University of Sharjah
OP-11: Sustainable Procurement

Institution wide sustainable procurement policies

This policy has been developed to assist University of Sharjah staff in their responsibilities to spend the University's money wisely. Decisions to spend the University’s funds must be based on clear and transparent factors and in accordance with UAE legislation, the University’s By-laws and governance, which includes those factors affecting sustainability.

Sustainable Procurement is considered by the University of Sharjah to be a process whereby the University meets its needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the University, but also to society and the economy, whilst minimizing damage to the environment.

This Policy aims to assist University of Sharjah staff understand that true sustainable procurement must take into consideration economic, environmental and social factors.

Sustainable Procurement impacts in three key areas:
1. Economic Impact of Sustainability;
2. Environmental Impact of Sustainability; and
3. Social Impact of Sustainability.

Failure to adhere to the University’s Procurement Policy and Sustainable Procurement Policy can lead to poor decision-making in procurement actions and in extreme cases, can cause reputational and financial damage to the University.

To assist University employees with the obligations of this policy, all those involved in procurement must consider the following:

1. Economic Impact of Sustainability
corporate governance;
ethical trading; and
timely payment of suppliers.

2. Environmental Impact of Sustainability
carbon footprint affecting climate change; and
biodiversity.

3. Social Impact of Sustainability
diversity in the workplace;
workers’ welfare and rights; and
community engagement and benefits.


The Benefits of Sustainable Procurement are:

i) Minimizes business risk;
ii)Provides cost savings through focusing on following a whole life costing methodology when sourcing goods and services, which includes reducing use, reusing and recycling and ultimately reducing the amount of waste going to landfill;
iii)Enhance corporate image in the marketplace by demonstrating purchasing and supply management's value to the University;
iv)Create markets for new products and services by using technology to develop and market sustainable products that will initially attract consumers who are early adopters and command a premium price in the marketplace;
v)Secure the supply of goods and services in the light of increasing environmental legislation; and
vi)Reduce waste and improve resource efficiency.


Checklist for Sustainable Procurement Consideration:

All University staff involved in spending University funds must consider the following Sustainable Procurement checklist before making any recommendations of award:

Could I repair or refurbish the old item instead of purchasing a new one?
Can I loan, lease or buy it from someone else/another department at the University?
Is the product reusable or durable, have a long economically useful life and/or can be economically repaired or upgraded, compared to alternatives?
All electrical goods must be A rated.
Does the product make efficient use of resources?
i.e., does the product use energy, fuel or water more efficiently or uses less paper, ink,
light or other resources, compared with alternatives?

Is the product recyclable (and do local facilities exist that are capable of recycling the product at the end of its useful life)?
Is the product biodegradable (will it take a long time to decompose in landfill)?
Does the product contain recycled material?
Do we really need to buy a virgin product when the recycled version is of the same quality?
Does the product have minimal packaging and/or for which, there will be take-back by the manufacturer/supplier of packaging?
Does the product have minimal content and use of toxic substances in production and final product?
Is the product purchased from local supplier, which minimizes the ecological footprint, such as transportation and packaging cost?
Can the additional cost accounted for improved quality be reimbursed in lower operating costs over 5 years? If you are unsure about how to calculate the total costs of buying, operating and disposing of a piece of equipment (known more commonly as Whole Life Costing) please contact the Procurement Directorate who will assist you);
Does the supplier have ISO 14001, another Environmental Management Standard or other Eco-Label that meets certain standards? If not, how does the supplier monitor and manage their operation to ensure that environmental factors are being considered and any environmental damage or negative impact is being limited or offset?;
Does the supplier adhere to the International Labour Organization’s International Labour Standards? If not, what labour standards are in force that protect the supplier’s workers’ rights and prevent modern day slavery and/or child labour in the supply chain? This is especially important to consider for any procurement actions for IT products or clothing and fabric manufactured products; and
For disposal, am I using the University’s contracted supplier(s) for uplift, removal and disposal?

Value for money (VFM) is not about achieving the lowest price. It is about achieving the optimum combination of whole life costs and quality. Traditionally VFM was thought of as getting the right quality, in the right quantity, at the right time, from the right supplier at the right price. This concept has been updated to – obtaining better quality of goods or services in more suitable quantities, just in time when needed, from better suppliers at prices that continue to improve.
Sustainability encompasses environmental, economic and social issues. While it is often thought of as reducing consumption and waste; or recycling, it is also about ensuring people are treated fairly when harvesting or manufacturing goods for our consumption. It relates to how we do things and how it affects the quality of our lives. Where a change in a process, or the goods or services we use, improves our working environment, reducing workloads and stress levels – this too is a sustainability matter.
Where, for example, there is a reduction in waste this will result in a reduction in the cost of disposing of the waste to landfill sites, there will also be an intangible benefit to the organisation from the increasing sense of well-being by the staff who are aware that their support for the initiative is having an environmental impact. The challenge here, as far as the EMM is concerned, is to be able to allocate a realistic monetary value to this perceived feeling of well-being. It could be that this environmental approach is used to help attract new investment through, for example, an increase in student numbers or in grants or gifts from donors.
In some instances, there may be a cost associated with a ‘sustainability’ decision; this should be recorded in the EMM as a negative, cashable, efficiency. In many instances, there will be other efficiencies that will outweigh the ‘cost’ of taking the sustainable decision. The codes for Sustainability are:
S1Reduction in waste – packaging, residue from processes, etc.
S2 Reduction in consumption – use of raw materials (consumables, utilities)
S3 Legislative compliance – e.g. WEEE legislation
S4 Recycling and/or reuse of products
S5 Enhanced Reputation and/or marketing opportunities
S6 Cost Avoidance
S7 Other

Ethical, Environmental and Social Responsibility

Individual Code of Ethics:
Any individuals engaged in any aspect of procurement on behalf of the University shall never use their authority for personal gain and shall seek to uphold and enhance the standing of the University by:

maintaining an unimpeachable standard of integrity in all their business relationships both inside and outside the University;
fostering the highest possible standards of professional competence amongst those for whom they are responsible;
optimising the use of resources for which they are responsible to provide the maximum benefit to the University;
complying both with the letter and the spirit of the law of the country(ies) in which the University operates and with which it has dealings and complying with all contractual obligations incurred by or on behalf of the University; and
rejecting any business practice which might reasonably be deemed improper, which includes not engaging in corrupt activities and declaring any conflicts of interest that may exist prior to involvement in procurement actions.

Beyond the requirements of law and other regulations that Procurement professionals are bound to observe, the University has Corporate Social Responsibilities (CSR) to the wider community. Ethical, environmental and social responsibilities very frequently conflict, both between themselves and with other objectives, such as that of economic efficiency. Where significant conflicts arise, those involved in the procurement action may be required to show (and record) that due attention and weight has been given to these issues. The various economic, social and environmental factors likely to be significant in a procurement must be determined, and aligned with corporate policy and goals, before the procurement process commences. Areas of CSR policies that are relevant to the supply chain include some or all of the following:

Environmental responsibility;
Human rights;
Diversity;
Corporate governance;
Sustainability;
Impact on society;
Ethics and ethical trading;
Biodiversity; and
Community involvement.

Who can register as a Supplier?
Any companies who are properly registered for business in the jurisdiction(s) in which they operate are eligible to request registration as a Supplier with the University. This must include registration with the relevant government authorities and regulatory bodies for the purposes of operating business, taxation, employment and all other considerations.

In order to support the local economy, preference is given to suppliers who have offices in Sharjah and the UAE. Freezone companies can be registered under recommendation of the Director of Procurement and approval of the Vice Chancellor – Finance and Administration.

Evidence that no less than (51%) of the establishment’s capital is owned or shared by a UAE national in accordance with the operating laws in this regard.

Vendor Code of Conduct or Equivalent Policy

Besides the University by-laws the Procurement department is using General Terms & Conditions (T&C’s) when issuing PO’s or contracts. In some parts of these T&C’s standards are set for suppliers’ social and environmental responsibility that exceed basic legal compliance. Below are a few examples of clauses mentioned in the T&C’s.

6.4 Supplier will and will be responsible for ensuring that Supplier’s Personnel will, whenever on UOS’s premises, comply with all reasonable instructions and directions issued by UOS, including UOS’s Standards on health, safety and the environment, security and the code of conduct.

30. “Environmental Law” means any applicable Laws or Standards governing or relating to the (a) environment; (b) release or threatened release, of Hazardous Materials, including any Law related to the investigation, monitoring and/or abatement of such releases; and (c)manufacture, handling, transport, use, treatment, storage or disposal of Hazardous Materials or materials containing Hazardous Materials.

38. "Hazardous Materials means any petroleum or petroleum products, radioactive materials, asbestos in any form that is or could become friable, urea formaldehyde foam insulation, and transformers or other equipment that contain dielectric fluid containing polychlorinated biphenyls and any other chemicals, materials or substances (a) that are or, at any time after the Effective Date, become (i) defined as or are included within the definition of, hazardous substances, hazardous wastes, hazardous materials, extremely hazardous wastes, toxic substances or toxic pollutants under; or (ii) regulated or become regulated as such, by any Environmental Law (or any regulations promulgated pursuant to, such Environmental Law); (b) that are or could reasonably be classified as, toxic, explosive, corrosive, flammable, infectious, radioactive, carcinogenic, mutagenic, or otherwise hazardous; and/or (c) the presence of which on the UOS premises (including the sea or sea bed, located in United Arab Emirates territorial waters) (i) causes, or threatens to cause, a nuisance on UOS premises or to adjacent properties or (ii) poses or threatens to pose a hazard to the health or safety of persons on or about the Site or any adjacent properties.

40. “Law” or “Laws” means any one or more present and (future laws due to a Change in Law), legislation, statutes, ordinances, rules, regulations (including implementing regulations), codes, decrees, resolutions, ordinances, licenses, orders, plans, authorizations, concessions, franchises, Government Authorizations, approval, consents, directives (to the extent having the force of law), decisions, code, orders, bylaws, and requirements and any other laws or any interpretation by a Competent Authority (including, to the extent applicable to the Work under the Agreement, related to anti-fraud and corruption, export and import controls, health, safety and the environment, employment and labor, workers compensation, traffic safety, insurance, safety at work, industrial hygiene, Hazardous Materials, and building and zoning) and any regulations issued under or by international environmental conventions and regulatory bodies, which any Government Entity has issued or adopted, including all applicable rules concerning photography in the United Arab Emirates, and any of applicable laws and regulations, to the extent applicable to UOS, the Parties, the Goods, the Services, and/or the Site (or any portion thereof) whether or not in the contemplation of the Parties at the time the Agreement was executed, including all Government Authorizations required to be obtained from, and all rules and regulations of any Government Entity.

6.3 Supplier shall (and shall ensure that Supplier’s Personnel) comply fully with applicable Standards and all applicable Laws in the performance of the Agreement, including all applicable privacy, publicity, environmental, import or export Laws, and any other legal requirements that are applicable under the Agreement.

6.4 Supplier will and will be responsible for ensuring that Supplier’s Personnel will, whenever on UOS’s premises, comply with all reasonable instructions and directions issued by UOS, including UOS’s Standards on health, safety and the environment, security and the code of conduct.

Apart from these T&C’s, suppliers are asked to submit a list of documents as shown in below checklist. Quality Accreditation Certificates are not required by law as well as Health and Safety policies and Workmen compensation (only in a few Emirates, but not in Sharjah).


New/Update Supplier Information Check List

ALL SUPPLIERS - CHECKLIST
 
Supplier - Sign, date and insert name

Supplier Information Capture Form, Completed, Signed and Stamped; signatory on this form to be a named individual on the Trade Licence, if not, a letter of authorization for that individual to sign on behalf of the Supplier must be provided, signed by an individual named on the Trade Licence

Commercial Registration Certificate - VALID COPY TO BE ATTACHED

Chamber Of Commerce Certificate, if registered - VALID COPY TO BE ATTACHED

VAT Certificate (or Sales Tax, depending on jurisdiction) - VALID COPY TO BE ATTACHED

Banking Information on Stamped Letterhead or Official Invoice - VALID COPY TO BE ATTACHED

Copies of all Quality Accreditation Certificates, ISO, BS, Industry specific, etc. – This MUST include certification from any manufacturer that the Supplier is an authorized distributor/reseller for the goods that they provide

Copies of all Health and Safety Policies, Procedures and Manuals (providing a website link to the documentation is acceptable)

Copies of all Certificates of Insurances – at a minimum must include:
General (Public/Product Liability)
Workers Compensation
Vehicle
Construction Contractors Only - Contractors All Risks
Consultancy and Advisory Service Providers Only - Professional Indemnity

Life Cycle Cost Analysis

The University employs LCCA as a matter of policy and standard practice when evaluating all energy-water products systems and building components to the extent that this information can be provided and validated. More work needs to be done to agree University standards for goods so that proper LCCA can be carried out confidently.

To assist University employees with the obligations of this policy, further details are provided below to explain the procurement activities:

Economically Effective

The University spends much of its revenue on goods and services and buying them in the most economically effective manner and in compliance with the University’s governance is the central role of the procurement function. All those involved in procurement must consider the following:

the desired outcome is greatest value at lowest total cost;
total cost will take into account the full anticipated life-cycle costs of the goods or services, including factors such as maintenance, servicing, reliability costs and costs of ultimate disposal;

Quoted from the University’s police: “Can the additional cost accounted for improved quality be reimbursed in lower operating costs over 5 years? If you are unsure about how to calculate the total costs of buying, operating and disposing of a piece of equipment (known more commonly as Whole Life Costing) please contact the Procurement Directorate who will assist you);”

Procurement facilitates the disposal/sale of University assets which have:
been identified as having reached the end of their life cycle; or
where internal re-use has been exhausted but may have residual value.

Procurement determines if there is interest from University personnel, vendors or buyers and makes attempts to sell the materials. The manufacturer of any materials that are to be sold will be contacted to confirm that there are no restrictions on resale, and to see if they are interested in buy back.

We have launched a new Chemical Inventory Management System to facilitate chemical management in the university and reduce the amount of chemicals ordered and waste produced. We have some requirements under the UoS Chemical Hygiene plan, Page No. 6 (Chemical Management), but we do not have any official sustainability criteria yet for Chemicals. However, the University is working on developing a written plan/policy for Sustainable/Green Labs that cover sustainable criteria.
The University has published sustainability criteria for some, but not all categories. Below table demonstrates the categories with the appropriate examples.

Consumable Office Products
- For printing paper we do not have published criteria, however the University is using “HP Papers Everyday”. The paper is made from responsible sources (FSC* C101994), which is acid free and the paper as well as the packaging is recyclable.
- For cartridges in our College of Fine Arts they have signed up for the HP Planet Partners Program and are using their recycling boxes.

Specifications are determined by evaluating the needs of the user. However the University does use products certified from bronze up to gold on EPEAT Registry. Furthermore All electrical goods must be A rated.

Specifications are determined by evaluating the needs of the user. However the University does use products certified from bronze up to gold on EPEAT Registry. Furthermore All electrical goods must be A rated.

The University has appointed a single F&B operator to provide food services on campus to students, staff and visitors. The contract contains clauses that cover sustainability, food waste reduction and management, community engagement and buying from sustainable sources they are expected to behave in a socially responsible manner that ensures the lowest carbon emission impact.

Unknown, as usually transportation is the responsibility of the Services division at the University. Recent vehicle purchases that have come through Procurement have been evaluated by Procurement with environmental considerations being a factor in those evaluations. The University is currently in the process of reviewing its fleet of commonly used vehicles and as vehicles are coming to end of life, more sustainable vehicles are being considered as replacements.
Under the Sustainable procurement checklist Procurement officers are asked: Is the product purchased from local supplier, which minimizes the ecological footprint, such as transportation and packaging cost.