Sustainable Procurement Tools

Prioritisation Tool

The prioritisation tool is a self-assessment tool designed to assist early stage strategic planning through the consideration of economic, environmental and social wellbeing and brings a standard, structured approach to the assessment of spend categories.

Waste & Environmental Services

The prioritisation tool revealed there was scope to improve the economic and environmental impacts and promote social wellbeing as a result of this procurement.

This led to the decision to complete Life Cycle Impact Mapping and a Sustainability Test.

Life Cycle Impact Mapping (LCIM)

Every product and service has a 'life cycle' or number of stages it goes through. LCIM is used to identify and assess the social and environmental impacts of these stages. It is designed to be a gateway into the sustainability test.

Impacts of Obtaining Raw Materials

LCIM revealed that HVO fuel is a liquid fuel made from 100% renewable oils, such as sunflower or rapeseed oil or animal fats. It also revealed the type of fuel is classed as a second-generation biofuel. This means HVO fuel must be produced using waste products and materials, rather than crops taken directly from the field and grown for the purpose of producing fuel.

NAC made sure the CCS Framework mandated that all raw materials used are checked by the Department for Transport and deemed to be suitable, sustainable and of high quality before being processed and turned into HVO fuel. Framework also mandated that all products supplied must meet relevant British and European Standards.

Impacts of Manufacturing and Logistics

LCIM revealed that HVO fuel is made through a process called hydrotreating or hydrogenating, in which the molecular structure of the vegetable oil is changed through the introduction of hydrogen. It revealed this can be done in two forms; the first is hydrogenation which adds hydrogen; the second is hydrocracking which uses hydrogen to break down and then rebuild molecules. This hydrogen process creates uniform molecules and carbon chains without the impurities that are associated with fossil fuels like diesel, which contains metals and sulphur. As such, HVO fuel burns more cleanly than traditional fuels, releases fewer emissions and is better for the environment.

LCIM also revealed that vehicles will be used to transport and deliver the HVO fuel to NAC sites.

NAC made sure the CCS Framework mandated that all products supplied must meet relevant British and European Standards or equivalent (which would include EN15940)

NAC specified consolidated deliveries to site in order to reduce the impacts on the environment from deliveries from HGVs to three locations within North Ayrshire. Due to the change on red diesel use which came into effect on 1^st April 2022, this resulted in NAC having under used capacity within NAC’s bunked fuel tanks.

Thus, presenting an opportunity for NAC to have these tanks flush cleaned and used to store and dispense HVO fuel as we would normal diesel. This involved minimal costs with existing fuel keys reprogrammed to allow HVO only fuel in specific vehicles.

Impacts During Use of Product

LCIM revealed that Fair Work First and Equality were a concern in contract delivery due to the reliance on labour (manufacturing, storage, delivery etc).

LCIM revealed vehicle emissions would be produced as a result of deliveries.

LCIM also revealed scope to request community benefits within the mini competition process.

NAC made sure the CCS Framework addressed/mandated:

• Fair Work First whereby suppliers had to demonstrate the fair working practices they would operate throughout the framework period.
• Equality, Diversity and Human Rights –whereby suppliers must follow all applicable equality law when they perform their obligations under the contract, including protections on the grounds of the protected characteristics under the Equality Act 2010.
• Community benefit delivery whereby  suppliers had to commit to delivering community benefits over the duration of the contract.

Impacts at End of Life

LCIM revealed that HVO fuel has a shelf life of up to 10 years - if maintained properly. It also revealed HVO fuel is completely biodegradable, non-toxic and odourless as it's made from 100% renewable waste materials.

NAC will make sure tanks are flush cleaned and used to store and dispense HVO fuel as we would normal diesel.

Sustainability Test

The sustainability test is a self-assessment tool designed to help buyers embed relevant and proportionate sustainability requirements consistently in the development of contracts and frameworks.

Climate Change - Vehicles

Sustainability Test revealed that the product would be delivered by HGVs to three locations within North Ayrshire.

Similar to above, NAC specified consolidated deliveries to site in order to reduce the impacts on the environment from deliveries from HGVs.

Climate Change - Adaption

Sustainability Test revealed that there are different road fuel types available on the market with petrol and diesel being the most used in the UK. However, HVO fuel has the following advantages:

•         Greener alternative to petrol diesel.

•         Up to 90% reduction in greenhouse gas emissions.

•          Biodegradable and non-toxic.

•         Excellent cold weather performance.

•         Made of 100% raw material.

Similar to above, this supported NAC’s decision to proceed with the mini competition and make the switch from diesel given the clear sustainable and environmental benefits as outlined throughout this case study.

Employment - Skills and Training

Sustainability Test revealed that North Ayrshire has an unemployment rate of 3.6%.

Similar to above, this supported NAC’s decision to mandate community benefit delivery into the mini competition process.

Fair Work First and Living Wage

Sustainability Test revealed that Fair Work First was a concern in contract delivery due to the reliance on labour (manufacturing, storage, delivery etc).

Sustainability Test also revealed that the contract was not living wage applicable – as staff would not work for 2 or more hours in any given day in a week, for 8 or more consecutive weeks in a year.

NAC made sure the CCS Framework addressed Fair Work First whereby suppliers had to demonstrate the fair working practices they would operate throughout the framework period.

NAC also made sure the CCS Framework addressed Prompt Payment whereby suppliers had to confirm they had systems in place to pay key subcontractors promptly and effectively i.e. within the agreed contractual terms, they had systems in place to include (as a minimum) 30 day payment terms in all of their supply chain contracts and require that such terms are passed down through their supply chain.

NAC also made sure to promote payment of the Real Living Wage as required by NAC’s Living Wage Accreditation by asking bidders what their living wage status was.

Health & Safety

Sustainability Test revealed that health and safety was a concern in the manufacturing process and during the handling of HVO fuel.

NAC made sure the CCS Framework mandated ISO 45001 or equivalent to ensure bidders demonstrate a commitment towards fewer workplace injuries and illnesses through a proactive approach to hazard identification and risk assessment which in turn leads to improved health and safety.

Framework core terms also states that the supplier must perform its obligations meeting the requirements of:

• all applicable law regarding health and safety; and
• the buyer’s current health and safety policy while at the buyer’s premises.