1.18 The Government also needs to ensure that it spends in a way that supports the achievement of its sustainable development goals as set out in the UK Government Sustainable Development Strategy - Securing the Future (March 2005). The business-led Sustainable Procurement Task Force, chaired by Sir Neville Simms, reported in June 2006 on how this could be achieved. The measures set out in this report are an essential component of delivering the Government's goals in this area. Further measures will be set out in a sustainable procurement action plan shortly. Together with this report, it will form the Government's response to the Task Force and ensure the Government delivers the ambitious sustainable operations targets it has set itself, which include:
• a carbon neutral office estate by 2012 alongside a 30 per cent reduction in carbon emissions by 2020;
• recycling 75 per cent of the waste by 2020;
• reducing waste generated by 25 per cent by 2020;
• reducing water consumption by 25 per cent by 2020; and
• increasing energy efficiency by 30 per cent per square metre by 2020.
1.19 The Chancellor announced in the 2006 Pre-Budget Report the intention to pilot school designs that achieve a level of excellence in carbon reduction. The Government is strongly committed to sustainable procurement, and the OGC will have a key role to play in taking it forward. Box 1.4 clarifies the Government's approach.
| Box 1.4: Sustainable procurement The initial construction or refurbishment costs of a building that incorporates energy saving features may cost more up-front than more standard buildings, but those costs will often be more than offset through lower energy bills over its useful life. Effective whole-life costing, including the costs of carbon, is essential for decisions that are good value for money and good for the environment. There are many real life examples of this type of good procurement. The Department for Work and Pensions (DWP), with the help of the OGC, has signed a £1 billion contract for government vehicles that will save the taxpayer £100 million over the next four years. The deal involves 15 manufacturers, will initially cover 78,000 vehicles and 38 government organisations, and help meet the target for reducing carbon emissions from vehicles by 15 per cent by 2010-11 by allowing organisations to replace their existing fleets with greener, cleaner vehicles at reduced cost. DWP alone is forecast to save at least £5 million and to cut CO2 emissions by around 4,500 tonnes. More of these kinds of approaches will be required to deliver the Government's sustainable development goals including the operational targets for the government estate, where the OGC will play a key role. All departments will be expected to show how they are responding to the five long-term challenges - demographic change, global economic integration, technological innovation, global uncertainty, climate change and natural resources - as part of the Comprehensive Spending Review. This demonstrates how the Government is considering sustainable development in conjunction with other key challenges that cut across government activities. |