BuildBackBetter with Sustainable Procurement in 2020
COVID-19 has plunged us into a new reality where many families, businesses, and communities are facing economic as well as health crises. In times like these, municipal spending has a critical role to play in helping Canadians meet new health protocols and address community economic challenges by creating employment opportunities where they are needed most.
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Sustainable procurement offers strategies to meet these challenges. We can learn from Canadian municipalities that are using their spending to deliver social and environmental value. Their investment in environmental and social procurement has enabled them to meaningfully address their sustainability goals, reduce their costs over time, and build their resilience to crises like COVID19.
The Canadian Collaboration for Sustainable Procurement (CCSP) is a leadership group of 28 municipalities and other public organizations across Canada that has successfully rolled out the social, ethical, green and Indigenous procurement programs and policies needed to #buildbackbetter. The CCSP has just released its 10th Annual Report on the State of Sustainable Public Procurement in Canada, which shares sustainable procurement strategies relevant to this moment.
Here are six procurement strategies public organizations can use right now to make a positive impact:
Spend on green infrastructure to create employment, and make that employment matter for those who need it most through Community Benefit Agreements (CBAs). There is funding available from the federal government and some provincial governments for green new construction, renovations and retrofits, as well as projects that provide community benefits. CBAs provide meaningful employment, skills training and/or apprenticeship opportunities for individuals and communities that face barriers to employment. They are a powerful market-based strategy to address poverty and stimulate local economies. A leading light is the City of Toronto, who runs a Workforce Development program that takes a holistic approach to inclusive economic development, which includes integrating community benefit agreements into construction and infrastructure projects. In 2019, the City of Edmonton developed a new Community Benefits Framework. Anchor TO in the Greater Toronto Area, and the Coastal Communities Social Procurement Initiative (CCSPI) in BC are advancing community benefits at a regional scale.
Support small and local businesses under great economic strain right now. We know that small business are critical to maintaining thriving communities. One strategy is to encourage all Purchasing card and credit cardholders to direct their spend to small and local providers, many of whom remain open for business and able to offer curbside delivery as needed. Direct purchasing amounts typically fall below thresholds for which trade agreements apply. In 2019, members of CCSP’s working group from the City of Calgary, Victoria, Edmonton, Mississauga, and Halifax Regional Municipality (HRM) developed and piloted a training program for “Including Social Value in Low-Value Purchases”, which has now been fully adopted for purchasing card holders in the City of Victoria and HRM (see Annual Report for more on this story).
Mayor Mike Savage, Halifax Regional Municipality (Credit: LakeCity Works)
Another strategy is to reach out to social enterprises for sole source procurements, or ensure they receive notice of new procurement opportunities. Social enterprises do double duty by providing employment to individuals otherwise facing barriers to employment. They can be flexible to customize their production to meet specific needs, at a competitive price. In 2019, the Halifax Regional Municipality (HRM) successfully contracted with LakeCity Works for picnic tables for its parks and beaches. Following the initial award on the basis of best price, LakeCity Works proposed that the tables be made from recycled film plastics. The purchase diverted 500,000 plastic bags from landfills and provided employment for people with mental illness. According to Jane Pryor, Manager of Purchasing at HRM, “Our experience working with LakeCity Works exemplifies how businesses can deliver economic, environmental, and social value at competitive prices” (see Annual Report for more on this story).
Encourage diverse suppliers to bid on municipal contracts. Crises do not affect people and communities equally. Communities facing barriers are more vulnerable and face deeper and longer-lasting impacts. Leading Canadian municipalities have shown that procurement can support entrepreneurship in equity-seeking communities, providing employment and skill-building opportunities and reducing poverty.
Since 2016, the City of Toronto has ensured that city contracts are accessible to diverse suppliers (certified as at least 51 percent or more owned, managed, and controlled by Indigenous Persons or individuals from an equity-seeking community including, but not limited to, women, racialized minorities, persons with disabilities, newcomers, and LGBTQ+ persons). Staff at the City purchasing goods and services between $3,000 and $100,000 invite at least one certified diverse supplier to submit a quotation as part of its three-quote process. The program has resulted in a 40% increase in City purchases from diverse suppliers and has earned several leadership awards (see Annual Report for more on this story).
City of Toronto Supplier Diversity Team (Credit: City of Toronto)
