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Case study Transport for London Transport for London Transport for London (TfL) is responsible for operating the capital’s transport network, which includes the Underground, taxis, buses and roads within Greater London. With a spend of £5 billion per annum on this, it is the largest procurer under Ken Livingstone. TfL’s customers include all those who live in, work in and visit London and use the integrated transport infrastructure to get around. Its customers collectively take approximately 30 million journeys across London each day. TfL’s workforce of 20,000 comprises of a diverse mix of communities. Sustainable procurement The driving force for TfL’s sustainable procurement and other environmental initiatives is the Mayor’s vision to develop London as an exemplar world city through sustainable consumption and production. TfL is committed to delivering this vision. TfL’s spending power presents a significant opportunity for it to drive social and environmental change whilst simultaneously delivering value for money. TfL’s sustainable procurement portfolio encompasses the following themes spanning social and environmental initiatives. These include: • supplier diversity • promoting fair employment practices • promoting workforce welfare • meeting strategic labour needs and enabling training opportunities • promoting community benefits • encouraging ethical sourcing practices • promoting greater environmental sustainability (including Green) TfL’s Green Procurement Programme converts the Mayor of London’s Green Procurement Code into action. Underpinned by robust policy principles and strategy, it embeds green procurement into the culture of TfL. This includes a toolkit which outlines the requirements to be included in each step of the procurement process as well as supplier engagement and reporting mechanisms. TfL has increasingly moved towards e-documentation to reduce paper usage. Examples include digitising of personnel files and the launch of an online job application process. The achieved result is an increase of 400% in spend on recycled products. TfL has also endorsed that all timber used in our business operations must be FSC (or equivalent) certified and office furniture made from recycled PET (Polyethylene terephthalate) has also been purchased. TfL has switched all refreshment products to Fair Trade alternatives. This portfolio includes a unique supplier diversity programme. This is instrumental in engaging diverse suppliers and communicating the message that TfL is open to do business with them. Varying engagement methods have been including ‘meet the buyer’ events, TfL’s website and articles in industry publications. Other activity TfL’s green policy principles of reduce, re-use, recycle and buy-recycled to close the loop have been applied to high volume products such as paper, plastic cups and water bottles. Specific action plans are delivering benefits against each of the principles. Recycling initiatives include introduction of special bins to collect non-white paper (eg newspapers, magazines), cardboard, toner cartridges and aluminium cans. To improve air quality, TfL is trialling hydrogen fuel cell buses which offer cleaner and smoother ride than conventional buses. It is the aim to purchase more of these buses in 2010. As part of CO2 reduction commitment, 100% of the electricity in head office buildings and 10% of energy to run trains, is purchased from renewable sources. TfL has also increased the energy efficiency of its buildings by reducing the amount of energy used. This includes the replacement of auto-vending machines with hot water heaters and bottled water with purified tap water. We have also implemented a policy to ensure that our suppliers comply with the forthcoming Waste Electrical and Engineering Equipment (WEEE) directions. Gaining support Detailed guidance and a toolkit have been produced to help professionals incorporate green requirements into the procurement process. The first major tender to include green requirements is the Highways Maintenance and Management contract. Suppliers were required to produce a sustainability plan and also report on reduction of resources consumed. TfL has shared its programme approach and challenges both with public and private sectors by contributing to The Future various forums. Internal communications have also been instrumental delivering key messages to influence a behaviour change amongst people. The following tactics have been used to drive this. 1. Awareness raising Green Procurement headlines and announcements, such as the launch of TfL’s Green Procurement Policy Code communicated through a staff newsletter and the intranet. 2. Education and information The Green toolkit provides practical information on how to implement into the procurement process. TfL’s intranet green pages educate staff on how to be green at work and at home, reducing their environmental footprint. 3. Involvement People involvement on the green issues through the green quiz and intranet blogs. Including sustainable procurement targets as part of the performance management process. Results Sustainability has been applied to many areas of the organisation. London Underground (LU) has operated an Energy Challenge programme since 2003, which encourages stations on energy savings through turning off lights and escalators in engineering hours and keeping air-conditioning down. This year a 24% saving across all stations, has exceeded the 20% baseline target. In 2005, 315 bus shelters and 2% of all bus stops were upgraded to solar power. In addition, a trial of three solar powered ticket machines was completed as well as a solar lighting trial for taxi rank posts and shelters. The Low Emission Zone (LEZ) is being developed to target similar reductions in particulates and NO2 emissions from vehicles which would be required to meet the European standards by 2008. TfL’s Oyster card has enabled paper ticket figures in 2004/5 to drop by 32 million, reducing paper consumption. TfL is taking measures to reduce its water consumption by deploying low water usage systems and using ‘grey’/recycled water for train washing. LU and TfL’s Head Office buildings show a decrease of 6% in water usage in 2004/5 compared to 2003/4 figures. The switch to purchasing recycled paper instead of virgin paper has saved TfL 25% of its annual spend on paper. TfL signed up to a 100 days of carbon clean up and reduced its energy consumption saving over 200 tonnes of carbon. The Future The next six months will see TfL conclude the Green Procurement Programme and implement the recommendations of the Sustainable Procurement Task Force. In parallel, TfL will complete the dissemination of best practice on supplier diversity and fair employment and develop new themes such as ethical sourcing. Contact details Contact Faiza Rasheed Tel 020 7126 2805 Email email@example.com
"Case study Transport for London"