The Leading News & Information Service For The Facilities, Workplace & Built Environment Community

Why is Sustainable FM Procurement Such a Challenge?

Why is Sustainable FM Procurement Such a Challenge?
16 March 2022
 

FM procurement is known for being variable and complex, so how can sustainable practices be improved in this area?

 

Watch the Video

 

 


 

 

 

The procurement landscape is experiencing a global shift, in line with net-zero concerns and increased CSR awareness –  however, when it comes to the facilities manager’s responsibilities, sustainable procurement practices are still lacking

That’s according to research by The Sustainable FM Index, who have examined why sustainable procurement is not yet common practice in this industry.

Their recent report, “Sustainable Procurement in FM : The way forward” outlines the ambition for the future of sustainable procurement in FM and the key criteria that will help embed sustainability in the sector.

It includes an investigation into best practices in FM, where the “The 7 Principles of Sustainable FM Procurement” framework was developed to help businesses address these issues not just at the supply chain level but also within the wider value chain.

 

“FM procurers want to be a client of choice for the best suppliers, and FM providers want to be a supplier of choice in the marketplace, but we have witnessed uneven progress thus far and are facing increasing needs”

–SFMI

 

What Are The Procurement Challenges in FM?

 

The authors of the report examine several areas which present unique procurement challenges for the FM industry.

 

FM Procurement is Complex

 

The report states that one framework to accommodate all FM procurement needs would be a huge challenge:

“Each party has their own priorities, encompassing such dimensions as cost, convenience, time, relationship/ transactional.

“Incorporating sustainability into the mix can add to the challenges, especially given the numerous choices of sustainability, climate, and responsible business topics to include.

“This can lead to even more challenges as procurers are often large; as one survey subject said 'It’s hard to find just one as [this company] is large and complex'. This large size and even multiple sites will make embedding sustainability everywhere even more testing.”

 

Handling Capital Investment

 

The challenge of handling investment interests from multiple stakeholders is also an FM-specific challenge:

“Agreeing the appropriate time for recouping an investment may require maturity, trust, and some creative thinking. A payback period which may be feasible in other aspects of a business may not be feasible for FM projects.

“Concepts such as service companies or joint ventures may need to be worked for the specific parties. There are benefits in a more complete return on investment analysis in assessing the project.

 

A Lack of Knowledge of Sustainable Procurement

 

The 2020 SFMI report “Sustainable Ambition for the FM Sector” noted that there was a lack of understanding of mapping emissions in supply chain” and this appears to be a considerable factor in sustainable procurement adoption.

It’s also been suggested that organisations and processes may not yet have the digital and technological tools and infrastructure to enable the best practices.

 

Supply and Demand

 

The SFMI also considers the risk that there may not be enough sustainable suppliers to go around:

“FM procurers want to be a client of choice for the best suppliers, and FM providers want to be a supplier of choice in the marketplace, but we have witnessed uneven progress thus far and are facing increasing needs”

 

A Talent Shortage in FM

 

Another factor is that the FM industry currently faces a talent disruption due to an ageing workforce:

“Up to half of the current workforce is expected to retire in the next 10 years – risking the loss of expertise in procurement and operations”

You can access the full “Sustainable Procurement in FM : The way forward”  report here.

Picture: a photograph of some people working at a laptop. Image Credit: Unsplash

Article written by Ella Tansley | Published 16 March 2022

Share



Related Articles

Almost £100m Spent With Social Enterprises in Buy Social Corporate Challenge

A project supported by FM and commercial property companies such as Amey, CBRE, Compass, Equans, Mitie, Wates Group and Willmott Dixon has hit a £99 million...

 Read Full Article
Predictions for Supply Chain Issues in 2023

Alex Minett from CHAS, the supply chain risk management company, looks at seven issues that will affect supply chains in 2023.  The last year has been challenging...

 Read Full Article
Mitie, Compass and Wates Group Among FM Firms to Support Buy Social Corporate Challenge

30 UK businesses have spent £250 million procuring services and products from social enterprises and helped create 2,700 jobs in an ongoing programme from Social...

 Read Full Article
Social Enterprise Day – Buying Responsibly to Reach ESG Goals

Ethical consumerism has become a big trend in recent years as consumers are becoming more concerned about where their money is going, and it’s not just...

 Read Full Article
Net-Zero Commitments Mandatory to Bid for Government Contracts 

New measures will require businesses to commit to net-zero by 2050 and publish clear and credible carbon reduction plans before they can bid for major government...

 Read Full Article
Ethical Workwear Procurement and Supply Chain Transparency

Knowing where and how your organisation's corporate workwear is sourced, manufactured, transported and stored is increasingly being considered as part of its own...

 Read Full Article
Modern Slavery Rules Changing from 1 April 2023

Updated guidance on identifying and managing the risk of modern slavery in supply chains will soon apply. Alex Minett from CHAS looks at what’s changed and...

 Read Full Article
Spotlight Interview – Helen Carter | Action Sustainability – Modern Slavery in FM

Modern slavery and forced labour have a huge presence within facilities management, its supply chain and the wider built environment. ThisWeekinFM spoke to Helen...

 Read Full Article
Alcumus Reveals Initial Findings From 'Risk Barometer'

70 per cent of respondents to Alcumus’ “Risk Barometer” say that they have been negatively impacted by a supplier in the last year. As supply chain...

 Read Full Article
The Carbon Cost of Water Consumption

For property landlords in the commercial sector, the managing and monitoring of water consumption is an important yet lesser-considered factor in ESG...

 Read Full Article