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A £1bn low-carbon initiative

1st Jun 2012 - 00:00
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Abstract
Three joint procurement compacts have been launched between the Government and leading UK suppliers to take the lead in low-carbon purchasing. David Foad reports

Plans have been launched to link public sector catering buyers with private suppliers to use Government spending to drive moves to create a low-carbon economy in the UK.

It is one of three such public/private compacts – the others being transport and renewable energy – that it is hoped will pave the way for low-carbon procurement worth more than £1bn.

The new initiative, spearheaded by the Department for Business, Innovation and Skills and The Prince of Wales’s Corporate Leaders Group on Climate Change, aims to demonstrate demand for low to zero-carbon products.

In doing so, the aim is to encourage innovation and investment by suppliers and in turn drive business growth and jobs.

At the launch of the procurement compacts, Vince Cable, Secretary of State for Business, Innovation and Skills said: “A green economy has economic as well as environmental benefits. It can help UK businesses manage risks arising from fluctuating fossil fuel prices and increase resilience, in particular from the impacts of climate change, and seize the opportunities from emerging markets both at home and abroad.

“The Government has a key role to play in ensuring more effective supply chain engagement, and by signalling demand for low carbon innovation. This important initiative will help to drive investment in new and better goods and services.

“Why catering? In this sector the initiative has substantial potential for energy-saving and carbon reduction.”

He said the Carbon Trust already offered grants to help caterers buy more energy-efficient ovens that offered a direct carbon saving.

“And fridges still produce pollutant gases, so if we can do something in the catering sector, it’s a first step towards achieving something much bigger.”

Reacting to the launch of the compacts, Keith Warren, director of the Catering Equipment Suppliers’ Association (CESA), said he welcomed the initiative, though cautioned that the specifications were not relevant in some areas.

He proposed the establishment of a strategy group working across all Government departments and promised full cooperation from his members.

David Chown, director of Government Procurement Projects, agreed it was vital to engage with trade bodies on the work and welcomed help from any of them.

In the catering compact, the signatories state their ambition to purchase progressively lower carbon catering goods and services, taking into account food procurement, transportation, distribution, preparation and waste management.

Among those committing themselves are Lloyds Banking Group, which has catering in over 80 offices, and Nottingham University Hospitals NHS Trust, which serves three million meals a year.
Chris Newton, facilities management director of Lloyds Banking Group, said: “We have been working with our suppliers to drive down carbon emissions in our supply chain in general, but we’d now like to focus in on our catering solutions as this is an area where we recognise we can make some significant carbon reductions.

“With more than 80 office locations with a catering offering, we have the chance to make a difference.”

And John Hughes, the catering manager at Nottingham University Hospitals NHS Trust, added: “The signatories to this compact wish to engage with all those involved in the food and drink industry, be they producers, manufacturers, wholesalers, retailers or foodservice providers, to arrive at practical and effective ways to reduce the carbon footprint of our catering supply chain and operations.”

The total energy consumption of Britain’s catering industry is estimated to be in excess of 21,600 million kWh per year.

Over 30% of the energy is used in commercial catering establishments, and more than 50% in non-commercial catering such as schools and hospitals.

With moderate improvements in efficiency, and effective use of equipment, savings of up to 20% are achievable - equivalent to £80m per year.

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PSC Team