What is the Sustainable Purchasing Council, why was it created and how can your company benefit from it? Why and how have BSR and Hilton Worldwide partnered to launch their Sustainable Procurement Center, and what has the Center achieved to date? What policies, action plans, expectations and requirements are coming out of the public sector that will influence - directly or indirectly - companies seeking to gain market share with their sustainable products and brands? How are governments structuring their sustainable purchasing programs, what requirements are being included, and how are those balanced with other procurement factors?

1. The State of Sustainable
Procurement
Eric Olson, BSR
William Kornegay, Hilton Worldwide
Anastasia O’Rourke, DEKRA
Jason Pearson, Sustainable Purchasing Council

2. Sustainable Public Purchasing Worldwide:
Key findings from the UNEP State of Sustainable Public Procurement
Report
Dr. Anastasia O’Rourke
Principal: DEKRA Sustainability & Performance
www.dekra.de/en/consulting
anastasia.orourke@dekra.com

3. Seite 2
Major purchasers of goods and services in the US
US Federal State and Local
Spending 2011:
2,576Bn
Governments are responsible for
between 15-20% of GDP in
OECD countries
(OECD, 2002 & 2011)

4. Extensive research undertaken into ‘SPP’ and ‘GPP’ by national governments
Conducted for UNEP in 2012, published May 2013
Literature &
Desktop
Review
Expert
Interviews
(20)
Country
Case
Studies
Chile; EU
India; Japan
Slovenia; USA
Global
Survey
110: Nat. Gov.
163: Stakeholders
Investigate: Sustainable/green public procurement worldwid
Europe 31%
Nth America 15%
Sth. America 16%
Asia Pacific
17%
Africa 21%

5. At least 56 countries have adopted SPP/GPP policies
From our survey, we identified:
•43 countries now have national
public institutions that have adopted
SPP/GPP policy measures
Through additional research we
found:
•13 countries also have adopted a
national SPP/GPP policy; and
•Several more countries are currently
developing and/or adopting
SPP/GPP policies.

6. Not all national SPP/GPP policies take the same
form
Seite 5
Q: What national policies & regulations currently include provisions for SPP/GPP
(National Government respondents only, each country counted once)

7. Different agencies are leading & supporting the
effort
Seite 6
Q What government institutions are playing a leading or important role in the implementation of SPP/GPP in your
country?

8. Action plans, legal reviews, market assessments &
training
Q: Have any of the following SPP/GPP activities been undertaken by the national government?
1. Action plans created
2. Legal reviews
3. Legal framework improved to allow inclusion of sustainability criteria
4. Best practices documented
5. Training/capacity-building
6. ‘Value for money’ criteria adopted, not only lowest price
7. Prioritization exercise
8. SPP/GPP committee in operation
9. LCA for key product categories
10.Spend analysis
11.Market readiness analysis
12.Identification of key sustainability impacts
13.Whole of life/ Life cycle costing adopted
14.Implementation for “quick win” categories

9. Many product-category guidelines are being
produced
Seite 8
Q: To what extent are the following product or service groups are currently covered by a SPP/GPP policy or guideline in your
country?

10. “Priority” environmental & social issues get
considered
Seite 9
Priority Environmental Aspects
Q17 If there are priority environm ental aspects covered by SPP/GPP policy, what are they?
59
44
37
31
28
25 24
16
35
31
22
Energy CO2 and
methane
emissions
Waste to
landfill
Water Hazardous
substances
Materials Local
environment
Biodiversity Emissions to
water
Other natural
resources
Other air
emissions
Q: If there are priority environmental aspects covered by SPP/GPP policy, what are they?

11. Implementation is about more than adding
specifications
Q: In what stages of the procurement cycle is your national government currently emphasizing SPP/GPP considerations?

12. There are many perceived obstacles
Seite 11
Q: Which of the following form a barrier to
SPP/GPP in your country?
 More
expensive
 Confusing
definitions
 Insufficient supply
 Quality concerns

13. Yet growth in SPP/GPP is forecast
Seite 12
More than
today
50%
Same as
today
14%
Less than
today 2%
Substantially
more than
today 34%
Q: Do you expect your national governments to increase SPP/GPP activities I the next five years?

14. There are several implications for suppliers
• Expect to see more requirements from customers, showing up
in more places
• Keep an eye on product-category guidelines & participate in their
creation
• The trend is towards 3rd party verification, so substantiate claims
carefully
• Link sustainability performance to product performance
• Demonstrate sustainability benefits of products/services,
preferably with numbers
• Educate your customers; address cost, quality and supply issues
• There is an urgent need for international coordination. Two new
venues to note:
Sustainable Purchasing Council
www.purchasingcouncil.org
• UNEP Sustainable Public Purchasing Initiative

15. Seite 14
For your reference
UNEP State of Sustainable Public Procurement 2012 Executive Summary and Full Report:
• www.unep.fr/scp/procurement/docsres/
My contact details:
• anastasia.orourke@dekra.com
• Ph. +1 203 215 1575
• New Haven, CT, USA
Acknowledgments:
• Dr. Charlotte Leire, Lund University, Sweden (co-author)
• Trevor Bowden, Big Room Inc, Canada (co-author)
• Farid Yaker & Carlos Enmanuel DTIE UNEP, France
• Over 300 interviewees, SPP expert reviewers & survey participants

16. William Kornegay
Senior Vice President – Supply Management
Hilton Worldwide
Sustainable Brands ‘13
San Diego - June 6, 2013

17. © 2013 Hilton Worldwide Confidential and Proprietary
Agenda
16
• Responsibility / Sustainability for a Global Hospitality Company
• Driving and Managing Performance
• Sustainable Procurement: A Hilton Worldwide Perspective
• Why the Center for Sustainable Procurement?

18. © 2013 Hilton Worldwide Confidential and Proprietary 17
“Addressing the challenges and complexities
of responsibly managing the human and natural resources that are essential to our
business while providing our guests with great travel experiences”
Sustainability/Responsibility for a Global Hospitality Company

19. © 2013 Hilton Worldwide Confidential and Proprietary
• Managing Natural
Resources
(Energy, Carbon,
Waste, Water)
• Restoration and
Awareness
• Education and Life
Skills
• Workforce
Development and
Career Pathways
• Diversity and
Inclusion
• Global
Commerce
• Cultural
Experiences
• Local Economies
• Community
Hospitality
(Volunteering,
Hunger, Shelter &
Disaster)
• Human Rights
18
Corporate Responsibility at Hilton Worldwide

20. © 2013 Hilton Worldwide Confidential and Proprietary 19
Over $147 million in
savings through
significant reductions in
 carbon output (11%)
 waste (23.3%)
 energy use (9.7%)
 water (7.5%)
Driving and Managing Performance: LightStayTM

21. © 2013 Hilton Worldwide Confidential and Proprietary 20
Sustainable Procurement: A Hilton Worldwide Perspective
• Hilton Supply Management, in
collaboration with DH Hospitality
Group, Inc., has developed a mattress
recycling program in coordination with
the installation of new Serta mattresses
and box springs.
• In support of the Hilton Worldwide
sustainability initiatives, the
components of the mattresses and box
springs are recycled into various
products rather than being diverted to a
landfill.
• On average, 85% of the components
can be recycled, and the number of
recycled mattresses and box springs
can be tracked under the donations tab
within LightStayTM.

22. © 2013 Hilton Worldwide Confidential and Proprietary 21
Why the Center for Sustainable Procurement?
Hilton Worldwide partnered with BSR to launch the
Center for Sustainable Procurement to support research,
surveys, metrics analyses and educational guidelines
and collaborative consulting projects that will help
business procurement managers integrate sustainability
into their purchasing decisions.

23. © 2013 Hilton Worldwide Confidential and Proprietary 22
“Unless we do everything we can to nurture and support sustainability –
both people and planet – we won’t have a business to sustain. For
Hilton Worldwide, this is the truth we live by, and it is why we have
chosen to travel with purpose.”
Christopher J. Nassetta
President and Chief Executive Officer, Hilton Worldwide

24. Sustainable Public Purchasing Worldwide:
Key findings from the UNEP State of Sustainable Public Procurement
Report
Dr. Anastasia O’Rourke
Principal: DEKRA Sustainability & Performance
www.dekra.de/en/consulting
anastasia.orourke@dekra.com

25. The State of Sustainable Public Procurement
Seite 24 © 2012 DEKRA
Major purchasers of goods and services in the US
US Federal State and Local
Spending 2011:
2,576Bn
Governments are responsible for
between 15-20% of GDP in
OECD countries
(OECD, 2002 & 2011)

26. The State of Sustainable Public ProcurementThe State of Sustainable Public Procurement
Extensive research undertaken into ‘SPP’ and ‘GPP’ by national governments
Conducted for UNEP in 2012, published May 2013
Literature &
Desktop
Review
Expert
Interviews
(20)
Country
Case
Studies
Chile; EU
India; Japan
Slovenia; USA
Global
Survey
110: Nat. Gov.
163: Stakeholders
Investigate: Sustainable/green public procurement worldwid
Europe 31%
Nth America 15%
Sth. America 16%
Asia Pacific
17%
Africa 21%

27. The State of Sustainable Public ProcurementThe State of Sustainable Public Procurement
At least 56 countries have adopted SPP/GPP policies
From our survey, we identified:
•43 countries now have national
public institutions that have adopted
SPP/GPP policy measures
Through additional research we
found:
•13 countries also have adopted a
national SPP/GPP policy; and
•Several more countries are currently
developing and/or adopting
SPP/GPP policies.

28. The State of Sustainable Public ProcurementThe State of Sustainable Public Procurement
Not all national SPP/GPP policies take the same
form
Seite 27 © 2012 DEKRA
Q: What national policies & regulations currently include provisions for SPP/GPP
(National Government respondents only, each country counted once)

29. The State of Sustainable Public ProcurementThe State of Sustainable Public Procurement
Different agencies are leading & supporting the effort
Seite 28 © 2012 DEKRA
Q What government institutions are playing a leading or important role in the implementation of SPP/GPP in your
country?

30. The State of Sustainable Public ProcurementThe State of Sustainable Public Procurement
Action plans, legal reviews, market assessments &
training
Q: Have any of the following SPP/GPP activities been undertaken by the national government?
1. Action plans created
2. Legal reviews
3. Legal framework improved to allow inclusion of sustainability criteria
4. Best practices documented
5. Training/capacity-building
6. ‘Value for money’ criteria adopted, not only lowest price
7. Prioritization exercise
8. SPP/GPP committee in operation
9. LCA for key product categories
10.Spend analysis
11.Market readiness analysis
12.Identification of key sustainability impacts
13.Whole of life/ Life cycle costing adopted
14.Implementation for “quick win” categories

31. The State of Sustainable Public ProcurementThe State of Sustainable Public Procurement
Many product-category guidelines are being produced
Seite 30 © 2012 DEKRA
Q: To what extent are the following product or service groups are currently covered by a SPP/GPP policy or guideline in your
country?

32. The State of Sustainable Public ProcurementThe State of Sustainable Public Procurement
“Priority” environmental & social issues get considered
Seite 31 © 2012 DEKRA
Priority Environmental Aspects
Q17 If there are priority environm ental aspects covered by SPP/GPP policy, what are they?
59
44
37
31
28
25 24
16
35
31
22
Energy CO2 and
methane
emissions
Waste to
landfill
Water Hazardous
substances
Materials Local
environment
Biodiversity Emissions to
water
Other natural
resources
Other air
emissions
Q: If there are priority environmental aspects covered by SPP/GPP policy, what are they?

33. The State of Sustainable Public ProcurementThe State of Sustainable Public Procurement
Implementation is about more than adding specifications
Q: In what stages of the procurement cycle is your national government currently emphasizing SPP/GPP considerations?

34. The State of Sustainable Public ProcurementThe State of Sustainable Public Procurement
There are many perceived obstacles
Seite 33 © 2012 DEKRA
Q: Which of the following form a barrier to
SPP/GPP in your country?
 More
expensive
 Confusing
definitions
 Insufficient supply
 Quality concerns

35. The State of Sustainable Public ProcurementThe State of Sustainable Public Procurement
Yet growth in SPP/GPP is forecast
Seite 34 © 2012 DEKRA
More than
today
50%
Same as
today
14%
Less than
today 2%
Substantially
more than
today 34%
Q: Do you expect your national governments to increase SPP/GPP activities I the next five years?

36. The State of Sustainable Public ProcurementThe State of Sustainable Public Procurement
There are several implications for suppliers
• Expect to see more requirements from customers, showing up
in more places
• Keep an eye on product-category guidelines & participate in
their creation
• The trend is towards 3rd party verification, so substantiate
claims carefully
• Link sustainability performance to product performance
• Demonstrate sustainability benefits of products/services,
preferably with numbers
• Educate your customers; address cost, quality and supply
issues
• There is an urgent need for international coordination. Two new
venues to note:
Sustainable Purchasing Council
www.purchasingcouncil.org
UNEP Sustainable Public Purchasing Initiative

37. The State of Sustainable Public Procurement
Seite 36 © 2012 DEKRA
For your reference
UNEP State of Sustainable Public Procurement 2012 Executive Summary and Full Report:
• www.unep.fr/scp/procurement/docsres/
My contact details:
• anastasia.orourke@dekra.com
• Ph. +1 203 215 1575
• New Haven, CT, USA
Acknowledgments:
• Dr. Charlotte Leire, Lund University, Sweden (co-author)
• Trevor Bowden, Big Room Inc, Canada (co-author)
• Farid Yaker & Carlos Enmanuel DTIE UNEP, France
• Over 300 interviewees, SPP expert reviewers & survey participants

38. The State of Sustainable Public ProcurementThe State of Sustainable Public Procurement