Public development institutions finance counterparts for States, local authorities and public companies. A development agency organization indeed approached Ksapa to strengthen the socio-environmental criteria governing the supply and equipment contracts of its bonding programs.

the challenge

  • Align the backer with issues requiring vigilance in its strategic procurement contracts in compliance with the European Union Duty of Care ;
  • Support decision-making by enriching the list of socio-environmental criteria criteria without overly burdening preexisting processes.
  • Comfort the backer’s commitment to the SDGs via socio-environmental criteria. That way, its projects are all the more likely to create a lever for inclusive recovery and progress for local companies. This includes issues pertaining to the sustainable use of resources, local job creation, sound working conditions, gender parity…
  • Capitalize on social and environmental norms, standards and good practices in force at the international level. This in order to apply concrete criteria adapted to mainly non-OECD operational environments.

OUR APPROACH

  • First, Ksapa outlined the key principles of a sustainable procurement policy. In so doing, we adapted our recommendations to the specific contexts in which supply markets are tendered, building alignement across a diversity of functions and priorities internally;
  • Then, our team selected a list of key supplies for the backer’s projects. We also specified those for which strengthened socio-environmental criteria were required using market standards;
  • From there, Ksapa profiled socio-environmental criteria for each supply and equipment segment. We selected them based on their relevance and materiality for the supplies identified. We then compared our results with best practices of international donors and other financial players. This included assessing their applicability in developing economies as well as their pros and cons for our client.
  • Finally, Ksapa evaluated the feasibility of incorporating these criteriada into standard calls for interest for the supply of goods.

RESULTS & NEXT STEPS

  • Ksapa engagement alongside our client resulted in the characterization of 3 key supply chains for our client (Energy, Transportation and Water/Sanitation).
  • This allowed us to collectively identify 10 key socio-environmental risks for supply contracts. In so doing, we included both cross-cutting and sector-specific risks.
  • On that basis, our teams analyzed 300+ key norms, good practices and standards. We cross-referenced these against our overarching goal of suggesting relevant socio-environmental criteria for the contracts backed by our client.
  • Ksapa also led interviews with leading multinationals, to collect feedback on our client’s bidding process and preexisting socio-environmental criteria.
  • Finally, we prioritized 20+ socio-environmental standards for procurement contracts. We supplemented this list with recommendations to operationalize the approach. We also outlined actionable solutions for relevant sanctions and controls.

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Margaux Dillon

Margaux Dillon
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