers to disclose information about their sub-tier suppliers and labour practices.
10.6 Goods and services may be produced and delivered under conditions which involve abuse or exploitation. The globalisation of trade means that many of the goods on sale in the UK have been produced by people who experience dangerous or discriminatory working conditions. These activities inevitably affect the environment of other countries and often their National Parks.
10.7 The Authority therefore undertakes to follow a sustainable and fair procurement strategy and give guidance to its employees and suppliers to ensure that they incorporate environmental, economic and social issues into their procurement practices.
10.8 The Authority has in place a Modern-Day Slavery Statement which can be found in Appendix 1 of this policy.
11. Roles and Responsibilities
11.1 The Authority does not have a specific procurement team or procurement officer. Procurement activities are delegated to individual teams, with oversight provided by Heads of Services and Team Leaders. Capital programme procurement is managed by Building Project Team which is part of the Decarbonisation department.
11.3 Everyone who purchases materials, goods and services on behalf of the Authority have a responsibility to adhere to this policy.
11.4 Procurement activity is governed by Standing Order relating to Contracting procedures. Compliance with Standing Order relating to Contracting Procedures is monitored by the Authority’s Finance Team and subject to internal and external audit.
11.5 All those involved in procurement will receive training.
11.6 Involvement in procurement requires the following:
• A duty to behave honestly and in a trustworthy manner maintaining standards which the public is entitled to expect;
• Fiduciary responsibility which means they are individually and collectively, responsible for the safe and proper arrangements relating to public spending; and
• All managers have a responsibility to ensure systems and procedures are followed and that everyone is appropriately trained to prevent fraud.
12. Monitoring and Assurance
12.1 The Authority has in place procedures to ensure that all its business activity, including procurement, is carried out in a transparent, robust and cost effective manner. This policy must be read and used in conjunction with:
• Financial Standards
• Procurement Procedures
• Standing Orders relating to Contracting Procedures
• Scheme of Delegation
• Sustainable Procurement Strategy
12.2 Reporting on procurement’s contribution to carbon reduction through the Authority’s performance reporting processes, including Annual Report on Meeting Well-being Objectives and Welsh Government Net Zero Reporting and analysis.
12.3 As required under the Social Partnership and Public procurement (Wales) Act the Authority will produce a Procurement Annual Report, which will be published following end of each financial year.
13. Related Policies and Operational Procedures
13.1 Environmental Policy
13.2 See section 12.1
13.4 Retail Trading Strategy
13.5 Equity, Diversity and Inclusion Policy
13.6 Welsh Language Standards Compliance Notice
13.7 Contractor Management Policy (Health and Safety related policy being developed)
Appendix 1 – Pembrokeshire Coast National Park Authority Modern Slavery Statement
The Authority delivers a variety of statutory and discretionary public services, delivered by a combination of a directly employed workforce, third and private sector organisations
The Welsh Government’s Code of Practice for Ethical Employment in Supply Chains code covers 12 commitments including Modern Slavery and Human rights abuses, blacklisting, false self-employment, unfair use of umbrella schemes and zero hours contracts.
This statement sets out the action the Authority has taken and will take to ensure no unethical practices and modern slavery in its own business and supply chain.
Modern Slavery
Modern Slavery offences can include:
Labour exploitation – Victims are forced to work against their will, often working very long hours for little or no pay in dire conditions under verbal or physical threats of violence.
Domestic Servitude – Victims are forced to carry out housework and domestic chores in private households with little or no pay, restricted movement, very limited or no free time and minimal privacy often sleeping where they work.
Sexual Exploitation – Victims are forced to perform non-consensual or abusive sexual acts against their will, such as prostitution, escort work and pornography. Adults are coerced often under the threat of force, or another penalty.
Criminal Exploitation – Often controlled and maltreated, victims are forced into crimes such as cannabis cultivation or pick pocketing against their will.
Human Trafficking – people are tricked, threatened or coerced into situations that allow them to be exploited. These individuals are then sold on, either remaining within their country or being shipped across borders.
Debt Bondage – Victims are forced to work to pay off debts that realistically they never will be able to.
Policies
The following policies are in place to help prevent unethical practices and modern slavery in our business and supply chain
• Sustainable Procurement Policy
• Whistleblowing Policy
• Financial Standards
• Standards of Contracting Procedures
• Equal Opportunities Policy
• Safeguarding Policy
• Health and Safety Policy
• Code of Conduct
Supply Chain
The Authority has an annual third party spend in the region of £3 million. This is with approximately 934 suppliers. The high risk area for modern slavery offences are construction, manufacturing, clothing, cleaning, leisure, hospitality, catering. Due diligence is taken when awarding contracts in order to mitigate the risks of any issues with regards to Modern Slavery in high risk areas.
The Authority monitors its suppliers in these areas to ensure they comply with the Ethical Code of Practice. This is carried out during its contract monitoring arrangements. This refers to employment practices including false self-employment, working conditions, statutory rights of the employee, zero hours contracts and access to Trade Unions.
Everyone involved in procurement are required to assess suppliers and contractors to identify potential modern slavery risks, this could be done by
• Examining supplier practices, labour conditions, and human rights policies.
• Engaging with suppliers to raise awareness about modern slavery.
• Encouraging suppliers to adopt ethical practices, comply with relevant laws, and implement anti-slavery measures.
• Including anti-slavery clauses in contracts.
• Encouraging suppliers to disclose information about their sub-tier suppliers and labour practices.
Socially Responsible Procurement Strategy
The Authority will progress actions on ensuring no unethical practices and modern slavery in its own business and supply chain through its socially responsible procurement strategy. This will include awareness raising and training of staff.
Policy Control
Change Level:
New Policy or Change requires NPA Approval
Consultation:
Head of Decarbonisation and Head of finance & fundraising. Decarbonisation officer, Building Projects Managers, Performance and Compliance Officer – 19/04/2024
Staff and Members – 24/09/2024
Management Team – 09/07/2024
Assessments:
N/A
Approval:
NPA 23/10/24
Version History:
Version – V2
Active Date – 23/10/24
Summary of Changes –
Format new.
Updated legislation.
Updated related policies and operating procedures.
Updating text to include decarbonisation, circular economy and social value principles.
Removed section about e-procurement as this is standard practice, using S2W.
Added definitions.
Addition Modern slavery.
Take out references to EU legislation.
Take out sustainable procurement checklist.
Value for money, definition and updated section considering internal auditors’ recommendations 2024.
Review:
Version – V2
Active Date – 23/10/24
Document Owner – Head of Decarbonisation
Review Date Trigger – 3 year review cycle. October 2027 or earlier to take account of any legislative or operational changes.