Alfonso Buxens, the Procurement Specialist of UNDP has delivered a presentation regarding how the UNDP Global Fund Health Implementation Support Team is facilitating change in the Global Health Sector at the dialogue on “Fostering Sustainable Procurement: How Procurers Can Change the Global Health Sector” in UN City, Copenhagen on 11 May 2016.

1. Fostering Sustainable Procurement
How Procurers Can Change the Global Health Sector
UNDP Global Fund Health Implementation Support Team – PSU
Alfonso Buxens, Procurement Specialist, Copenhagen

2. AGENDA
How the UNDP Global Fund Health Implementation Support Team (UNDP GF-HIST) is
facilitating change in the Global Health Sector.
1. Sustainability Baseline Initiative
2. Sustainability Call-Off Mechanism
3. CO2 Emissions Reporting for Logistics
4. Packaging Optimization and Innovation
5. Measuring Performance

3. Sustainability Baseline Initiative
The UNDP GF-HIST views sustainable procurement as a practice and performance measurement
that can lead to considerable cost benefits and resource efficiencies.
Our activities are as follows:
 Sustainability Baseline initiative: Working together with
suppliers to collaboratively develop and monitor sustainability
initiatives within the supply chain
 Sustainability Call-off Criteria: Creating incremental call-off
mechanisms for the UNDP Global Fund LTA framework
 CO2 Emission Reporting for Logistics: Decreasing CO2
emissions by streamline planning and creating environmental
performance metrics
 Packaging Optimization and Innovation: Working together
with manufactures and regulatory authorities to streamline
packaging.
Sustainability
call-off criteria
CO2 emissions
and logistics
Sustainability
baseline
Packaging
optimization
and innovation

4. Sustainability Baseline Initiative
The UNDP GF-HIST Sustainability Baseline (2014) includes a matrix of over 9 categories to
monitor TLE-ARV suppliers in the LTA framework. This framework represents 5% of overall UNDP
procurement with a total volume of $137 Mill. USD in 2015.
 The Sustainability Baseline has been constructed via research, questionnaires and
discussions together with TLE-ARV suppliers to understand their current market positioning for
sustainability initiatives
 The Sustainability Baseline is used to create realistic criteria for sustainable procurement
initiatives with TLE-ARV suppliers and to help move future business in the right direction
 The UNDP GF-HIST is currently working together with the SPHS Secretariat to incrementally
harmonize the key focus areas with the Sustainability Baseline.

5. Sustainability Call-Off Criteria
 By evaluating the Sustainability Baseline, incremental call-off mechanisms for sustainability
initiatives have been designed in order to facilitate transformation within the LTA framework
 The first set of sustainability criteria were officially released in January 2016 and are currently
listed as mandatory criteria in the RFQs under the TLE-ARV LTA framework
 The next set of sustainability criteria are planned for release in January 2017.
 Formal written Environmental policy
 Initiation of an ISO 14 001 certification or equivalent (or process leading towards the
commitment)
 Shipping Pallets are Heat Treated and follow ISPM 15 standard
 No PVC plastic is used in TLE production or packaging
 Chemicals are in compliance of the EU REACH list
 Engagement of local CSR activities.
Sustainability RFQ Criteria

6. CO2 Emissions Reporting for Logistics
In partnership with Kuehne + Nagel A/S, data and analytics for our CO2 emissions are collected on
a quarterly basis. The CO2 emissions below are from the TLE/ARVs LTA framework in 2015.
Transport Number of Shipments Total C02 Emissions (kg)
Air 9 72,902.10
Sea 39 372,796.53
2.89
0.33
0
0.5
1
1.5
2
2.5
3
3.5
Air SeaCO2Emissionperkg
Average CO2 Emission per kg for 2015
Air
16%
Sea
84%
Total CO2 Emission (kg) for 2015
445,698.62 CO2/kg
2015 CO2
Report
TLE-ARV

7. CO2 Emissions Reduction Scenario
A trade lane scenario determines the potential CO2 reduction through air versus sea freight in
order to establish environmental performance metrics.
AIR
Total CO2
0.27 kg of CO2 per TLE pack
Freight cost
$0.51 per TLE pack
SEA
Total CO2
0.052 kg of CO2 per TLE pack
Freight cost
$0.26 per TLE pack
Trade lane scenario: Mumbai to Harare 2015
Represents 95% of total procurement with orders to Zambia and Zimbabwe within the TLE/LTA framework.
An example for 80,000 ARV standard units in USD
A reduction in 0.21 Kg of CO2 per TLE pack and US$0.26 per TLE pack is acquired by
switching from air to sea freight for the specified trade lane.
Decrease in CO2
81%
Cost Savings
49%

8. Packaging Optimization and Innovation
The UNDP GF-HIST are currently working together with TLE/ARV suppliers on packaging
optimization in order to reduce product waste and cost effectiveness.
For 2016 Q2, the following criteria has been piloted:
 Bottles to be delivered without individual outer package
 Bottles to be delivered without individual leaflets glued to bottles
 Bottles to be shrink wrapped and packed in carton boxes / shippers
 Leaflets in the amount of 5-10% of bottles shipped in the carton boxes
Example: Package reduction pilot for South Sudan / Zimbabwe 2016
Old packaging New Packaging
11.16 kg per shipper 9.78 kg per shipper
72 bottles in a shipper 96 bottles in a shipper
Total Packs in a 40ft reefer container = 79,488 Total packs in a 40ft reefer container = 92,736
The new packaging results in a 16.7% increase in shipping capacity and a
additional reduction of 13% kg of CO2 per unit for the Mumbai - Harare trade lane.
Waste reduction
12%
Cost Savings
15%

9. Packaging Optimization and Innovation
New packaging examples provided by one of our TLE/ARV suppliers.

10. 0
5000
10000
15000
20000
25000
30000
35000
Hyderabad Mumbai
Port Sudan
Port Au Prince
Dakar
Malabo
Durban
Bamako
Measuring Performance for 2015/2016
The UNDP GF-HIST is working towards using established metrics to measure overall performance
for the Sustainability Baseline initiatives for 2015/2016 and onwards.
Sustainability
Initiatives
Environmental highlights, resource
efficiencies and cost savings
Establishing new criteria and a incremental
roadmap for changes in sustainability for the
global health sector
Reducing the CO2 per trade lane, establishing
environmental metrics and measuring results
Optimizing packaging, reducing waste,
increasing shipping capacity and contributing to
overall CO2 reduction.
Ex. Trends in CO2 emissions and trade lanes
C02 Savings + Transport and Fuel Savings + Packaging Savings = Cost Savings $Sustainability Criteria +

11. Thank you.
UNDP GF Health Implementation Support Team – PSU
Alfonso Buxens, Procurement Specialist, Copenhagen
alfonso.buxens@undp.org