Kereskedelem | Tanulmányok, esszék » Nora Thommessen - The United Nations and the Walmart Approach to Sustainable Procurement in the Health Sector


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                  The  United  Nations  and  the  ‘Walmart   approach’  to  sustainable  procurement   in  the  health  sector         Nora  Thommessen   Master  thesis   MSc  BLC  Business  and  Development  Studies   Supervisor:  Hans  Krause  Hansen   Written  paper,  max.  80  pages   Submitted:  August  2015   No.  of  characters  (with  space):  146  986   Number  of  pages:  74       Copenhagen  Business  School  2015         1   Abstract   This  thesis  researches  the  topic  of  sustainable  procurement,  using  an  initiative  from  the  UN  as   a  case  study.  A  comparison  is  provided  between  the  UN  initiative  and  successful  examples  of  

sustainable   procurement   in   the   private   sector,   and   in   particular   the   so-­‐called   ‘Walmart   approach’.  Through  qualitative  interviews  with  UN  staff  members  as  well  as  staff  from  partner   organizations   and   supplier   firms,   the   study   seeks   to   map   out   the   UN   initiative   vis-­‐à-­‐vis   sustainable   procurement   in   the   private   and   the   public   sector.   The   study   finds   that   the   UN   initiative  is  inspired  and  driven  by  the  private  sector  approach  when  it  comes  to  sustainable   procurement.   However   it   still   lacks   the   practice   of   supply   chain   monitoring,   and   has   room   for   improvements   regarding  

the   consideration   of   a   product’s   entire   life   cycle.   The   study   also   identifies  certain  drivers  and  barriers  within  the  UN  initiative.  The  main  drivers  are  the  UN’s   sustainability   mandate   and   the   business   opportunity   it   provides   for   the   suppliers,   and   the   main  barriers  are  the  conservatism  of  the  procurement  professionals,  the  lack  of  funding,  the   complexity   of   the   initiative,   the   lack   of   environmental   considerations   in   the   health   sector,   and   the   slow   pace   that   is   often   part   of   working   in   a   public   organization.   In   comparison   to   the   critique   on   public   procurement   found   in

  the   literature,   this   study   does   not   find   strong   evidence   of   either   bureaucracy   or   lack   of   transparency.   On   the   other   hand,   the   informal   nature   of   the   initiative   makes   processes   potentially   move   faster   than   what   is   normal   within   the  UN.  It  was  also  found  that  there  was  a  strong  will  to  collaborate  among  a  number  of  the   UN’s   suppliers.   For   the   future   of   sustainability   in   the   health   sector,   it   was   argued   that   real   changes  among  organizations  and  companies  will  depend  on  laws,  market  demand  or  both.       Keywords:   Sustainable   procurement,   green   procurement,   the  

‘Walmart   approach’,   private   sector,  MNCs,  United  Nations,  public  procurement,  green  supply  chain  management                 2   Table  of  content:       1.  Introduction    5   1.1    Research  topic    5   1.2    Problem  statement  and  research  questions    7   1.3    Summary  of  chapters    8   2.  Context:  The  Walmart  approach    9            2.1  What  is  the  Walmart  approach?    9   2.2  Other  private  sector  examples:  BMW  and  Nike    11   2.3  Sustainable  supply  chains:  A  cover-­‐up  following  a  bad  reputation?    12   2.4  Summing  up:  Multinationals  and  the  extent  of  the  ‘Walmart  approach’  

 13   3.  Literature  review    14   3.1  The  politics  of  businesses    15   3.2  Green  supply  chain  management    16   3.21  Definition    16          3.22  Drivers  and  barriers  to  GSCM    17          3.23  Other  topics  of  GSCM    20          3.24  Summing  up  the  GSCM  literature    23   3.3  Public  procurement  and  the  UN    23          3.31  Public  procurement    24          3.32  Green  public  procurement    25                    3.33UN  procurement    27   3.34  Summing  up  the  literature  on  public  procurement  and  the  UN    30   3.4  Research  Gap    30   4.  Methodology    31   4.1

 Research  philosophy  and  approach    32   4.2  Research  design    33   4.21  Sample    35   4.22  Interviewing  a  small  sample    37   4.23  Doing  research  with  secondary  data    39   4.24  Research  questions    39   4.3  Ethics    40            4.31  Ethical  treatment  of  the  interview  subject    40                    4.32  Risk  of  bias  during  interviews    41   5.  Analysis  and  discussion    41   5.1  Broad  overview  of  the  UN  initiative    42   5.11  The  environmental  burden  of  the  health  sector    42   5.12  The  SPHS  initiative    42   5.13  The  GPHS  Programme    44   5.2  The  UN  initiative  and  the

 ‘Walmart  approach’    48     3   5.21  Comparing  the  SPHS  initiative  with  the  ‘Walmart  approach’    48   5.22  A  cradle-­‐to-­‐cradle  vision    50   5.23  Switching  options  for  suppliers    52   5.24  Summing  up  answer  to  research  question  1    52   5.3  Drivers  and  barriers    53   5.31  Drivers    53   5.311  Driver:  The  UN’s  sustainability  agenda  and  mandate    53   5.312  Driver:  A  business  opportunity    54   5.313  Other  drivers    55   5.314  Comparing  with  the  literature    55   5.32  Barriers    56   5.321  Barrier:  Conservatism  of  procurement  professionals    56   5.322  Barrier:  Lack  of  funding  and  resources    56

  5.323  Barrier:  Complexity  of  a  cross-­‐cutting  initiative    57   5.324  Barrier:  The  lack  of  environmental  considerations  in  the  health  sector    58   5.325  Barrier:  Slow  pace  in  a  public  organization    59   5.326  Other  barriers    59   5.327  Comparing  with  barriers  in  the  literature    60   5.33  Summing  up  answer  to  research  question  2    60   5.4  Relating  the  findings  to  the  critique  of  public  procurement    62   5.41  (Lack  of)  efficiency  within  public  procurement    62   5.42  Transparency  issues  in  public  procurement    63   5.43  Summing  up  the  answer  to  research  question  3    65   5.5  Other  findings    65  

5.51  A  strong  interest  from  suppliers  and  manufacturers    65   5.52  Predictions  for  the  future    67   5.53  Summing  up  the  other  findings    68   6.  Contributions  and  limitations    69   6.1  Theoretical  and  practical  contributions    69   6.2  Limitations    70   7.  Conclusion    71   8.  Acknowledgements    74   9.  References    75   10.  Appendix    83   10.1  Commonly  used  terms    83   10.2  Overview  of  sample    83   10.3  Broad  overview  of  guideline  questions  for  the  interviews    85            10.4  List  of  figures  and  tables87           4   1. Introduction   1.1 Research  topic     In   1983,   the   UN   General

  Assembly   formed   the   World   Commission   on   Environment   and   Development.  This  was  an  independent  committee  consisting  of  22  members,  and  led  by  the   former  Norwegian  prime  minister  Gro  Harlem  Brundtland.  From  this  collaboration  came  the   birth   of   the   ‘Brundtland   Report’   (also   known   as   ‘Our   Common   Future’),   which   provided   an   agenda   for   advocating   the   growth   of   economies   based   on   policies   that   do   no   harm   to   the   environment.   The   term   sustainable   development   was   defined   as:   “To   meet   the   needs   and   aspirations  of  the  present  without  compromising  the  ability  to  meet  those  of  the

 future.”  (United   Nations,   1987,   P.   34)   The   report   recognized   the   importance   of   linking   economy   with   ecology,   in   order   to   ensure   human   development   without   sacrificing   the   earth’s   resources   for   future   generations   (United   Nations,   1987).   It   is   likely   the   first   well-­‐known   UN   discussion   on   sustainability;  a  topic  that  would  advance  over  the  years  as  one  of  the  most  important  aspects   of  development.         Today   the   term   ‘sustainability’   is   higher   on   the   global   agenda   than   ever   before,   and   throughout   recent   years   there   has   been   an   aspiration   for   sustainable   development.

  This   vision   is   about   promoting   prosperity   and   opportunity,   greater   social   well   being,   and   protection   of   the   environment,   in   order   to   improve   the   lives   of   people   around   the   world.   Sustainable   development   is   one   of   the   top   priorities   on   the   UN’s   agenda   for   the   future.   Following   the   well-­‐known   Millennium   Development   Goals   (MDGs),   the   UN   is   currently   preparing   an   ambitious   post-­‐2015   sustainable   development   agenda.   This   agenda   will   be   launched   in   September   2015,   and   will   build   upon   the   MDGs   and   converge   with   the   post   2015   development   plan.   Like   the   MDGs,  

the   sustainable   development   goals   (SDGs)   will   be   action-­‐ oriented,   limited   in   number,   and   global   in   nature   (UN   Department   of   Economic   and   Social   Affairs,   2015).   Furthermore,   as   climate   change   is   becoming   more   and   more   of   a   global   challenge,   the   UN   is   supporting   negotiations   to   adopt   a   universal   global   climate   agreement   by   the  end  of  2015.  Finally,  the  UN  is  working  on  developing  a  financing  system  to  ensure  that   both   sustainable   development   and   climate   action   are   properly   resourced   (United   Nations,   2015).       5     One   of   the   main   UN   agencies   with   a  

clear   sustainability   mandate   is   the   United   Nations   Development  Programme  (UNDP).  Globally,  its  main  responsibilities  are  to  drive  forward  the   post-­‐2015   Sustainable   Development   Goals,   and   to   support   countries   in   resisting   crises   and   driving   and   sustaining   inclusive   growth   (United   Nations,   2015).   However,   with   offices   scattered   around   the   globe,   UNDP   also   works   on   smaller   initiatives   to   bring   the   sustainability   agenda  forward.       One   of   these   initiatives   is   the   formation   of   the   UN   informal   Interagency   Task   Team   on   Sustainable  Procurement  in  the  Health  Sector  (iIATT-­‐SPHS),  which  was

 kicked  off  by  UNDP’s   Nordic   Representation   Office   in   Copenhagen.   The   initiative,   commenced   in   May   2012,   currently   includes   seven   UN   agencies   and   three   multilateral   financing   institutions.   Within   the   initiative,  the  UN  has  also  formed  an  official  programme  titled  Greening  Procurement  in  the   Health  Sector  (GPHS),  which  is  a  programme  especially  focused  on  the  environmental  aspects   of   sustainability   in   the   procurement   processes   of   the   health   sector.   The   official   programme   has   currently   been   signed   by   three   UN   agencies,   and   two   more   are   in   the   process   of   signing   it   (Milic,  2015).    

The   UN’s   SPHS   initiative   is   focused   on   making   sustainable   changes   through   their   own   procurement   practices.   Given   the   UN’s   role   as   a   large   purchaser   in   the   health   sector,   the   organization  has  a  lot  of  bargaining  power  and  influence  over  suppliers  and  manufacturers  of   pharmaceuticals  and  health  products.  The  UN  is  therefore  working  on  ways  to  set  standards   and  guidelines  for  their  suppliers,  in  order  to  push  them  in  a  more  sustainable  direction,  and   potentially   improve   the   practices   in   the   health   sector.   As   stated   by   many   of   the   UN   staff   members,   the   organization   is  

greatly   inspired   by   the   private   sector.   In   particular   they   take   inspiration   and   learning   from   large   multinational   companies   (MNCs)   that,   through   their   huge   purchasing   power,   can   set   certain   standards   for   their   suppliers.   A   well-­‐known   company   in   this   regard   is   Walmart,   a   company   that   has   worked   on   improving   its   entire   supply   chain   following   a   massive   sustainability   plan   launched   in   2009.   This   plan   includes   collaborating   with   their   suppliers,   teaching   them   ways   to   become   more   sustainable   and   demanding   improvements   in   each   part   of   their   global   supply   chain.   With   the  

huge   market   share   that   Walmart  has  in  many  of  the  subsectors  of  retail  and  fast  moving  consumer  goods,  the  retail     6   giant   has   the   possibility   to   change   its   entire   industry.   This   concept   is   unofficially   titled   the   ‘Walmart  approach’,  and  is  frequently  used  by  UN  staff  members  when  referring  to  the  goals   of  their  SPHS  initiative.  That  being  said,  Walmart  and  several  of  the  largest  MNCs  in  the  world   are   also   notoriously   known   for   polluting   the   earth   through   their   global   value   chains   and   international   trade   practices.   Furthermore,   private   companies   are   first   and   foremost

  driven   by  profit  and  sales,  and  thus  operate  with  quite  different  incentives  than  the  United  Nations.   This   contradiction   serves   as   a   starting   point   for   this   essay,   which   essentially   is   about   comparing  the  UN’s  SPHS  initiative  with  the  so-­‐called  ‘Walmart  approach’.       1.2 Problem  statement  and  research  questions   This   thesis   focuses   on   the   UN’s   SPHS   initiative,   and   seeks   to   compare   it   with   the   existing   literature   on   sustainable   procurement   practices   in   the   private   sector.   The   main   goal   of   the   research  has  been  to  identify  how  a  practical  model  of  procurement  from  the

 private  sector   can   be   applied   in   the   UN.   Through   identifying   the   main   drivers   and   barriers   of   the   UN   initiative,  I  have  sought  to  compare  them  with  those  of  private  companies,  and  discuss  how   the   opportunities   and   challenges   in   the   UN   are   similar   or   different   from   the   ‘Walmart   approach’.   Finally,   I   have   compared   my   findings   with   the   existing   critique   of   procurement   within  public  agencies,  in  particular  with  issues  such  as  bureaucracy  and  lack  of  transparency.   Although   the   UN   is   of   a   multilateral   or   intergovernmental   nature   (UIA,   2015),   it   is   mainly   based   on  

funding   from   its   member   states   and   is   often   perceived   as   a   public   organization.   Furthermore,   issues   of   bureaucracy   (Weiss,   2009)   and   transparency   (Kuziemko   &   Werker,   2006)   are   not   uncommon   for   the   UN   system.   Based   on   these   facts   it   is   interesting   to   compare   the  UN  with  some  of  the  most  common  critique  on  public  procurement.  With  this  I  have  aimed   to  map  out  the  UN  initiative’s  position  vis-­‐à-­‐vis  the  private  and  the  public  sector,  identifying   drivers  and  barriers  that  serves  as  important  knowledge  for  planning  their  strategy  forward.       These  ideas  have  led  me

 to  the  following  research  questions:     1. How   is   the   UN   initiative   similar   or   different   from   the   private   sector   model   of   green   procurement  and  sustainable  supply  chain  management?       7   2. What  are  the  main  (internal  and  external)  drivers  and  barriers  that  are  faced  by  the  UN   agencies  when  working  towards  sustainable  procurement  in  the  health  sector?     3. How   do   the   findings   on   the   UN   initiative   relate   to   the   critique   in   the   literature   on   public  procurement?     This  topic  was  chosen  after  interning  in  UNDP’s  Copenhagen  office  in  the  third  semester  of  my   master  degree.

 As  a  graduate  from  the  MSc  BLC  Business  and  Development  Studies  program,   which  is  highly  focused  on  the  crossroad  between  the  private  and  the  public  sector,  I  believe   this   topic   is   very   relevant   and   provides   an   interesting   discussion   on   the   UN’s   role   in   international  trade.  For  more  on  this  thesis’  main  contributions  and  limitations,  see  chapter  6     1.3 Summary  of  chapters     In   this   section   I   shall   give   a   brief   overview   of   the   chapters   in   this   thesis,   with   a   short   description  of  their  content.     Chapter  1:  Introduction   The  introduction  describes  the  wider  context  in

 which  this  research  project  is  embedded.  It   states  the  problem  and  introduces  the  research  questions.     Chapter  2:  Context   In  this  chapter  I  introduce  the  concept  of  the  ‘Walmart  approach’  and  discuss  the  praise  and   critique  of  the  MNCs’  roles  in  regards  to  global  sustainability.  Real  examples  from  some  world   leading  brands  are  presented.       Chapter  3:  Literature  review   Three  broad  literatures  are  discussed  in  this  chapter.  First  I  look  into  existing  literature  on  the   politics  of  businesses  and  private  companies’  role  within  global  (environmental)  governance.   Secondly  I  go  through  some  of  the  most

 relevant  research  on  green  supply  chain  management.     8   Thirdly   I   discuss   some   of   the   existing   research   on   public   procurement,   and   in   particular   within  the  UN  and  other  multilateral  organizations.       Chapter  4:  Methodology   The   choice   of   research   philosophy   and   design   is   stated   and   discussed.   A   thorough   description   and  examination  of  the  sample  is  also  presented.  Finally,  there  is  a  short  discussion  on  ethics   and  in  particular  the  risk  of  bias.     Chapter  5:  Analysis  and  discussion   Given   that   the   literature   review,   the   research   questions   and   findings   are   so   much   inter-­‐

related,   the   analysis   and   discussion   sections   are   merged   together   for   a   better   flow   in   the   essay.   All   the   three   research   questions   are   addressed   and   discussed   in   turn   My   own   description   of   the   initiative,   based   on   interviews   and   secondary   data,   and   other   smaller   findings  are  also  presented  and  examined.       Chapter  6:  Contributions  and  limitations   The  theoretical  and  practical  contributions  are  considered,  as  well  as  the  thesis’  limitations.     Chapter  7:  Conclusion   This   chapter   completes   the   thesis   by   addressing   and   answering   all   the   three   research   questions,  and  offering

 suggestions  for  the  UN  initiative  in  the  future.       2. Context:  The  Walmart  approach   2.1 What  is  the  Walmart  approach?   Some  of  the  best-­‐known  examples  of  large  companies  using  their  purchasing  power  to  make   greener  procurement  practices  in  their  supply  chains  are  within  the  retail  sector.  This  can  be   explained  by  globalization  and  the  rise  of  media  and  available  information,  which  increasingly   makes   retailers   face   adversity   regarding   their   brand   image.   In   this   case   the   retailers   may   implement   certain   programs   and   processes   in   order   to   minimize   these   adverse   effects,   for     9   instance

  through   corporate   social   responsibility   (CSR)   strategies   (Ganesan,   George,   Jap,   Palmatier,  &  Weitz,  2009).  In  my  findings  several  of  the  interviewed  UN  staff  members  claim   to  be  inspired  by  the  large  American  retailer  Walmart,  and  in  particular,  what  they  term  the   ‘Walmart  approach’  (Welter,  2015)  (Sørensen,  2015).       So  what  exactly  did  Walmart  do  in  order  to  coin  this  unofficial  concept?  Their  sustainability   efforts  over  the  recent  five  years  have  been  broad,  comprehensive  and  at  a  gigantic  scale.  The   multinational  announced  in  July  2009  plans  for  a  sustainable  product  index  that  would  rate  

their  products  in  terms  of  different  environmental  and  social  criteria.  A  few  months  later  they   announced  plans  to  eliminate  20  million  tonnes  of  carbon  emissions  from  their  global  supply   chain  within  the  end  of  2015.  To  illustrate  the  size  of  this  commitment,  the  project  was  stated   to   be   “four   times   the   collective   annual   commitment   of   nearly   200   companies   in   the   US   Environmental  Protection  Agency’s  Climate  Leaders  programme”  (Chhabara,  2010.  p  1)  Their   program   is   titled   Sustainability   360,   and   is   based   on   three   main   aspirational   sustainability   goals:   a)   Be   supplied   100%   by   renewable

  energy,   b)   create   zero   waste,   and   c)   sell   products   that  sustain  people  and  the  environment.  Other  focus  areas  are  water  stewardship,  reducing   fuel   consumption   and   air   pollution   in   their   truck   fleets,   reducing   food   waste   and   helping   farmers   optimize   production   and   source   agricultural   products   sustainably.   They   also   aim   to   purchase   and   preserve   one   acre   of   wildlife   habitat   in   the   US   for   every   acre   of   land   they   develop  for  production  (Walmart,  2015).       Walmart   uses   its   own   team   of   greenhouse   gas   reduction   experts   to   guide   suppliers   on   how   they   can   reduce  

emissions   from   their   operations.   This   is   considered   very   attractive   for   supplier  firms,  and,  according  to  Walmart’s  former  sustainability  director  Miranda  Ballentine,   the   MNC   has   received   numerous   requests   from   suppliers   who   wish   to   be   included   in   the   program.   Walmart’s   strategy   promises   cost   reductions   for   producers   through   reduced   energy   use,   improved   product   quality   and   reduced   manufacturing   and   operating   costs.   The   company   expects   that   the   emissions   reduction   activities   will   spread   to   other   companies   as   Walmart’s   suppliers  potentially  engage  with  their  own  providers,  and  supply  chain

 emissions  reduction   becomes   common.   If   successful,   this   initiative   can   build   momentum   also   with   other   brands   and   retailers   by   publicly   showing   a   successful   example   of   green   supply   chain   management   (Chhabara,  2010).       10     2.2 Other  private  sector  examples:  BMW  and  Nike   Many   other   multinationals   have   taken   part   of   the   sustainability   wave   and   learned   the   importance   of   a   good   reputation.   In   this   section   I   will   mention   two   other   brands   that   have   worked   on   making   their   supply   chain   more   sustainable,   both   with   the   same   type   of   disintegrated   supply   chain   as  

that   of   Walmart.   One   of   them   is   the   large   player   in   the   car   industry,   BMW,   who   have   transformed   its   model   for   building   cars,   choosing   greener   alternatives   for   the   different   car   parts.   For   instance,   they   use   more   energy-­‐efficient   car   engines,   they   use   plant   fibers   in   the   air   conditioning   layer   and   the   door   cladding   of   the   car,   and   they   use   100%   recycled   plastic   to   make   the   car’s   cover   material   (30%   of   which   stems   from   PET   bottles).   By   changing   different   practices   along   their   supply   chain,   they   have   managed   to   reduce   energy   consumption   per  

vehicle   by   30%.   At   the   consumer   end   of   the   supply  chain,  they  have  developed  apps  that  shows  people  the  quickest  way  to  get  from  one   place  to  another,  either  by  car  or  public  transport,  and  have  also  developed  apps  that  allow   people   to   share   cars   (BMW   Group,   2015).   The   car   manufacturer   has   also   moved   from   a   traditional  environmental  management  system  (EMS)  to  a  broader,  innovative  sustainability   management   system   (SMS).   For   instance,   BMW   owns   the   design   and   engineering   service   Designworks/USA,  but  allows  the  design  company  to  serve  other  clients  as  well.  Thus  there  is   a  

spillover-­‐effect   taking   place,   as   the   designers   are   able   to   leverage   their   experience   with   BMW   Group   to   other   types   of   products.   In   turn,   the   BMW   Group   are   able   learn   from   sustainable  design  projects  beyond  the  domain  of  automobiles  (McElhaney  &  Toffel,  2005).       The  other  large  brand  worth  mentioning  is  Nike,  which  focuses  on  innovation  throughout  its   supply   chain   in   order   to   promote   sustainability.   By   implementing   lean   manufacturing   processes,  the  brand  is  focusing  on  removing  the  environmental  impact  of  its  manufacturing.   Nike’s  strategy  is  the  following:     “The  future  of

 lean  for  NIKE  is  to  deliver  profitable  growth  through  sustainable  manufacturing   and  sourcing.  To  do  this,  we  are  making   Lean  NIKE  Inc’s  manufacturing  standard  We  require  a   commitment  to  lean  as  part  of  being  accepted  into  our  source  base  and  a  minimum  commitment   and   progression   for   positive   ratings   by   including   it   in   our   Sourcing   and   Manufacturing     11   Sustainability   Index,   a   component   of   our   Manufacturing   Index   which   assesses   factories   based   on   sustainability,  cost,  quality  and  on-­‐time  delivery.”  (Nike  Inc,  2014)     2.3 Sustainable  supply  chains:  A  cover-­‐up  following  a  bad

 reputation?   The  above  examples  point  to  a  positive  potential  role  for  large  MNCs.  That  being  said,  many  of   these  enormous  companies  have  previously  had  a  rather  appalling  reputation,  and  a  number   of   them   still   get   criticized   today   (Wahba,   2015)   (Jackson,   2015).   Some   of   these   companies   may  be  making  sustainable  changes  in  order  to  cope  with  the  increasing  pressure  they  face,   stemming   from   their   already   weak   reputation.   For   instance,   there   was   a   global   boycott   campaign   against   Nike   in   the   1990s,   because   the   brand   denied   responsibility   for   any   malpractice  that  may  have  taken  place

 in  its  sub-­‐factories  (Birch,  2012).       Walmart  is  one  of  the  companies  best  known  for  its  bad  reputational  history.  In  her  book  ‘The   Story  of  Stuff’  (2010)  author  and  environmentalist  Annie  Leonard  depicts  Walmart  as  one  of   the  worst  MNCs  when  it  comes  to  environmental  and  social  harm,  due  first  and  foremost  to  its   gigantic   size.   Indeed,   she   claims   that   the   superstore   in   fact   represents   one   of   the   top   economies  in  the  world,  bigger  than  the  GDP  of  countries  like  Israel,  Chile,  and  Austria,  and   that   the   MNC   is   one   of   China’s   top-­‐ten   trading   partners,   ahead  

of   Germany   and   the   UK.   Hence   Walmart’s   scale   creates   so   much   pollution   that   the   company’s   sustainability   efforts   remain   worthless  in  comparison.       “And  regardless  of  what  the  price  tag  says,  the  true  cost  of  every  single  product  at  Walmart  is   actually  much,  much  higher.  The  real  costs  start  with  raw  materials  that  are  often  pillaged  from   poor   countries   or   subsidized   by   the   government   and   which   leave   behind   a   trail   of   tragic   consequences  for  the  earth’s  water,  animals,  air,  forests,  and  people.  The  costs  continue  with  hot,   poorly   ventilated   factories   in   Asia,   where  

thousands   of   workers   slave   away   for   less   than   five   dollars   per   day,   often   exposed   to   toxic   chemicals   without   adequate   protection   or   health   care,   forced   to   work   unpaid   overtime,   with   little   hope   of   rising   out   of   their   dismal   situations.”   (The   Story  of  Stuff,  2010,  p.  155-­‐156)       12   Leonard’s  book  was  written  in  2010,  before  the  world  had  seen  much  progress  in  Walmart’s   Sustainability   360   programme.   That   being   said,   the   author   claims   that   in   the   long   run   these   sustainability  practices  will  not  matter  much,  given  that  the  superstore  already  has  an  issue

 of   scale.  According  to  her,  Walmart  is  moving  so  much  toxic-­‐laden  non-­‐durable  products  around   so  far  and  so  fast,  that  all  the  solar  panels  and  hybrid  cars  in  the  world  couldn’t  make  up  for  its   gigantic  footprint.       Leonard  argues  that  big-­‐box  retailers  with  big  brands  have  huge  purchasing  power,  and  thus   try  to  cut  costs  throughout  the  entire  supply  chain.  She  terms  this  the  ‘mean  lean  system’,  as   the  big  brands  do  not  need  to  take  responsibility  for  what  their  suppliers  do,  and  can  simply   find   new   ones   if   the   current   suppliers   are   not   fulfilling   their  

requirements.   Movement   of   goods   across   the   globe   by   ships,   trucks   and   planes   contribute   to   pollution   through   fuel   consumption,   which   in   turn   leads   to   carbon   emissions   through   fossil   fuel   combustion   (Leonard,  2010).     Many   other   researchers   and   scholars   agree   with   Leonard   on   this   aspect.   For   instance,   it   is   argued   that   MNCs   are   creating   environmental   hazards   by   ‘cutting   costs   at   all   costs’   (Dauvergne   &   Lister,   2010).   Stacy   Mitchell   states   that   big-­‐box   retailers   are   fueling   existing   problems   in   the   United   States,   for   instance   through   shrinking   the   middle   class,

  increasing   pollution  levels  and  making  civic  engagement  diminish.  In  her  book  ‘Big-­‐Box  Swindle’  (2007)   she   makes   a   compelling   argument   that   the   rise   of   large   brand   retailers   in   the   United   States   such  as  Walmart,  Home  Depot  and  Starbucks  contribute  to  the  decline  of  small  independent   businesses.   She   claims   that   the   “big-­‐box   mentality”   leads   to   rising   fuel   consumption   and   poverty   rates,   whilst   simultaneously   contributing   to   family   farms   getting   pushed   out   of   the   market  (Mitchell  2007).       2.4 Summing  up:  Multinationals  and  the  extent  of  the  ‘Walmart  approach’   On  the  one

 hand,  certain  MNCs  go  forward  as  a  good  example  for  sustainable  change.  They  try   to  show  that  improving  their  sustainability  practices  in  the  supply  chain  can  lead  to  a  better   brand   image,   a   more   cost-­‐efficient   business   model,   and   make   positive   changes   to   the   environment  and  society  overall.  Given  the  scale  and  purchasing  power  of  these  businesses,     13   positively   affecting   their   supply   chains   may   also   imply   that   they   can   make   sustainability   changes  to  the  entire  industry  they  operate  in.  On  the  other  hand,  with  globalization  the  large-­‐ scale  movement  of  goods  and  services

 contribute  to  a  large  part  of  the  world’s  pollution.  Some   discuss   whether   the   MNCs’   sustainability   practices   even   matter   in   comparison   to   all   the   pollution  stemming  from  their  global  business  models.       Clearly  there  are  several  aspects  of  the  ‘Walmart  approach’  that  the  UN  can  draw  inspiration   and   learnings   from.   Walmart   is,   like   the   UN,   of   a   large   scale   and   thus   a   huge   potential   influencer  in  its  industry.  The  all-­‐encompassing  view  in  Walmart’s  Sustainability  360  agenda   can  perhaps  serve  as  a  relevant  framework  for  the  UN  initiative.  That  being  said,  Walmart  and   the

 other  MNCs  mentioned  are  profit-­‐driven,  and  often  come  from  a  background  of  unstable   reputation.   Their   production   and   trade   have   already   made   a   bad   impact   on   the   planet,   and   previous  cost-­‐cutting  choices  can  lead  to  reputational  catastrophes  if  revealed.  When  it  comes   to  MNCs,  their  sustainability  strategies  rarely  stem  from  entirely  clean  sleights,  as  they  often   become   more   sustainable   in   order   to   turn   a   bad   reputation   into   a   decent   one.   This   is   an   important  point  to  keep  in  mind  when  discussing  the  so-­‐called  ‘Walmart  approach’.       3. Literature  review   In   this   section

  I   will   focus   on   the   most   relevant   literature   on   green   procurement   practices,   divided   into   three   parts.   In   the   first   part   I   will   look   into   the   existing   literature   on   large   MNCs’   increasing  political  power.  This  relates  to  my  first  research  question,  as  it  addresses  how  the   private  sector  affects  global  governance,  and  environmental  governance  in  particular.  In  the   second   part   I   will   look   at   green   supply   chain   management   (GSCM),   its   drivers   and   barriers   as   well  as  some  principal  components.  This  is  highly  related  to  my  second  research  question,  as   it   discusses   previously  

identified   drivers   and   barriers   companies   face   in   their   efforts   to   implement  a  green  strategy.  In  the  third  part  I  will  move  the  procurement  discussion  to  the   public   sector,   and   discuss   some   of  the   current   literature   in   that   field.   This   forms   an   important   basis   for   answering   my   third   research   question,   as   the   section   highlights   some   of   the   main   findings  and  critique  of  public  procurement.  The  section  also  addresses  the  existing  literature     14   on   procurement   in   the   UN.   Finally   I   will   identify   the   research   gap,   which   serves   as   a   foundation  for  this  research

 project.       3.1 The  politics  of  businesses   The  political  power  of  the  private  sector  within  environmental  governance  is  not  a  new  issue.   Corporate   efforts   to   shape   the   global   agenda   for   environment   were   especially   visible   in   the   Rio   Earth   Summit   in   1992,   where   the   idea   of   partnerships   between   the   private   sector,   environmentalists  and  international  society  was  promoted.  In  fact,  in  the  past  three  decades   there   has   been   an   increasing   change   of   attitude   among   MNCs,   as   they   have   realized   that   an   environmental  strategy  can  lead  to  gains  both  in  business  and  for  the  larger

 society  (Falkner,   2003).  The  main  driver  for  corporate  strategic  change  was  the  adoption  of  the  Kyoto  Protocol   in  1997.  Though  some  companies  were  reluctant  to  adhering  to  the  protocol  in  the  first  few   years,   they   slowly   started   turning   when   they   were   given   public   incentives,   and   government   support  for  the  protocol  became  more  widespread  (Kolk  &  Pinkse,  2004).  Another  important   standard-­‐setting  feature  adopted  in  the  late  1990s  was  the  ISO  14000  series  of  environmental   management,  developed  by  the  International  Organization  for  Standardization  (ISO).  Private   firms   increasingly   used   such   voluntary   codes

  of   conduct.   This   lead   to   the   so-­‐called   ‘mixed’   regimes,   whereby   both   private   companies   and   states   were   involved   in   the   adoption   and   upholding  of  international  principles,  rules,  norms  and  decision-­‐making  procedures.  The  ISO   standards   were   intended   to   make   corporations   include   environmental   considerations   in   all   parts   of   operations   by   establishing   an   environmental   management   system   (EMS)   and   other   business  guidelines  (Clapp,  1998).  The  ISO  14000  standards  are  still  in  use  today  (ISO,  2015)     Several   authors   argue   that   large   MNCs,   with   their   high   purchasing   power   vis-­‐à-­‐vis  

other   actors  in  the  value  chain,  have  a  potential  to  serve  an  important  political  power  in  the  larger   environmental   debate.   For   instance,   MNCs   can   take   on   an   important   role   in   global   environmental   governance   by   improving   supply   chain   practices   and   promoting   eco-­‐ consumerism  (Dauvergne  &  Lister,  2010).  This  political  power  of  businesses  has  increasingly   gained  importance  in  international  relations  theory  (Strange,  1991).  But  at  the  same  time,  it   has  been  argued  that  MNCs’  political  power  is  fragile,  as  governance  failures  or  scandals  can   dramatically  challenge  the  legitimacy  of  these  businesses  (Fuchs,

 2005).     15     Some   authors   argue   that   global   environmental   governance   is   a   complex   system   of   hegemonies,   driven   by   different   forces   such   as   states,   civil   society   organizations   (CSOs)   and   private  companies  (Levy  &  Newell,  2002).  Others  argue  that  private  governance  needs  to  be   distinguished   from   mere   cooperation   between   different   partners,   as   governance   is   much   more   of   a   long-­‐term   commitment.   The   emergence   of   private   governance   stems   from   globalization,  pressures  from  civil  society,  and  from  private  actors’  will  to  re-­‐structure  global   hegemony,   shifting   the   ideological   view   of

  global   environmental   politics   towards   market-­‐ oriented,  de-­‐regulated  systems  of  governance  (Falkner,  2003).       Common  for  all  the  above-­‐mentioned  authors  is  the  idea  that  the  private  sector  can  play  an   important  role  in  improving  global  environmental  issues,  especially  through  MNCs’  influence   as   large   procurers.   Next   I   shall   address   more   specifically   what   green   supply   chain   management   (GSCM)   is   about,   as   well   as   discuss   aspects   of   firms’   decisions   around   sustainable  procurement  practices.     3.2 Green  supply  chain  management   3.21 Definition   The  study  of  GSCM  has  existed  for  several  decades,  but

 has  exponentially  increased  since  the   1990s.  There  is  no  clear  definition  of  green  and  sustainable  supply  chains,  which  makes  it  a   complex  concept  (Fahimnia,  Sarkis,  &  Davarzani,  2015).  Giunipero  et  al  (2012)  noted  this  lack   of  definition,  and  thus  created  their  own:       “.we  define  ‘sustainable  supply  management’  (SSM)  as  the  extent  to  which  supply  management   incorporates   environmental,   social,   and   economic   value   into   the   selection,   evaluation   and   management  of  its  supply  base.”  (Giunipero,  Hooker,  &  Denslow,  2012)(p  260)     Although   green   procurement   refers   to   environmental   practices,   whilst  

sustainable   procurement  also  can  include  social  and  economic  issues,  the  concepts  of  GSCM  and  SSM  are   used  interchangeably  (Fahimnia,  Sarkis,  &  Davarzani,  2015)  (Giunipero,  Hooker,  &  Denslow,   2012).       16     3.22 Drivers  and  barriers  to  GSCM   In  light  of  the  discussion  on  MNCs  and  their  choices  to  follow  a  sustainable  path  along  their   supply  chain,  it  is  relevant  to  look  into  some  of  the  literature  on  the  practical  incentives  and   challenges   behind   such   decisions.   When   deciding   on   procurement   standards   and   practices,   the  environmental  concerns  are  in  fact  only  a  very  small  piece  of  a

 much  larger  puzzle.  This  is   evident   from   the   figure   below,   where   environmental   concern,   shown   in   the   bottom   right   corner  of  the  figure,  is  a  small  part  of  a  company’s  procurement  decision  (De  Boer,  Labro,  &   Morlacchi,  2001):                                                 Figure  1:  Decision  tree  for  procurement  standards  and  practices   Source:  De  Boer  et  al.  (2001)     In  terms  of  drivers,  some  authors  point  to  the  importance  of  external  triggers  that  are  placed   on   companies   from   governments,   customers   and   stakeholders.   These   pressures   act   as  

incentives   to   make   companies   push   for   sustainable   value   chains.   Companies   may   fear   that   their   reputation   will   be   put   in   jeopardy,   and   thus   introduce   environmental   and   social   standards,   either   in   their   criteria   for   the   products   from   suppliers   or   as   part   of   practices   along   their  entire  supply  chain  (Seuring  &  Müller,  2008).       17     In   their   analysis   on   leading   supply   management   executives   from   national   and   multinational   companies   in   the   United   States,   Giunipero   et   al.   (2012)   found   evidence   that   executives   do   follow   and   support   their   CEO’s   initiatives   in  

implementing   sustainable   practices,   and   that   companies  often  do  so  out  of  necessity  to  comply  with  national  regulation  (Giunipero,  Hooker,   &  Denslow,  2012).     Walker   et   al.   (2008)   found   both   external   pressure   and   regulatory   compliance   to   be   important   drivers.  In  a  study  of  seven  public  and  private  companies  in  the  UK,  the  drivers  and  barriers  to   GSCM   were   addressed.   The   main   driver   identified   for   the   companies   was   first   and   foremost   regulatory   compliance,   but   other   common   drivers   were   pressure   or   encouragement   from   customers,  and  environmental  risk  minimization.  It  was  also  considered

 beneficial  for  firms  to   be  mindful  of  external  influences  from  society  and  competitors.  Some  of  the  internal  barriers   identified  were  high  costs  and  lack  of  resources,  and  some  of  the  external  barriers  were  tight   regulation,  poor  supplier  commitment  and  industry  specific  barriers.  The  drivers  and  barriers   identified  can  be  summarized  in  table  1  below  (Walker,  Di  Sisto,  &  McBain,  2008).       Encountered  internal  drivers  for  GSCM:   Encountered  internal  barriers  for  GSCM:   • Organization’s  values   • Costs   • Value  champions   • Local  nature  of  project   • Cost  reductions   • Lack  of  resources   Encountered

 external  drivers  for  GSCM:   Encountered  external  barriers  for  GSCM:   • Access  to  environmental  information   • Regulatory  compliance   • Environmental  risk  minimization   • Lack  of  information   • Monitor  environmental  performance   • Confidentiality   • Pressure   • Fragmented  industry   • Small   number   of   suppliers   (poor   or   encouragement   customers   • Regeneration  of  local  areas   • Gaining  competitive  advantage   • Exposing   poor   environmental   performance   by   competition)   • Scale  of  supply  chain   • Lack   of   industry-­‐wide   consistent   environmental  criteria     18   • Procurement  legislation   • Clinical  preference   • Food  culture   •

Inertia  by  project  stakeholders   • Supplier’s   (manufacturer)   reluctance   to  change       Table  1:  Drivers  and  barriers  for  selected  companies  in  the  UK     Source:  Walker  et  al.  (2008)       Another  study  has  looked  into  green  purchasing  practices  in  American  firms,  and  found  that  a   buying  firm  with  a  large  purchasing  volume  was  more  heavily  involved  in  green  purchasing   practices  compared  to  those  with  a  smaller  purchasing  volume.  This  implies  that  economies  of   scale   help   justifying   green   purchasing   programs   (Min   &   Galle,   2001),   and   is   consistent   with   the   arguments   mentioned   in   chapter   2.  

A   study   based   on   70   operating   units   within   UK   public   limited  companies  found  that  a  firm’s  capabilities  were  an  important  predictor  for  GSCM.  To   develop   such   capabilities,   a   firm   should   take   a   proactive   corporate   environmental   stance,   and   plan  for  a  highly  strategic  purchasing  and  supply  process  (Bowen,  Cousins,  Lamming,  &  Faruk,   2001).     Having  looked  at  the  drivers  and  barriers  of  lead  firms,  it  is  also  meaningful  to  compare  with   supplier   firms.   Manufacturers   and   suppliers   are   sometimes   obliged   to   make   sustainability   changes   in   order   to   comply   with   the   procurement   standards   of

  the   lead   firm   in   the   value   chain.   This   is   especially   evident   in   emerging   markets   where   there   tends   to   be   clusters   of   manufacturing   firms.   Zhu   and   Sarkis   (2006)   have   researched   environmental   practices   of   Chinese   manufacturers.   Their   findings   show   that   due   to   the   relative   scarcity   of   resources,   increased  international  pressures  and  the  potential  pressure  of  ‘green  barriers’  to  trade,  the   Chinese  companies  and  government  agencies  had  started  to  promote  different  environmental   management   practices   (Zhu   &   Sarkis,   2006).   In   another   study   in   China,   they   found   that   competitive,   regulative

  and   marketing   pressures   made   Chinese   enterprises   increase   their   environmental  awareness.  However,  this  did  not  translate  into  strong  GSCM  practice  adoption,     19   nor  did  it  change  the  areas  of  performance.  Their  findings  showed  that  Chinese  manufacturers   mainly  changed  environmental  practices  such  as  getting  ISO  14000  certification  to  be  able  to   supply  foreign  companies,  thus  purely  for  business  reasons  (Zhu,  Sarkis,  &  Geng,  2005).  This   argument   is   also   backed   up   by   Walker   et   al.   (2008)   in   their   study   of   different   public   and   private   organizations   in   the   UK,   where   they   found   little  

indication   of   suppliers   being   the   drivers  for  green  supply  chain  management  (Walker,  Di  Sisto,  &  McBain,  2008).  These  studies   suggest  that  the  lead  firms  are  the  ones  who  drive  sustainability  strategies  forward,  whilst  the   suppliers  follow  suit  in  order  to  keep  their  customers.       3.23 Other  topics  of  GSCM   In   addition   to   looking   at   the   drivers   and   barriers,   many   scholars   have   researched   different   topics,  frameworks  and  strategies  within  GSCM.  There  is  a  lot  of  research  in  this  field,  and  not   all   of   it   is   relevant   for   this   study.   The   studies   that   are   most   comparable   to  

the   UN   case   are   discussed  in  this  section.     First   of   all,   the   type   of   value   chain   the   firm   finds   itself   in   is   important   for   determining   its   ability   to   set   sustainable   standards   to   its   suppliers.   Gereffi   et   al   (2005)   argue   that   the   structure  of  global  value  chains  depends  on  three  variables:  The  complexity  of  transactions,   the   ability   to   codify   transactions,   and   the   capabilities   in   the   supply   base.   Furthermore,   the   authors  define  five  types  of  global  value  chain  governance  according  to  power  asymmetry  and   different  levels  of  explicit  coordination.  These  are:     1) Markets,

 where  the  costs  of  switching  to  new  partners  are  low  for  both  parts.   2) Modular   value   chains,   where   suppliers   typically   make   products   particular   to   a   customer’s  specifications.     3) Relational  value  chains,  often  containing  complex  interactions  between  the  buyers  and   sellers,  which  in  turn  create  mutual  dependence  and  a  high  level  of  asset  specificity.     4)  Captive   value   chains,   where   small   suppliers   face   high   switching   costs   and   are   thus   dependent  on  much  larger  buyers  and  are  thus  ‘captive’.     5) Hierarchy,   characterized   by   vertical   integration,   where   the   dominant   form   of   governance  is

 managerial  control  (Gereffi,  Humphrey,  &  Sturgeon,  2005).         20   Given  that  the  company  in  question  is  a  large  leading  purchaser  and  can  set  standards  for  its   suppliers,  a  second  question  becomes  what  type  of  requirements  the  company  should  set  for   its  products.  Throughout  a  product’s  life  cycle,  the  following  number  of  issues  can  for  instance   be  brought  into  environmental  consideration:       • Product   design:  Firms  can  do  a  life  cycle  assessment  of  the  product  and  minimize  its   environmental  impact  over  its  usable  life  and  afterwards.     • The   manufacturing   of   by-­‐products:  When

 considering  the  extended  supply  chain  it   is   important   to   consider   the   reduction   and   elimination   of   by-­‐products,   for   instance   through   cleaner   process   technologies,   as   well   as   quality   and   lean   production   techniques.     • By-­‐products   produced   during   product   use:   This   calls   for   extended   producer   involvement  and  responsibility  in  order  to  yield  high-­‐quality  product  management.     • Product   life   extension:   This   works   against   the   design   of   obsolescence   and   rather   focuses  on  avoiding  the  depletion  of  resources.     • Product   end-­‐of-­‐life:  The  disposition  of  the  product  at  the  end  of  its

 life  depends  to  a   large   extent   on   its   design   from   an   early   phase.   The   initial   product   design   has   a   great   influence   on   the   degree   to   which   a   product   can   be   reused,   remanufactured,   recycled,   incinerated  or  disposed  of.     • Recovery   processes   at   end-­‐of-­‐life:   This   includes   extending   the   supply   chain   to   include   issues   such   as   recycling,   remanufacturing   and   refurbishing,   and   essentially   is   about   transferring   the   external   costs   from   society   to   supply   chain   partners   (Linton,   Klassen,  &  Jayaraman,  2007).     Indeed,  several  authors  have  mentioned  the  importance  of  considering

 a  product’s  recovery   already   in   the   design   phase.   Braungart   et   al   (2007)   highlights   the   relevance   of   eco-­‐ effectiveness   and   cradle-­‐to-­‐cradle   production   and   design   strategies   in   order   to   create   healthy   emissions  in  supply  chains.  Both  visions  focus  on  creating  beneficial  industrial  systems  driven   by   the   synergistic   pursuit   of   positive   environmental,   social   and   economic   goals.   Eco-­‐ effectiveness   moves   beyond   zero   emission   approaches   by   looking   into   the   development   of   industrial  systems  and  products  that  either  maintain  or  enhance  the  productivity  and  quality     21   of   materials,   through

  several   life   cycles.   The   cradle-­‐to-­‐cradle   approach   focuses   on   designing   products   and   industrial   processes   through   enabling   one   of   two   distinct   metabolisms:   the   biological   metabolism   or   the   technical   metabolism.   The   former   is   defined   as   products   of   consumption  that  can  be  returned  to  the  natural  environment  after  use,  in  order  to  become   nutrients  for  living  systems.  The  latter,  also  known  as  a  durable  good,  is  a  material  that  can   potentially   remain   safely   in   a   closed-­‐loop   system   of   manufacture,   recovery   and   reuse,   maintaining   a   high   value   through   many   product   life   cycles  

(Braungart,   McDonough,   &   Bollinger,   2007)   (Alston,   2008).   This   concept   has   developed   over   time   In   the   mid-­‐1980s   it   started   as   a   cradle-­‐to-­‐grave   approach,   focusing   on   the   proper   disposal   of   chemical   wastes.   Today,  the  concept  has  developed  further  in  order  to  become  a  cradle-­‐to-­‐cradle  approach  to   resource   management,   which   rather   focuses   on   the  recovery   of  resources,  recycling  and  reuse   (Kumar  &  Putnam,  2008).       A   third   question   relates   to   how   a   firm   can   be   successful   in   implementing   GSCM   strategies.   Within   the   most   relevant   literature,   several   authors   have

  mentioned   the   importance   of   collaboration   and   integration   among   the   various   firms   in   the   supply   chain.   Vachon   and   Klassen   (2006)   assessed   the   influence   of   technological   and   logistical   integration   on   environmental   practices   in   the   supply   chain,   using   data   from   84   plants   across   North   America.   They   found   that   technological   integration   with   major   customers   and   primary   suppliers   was   positively   linked   with   environmental   monitoring   and   collaboration.   However,   logistical   integration  only  had  an  impact  on  green  supply  chain  practices  with  primary  suppliers  but  not   with   major   customers   (Vachon   &  

Klassen,   2006).   The   same   authors   used   a   survey   on   the   North   American   package   printing   industry   in   2008,   and   assessed   the   link   between   environmental   collaborations   in   the   supply   chain   on   the   one   hand,   and   manufacturing   performance   and   environmental   performance   on   the   other   hand.   Their   findings   show   that   environmental   collaboration   with   primary   suppliers   and   major   customers,   for   instance   through   encompassing   joint   environmental   planning   activities   and   cooperating   in   finding   solutions   to   environmental   challenges,   can   have   a   significant   positive   impact   on   both   manufacturing  and  environmental

 performance  (Vachon  &  Klassen,  2008).  This  argument  is   also   backed   up   by   van   Bommel   (2011)   in   his   research   based   on   a   survey   held   in   the   fashion/clothing   sector.   He   argues   that   a   company’s   capability   to   react   to   external     22   environmental  pressure  is  highly  influenced  by  the  cooperation  characteristics  of  the  supply   network  (van  Bommel,  2011).     3.24 Summing  up  the  GSCM  literature   In   sum,   the   literature   has   pointed   to   many   different   aspects   of   GSCM.   A   large   part   of   the   literature   describes   the   different   drivers   and   barriers   for   firms   to   implement   green  

procurement   practices.   The   type   of   global   value   chain   is   an   important   predictor   in   terms   of   whether   a   company   can   actually   set   green   standards   towards   their   suppliers.   When   firms   are   deciding  on  procurement  standards,  it  is  important  to  consider  the  product’s  entire  life  cycle   in  order  to  be  as  sustainable  as  possible.  Furthermore,  some  authors  point  to  environmental   collaboration  as  a  big  success  factor.       The   reviewed   literature   of   GSCM   provides   interesting   starting   points   for   this   research,   and   serves  as  a  basis  for  comparison  to  the  UN’s  SPHS  case.  It  is  especially

 relevant  in  answering   research  question  2,  in  which  the  main  drivers  and  barriers  are  discussed.  Within  the  entire   range   of   literature   on   GSCM,   certain   large   aspects   are   left   out   in   this   section   due   to   their   irrelevance   for   this   particular   research   topic.   Much   research   looks   into   strategic   models   within  GSCM  (Ageron,  Gunaseparan,  &  Spalanzani,  2012)  (Orsato,  2006),  but  is  too  specific  for   private  companies  to  be  part  of  this  research.  Furthermore,  different  assessment  methods  and   environmental   performance   measures   are   written   about   (Hervani,   Helms,   &   Sarkis,   2005)   (Varnäs,   Balfors,   &

  Faith-­‐Ell,   2009)   (Beske,   Koplin,   &   Seuring,   2008),   but   this   literature   also   falls  slightly  outside  of  the  scope  for  this  paper.     In  the  next  section  I  will  move  the  discussion  to  the  public  sector,  and  refer  to  the  literature   on   public   procurement,   environmental   procurement   in   the   public   sector,   and   finally   procurement  practices  within  the  UN.       3.3 Public  procurement  and  the  UN   The   UN   belongs   to   the   sector   for   multilateral   organizations   (Riddell,   2007).   Multilateral   organizations   are   formed   by   three   or   more   countries,   and   work   on   issues   related   to   its   member  

countries   (Moler,   2014).   The   UN’s   funding   comes   from   its   member   states,   both     23   through   obligatory   and   voluntary   contributions   (Better   World   Campaign,   2015).   Given   its   non-­‐profit   agenda,   the   funding   structure   of   the   UN   is   not   too   different   from   that   of   public   agencies.   Furthermore,   given   its   public   funding   structure,   the   UN   requires   that   equal   opportunity  is  available  to  potential  suppliers  from  all  the  member  countries.  Therefore  the   procurement  practices  of  a  multilateral  organization  such  as  the  UN  is  quite  similar  to  those  of   public   agencies.   This   way   of   viewing  

the   UN’s   procurement   practices   is   consistent   with   Rolfstam’s  (2013)  definition  of  public  procurement:     “Procurement  refers  to  the  function  of  purchasing  goods  or  services  from  an  outside  body.  Public   procurement  occurs  when  this  function  is  performed  by  a  public  agency.  Public  procurement  can   take   place   at   any   level   in   society   –   in   a   department   in   a   local   council   of   a   municipality,   or   on   the   regional,   national   or   even   supranational   level.   In   fact,   essentially   all   public   functions   are   supported  by  public  procurement.”  (Rolfstam,  2013,  p  6)     According   to   the   above  

definition,   procurement   through   the   UN   is   most   definitely   a   type   of   public   procurement.   Thus   it   is   highly   relevant   to   review   some   of   the   existing   literature   on   public   procurement.   And   as   is   evident   from   the   sources   referred   to   below,   public   procurement  has  been  particularly  criticized  for  being  bureaucratic,  slow  and  intransparent.         3.31 Public  procurement   Public   procurement   dates   back   to   at   least   the   nineteenth   century,   and   has   been   used   to   address   a   number   of   policy   objectives   such   as   creating   demand,   creating   employment   by   stimulating   economic   activity,   protecting  

domestic   firms   from   foreign   competition,   improving   competitiveness  among  domestic  firms,  remedying  regional  disparities  and  creating  jobs  for   marginal  sections  of  the  labor  force  (Rolfstam,  2013).     The  OECD  defines  public  institutions  as  governments  and  state-­‐owned  enterprises.  They  state   that,  of  all  government  activities,  procurement  is  the  one  that  is  the  most  vulnerable  to  fraud   and   corruption.   Furthermore,   weak   governance   in   public   procurement   hampers   market   competition  and  raises  the  price  paid  by  the  administration  for  goods  and  services.  In  October   2008,   the   OECD   Principles   for   Enhancing   Integrity   in  

Public   Procurement   in   the   form   of   an     24   OECD   recommendation   was   approved.   This   provides   a   policy   instrument   for   improving   integrity  in  the  entire  public  procurement  cycle.  In  particular  they  point  out  procedures  that   enhance   transparency,   good   management,   accountability   and   control,   and   prevention   of   misconduct.   Its   aim   has   been   to   contribute   to   preventing   the   waste   of   public   resources   and   corrupt  practices,  as  well  as  enhancing  good  governance  and  integrity  (OECD,  2009).     Hawkins  et  al.  (2011)  analyzed  differences  in  the  for-­‐profit  and  not-­‐for-­‐profit  sectors  in  terms   of  two

 critical  aspects  of  procurement,  ethics  and  strategy.   They  found  that  buyers  in  the  for-­‐ profit   sector   were   more   likely   to   behave   opportunistically,   which   may   be   due   to   a   profit   motive.   However,   they   found   that   buyers’   leaders   in   the   not-­‐for-­‐profit   sector   were   more   willing   to   turn   a   blind   eye   to   their   subordinate   buyers’   opportunistic   behaviors.   This   is   consistent   with   their   finding   that   leaders   of   non-­‐profit   firms   also   exhibited   greater   willful   ignorance  (Hawkins,  Gravier,  &  Powley,  2011).     Extensive  research  has  also  been  performed  on  procurement  practices  in

 the  European  Union   (EU)  (Arrowsmith  &  Davies,  1998).  Some  have  focused  on  the  innovative  possibilities  of  the   EU,   and   the   use   of   public   demand   as   an   engine   for   innovation   (Rolfstam,   2013)   (Edler   &   Georghiou,  2007).  Other  authors  have  stated  that  EU  procurement  has  been  pursued  on  the   background   of   corrupted   states,   and   that   there   are   particular   difficulties   in   the   implementation,   interpretation   and   detailed   application   of   the   provisions   of   the   EU   Public   Procurement  Regime  (Tyrrell  &  Bedford,  1997).     What   is   common   for   most   of   the   literature   on   public   procurement   is

  that   the   procurement   practices  have  great  potential  for  achieving  social  and  economic  goals,  but  that  unfortunately   there   tends   to   be   issues   of   bureaucracy   and   corruption   involved.   This   is   not   surprising,   and   may  in  many  cases  hold  true  for  the  private  sector  as  well.       3.32 Green  public  procurement   Within   public   procurement,   social   and   environmental   considerations   are   one   of   the   key   objectives.  However,  numerous  other  issues  are  also  relevant  to  consider,  such  as  for  instance   value   for   money,   efficiency   of   the   procurement   process,   and   fair   and   equal   treatment   of     25  

contractors   (Arrowsmith,   Linarelli,   &   Wallace,   2000).   Within   sustainable   procurement,   the   aspects  of  social  and  green  procurement  can  be  both  interrelated  and  conflicting  (McCrudden,   2004).   In   terms   of   environmental   aspects   of   public   procurement,   Arrowsmith   and   Davies   (1998)  suggest  three  requirements  the  contracting  body  may  impose  on  its  suppliers:       1. The   contracting   body   may   wish   to   impose   “product-­‐related”   environmental   requirements   on   the   product,   relating   to   its   post-­‐procurement   environmental   performance.  This  could  for  instance  be  the  design  characteristic  of  the  product   2. Bodies   may   also  

wish   to   adopt   “affirmative   purchasing”   which   can   be   broad   environmental  goals  that  are  not  necessarily  connected  only  to  the  product  itself.   3. Contracting   bodies   may   impose   process   and   production   methods   regarding   the   techniques   used   in   producing   the   supplies   to   be   procured   (Arrowsmith   &   Davies,   1998).     Within   green   public   procurement   (GPP),   certain   drivers   and   barriers   are   identified.   Organizational  factors,  such  as  affective  commitment  by  individual  actors  and  support  by  top   management,  are  important  in  determining  the  degree  of  sustainable  procurement  (Grandia,   Groeneveld,  Kuipers,  &  Steijn,

 2014).  It  is  also  observed  that  the  leading  barrier  is  high  costs   (Walker   &   Brammer,   2009).   These   leading   drivers   and   barriers   are   not   too   different   from   those  of  green  procurement  in  the  private  sector.       Finally,   the   following   research   cases   by   Preuss   (2009)   and   Thomson   &   Jackson   (2007)   are   relevant   to   highlight,   as   they   both   form   basis   for   the   discussion   in   chapter   5.   Preuss   (2009)   looks   at   sustainable   procurement   for   local   government   authorities   in   the   UK.   The   author   found   that   public   authorities   were   replacing   hazardous   materials   in   products   and  

services.   Some   local   authorities   also   compiled   and   disseminated   sustainability   information   through   environmental   policies   and   applied   an   environmental   risk   assessment   for   key   contracts   in   order   to   demonstrate   their   commitment   to   sustainability   (Preuss,   2009).   Thomson   and   Jackson   (2007)   also   studied   green   procurement   practices   in   local   government   in   the   UK,   looking  at  the  operating  environment.  They  found  that  there  has  been  real  progress  in  green   procurement   among   local   government   authorities,   but   that   it   is   limited   in   the   range   of   products  involved  and  the  level  of  ambition.  At  the

 operational  level,  the  main  driving  force     26   for   green   procurement   was   the   presence   of   motivated   individuals   in   the   decision-­‐making   process.   Finally,   the   authors   recommended   better   information   at   all   levels   in   order   to   deepen   and  widen  the  scope  for  green  procurement  (Thomson  &  Jackson,  2007).     3.33 UN  procurement     There   is   limited   available   literature   looking   specifically   at   procurement   practices   in   the   UN.   Due   to   the   complexity   of   the   organization   itself,   it   is   also   difficult   to   generalize   about   the   procurement   practices   that   are   taking   place   across   all   the

  different   UN   organizations.   Nevertheless,  the  existing  literature  will  be  addressed  in  this  section.       The  UN  system  covers  a  wide  range  of  different  organizational  units  that  vary  in  size  and  type   of   activities.   All   these   specialized   agencies   possess   their   own   legislative   and   executive   bodies,   as  well  as  their  own  secretariats  and  budgets.  Each  of  the  larger  UN  agencies  has  their  own   procurement   entities,   in   order   to   procure   goods   and   services   that   are   specific   to   their   mandates   and   operations.   Several   UN   agencies   have   delegated   authority   to   their   respective   country  offices  to

 undertake  procurement  up  to  a  certain  financial  limit  (this  amount  varies   by  agency).  Each  UN  organization  has  adopted  common  guidelines  for  procurement   UNDP’s   Inter-­‐Agency   Procurement   Services   Office   (IAPSO)   served   as   a   focal   point   for   procurement   issues   in   the   entire   UN   for   several   years,   but   was   dissolved   in   2007   (Welter,   2015).  Among  other  things,  it  promoted  inter-­‐agency  cooperation  and  coordination  through   R&D   related   to   procurement,   and   supported   the   international   business   community   with   information  on  UN  business  opportunities.  IAPSO  used  to  serve  as  the  permanent  secretariat   to  the

 Inter  Agency  Procurement  Working  Group  (IAPWG).  The  IAPWG  consisted  of  heads  of   purchasing  from   across   different  UN   organizations,   and   met   annually  to  discuss  procurement   issues   across   the   UN   (Walker   &   Harland,   2008)   (Ævarsson,   2010).   The   IAPWG   has   now   likely   also  been  dissolved,  although  the  UN  websites  lack  updated  information  on  this.       Table  2  below  contains  data  from  2003,  and  shows  that  medical  procurement  –  in  the  form  of   pharmaceuticals,  vaccines  and  contraceptives,  represents  26.9%  of  total  spend  across  the  22   IAPWG  organizations.       27                    

Table   2:   Percentage   of   total   spend   across   major   procurement   categories   of   22   IAPWG   organizations   Source:  Van  De  Gronden  et  al.,  2007     In   terms   of   procurement   rules   and   procedures,   there   are   differences   applied   across   UN   agencies,  but  what  is  common  for  all  is  that  the  UN  operates  with  public  funds.  This  requires   that  equal  opportunity  is  available  to  potential  suppliers  from  all  the  member  countries,  for   instance   allowing   producers   from   developing   countries   to   get   the   same   opportunities   as   Western   ones.   Overall   the   UN   has   to   ensure   an   extremely   high   level   of   equity,  

integrity   and   transparency   in   all   parts   of   their   procurement   practices.   Given   that   the   UN   is   operating   on   behalf  of  their  member  states,  it  has  a  great  responsibility  in  ensuring  fairness  and  ethical  use   of   their   financial   resources.   Furthermore,   it   aims   at   providing   best   value   for   money   and   on   time  delivery  of  goods,  service  and  capacity  (United  Nations,  2014).     Table  3  below  represents  some  of  the  barriers  for  procurement  activities  within  the  UN  (Van   De  Gronden,  Bloch,  Ramm,  Jensen,  Harland,  &  Walker,  2007).               28   Barriers  to  UN  procurement  activities:  

• Lack  of  funding  for  procurement  activities.   • Complexity  and  difficulty  of  harmonization  across  UN  organizations.   • Stagnating  trend  in  sourcing  from  developing  countries.   • It  is  hard  to  combine  accountability  and  transparency  with  a  thorough  and  results-­‐ oriented  approach.   • The   decentralized   arrangements   make   it   difficult   to   have   central   control   over   procurement  policies.   • Inappropriate  use  of  e-­‐procurement  solutions,  due  to  lack  of  IT  capability  at  local  offices,   insufficient  funding,  the  organizational  culture,  and  other  priorities  taking  precedence   over  it.       Table  3:  Main  barriers  to  UN  procurement

 activities   Source:  Van  De  Gronden  et  al.,  2007     In  her  master  thesis  for  Copenhagen  Business  School,  Ævarsson  (2010)  looks  at  UNOPS  and   their   efforts   to   change   towards   a   supply   chain   management   (SCM)   perspective   in   their   procurement   practices.   This   change   includes   potential   benefits,   such   as   having   a   more   coherent   approach   to   suppliers,   increased   economies   of   scale,   and   more   synergy   between   projects.  She  also  points  out  that  UNOPS  has  to  abide  by  the  principles  of  public  procurement,   which  according  to  her  are  transparency,  accountability  and  effective  competition.  However,   she  notes  that

 public  procurement  is  known  for  being  bureaucratic,  and  often  times  corrupt,   self-­‐serving   and   with   extensive   favoritism.   In   particular,   the   UN   has   been   criticized   for   having   high   administrative   costs   and   being   inefficient   and   bureaucratic,   especially   compared   to   philanthrocapitalists  like  Bill  Gates  or  other  cost-­‐efficient  NGOs  (Ævarsson,  2010).     In   terms   of   sustainable   procurement,   The   United   Nations   Environment   Programme   (UNEP)   has  played  a  major  role  in  promoting  that  within  the  UN.  For  instance,  they  have  initiated  a   global   consensus   on   the   integration   of   sustainable   development   considerations

  in   all   levels   of   procurement.  Furthermore,  they  have  developed  training  tools  for  procurement  officers  in  the   UN.   They   have   also   worked   on   related   areas   such   as   initiatives   for   environmental   management  tools,  cleaner  production  and  sustainable  product  design  (Clark,  2006).         29   3.34 Summing  up  the  literature  on  public  procurement  and  the  UN   The   existing   literature   covers   some   research   on   public   procurement   practices,   mainly   at   country   level   or   at   the   EU   level.   Within   this   topic,   there   are   also   certain   scholars   who   have   looked   specifically   into   green   procurement   practices  

of   public   authorities.   Some   literature   covers  procurement  within  the  UN  system,  but  this  is  either  at  an  overarching,  general  level,   or  through  narrower  research  on  one  specific  agency.  Furthermore,  most  of  the  research  is  on   UN   procurement   practices   in   general,   rather   than   on   sustainable   procurement   specifically.   There  appears  to  be  room  for  a  lot  more  research  on  green  procurement  within  this  global,   complex  organization.       3.4 Research  Gap   The   reviewed   literature   has   addressed   the   political   power   of   MNCs,   and   their   potential   to   make   real   differences   to   the   world’s   environmental   issues.

  It   is   argued   that   the   purchasing   power   of   large   MNCs   can   bring   them   to   change   their   industries,   and   this   is   especially   the   case   for   large   retailers   facing   pressures   from   their   customers.   However,   there   is   no   doubt   that   global   MNCs   also   have   a   highly   negative   environmental   impact   on   the   earth,   due   to   the   inevitable   scale   of   their   production,   and   that   their   legitimacy   can   be   fragile   in   the   face   of   scandals.       Numerous  authors  have  contributed  to  the  discussion  on  sustainable  procurement  and  GSCM.   The   topics   that   are   particularly   emphasized   in   this  

regard   are   the   drivers   and   barriers   the   firms  face  in  deciding  on  GSCM  practices,  as  well  as  supply  chain  types,  a  product’s  life  cycle,   and  supply  chain  collaboration.       Finally   there   have   been   a   number   of   contributions   over   the   past   two   decades   in   the   field   of   public  procurement,  and  within  this  topic,  green  public  procurement.  However,  the  focus  has   tended  to  be  on  government  authorities,  and  to  a  lesser  extent,  the  European  Union.  There  is   also   some   research   covering   procurement   within   the   United   Nations   system,   though   more   often   than   not,   the   focus   is   on  

general   procurement   practices   rather   than   on   sustainable   purchasing.         30   Putting   all   of   this   together,   there   is   a   research   gap   on   the   study   of   green   procurement   practices  in  the  UN,  through  the  use  of  the  UN’s  massive  global  purchasing  power  in  sectors   related  to  development  and  humanitarian  aid.  The  health  sector  is  a  highly  relevant  one,  and   thus  the  UN’s  Sustainable  Procurement  in  the  Health  Sector  (SPHS)  initiative  will  be  the  case   study   for   this   research.   The   discussion   will   be   centered   on   how   the   UN   can   use   its   purchasing   power   and   scale   in   the

  same   ways   as   the   above-­‐mentioned   MNCs,   in   order   to   change   the   health  sector  through  procurement  innovation  and  standard  setting.  Can  the  model  developed   in  the  private  sector  be  replicated  in  the  sector  for  multilateral  aid?  Can  this  potentially  be  a   new   way   to   improve   sustainability   practices   on   a   global   scale,   with   the   UN   acting   as   frontrunners   for   green   purchasing   strategies?   What   prevents   the   UN   to   take   the   lead   as   a   frontrunner?   Is   it   issues   such   as   bureaucracy   and   lack   of   transparency   stemming   from   its   public  nature?         4. Methodology   This   chapter  

will   describe   the   choice   of   methodology   for   this   study,   including   research   philosophy,   approach   and   design.   Following   Saunders   et   al’s   (2006)   research   ‘onion’   (see   figure  2  below),  the  investigator  needs  to  make  a  number  of  decisions  before  deciding  on  the   data   collection   and   analysis   techniques.   These   different   choices   will   be   discussed   in   the   following  sections.     This   chapter   also   describes   the   sample   chosen   and   the   ethical   considerations   that   were   made   by  the  researcher  throughout  the  data  collection  process.                     31                

                      Figure  2:  The  research  ‘onion’   Source:  Saunders  et  al.  (2006)     4.1 Research  philosophy  and  approach   In   this   study   I   have   applied   an   abductive   strategy,   defined   as   a   reflective   way   to   generate   theory   side   by   side   with   data   collection   and   analysis.   With   this   research   strategy,   the   investigator  moves  back  and  forth  between  theory  and  data  collection,  in  order  to  construct   theoretically  sound  propositions  that  reflect  the  range  and  nature  of  the  empirical  evidence  in   an   accurate   way.   This   differs   from   the   inductive   or   deductive   approaches  

highlighted   in   the   second   layer   (counting   from   the   outside)   of   figure   2   above,   where   the   researcher   moves   from   empirical   evidence   to   theoretical   conclusions,   or   from   theory   to   empirical   evidence,   respectively   (Davies   &   Hughes,   2014).   In   this   research   project   I   have   moved   back   and   forth   between  reviewing  the  literature  on  the  one  hand,  and  gathering  evidence  through  interviews   and   secondary   data   on   the   other,   and   making   comparisons.   Although   some   preliminary   research   questions   were   outlined   from   day   one,   they   were   not   clearly   defined   until   after   a   pilot   interview   was  

conducted,   with   my   first   interviewee   Volker   Welter.   Given   Volker’s   interesting  comments  and  reflections  I  ended  up  using  the  pilot  interview  as  part  of  my  main   data   as   well.   Thus,   the   literature   and   the   empirical   findings   both   played   a   highly   relevant   role   in   shaping   the   research   questions.   This   type   of   research   is   also   in   line   with   the   interpretive     32   phenomenological   analysis   (IPA)   or   the   interpretive   approach   to   research,   where   the   investigator  looks  for  themes  in  the  early  emergent  data,  makes  connections  between  them,   and   seeks   further   evidence   through   interviews

  and   observations.   From   the   completed   analysis,  the  researcher  seeks  to  find  patterns  and  infer  meanings  (Davies  &  Hughes,  2014).   The   themes   spotted   early   on   in   the   research   project,   through   the   literature   review   and   the   preliminary  research,  played  a  major  role  in  my  decision  on  the  types  of  questions  to  be  asked   in   the   interviews.   For   example,   the   critique   on   public   procurement   depicted   in   parts   of   the   literature   lead   to   interesting   questions   in   the   interview   process.   Another   example   is   the   focus   on   a   product’s   life   cycle   in   the   GSCM   literature,   which   also  

produced   interesting   discussion   points  on  the  procurement  practices  of  the  UN.   The  most  interesting  evidence  in  the  first  few   interviews   have   further   affected   the   questions   asked   and   the   themes   investigated   in   the   following   interviews.   This   strategy   has   proved   to   be   an   appropriate   method   for   gathering   interesting   and   relevant   findings   in   the   subject   area.   I   have   been   able   to   add   to   existing   research  by  highlighting  a  research  gap,  and  trying  to  find  empirical  evidence  within  it.       Interpretivism   (first   layer   in   figure   2)   reflects   an   epistemology   that   seeks   to   understand  

humans   in   their   roles   as   social   actors.   Some   argue   that   interpretivism   is   especially   appropriate   to   use   in   the   research   of   business   and   management,   particularly   when   looking   at   organizational   behaviors.   This   is   due   to   the   uniqueness   of   complex   business   situations,   which   are   a   function   of   a   particular   set   of   individuals   and   circumstances.   The   interpretivist   researcher  would  thus  argue  that  such  situations  are  subject  to  change  over  time,  and  hence   does  not  generalize  her  findings  (Saunders,  Lewis,  &  Thornhill,  2006).     4.2 Research  design   The  part  of  the  methodology  titled  ‘research

 design’  is  represented  in  the  lighter  part  of  figure   2   above.   Before   choosing   a   research   strategy,   which   is   highlighted   in   the   third   layer   of   the   research   ‘onion’,   the   investigator   needs   to   decide   on   a   research   purpose.   As   highlighted   by   Saunders   et   al.   (2006),   a   research   purpose   can   be   classified   as   exploratory,   explanatory   or   descriptive.  This  thesis  follows  an   exploratory  purpose,  as  the  researcher  is  seeking  to  learn   and   gain   new   insights   of   the   subject   area.   The   main   advantages   of   exploratory   research   are   that   it   is   flexible   and   adaptable   to   change,  

allowing   the   researcher   to   change   direction   as   a     33   result   of   new   data   or   new   insights.   There   are   three   main   ways   of   conducting   exploratory   research:   Extensive   literature   review,   interviewing   ‘experts’   in   the   subject   area,   and   conducting   focus   groups   (Saunders,   Lewis,   &   Thornhill,   2006).   In   this   project   I   have   conducted  the  first  two.  In  addition  to  the  literature  review  in  previous  sections  of  this  paper,   I   have   interviewed   a   sample   of   individuals.   Due   to   their   extensive   involvement   in   the   UN   initiative,  either  internally  within  the  UN  or  externally  as

 members  of  partner  organizations   or   the   private   sector,   these   people   are   known   to   be   experts   in   the   field,   as   well   as   highly   relevant  stakeholders  in  the  project.       Having   decided   on   a   research   purpose,   the   investigator   can   then   move   to   the   choice   of   a   research  strategy,  the  third  layer  of  the  research  ‘onion’.  A  case  study  strategy  is  often  used   within   an   exploratory   study.   This   is   particularly   suitable   to   answer   why,   what   and   how   questions,  and  is  thus  very  relevant  for  this  project  (see  research  questions  in  section  4.24)  A   case   study   seeks   to  

empirically   investigate   a   contemporary   phenomenon   within   its   real   life   context,  using  multiple  sources  of  evidence  (Saunders,  Lewis,  &  Thornhill,  2006).  This  fits  well   with  the  research  method  applied  for  these  research  purposes.       Within  the  case  study  strategy,  Yin  (2003)  defines  two  different  dimensions:     • Single  versus  multiple  case;   • Holistic  versus  embedded  case.     This   case   study   is   directed   towards   a   single   case,   which   is   the   UN’s   SPHS   initiative.   Given   that   the   unit   of   analysis   includes   logical   sub-­‐units   such   as   the   different   UN   agencies   and   smaller   organizations,

 the  study  can  be  defined  as  an  embedded  case  (Yin,  2003).       The   fourth   layer   of   the   ‘onion’  represents   the   choice   of   method   to   be   used.   Given   that   a   single   data  collection  technique  and  corresponding  analysis  procedures  are  used,  the  research  is  one   of   a   mono   method,   focusing   solely   on   the   qualitative   data   gathered   from   interviews   and   documents.  Finally,  the  fifth  layer  represents  the  time   horizons  to  be  applied  in  the  research   As   this   research   is   time   limited   and   the   interviews   are   conducted   over   the   period   of   one   month,  the  project  is  necessarily

 cross-­‐sectional,  rather  than  longitudinal.  The  final  layer  in   the   middle   of   the   onion   represents   techniques   and   procedures   used   in   data   collection   and     34   analysis   (Saunders,   Lewis,   &   Thornhill,   2006).   I   will   address   this   layer   in   the   rest   of   this   chapter,   and   look   into   aspects   such   as   the   choice   of   sample,   the   use   of   interviews   and   secondary  data,  and  ethics  in  qualitative  research.       The   choice   of   research   philosophy   and   design   allowed   me   to   get   a   detailed   account   of   the   SPHS  initiative,  and  to  freely  choose  the  angle  I  wanted  to  have

 for  the  thesis.  It  allowed  me  to   draw   conclusions   based   on   the   UN   staff’s   and   partners’   own   reflections,   and   to   really   understand   their   intentions,   mindset   and   goals.   The   weakness   of   my   methodology   is   that   I   do   not  have  a  representative  sample,  and  thus  I  cannot  generalize  for  all  the  stakeholders  of  the   initiative.  If  the  scope  of  the  thesis  had  been  sufficiently  large,  I  could  for  instance  have  used   both   qualitative   and   quantitative   (survey)   methods.   This   may   have   allowed   me   to   reach   more   people,  whilst  still  keeping  the  detailed  accounts  of  a  few  selected

 interviewees.  Furthermore,   I   could   have   included   participant   observations   within   my   qualitative   approach,   which   could   have   given   relevant   insights   that   may   not   have   been   captured   through   one-­‐to-­‐one   interviews.   For   instance,   I   may   have   been   able   to   capture   group   dynamics   and   how   the   different   UN   agencies  interact  with  one  another.       4.21 Sample   When  a  researcher  chooses  a  sample  for  a  specific  reason,  it  may  be  referred  to  as  ‘strategic   sampling’.   This   method   differs   greatly   from   the   probability   and   non-­‐probability   sampling   methods  often  used  in  statistical  methods  (Davies

 &  Hughes,  2014).       “You  are  aiming  quite  explicitly  to  select  people,  objects,  situations  or  experiences  that  will  help   you   explore   your   question,   enable   you   to   develop   theoretical   ideas,   and   give   you   the   opportunity   to  test  them  before  reaching  a  conclusion.”  (Davies  and  Hughes,  2014,  P  172)     The   choice   of   interview   subjects   was   initially   based   on   recommendations   from   key   focal   points   within   the   Joint   UN   Programme.   After   conducting   the   first   few   interviews,   further   relevant   interview   subjects   were   identified   based   on   a   ‘snowball   sampling’   technique.   This   research  

method   is   defined   as   a   way   of   gathering   research   participants   through   the   identification   of   initial   subjects   who   are   further   used   to   provide   names   of   other   relevant     35   actors   (Atkinson   &   Flint,   2004).   In   order   to   increase   the   validity   of   the   findings,   I   chose   a   diverse   sample,   including   representatives   from   different   UN   agencies,   as   well   as   from   partner   NGOs,  a  consulting  company  and  a  supplier  firm.     In   total   eleven   interviews   were   conducted   with   an   average   length   of   40   minutes.   The   number   of   interviews   was   not   decided   on   from   the  

beginning.   Rather,   I   stopped   conducting   further   interviews   when   there   did   not   seem   to   be   anything   more   particularly   useful   to   learn   from   the   interviews,  and  when  they  started  to  become  slightly  repetitive.  At  that  point,  I  concluded  that   the   information   from   the   completed   interviews   was   adequate   to   answer   the   research   questions.   Although   some   of   the   interview   subjects   were   more   involved   in   the   SPHS   initiative   than   others,   they   all   provided   new   and   relevant   viewpoints   to   the   research   topic.   I   tried   to   have   a   balance   of   interviewees,   so   that   the   sample   consisted  

of   a   mix   of   people   working   for   different   UN   agencies,   as   well   as   some   external   people.   The   sample   includes   the   following   interview  subjects:     Name   Title   Volker  Welter   Senior   Procurement   Advisor   New  York,  USA   at   UNDP’s   Location   Procurement   Support  Office   Dr.  Christoph   Regional   Practice   Leader   of   Istanbul,  Turkey   Hamelmann   HIV,  Health  and  Development   and   SPHS   Coordinator   at   the   UNDP   Regional   Centre   for   Europe  and  the  CIS   Mirjana  Milic   Associate  Coordinator  for  the   Istanbul,  Turkey   Secretariat   of   the   informal   Interagency   Task   Team   on   Sustainable   Procurement   in   the   Health

  Sector   (iIATT-­‐ SPHS/UNDP)     36   Anja  Leetz   Executive   Director,   Health   Brussels,  Belgium   Care  Without  Harm  Europe   Ignacio  Sanchez  Diaz   Former   project   coordinator,   Istanbul,  Turkey   sustainable   procurement,   UNFPA   (currently   working   for  UNDP  since  May  2015)   Morten  Sørensen   Deputy  Chief  of  Procurement,   Copenhagen,  Denmark   UNFPA   Katarina  Veem   Director   of   Swedish   Water   Stockholm,  Sweden   House  at  Siwi   Martin  Hansen   Consultant   at   Implement   Copenhagen,  Denmark   Consulting  Group   Francesca  Racioppi   Senior   Policy   and   Programme   Copenhagen,  Denmark   Advisor   at   the   Environment   and   Health   Policy   and   Governance  

at   WHO   Regional   Office  for  Europe   Helene  Møller   Chief,   Health   Centre,   Technology   Copenhagen,  Denmark   Unicef   Supply   Division   MK  Goh   CEO   of   Karex,   a   Malaysian   Kuala  Lumpur,  Malaysia   condom  manufacturer     Table  4:  List  of  interview  subjects     4.22 Interviewing  a  small  sample     Conducting  interviews  is  a  useful  way  to  get  valuable  information,  and  allows  the  subjects  to   talk   freely   about   a   topic   (Kvale,   2007).   There   are   some   practical   advantages   to   studying   a   small  sample,  such  as  the  fact  that  it’s  easier  than  organizing  a  large  survey  sample,  and  that   the   researcher   can  

easily   get   involved   through   face-­‐to-­‐face   encounters.   There   are   also   some   theoretical  advantages,  for  instance  the  fact  that  it  can  appear  more  ‘human’  than  surveys,  and     37   that  the  material  obtained  may  seem  closer  to  the  interviewee’s  reality.  This  makes  it  possible   to   explore   the   respondents’   feelings   and   experiences,   and   gives   the   interviewee   more   room   for   directing   the   flow   of   conversation   rather   than   solely   answering   pre-­‐defined   questions.   Finally,   it   gives   increased   validity   of   the   process,   as   the   researcher   can   observe   what   the   interviewee  says  and  does  as

 opposed  to  just  reading  from  a  survey  (Davies  &  Hughes,  2014).   Given   that   a   small   number   of   people   have   a   broad,   in-­‐depth   knowledge   of   the   UN   initiative   and   the   subject   matter,   doing   qualitative   interviews   with   a   small   sample   proved   to   be   the   most   suitable   method.   This   approach   allowed   me   to   ask   detailed   questions   to   each   respondent,  and  to  explore  their  reactions,  opinions  and  experiences  in  more  detail.  That  said,   the  sample  was  large  enough  to  allow  me  to  explore  different  and  comparative  views  relevant   to  the  research  questions,  and  to  bring  in  information

 that  challenged  the  assumptions  made   previous   to   the   data   collection   process.   This   is   further   emphasized   in   the   literature   as   an   important  issue  (Davies  &  Hughes,  2014).  For  instance,  using  a  broad  guideline  of  questions   (see   appendix   10.3)   I   chose   to   ask   those   that   I   deemed   most   relevant   for   the   particular   interview   subject.   The   level   of   detail   in   each   question   depended   on   the   knowledge   of   the   interviewee.  The  answers  given  to  me  provided  a  basis  for  further  questions,  that  I  asked  in   the   following   interviews.   However,   the   most   relevant   questions   were   asked   in

  every   single   interview.       All  the  interviews  were  undertaken  via  video  calling  through  Skype.  Video  calling  is  in  many   ways   equivalent   to   a   face-­‐to-­‐face   interview,   and   is   an   easy   and   affordable   way   to   do   interviews   from   a   geographical   distance   (Davies   &   Hughes,   2014).   Furthermore,   when   interviewing  busy  professionals  that  are  located  in  various  locations  around  the  globe,  it  also   allowed  them  to  be  very  flexible,  as  they  could  talk  from  anywhere.  There  were  no  issues  of   connectivity   or   bad   sound,   which   allowed   for   outstanding   communication.   The   only   minor   drawback  from

 using  such  a  method  was  that  several  of  the  interview  subjects  chose  not  to   have   their   camera   on   (among   other   things   due   to   suboptimal   connection   when   the   web   cameras   are   used),   which   prevented   me   from   observing   the   interviewees’   body   language   during   the   interviews.   All   the   interviews   were   audio   recorded,   which   provided   two   advantages   in   particular:   a)   It   provided   a   learning   tool,   in   order   for   me   to   re-­‐listen   to   the   interviews  several  times,  and  b)  it  allowed  me  to  focus  completely  on  what  was  said  during   the  interviews,  as  I  didn’t  have  to  worry  about

 writing  everything  down  immediately.       38     4.23 Doing  research  with  secondary  data     A   researcher   may   conduct   content   analysis   on   anything   that   is   written   down   or   otherwise   recorded  (Davies  &  Hughes,  2014).  As  I  was  working  part-­‐time  as  an  intern  in  UNDP  during   some   of   the   time   period   of   doing   the   research,   I   had   access   to   a   wide   scope   of   written   information   –   secondary   sources   –   of   the   SPHS   initiative.   When   doing   such   research   it   is   highly  important  to  be  rigorous  in  interpreting  the  data,  so  as  to  not  let  one’s  prejudices  affect   the  

data   collection.   It   is   particularly   important   to   be   careful   of   what   one   already   knows,   as   well  as  what  one  expects  or  wishes  to  find.  Furthermore,  it  is  important  to  keep  in  mind  that   the  origin  of  the   information   itself   is   biased   (Davies   &   Hughes,   2014).   As   the   documents   used   in   the   data   collection   was   written   and   published   by   the   UN,   I   was   particularly   careful   when   interpreting   the   data.   I   tried,   as   often   as   I   could,   to   cross   check   the   information   from   different   sources.  This  may  have  increased  the  reliability  of  the  data  to  a  certain  extent

 That  being  said,   the   information   is   fairly   new   and   not   published   by   any   external   sources   yet,   so   all   my   sources   are   internal.   The   likelihood   of   some   form   of   bias   is   thus   inevitable,   and   this   may,   to   a   very   minor  extent,  affect  the  answer  to  my  research  questions.       4.24 Research  questions   When   doing   a   qualitative   study   it   is   important   for   the   researcher   to   have   the   research   question(s)   clearly   in   mind   throughout   the   data   selection   process.   Instead   of   just   using   a   single  question,  one  may  use  several  research  questions  in  order  to  try  to  solve  an

 ‘intellectual   puzzle’   upon   which   you   will   develop   an   empirically   and   theoretically   grounded   framework   (Davies  &  Hughes,  2014).  In  this  study,  three  main  subject  areas  were  particularly  focused  on,   and  formed  the  basis  for  the  questions  asked.  The  research  questions  are:       1. How  is  the  UN  initiative  similar  or  different  from  the  private  sector  model  of  green   procurement  and  sustainable  supply  chain  management?     2. What  are  the  main  (internal  and  external)  drivers  and  barriers  that  are  faced  by  the  UN   agencies  when  working  towards  sustainable  procurement  in  the  health  sector?       39  

3. How  do  the  findings  on  the  UN  initiative  relate  to  the  critique  in  the  literature  on   public  procurement?     4.3 Ethics   4.31 Ethical  treatment  of  the  interview  subject   In  the  qualitative  interview,  it  is  important  for  the  researcher  to  recognize  that  it  is  an  unusual   situation  for  the  interviewee,  one  that  may  feel  like  an  interrogation.  In  the  beginning  of  the   interview,   it   is   important   to   specify   to   the   interviewee   why   it   is   important   that   he/she   partakes   in   the   interview.   It   is   also   essential   to   explain   what   the   interview   subject   can   get   out   of   his/her   partaking,   for  

instance   by   thoroughly   explaining   the   research,   its   aims   and   its   potential  uses.  This  is  known  as  informed  consent  It  should  also  be  mentioned  whether  there   is   a   risk   involved   in   participating   in   the   interview   (Kvale,   2007)   (Davies   &   Hughes,   2014)   (Orb,  Eisenhauer,  &  Wynaden,  2000).  Furthermore,  it  is  important  to  consider  confidentiality   (Kvale,   2007).   I   started   every   interview   by   introducing   the   topic,   and   informing   the   interviewee  about  his/her  right  to  remain  anonymous,  and  their  right  to  double-­‐check  their   quotes  prior  to  the  thesis  being  officially  submitted.  The  interviewees  were

 also  informed  that   the  interview  would  be  recorded,  for  research  purposes  only.  None  of  the  interview  subjects   chose  to  remain  anonymous,  but  most  of  them  requested  to  have  an  overlook  of  the  quotes  to   be   used   in   the   final   paper   before   submission.   Everyone   was   comfortable   with   being   recorded   Finally,   when   conducting   qualitative   research,   it   is   important   to   avoid   the   abuse   and   exploitation  of  people,  and  to  adhere  to  the  concept  of  beneficence,  or  preventing  harm  (Orb,   Eisenhauer,  &  Wynaden,  2000).  Due  to  my  affiliation  with  UNDP,  and  the  joint  collaboration   between  the  organization

 and  the  researcher  for  the  study,  the  subjects  seemed  comfortable   with   expressing   their   true   opinions.   Furthermore,   a   number   of   them   seemed   to   value   the   research  being  done.    That  being  said,  if  the  interviewees  had  been  anonymous,  they  may  have   been   more   comfortable   with   providing   even   more   honest   answers.   For   the   purpose   of   this   thesis   it   made   more   sense   to   use   the   interviewees’   real   names   and   titles   (due   to   their   roles   as   experts   and   stakeholders),   but   doing   an   anonymous   study   could   be   an   option   for   further   research.         40   4.32 Risk  of  bias

 during  interviews   In   qualitative   research,   it   is   important   to   recognize   that   the   researcher   is   located   in   a   subjective  context  and  thus  cannot  claim  neutral  or  scientific  objectivity.  Every  researcher  is   affected  by  his/her  own  background  and  position  prior  to  the  research.  This  bias  needs  to  be   overcome   in   order   to   be   able   to   grasp   the   personal   view   of   every   single   interviewee,   and   answer   the   research   questions   as   correctly   as   possible.   As   mentioned   in   section   423,   this   ‘researcher   bias’   is   especially   a   risk   when   one   does   research   in   a   setting   in   which   one

  is   already  familiar  (Easterby-­‐Smith,  Thorpe,  &  Jackson,  2012).  Given  my  internship  experiences   in   UNDP,   as   well   as   my   acquaintance   to   some   of   the   interview   subjects,   these   issues   were   important   to   keep   in   mind   during   the   data   collection   process.   Furthermore,   given   this   familiarity  and  previous  knowledge,  one  can  never  say  for  certain  whether  the  research  is  to  a   small   extent   affected   by   this   so-­‐called   ‘researcher   bias’.   That   being   said,   my   knowledge   and   familiarity  of  the  UN  system  also  allowed  each  interview  to  be  open,  with  an  (often)  informal   tone.       5.

Analysis  and  discussion   In  this  chapter  I  will  present  the  main  findings,  analyze  them  and  discuss  them  in  relation  to   the  literature  and  research  questions.  In  the  first  section  I  shall  briefly  describe  the  initiative   and   its   recent   updates.   In   the   second   section   I   will   discuss   the   first   research   question,   comparing   the   SPHS   initiative   with   the   private   sector   model   on   green   procurement   and   supply  chain  management  (the  ‘Walmart  approach’).  In  section  three  I  will  discuss  the  second   research   question,   and   identify   and   discuss   the   main   drivers   and   barriers   identified   in   the  

initiative.  In  section  four  I  will  address  the  third  research  question  and  compare  the  findings   from  the  UN  with  some  of  the  existing  literature  on  public  procurement.  Finally  in  section  five   I  will  discuss  the  other  relevant  findings.         41   5.1 Broad  overview  of  the  UN  initiative   5.11 The  environmental  burden  of  the  health  sector   The  environmental  burden  of  the  health  sector  is  an  emerging  global  issue.  For  instance,  the   health   sector   contributes   to   greenhouse   gas   (GHG)   emissions,   resource   depletion   and   chemical  pollution  (iLATT-­‐SPHS  Secretariat  (UNDP),  2014).  Research  from  the  United  States  

shows  that  8%  of  GHG  emissions  derives  from  the  health  sector,  while  studies  in  England  find   that  the  National  Health  Service  contributes  around  25%  of  public  sector  GHG  emissions.  In   addition,   the   health   sector   contributes   to   environmental   health   impacts   deriving   from   the   procurement,   use   and   disposal   of   products.   These   include   hazardous   drugs,   radiation,   chemicals,   infectious   and   environmental   hazards,   water   and   air   pollution,   as   well   as   risks   from   inappropriate   health-­‐care   waste   disposal   and   incineration   practices.   Furthermore,   the   procurement   of   goods   and   services   is   one   of   the   largest

  GHG   contributors   within   the   health   sector  (World  Health  Organization,  2013).       The   health   sector   is   of   undisputable   importance   worldwide,   however   for   that   same   reason,   the  health  sector  often  gets  a  ‘free  pass’  regarding  its  impact  on  the  environment.  Numerous   studies  have  argued  that  there  is  a  clear  link  between  environmental  hazard  and  certain  types   of   diseases.   This   calls   for   a   bad   circle,   which   will   not   solve   itself   without   environmental   intervention  (Welter,  2015).  The  topic  of  sustainability  has  not  gained  substantial  momentum   within   health.   Certain   ratings   systems   applied   in  

the   consumer   products   sector,   such   as   energy  ratings,  do  not  yet  exist  in  the  health  sector.  Furthermore,  eco-­‐innovative  products  are   still  rare  in  the  health  sector  (iLATT-­‐SPHS  Secretariat  (UNDP),  2014).       5.12 The  SPHS  initiative     “The  SPHS  initiative  use  procurement  as  a  strategic  tool  to  advance  on  the  climate  change  and   sustainability  agenda.  In  my  opinion,  procurement  is  a  very  useful  tool  to  influence  the  private   sector  on  sustainability  aspects.”  (Diaz,  2015)     During  the  Rio+20  UN  Conference  on  Sustainable  Development  in  2012,  leaders  from  around   the   world   renewed   their   commitment  

to   progressing   sustainable   development,   and   re-­‐   42   affirmed   that   acting   on   this   is   the   only   solution   in   addressing   the   world’s   growing   social,   economic   and   environmental   issues.   In   this   regard,   the   UN   system   was   seen   as   vital   in   facilitating  related  efforts  to  promote  sustainability.  Given  its  humanitarian  nature,  the  UN  is  a   significant  global  buyer  amongst  health  care  products,  and  procurement  of  health  materials  is   seen  as  a  major  vehicle  in  promoting  sustainable  development  practices.  The  UN  health  sector   procurement  is  a  large  market-­‐shaping  system  that  constitutes  around  US$

 3  billion  in  annual   procurement  (UNDP,  2014).       The   Sustainable   UN   (SUN)   programme   has   developed   a   number   of   tools   and   guidelines   to   support  UN  procurement  activities.  However,  this  guidance  does  not  include  the  procurement   of  health  products  and  services.  Thus  different  UN  agencies  addressed  this  gap,  and  initiated   the  informal  Inter-­‐Agency  Task  Team  for  Sustainable  Procurement  in  the  Health  Sector   (SPHS)  in  May  2012  in  Copenhagen,  Denmark.  This  approach  is  built  upon  the  principle  that   the  UN  organizations  should  lead  by  example,  by  way  of  including  social  and  environmental   sustainability

 principles  into  its  own  practices  (World  Health  Organization,  2013).  The  team   currently   consists   of   the   agencies   UNDP,   UNOPS,   UNICEF,   UNFPA,   WHO,   UNHCR,   UNEP,   the   Global   Fund   to   Fight   AIDS,   Tuberculosis   and   Malaria,   UNITAID   and   Gavi,   The   Vaccine   Alliance   (Milic,  2015).       The  SPHS  Task  Team  is  particularly  focusing  on  three  environmental  dimensions:  greenhouse   gas   emissions,   resource   depletion   and   chemical   pollution.   Furthermore,   three   key   pillars   of   the   initiative   are   defined   as:   establishment   of   evidence-­‐based   standards;   implementation   of   environmental  product  specifications  and  procurement  criteria;

 and  the  engagement  with  key   stakeholders   from   the   global   health   aid   market   (global   health   financing   agencies,   suppliers   and   manufacturers).   A   particular   focus   of   the   SPHS   Task   Team   is   on   the   third   pillar,   where   they   recognize   the   importance   of   collaborating   with   suppliers   and   manufacturers   on   introducing   sustainable   procurement   in   the   market   for   health   aid.   Through   an   envisaged   transparent   and   inclusive   process,   the   Task   Team   can   see   a   great   potential   in   lowering   the   environmental  impact  of  their  procurement,  with  a  final  aim  of  improving  human  health  and   well-­‐being.   They

  see   this   as   a   win-­‐win   scenario,   as   they   are   trying   to   build   a   business   case   for   suppliers   and   manufacturers   that   can   include   both   environmental-­‐   and,   when   feasible,   financial  benefits.  Experiences  show  that  financial  benefits  can  be  achieved  in  different  ways     43   For  instance  it  can  be  achieved  through  energy  efficiency,  by  introducing  renewable  sources   of   energy   in   the   production   process.   Furthermore,   it   can   be   achieved   through   waste   management,  by  decreasing  the  packaging  of  products  (Milic,  2015).     The   UN   is   mandated   to   ‘walk   the   talk’   and   to   lead   by  

example   in   an   objective   and   transparent   way,   with   the   hope   that   other   large   global   purchasers   of   health   supplies   will   follow   suit   (UNDP,   2014)   (UNDP,   2014).   In   the   end,   the   UN’s   aim   for   this   initiative   is   to   buy   more   sustainable  health  care  products,  by  collaborating  with  suppliers  and  manufacturers  on  how   they   can   make   their   products   more   sustainable.   The   UN   wants   their   suppliers   to   look   at   anything   from   energy   consumption,   the   use   of   chemicals,   the   treatment   of   waste   and   wastewater,  and  other  sub-­‐factors  of  production  in  order  to  make  the  entire  manufacture

 and   supply   process   more   sustainable   (Sørensen,   2015).   In   the   future,   the   initiative   hopes   to   be   able   to   signal   to   the   whole   UN   system   that   green   procurement   can   be   a   possibility,   also   in   other  sectors  (Veem,  2015).       The   initiative   was   established   in   May   2012   in   Copenhagen,   Denmark.   However,   in   February   2015   the   SPHS   Secretariat   was   relocated   to   the   UNDP   Istanbul   Regional   Hub   in   Turkey  (Milic,   2015).  In  2015,  UNDP  has  been  successful  in  two  resource-­‐mobilization  calls  and  has  received   funding   from   the   Skoll   Foundation   and   the   United   Nations   Foundation,  

as   well   as   from   the   UNDP  Innovation  Facility.  This  has  been  granted  in  order  for  them  to  continue  their  work  on   the   engagement   process   with   suppliers,   manufacturers,   and   green   health   products   and   services   within   the   global   health   aid   market.   The   grants   have   also   opened   up   opportunities   of   scaling  up  the  above-­‐mentioned  projects  (Welter,  2015)  (Milic,  2015).       5.13 The  GPHS  Programme   Among   other   things,   the   task   team   has   established   a   Joint   UN   programme   on   Greening   Procurement   in   the   Health   Sector   (GPHS),   which   has   currently   been   signed   by   the   UN   agencies   UNDP,  

UNFPA,   and   UNOPS.   Furthermore,   UNEP   and   WHO   are   currently   in   the   process   of   signing   it   (Milic,   2015).   The   official   joint   UN   programme   is   currently   focusing   on   the  following  practices:       44   • Establishing  joint  procurement  standards.   • Engaging  in  capacity  building  with  various  suppliers.   • Enlist  organizations  that  finance  global  health  initiatives  to  apply  green  procurement   standards.   • Develop  and  implement  practice  based  tools  for  the  UN  and  for  their  suppliers.   • Develop   and   promote   innovative   green   procurement   solutions   among   health   care   associations  (UNDP,  2014).          

Figure  3:  Virtuous  circle  of  Green  Procurement  in  the  Health  Sector.     Source:  UNDP,  2014       45   McCrudden  (2004)  argues  that  sustainable  procurement  encompasses  both  green  and  social   aspects.   In   the   case   of   the   UN,   the   initiative   is   targeting   sustainability   as   a   whole,   given   its   focus   on   both   green   and   social   aspects.   However,   the   official   GPHS   programme   is   more   environmentally  related,  and  does  not  include  the  social  components  (Milic,  2015).     For   the   time   being,   Unicef   and   UNHCR   have   decided   not   to   sign   on   to   be   part   of   the   official   GPHS  programme.

 According  to  a  representative  of  Unicef,  the  agency  has  made  this  decision   because   sustainability   is   not   as   much   part   of   their   main   agenda   compared   to   the   other   agencies,   but   rather   an   integrated   part   of   all   their   activities.   Furthermore,   they   do   not   wish   to   duplicate  the  work  of  the  other  UN  agencies.  That  said,  they  fully  support  the  programme  and   wish   to   continue   partaking   in   the   sessions   and   learn   from   the   work   of   the   other   agencies   (Møller,  2015).       Through   joint   task   team   initiatives   and   individual   agency-­‐level   practices,   the   different   UN   agencies  

have   taken   numerous   steps   towards   green   procurement   in   the   health   sector   (see   table   5).   UNDP   functions   as   the   task   team’s   current   secretariat   (World   Health   Organization,   2013).     Organization   Joint  Task  Team   Initiatives   Examples  of  practices  undertaken   • Framing   the   “Guidelines   for   Green   Procurement   of   Health  Products  and  Services”.   • Liaising   with   the   Capital   Region   of   Denmark   and   consultancy   firms   regarding   carbon   foot   printing   methods  and  environmental  auditing  of  suppliers.   • Integrating  lists  of  hazardous  chemicals  to  substitute   in  technical  specifications  to  suppliers.     United  Nations  

Development   Programme  (UNDP)   • Conducted   a   pilot   carbon   foot   printing   analysis   in   Montenegro  and  Tajikistan.     • Reporting   the   carbon   footprint   of   sea   and   air   fright   of  health  products.   •   Listing   questions   to   suppliers   regarding   46   sustainability  measures.     United  Nations  Office  for   Project  Services   (UNOPS)   • Developed  a  sustainable  procurement  strategy.   • Made   an   online   training   tool   on   sustainable   procurement  for  UN  staff.     • Initiated   an   awareness-­‐raising   campaign   on   sustainable  procurement.   United  Nations   Population  Fund   (UNFPA)   • Developed   requirements   for   packaging   in  

factories   making  the  health  products.   • Integrating   green   criteria   into   ISO   contraceptives   standards.   • Developed   requirements   for   suppliers   to   provide   information   about   chemical   content   in   procured   products.     World  Health   Organization  (WHO)   • Implementing  the  WHO  Prequalification  Programme   into  the  context  of  the  joint  UN  initiative.   • Developed   several   quality   assurance   guidelines   on   manufacturing   practices   for   pharmaceutical   products,   blood   and   plasma   collection,   water   for   pharmaceutical   use,   and   quality   assurance   of   pesticides  in  the  health  sector.     United  Nations   Environment   Programme  (UNEP)   •

Coordinating   an   initiative   with   the   World   Bank   and   other   international   organizations,   to   facilitate   a   global   consensus   on   integrating   sustainable   development   at   all   levels   of   public   sector   procurement   (not   exclusively   focused   on   the   health   sector).     • Initiatives  to  raise  awareness  on  eco-­‐labeling.     • Writing   reports   regarding   ongoing   sustainable   procurement  activities  around  the  world.       Table  5:  Examples  of  practices  by  the  different  UN  agencies  in  the  joint  UN  programme.     Source:  World  Health  Organization  (2013)     47     5.2 The  UN  initiative  and  the  ‘Walmart  approach’   In

 this  section  I  will  address  the  first  research  question,  by  comparing  the  SPHS  initiative  to   the  private  sector  model  depicted  in  chapters  2  and  3.       5.21 Comparing  the  SPHS  initiative  with  the  ‘Walmart  approach’       “Because   Walmart   have   so   enormous   procurement   volume,   they   can   really   make   a   shift   in   the   way   manufacturers   are   producing.   And   my   point   is,   this   I   believe   we   can   also   do   in   the   health   care   sector   at   the   UN     Because   we   can   gradually   push   manufacturers   in   the   right   direction.   And   I   think,   once   we   get   more   manufacturers   to   see  

that   they   are   actually   also   saving   money,   then  I  think  it  becomes  sort  of  a  –  it’s  like  a  wheel  or  snowball  you  push  down  a  hill,  right?  It  may   be  a  little  bit  hard  in  the  beginning,  but  it  will  accelerate  when  manufacturers  start  to  see  that   they  are  saving  money.”  (Sørensen,  2015)     The   UN   is   undoubtedly   inspired   by   the   private   sector,   and   Walmart’s   approach   to   sustainability  in  particular  (Sørensen,  2015).  For  instance,  UNFPA  has  worked  on  getting  their   condom   and   contraceptives   suppliers   ISO   14001   certified.   Through   a   workshop   held   in   Malaysia,   UNFPA   grouped

  manufacturers   together   based   on   geographical   locations   and   encouraged   group   discussions   and   learnings.   Furthermore,   they   have   collaborated   with   manufacturers   on   how   to   improve   their   product   specifications   and   guidelines   in   a   greener   direction   (Goh,   2015).   This   is   very   much   in   line   with   Walmart’s   Sustainability   360   strategy,   where  the  company  reduces  its  environmental  impact  by  guiding  its  suppliers  and  promising   cost  reductions  for  producers  through  reduced  energy  use  (Chhabara,  2010)  (Walmart,  2015).       That   being   said,   to   date   the   UN’s   model   is   solely   based   on   influencing   their  

suppliers   and   manufacturers  through  discussion  and  collaboration.  There  has  not  been  any  case  of  supply   chain   monitoring,   or   controlling   the   environmental   or   social   consequences   of   the   product   along   the   entire   supply   chain.   The   distinction   between   using   one’s   purchasing   power   to   influence   suppliers   in   a   greener   direction,   and   on   the   other   hand   monitoring   systems   along   the  international  supply  chain,  was  mentioned  as  important  (Welter,  2015).     48     “So   far   the   Joint   UN   initiative   has   almost   exclusively   focused   on   the   aspect   of   how   we   can   basically   combine   the   purchasing

  power   or   engage   in   a   structural   dialogue   with   suppliers   in   order  to  change  their  practices.  We  have  not  yet  touched  at  all  in  the  initiative  [on]   the  whole   issue   of   monitoring   implementation   of   politics   along   the   international   supply   chain.   Actually   I   would  say  this  is  an  extremely  weak  feature  in  the  whole  UN  system.”  (Welter,  2015)     One  issue  may  be  that  the  SPHS  initiative  is  still  in  its  early  phases.  There  have  been  talks  of   supply  chain  monitoring  in  the  future.  For  instance  the  UN  is  currently  engaging  in  research   with   PhD   candidates   from   European   universities

  on   improving   the   supply   chains   (Milic,   2015).  However,  nothing  of  that  sort  has  been  done  to  date  (Veem,  2015)       Another   issue   may   be   that   the   programme   is   based   on   voluntary   participation   from   the   suppliers,   and   thus   it   has   not   been   possible   to   push   for   changes   if   the   suppliers   are   not   interested   in   collaborating.   The   UN   has   tried   to   develop   some   questionnaires   and   become   more  engaged  in  their  suppliers’  strategies,  in  order  to  obtain  some  more  information  on  their   sustainability   performance.   But   one   of   the   challenges   is   the   different   level   of   readiness

  and   interest  among  the  suppliers.  Given  the  voluntary  nature  of  the  initiative,  it  can  sometimes  get   difficult  for  the  UN  to  obtain  information  from  the  suppliers  (Diaz,  2015).       In   comparison,   several   private   sector   companies   have   gone   beyond   merely   discussing   with   suppliers.   Some   are   encompassing   the   entire   supply   chain   and   requiring   suppliers   to   be   sustainable  in  order  to  be  part  of  it.  For  instance,  BMW  has  changed  their  practices  along  the   entire  supply  chain,  making  their  end  product  much  more  energy-­‐efficient.  The  company  has   even  considered  the  consumer-­‐end  of  the  supply

 chain,  and  developed  mobile  applications  for   greener   alternatives   (BMW   Group,   2015).   Nike   imposes   strict   rules   on   commitment   to   sustainability   and   lean   management   for   manufacturers   to   qualify   to   be   part   of   their   supply   chain  (Nike  Inc.,  2014)       On   the   other   hand,   many   MNCs   are   so   focused   on   keeping   sales   up   that   they   feel   pressured   to   become   sustainable   as   a   means   of   keeping   a   good   reputation.   A   number   of   retailers   have   to   deal   with   adversity   regarding   their   brand   image,   and   are   forced   to   make   strict   changes   to     49   keep   a   good  

reputation   (Ganesan,   George,   Jap,   Palmatier,   &   Weitz,   2009).   According   to   Leonard   (2010)   Walmart’s   reputation   pre-­‐Sustainability   360   was   highly   critical,   and   one   might  thus  argue  that  the  company  has  needed  this  drastic  change  in  order  to  keep  sales  up.   This   pressure   is   very   private   sector   related,   and   is   not   as   significant   for   a   large   intergovernmental   organization  like  the  UN.  This  is  because  the  organization   is   not   driven   by   profits   and   sales,   but   rather   by   its   mandates   as   well   as   requirements   of   its   member   states.   Operating   with   public   funds,   the   UN   faces

  completely   different   challenges   within   its   procurement   departments.   For   instance   they   need   to   deal   with   issues   such   as   non-­‐ discrimination  of  suppliers  (Van  De  Gronden,  Bloch,  Ramm,  Jensen,  Harland,  &  Walker,  2007),   allowing  producers  from  developing  countries  to  get  the  same  opportunities  as  Western  ones.   Furthermore,   they   have   to   ensure   an   extremely   high   level   of   equity,   integrity   and   transparency.   These   requirements   are   potentially   stricter   than   those   of   the   private   sector,   given  that  the  UN  is  operating  on  behalf  of  their  member  states.  Because  of  its  public  nature,   the  UN  is

 bound  by  strict  requirements  and  can  perhaps  not  act  as  fast  as  multinationals,  who   in   the   end   have   no   one   to   please   but   their   investors.   In   other   words   it   may   be   a   longer   and   more  difficult  process  for  the  UN  to  make  robust  changes  in  their  supply  chains.  That  being   said,   there   is   undoubtedly   a   lot   of   room   for   improvement   in   the   SPHS   initiative,   as   was   mentioned  by  several  of  the  interviewees.       5.22 A  cradle-­‐to-­‐cradle  vision   Addressing   the   requirements   identified   by   Arrowsmith   and   Davies   (1998),   which   are   a)   product-­‐related   environmental   requirement,  

b)   affirmative   purchasing,   and   c)   process   and   production   methods   (see   page   26),   the   UN   initiative   is   at   the   time   being   mostly   related   to   the   second  and  the  third  requirement  type.  This  is  because  the  initiative  is  currently  focused  on   the   production   part   of   the   supply   chain,   either   by   addressing   the   product   directly,   or   addressing   the   overall   production   location   (Goh,   2015)   (Sørensen,   2015).   The   UN   initiative   has   still   not   been   able   to   address   the   first   requirement,   by   addressing   a   product’s   post-­‐ procurement  environmental  performance.  That  said,  the  UN  hopes  in  the

 future  to  be  able  to   include  other  aspects  of  a  product’s  life  cycle  as  well.  The  intention  is  to  introduce  and  start   using   the   concept   of   whole   life   cycle   and   total   cost   of   ownership   during   the   procurement   process  (Diaz,  2015).     50     Linton  et  al.  (2007)  mentions  the  importance  of  keeping  in  mind  the  product  design,  the  by-­‐ products,   the   product’s   life   extension   and   end-­‐of-­‐life   within   sustainable   supply   chain   management.  Other  authors  argue  for  the  cradle-­‐to-­‐cradle  approach  (Braungart,  McDonough,   &   Bollinger,   2007)   (Alston,   2008)   (Kumar   &   Putnam,   2008).  

Common   for   all   of   the   aforementioned   authors   is   the   life-­‐cycle   approach   within   sustainable   supply   chain   management.   Thus,   for   an   organization   to   be   completely   sustainable   it   is   crucial   to   consider   a   product’s  entire  life  cycle,  not  just  the  production.       One   of   the   UN’s   visions   for   the   future   is   to   follow   a   cradle-­‐to-­‐cradle   approach   to   whichever   extent  possible.  For  instance,  it  has  been  mentioned  that  they  wish  to  use  a  better  mapping  of   the   entire   supply   chain,   and   focus   on   making   sustainable   changes   along   the   way.   However,   one   of   the   challenges

  is   that   the   products   are   so   different   in   terms   of   their   potential.   For   instance,   it   is   easier   to   focus   on   responsible   disposal   of   an   intrauterine   device   that   is   inserted   and  removed  at  hospitals,  compared  to  a  condom  that  is  used  on  a  one-­‐time  basis  by  people   during  sexual  intercourse.  While  it  is  easier  for  hospitals  to  decide  on  a  way  to  dispose  of  their   used  products  in  a  green  and  safe  way,  environmental  considerations  are  unlikely  to  me  made   by   an   individual   who   disposes   of   a   condom.   One   of   the   things   the   UN   want   to   do   in   the   future  

is  to  provide  guidelines  on  how  people  can  sustainably  dispose  of  medical  and  pharmaceutical   products  (Sørensen,  2015).       Furthermore   they   want   to   use   sustainability   criteria   to   select   manufacturers,   and   develop   a   supply   chain   team   that   works   with   the   suppliers   and   manufacturers   on   making   sustainable   changes.  For  now,  they  are  still  lacking  funding  to  work  on  all  these  activities,  but  they  hope  to   be  able  to  expand  on  this  in  the  future  (Sørensen,  2015)  (Diaz,  2015).       “The   cradle-­‐to-­‐cradle,   it’s   more   like   a   vision.   It’s   not   something   I   think   realistically   we  

will   achieve  any  time  soon.  But  I  still  think  we  should  talk  about  it  And  I  still  think  we  should  take   good  initiatives  and  elements  from  it.  Because,  you  know,  you  may  not  achieve  it  completely  But   even  if  you  do  some  of  the  things  along  the  way,  you  are  still  saving  the  environment.”   (Sørensen,   2015)       51   5.23 Switching  options  for  suppliers   When   looking   at   the   examples   of   Walmart,   BMW   and   Nike,   it   is   undeniably   the   companies’   purchasing  power  that  makes  them  able  to  push  for  green  changes.  The  UN’s  list  of  suppliers   in   the   health   sector   includes  

everything   from   large   global   companies   to   small   factories.   For   instance,   UNFPA   is   the   biggest   male   condom   procurer   in   the   world,   and   purchases   more   than   70%   of   the   production   of   certain   suppliers   (Diaz,   2015).   In   these   cases   they   have   a   lot   of   influence,   and   applying   a   typical   ‘Walmart   approach’   to   sustainability   would   be   achievable.   In   other   cases   they   represent   only   a   small   percentage   of   a   factory’s   production   volume,   and   in   that  case,  the  bargaining  power  is  on  the  manufacturer  (Sørensen,  2015).  According  to  Gereffi   et  al.  (2005)  value  chain  governance  can

 be  categorized  into  five  types,  which  determine  the   potential  for  a  lead  firm  to  apply  sustainable  procurement  standards  upon  its  suppliers.  Those   five  types  are  markets,  modular-­‐,  relational-­‐  or  captive  value  chains,  or  a  hierarchy  (see  page   20).   The   UN   case   can   be   defined   as   markets,   modular   or   captive,   depending   on   each   of   the   different  relationships  between  the  UN  and  its  suppliers.       “Where  we  are  big,  and  where  we  have  big  procurement  muscles,  we  get  a  lot  of  airtime  with  the   management  of  the  factory.  And  where  we  are  small,  they  I’m  not  saying  they  are

 not  listening   to   us,   but   we   can   certainly   not   come   with   strict   requirements   or   anything.   Then   they   will   say,   ‘yeah   we   hear   what   you   are   saying,   we   will   put   it   into   our   overall   corporate   social   responsibility   strategy’.   And   that   is   kind   of   the   standard   answer   we   receive   from   them,   very   often”  (Sørensen,   2015)     Among   the   interviewees   it   was   also   argued   that,   more   than   anything,   the   UN   has   a   unique   symbolic   value.   Regardless   of   the   UN’s   size   as   a   buyer,   manufacturers   and   suppliers   may   consider  the  UN  as  being  good  for  their  portfolio

 (Leetz,  2015).       5.24 Summing  up  answer  to  research  question  1     The   findings   show   that   the   UN   is   inspired   by   large   MNCs’   political   power   to   make   global   changes   (Strange,   1991)   (Fuchs,   2005)   towards   sustainability,   and   they   are   especially   inspired  by  the  so-­‐called  ‘Walmart  approach’.  Like  the  large  private  companies,  the  UN  uses     52   its  purchasing  power  and  large  size  to  push  suppliers  for  changes  in  a  greener  direction.  The   UN  initiative  is  still  in  its  early  stages  though,  and  thus  they  have  not  yet  started  any  type  of   supply   chain   monitoring   or   life  

cycle   considerations.   Furthermore,   up   until   now   the   manufacturers   and   suppliers   have   purely   been   involved   in   the   initiative   through   voluntary   participation,   which   also   limits   the   prospective   for   change.   As   addressed   by   several   of   the   interviewees,   there   is   a   lot   more   that   can   potentially   be   done.   That   being   said,   the   UN   is   working   with   public   funds,   and   face   different   challenges   and   responsibilities   than   profit-­‐ driven   companies.   For   the   future,   the   UN   is   working   towards   a   cradle-­‐to-­‐cradle   goal   where,   over  time,  they  should  be  able  to  address  all  aspects  of  a

 product’s  life  in  order  to  make  green   improvements.   Finally,   compared   to   large   MNCs   in   the   private   sector,   the   UN   has   different   types   of   relationships   with   suppliers,   depending   on   its   relative   size   as   a   customer.   In   some   cases,  the  UN  is  by  far  the  largest  customer,  and  thus  inhibit  large  bargaining  power  vis-­‐à-­‐vis   their  suppliers.  In  this  case  there  is  room  for  the  UN  to  demand  green  changes  along  the  value   chain.   In   other   cases,   the   UN   is   a   rather   small   buyer,   in   which   case   their   suggestions   may   become  part  of  the  company’s  CSR  strategy,  at

 best.       5.3 Drivers  and  barriers   In  this  section  I  will  address  the  second  research  question,  identifying  the  main  drivers  and   barriers  encountered  in  the  UN  initiative.     5.31 Drivers     5.311 Driver:  The  UN’s  sustainability  agenda  and  mandate     The   UN’s   overall   sustainability   agenda,   which   has   been   gaining   increasing   prominence   worldwide,   was   recognized   as   one   of   the   main   drivers.   Following   a   mandate   from   Ban-­‐Ki   Moon  in  2007  (Milic,  2015)  (Sørensen,  2015),  the  UN  system  at  large  has  worked  on  greening   its   own   operations   (Hamelmann,   2015)   (Diaz,   2015)   (Racioppi,   2015).   UNDP   in

  particular   have   put   sustainability   as   one   of   their   main   strategic   focus   points   for   the   future   (Welter,   2015).   One   of   the   main   proposals   in   this   regard   is   the   Sustainable   Development   Goals   (Hamelmann,   2015)   following   the   Millennium   Development   Goals   that   are   set   to   expire   in   the     53   fall  of  2015.  This  is  in  line  with  the  literature,  where  an  organization’s  values  are  identified  as   a  driver  (Walker,  Di  Sisto,  &  McBain,  2008).     With   the   focus   on   being   ‘One   UN’   (Leetz,   2015)   and   integrating   activities   between   the   different   UN   agencies,   the   initiative

  is   a   great   opportunity   for   jointly   working   towards   sustainability   goals,   “walk   the   talk”   and   “practice   what   we   preach”   (Racioppi,   2015).   It   was   emphasized   that   many   staff   members   within   the   UN   has   a   general   interest   in   the   subject   matter  and  its  potential  within  the  UN,  and  has  a  will  to  bring  it  forward  in  their  day-­‐to-­‐day   work   (Sørensen,   2015).   This   trait   is   also   identified   as   a   driver   in   the   literature   (Walker,   Di   Sisto,   &   McBain,   2008)   (Grandia,   Groeneveld,   Kuipers,   &   Steijn,   2014)   (Thomson   &   Jackson,   2007).   Finally,   the   UN’s  

credibility   and   competence   was   also   mentioned   as   an   important   factor.  Given  the  organization’s  large  size,  even  an  incremental  change  can  have  a  huge  impact   on  an  industry  such  as  the  health  sector  (Milic,  2015).  This  capability  of  the  UN  can  be  linked   with  the  findings  by  Bowen  et  al.  (2001),  which  showed  that  an  organization’s  capability  was   an  important  predictor  for  GSCM.       5.312 Driver:  A  business  opportunity   The  business  opportunities  that  exist  for  the  suppliers  and  manufacturers  were  also  identified   as  a  driver.  The  main  benefits  of  switching  to  more  sustainable  alternatives  were

 considered   to   be   the   lower   use   of   resources,   lower   production   costs,   market   demand   and   the   potential   of   entering  new  markets  (Diaz,  2015)  (Racioppi,  2015).       “We   actually   also   want   to   help   them   to   save   raw   material,   save   wastewater,   save   energy.   Because  we  strongly  believe,  and  we  have  a  lot  of  evidence  to  support  that,  that  by  saving  this,   they   will   also   save   money.   And   a   lot   of   it   is   very   intuitive   But   we   have   even   found   that   areas   where  manufacturers  initially  came  and  were  very  critical,  and  said:  ‘Oh,  you  are  trying  to,  you   know,  take  our

 money,  and  it  will  be  more  expensive  for  us.’  But  we  actually  found  that  a  lot  of   them  have  saved  a  lot  of  money  by  going  green.”  (Sørensen,  2015)     Cost  reductions  were  also  identified  in  Walker  et  al.’s  (2008)  study  on  common  drivers  and   barriers  within  private  and  public  companies.  This  is  also  in  line  with  Zhu  and  Sarkis’  studies,     54   which   found   that   supplier   firms   and   manufacturers   often   became   more   sustainable   for   business  reasons  (Zhu  &  Sarkis,  2006)  (Zhu,  Sarkis,  &  Geng,  2005).     5.313 Other  drivers   Initiatives   from   other   international   organizations   and

  private   companies   to   become   more   sustainable,  was  recognized  as  a  driver.  For  instance,  many  MNCS  have  showed  a  strong  drive   in   ensuring   that   their   business   model   is   environment-­‐   and   health   conscious   (Welter,   2015),   and   this   has   been   considered   highly   positive   and   inspiring   for   the   UN.   Furthermore,   the   initiation   of   reporting   requirements   from   the   UN’s   headquarters   in   New   York   was   also   considered  a  driver,  although  it  was  mentioned  to  be  moving  at  a  slow  pace  (Sørensen,  2015).       5.314 Comparing  with  drivers  from  the  literature   The   main   drivers   identified   in   the   UN

  case   differ   from   private   sector   companies,   where   brand   image   and   reputation   (Ganesan,   George,   Jap,   Palmatier,   &   Weitz,   2009)   (Seuring   &   Müller,   2008)   tends   to   be   one   of   the   main   drivers   for   environmental   improvement.   Other   main   drivers  have  been  identified  in  the  literature  as  regulatory  compliance  (Giunipero,  Hooker,  &   Denslow,   2012),   pressure   or   encouragement   from   customers,   and   environmental   risk   minimization   (Walker,   Di   Sisto,   &   McBain,   2008),   none   of   which   were   identified   in   the   UN   initiative.       Thomson   and   Jackson   (2007)   recognized   increased   information   sharing  

as   a   driver   from   sustainable  procurement.  Although  this  wasn’t  explicitly  mentioned  among  the  interviewees   in  the  UN  case  when  asked  about  drivers  and  barriers,  it  was  later  mentioned  as  something   that  could  be  done  better  (Veem,  2015)  (Goh,  2015).       While   economies   of   scale   were   not   explicitly   specified   as   a   driver   in   the   UN   program,   it   is   implicit  in  the  way  that  the  initiative  is  based.  This  case  is  thus  consistent  with  Min  &  Galle’s   (2001)   findings,   which   show   that   economies   of   scale   help   justifying   green   procurement   programs.         55   5.32 Barriers      

5.321 Barrier:  Conservatism  of  procurement  professionals   A  number  of  the  interviewees  highlighted  the  conservatisms  of  the  procurement  profession,   implying   that   procurers   have   a   certain   resistance   to   doing   things   in   a   new,   or   greener   way   (Welter,  2015)  (Milic,  2015).       “So   this,   a   little   bit   conservative   approach,   you   could   see   for   instance   with   our   own   procurement   department   in   Copenhagen     Because   they   are   so   submerged   in   their   operational   constraints   and   the   classical   implementation   of   rules,   that   these   new   topics   claiming   to   change   the   policy   and  the  rules  are  perceived

 as  making  the  world  more  complicated.”  (Welter,  2015)     However,   another   interviewee   highlighted   that   procurement   professionals   are   often   tasked   with  the  implementation  of  procurement  policies,  and  not  necessarily  with  the  formulation  of   the   broad   values   and   policies   that   are   needed   to   introduce   important   changes.   Hence   this   strict   aspect   of   their   work   goes   beyond   ‘conservatism’,   and   should   in   fact   be   appreciated   (Racioppi,   2015).   Although   the   critique   towards   the   procurement   professionals   differed   among  certain  interviewees,  it  is  still  clear  that  this  conservatism  was  mainly  seen  as  a  barrier

  in  the  work  of  the  initiative.       5.322 Barrier:  Lack  of  funding  and  resources   Lack   of   time-­‐,   personnel-­‐   and   financial   resources   was   considered   a   barrier   (Leetz,   2015).   A   lack   of   funding   has   also   been   recognized   as   a   common   barrier   in   the   literature   (Walker,   Di   Sisto,   &   McBain,   2008).   For   instance,   it   was   mentioned   that   there   was   a   lack   of   targeted   funding  from  donors.     “The   donors   often   drive   the   internal   UN   money.   If   the   donors   for   example   said   to   the   UN   that   they  earmark  2%  of  our  contribution  to  green  initiatives,  then  I  can

 assure  you  that  we  would   really  quickly  get  concrete  things  we  would  be  measured  on  in  relation  to  green  procurement.   But   donors   are   not   saying   that,   they   come   with   vague   statements,   like   ‘green   procurement   is   important’,  or  something  like  that.  But  they  don’t  quantify  it  and  say  ‘we  want  you,  the  UN,  to     56   spend   3   %   of   all   your   procurement   volume   on   greening   the   supply   chain   or   making   more   ecological   production’   or   something   like   that.   [It]   would   help   a   lot   if   they   did,   but   they   don’t”   (Sørensen,  2015)     The  lack  of  funding  from

 UNDP  to  proposals  from  its  partners  was  also  mentioned  as  a   frustrating  barrier,  making  it  difficult  to  move  the  initiative  forward.     “We   actually   created   a   proposal   for   how   to   proceed,   but   that   did   not   receive   funding   from   UNDP.   So   it’s   not   our   fault,   it’s   UNDP   that   chooses   to   not   fund   its   own   initiative     There   is   no   money  for  anything.  And  this  is,  you  know,  an  initiative  that  could  have  huge  impact  But  they  do   not  fund  it.”  (Veem,  2015)     5.323 Barrier:  Complexity  of  a  cross-­‐cutting  initiative   The  complex,  crosscutting  nature  of  the  initiative  was

 also  identified  as  a  barrier.  For  instance,   it   was   difficult   for   the   UN   to   find   donors   and   private   companies   who   were   tuned   to   such   a   cross-­‐sectional   multidimensional   programme   as   the   SPHS   initative.   This   often   resulted   in   numerous  meetings  taking  place  with  the  wrong  people,  who  were  looking  at  only  one  aspect.            “So   it’s   procurement,   but   it’s   not   just   procurement.   It’s   environment,   but   it’s   not   just   environment.  It’s  health,  but  it’s  in  a  certain  way  a  very  unusual  feature  of  the  health  sector  So   when  you  talk  to  potential  donors  or

 partners,  we  were  always  facing  the  problem:  What  is  the   right  department  to  talk  about?  Are  you  talking  to  the  procurement  department,  are  you  talking   to   the   health   professionals?   Are   you   talking   to   the   sustainability   professions?     also   from   the   private   sector   side,   there   is   a   very   different   pool   of   companies   dealing   with   all   these   types   of   products.   For   instance   you   cannot   talk   to   Johnson   &   Johnson   or   Novo   Nordisk   about   condoms   And  you  cannot  talk  to  the  condom  suppliers  about  pharmaceuticals  .  you  have  to  play  with  a   very  diverse  group  of  stakeholders  on

 the  private  sector  side.”  (Welter,  2015)     This   complexity   was   also   identified   across   the   different   UN   agencies,   as   well   as   across   different  functions  within  them  (Racioppi,  2015).  There  is  no  doubt  that  the  large  number  of   activities,   subject   areas,   organizations   and   UN   agencies   make   harmonization   of   activities     57   challenging.   This   is   in   line   with   some   of   the   previous   research   on   procurement   in   the   UN,   where   the   difficulty   of   harmonization   has   been   recognized   (Van   De   Gronden,   Bloch,   Ramm,   Jensen,  Harland,  &  Walker,  2007).     5.324 Barrier:  The  lack  of  environmental

 considerations  in  the  health  sector   The  health  sector,  and  in  particular  the  WHO,  is  seemingly  lacking  a  focus  on  environmental   aspects  in  their  assessment  schemes  and  guidelines.  This  apparent  conflicting  philosophy  on   human  health  proved  to  be  a  barrier  for  some  of  the  UN  staff  members  in  terms  of  moving  the   initiative  forward  (Hamelmann,  2015)  (Welter,  2015).       “Here   obviously   we   are   running   against   a   professional   mentality   that   has   developed   over   centuries,  and  where  the  medical  profession  says  ‘our  main  issue  here  is  the  patient,  and  then  all   the  other  things  are  not  of  concern’

 .  For  instance,  WHO  is  still  accepting,  for  several  countries,   the   use   of   DDT   in   the   fight   against   malaria.   This   has   been   forbidden   in   most   countries   of   the   world,  due  to  its  disastrous  effect  on  the  environment,  including  human  health,  babies  etc.  This   has  been  forbidden  for  obvious  reasons  for  some  40  or  50  years.”  (Welter,  2015)     However,  the  staff  of  WHO  do  not  seem  to  consider  this  to  be  an  issue.  An  official  WHO  report   states  that  DDT  is  one  of  12  recommended  insecticides  to  be  used  for  indoor  residual  spraying   (IRS)   in   malaria   control.   There   exists   strict

  global   regulations   on   the   production   and   use   of   DDT,   but   there   is   an   exemption   given   for   the   production   and   public   health   use   of   DDT   on   indoor   application   to   vector-­‐borne   diseases.   This   is   mainly   due   to   the   absence   of   equally   effective   and   cost-­‐efficient   alternatives.   According   to   the   report,   WHO   actively   supports   the   global   reduction   and   eventually   elimination   of   DDT   use,   but   considers   it   necessary   to   keep   using   DDT   for   IRS   in   malaria   control   until   a   suitable   substitute   product   is   introduced   in   the   market  (World  Health  Organization,  2011).      

Regarding   environmental   concerns   in   general,   the   interviewee   from   WHO   stated   that   the   organization   does   in   fact   have   an   important   duty   to   minimize   the   environmental   impact   of   its   own  operations:       58   “For   example,   when   we   implement   projects   in   partnership   with   certain   partners,   we   may   in   fact   be   requested   to   provide   an   analysis   of   our   environmental   impact.   So   there   is   an   issue   of   corporate   responsibility   here   that   comes   into   place.   Secondly,   the   protection   and   actions   related   to   environment   and   health   are   an   inherent   component   of   the   work   of   our

  organization.”   (Racioppi,  2015)     A  staff  member  of  Unicef  also  mentioned  this.  She  claimed  that  sustainability  is  an  integrated   part  of  her  agency’s  work,  although  it  isn’t  their  primary  mandate  in  the  same  way  as  agencies   such   as   UNDP   (Møller,   2015).   The   various   UN   agencies’   sustainability   focus   seems   to   be   perceived  very  differently  among  the  interviewees.       5.325 Barrier:  Slow  pace  in  a  public  organization   Working   for   a   large,   public   organization   includes   having   to   deal   with   slow   processes   and   bureaucracy   (Diaz,   2015).   For   example,   the   long   time   it   can   take   to  

make   a   decision   or   to   move   an   agenda   forward   was   considered   a   barrier.  However,   it   was   also   mentioned   that   once   a   change   has   been   introduced,   even   an   incremental   one,   it   can   have   a   huge   impact   (Milic,   2015).     5.326 Other  barriers   Several   other   barriers   were   mentioned,   though   without   the   same   emphasis   as   the   aforementioned  ones.  For  instance,  it  was  mentioned  the  lack  of  strict  monitoring  systems  in   the   UN’s   procurement   departments   (Hamelmann,   2015).   This   is   in   line   with   the   findings   in   section   5.21,   which   highlights   the   lack   of   supply   chain   monitoring   as

  a   part   of   the   UN’s   procurement  practices.  Furthermore,  it  was  mentioned  that  the  initiative  could  be  seen  as  a   potential   hinder   to   suppliers   and   manufacturers   in   developing   countries,   mainly   due   to   the   requirement   of   high   initial   investments   (Milic,   2015).   However,   given   that   this   subject   was   only  mentioned  briefly  in  one  of  the  interviews,  it  is  not  deemed  as  highly  relevant.         59   5.327 Comparing  with  barriers  in  the  literature   In   addition   to   the   ones   mentioned   above,   high   costs   were   mentioned   as   a   barrier   in   the   literature   (Walker   &   Brammer,   2009).  

Although   a   general   lack   of   funding   was   mentioned   as   a   barrier  within  the  UN  initiative,  the  word  cost  was  never  explicitly  mentioned.  I  thus  assume   that,   while   funds   were   not   always   fully   allocated   to   the   proposals   and   initiatives,   the   costs   associated  with  green  procurement  were  not  directly  seen  as  a  barrier.     In   the   literature,   Van   de   Gronden   et   al.   (2007)   identify   a   list   of   barriers   to   procurement   in   the   UN  (see  page  29).  Of  those  listed,  only  “Complexity  and  difficulty  of  harmonization  across  UN   organizations”  and  “The  decentralized  arrangements  make  it  difficult

 to  have  central  control   over   procurement   policies”   was   positively   recognized   by   the   interviewees   as   a   barrier   (Welter,   2015)   (Racioppi,   2015).   However,   it   was   also   mentioned   that   today,   many   UN   agencies   have   centralized   control   of   procurement   policies,   so   that   the   latter   was   not   a   big   problem   anymore   (Welter,   2015).   Furthermore,   some   interviewees   mentioned   the   “Lack   of   funding  for  procurement  activities”  as  an  issue  (Sørensen,  2015)  (Veem,  2015).     All   in   all,   it   is   clear   that   some   of   the   barriers   to   procurement   within   the   UN   system   are   confirmed  both  in  the

 literature  and  in  this  study.  To  be  specific,  three  out  of  the  six  barriers   listed  were  in  some  way  recognized  in  the  SPHS  initiative  as  well,  with  some  barriers  being   emphasized   more   than   others.   That   being   said,   this   UN   initiative   is   quite   different   from   previous  UN  procurement  activities.  This  is  for  instance  due  to  its  informal  and  crosscutting   nature,  as  well  as  its  sustainability  focus.  Thus  it  also  includes  several  different  barriers  from   those  previously  identified  in  studies  of  the  UN.       5.33 Summing  up  answer  to  research  question  2     The  main  drivers  and  barriers  identified

 in  the  UN  initiative  are  highlighted  in  table  6  below.   Whilst  the  drivers  were  quite  evenly  spread  between  internal  and  external  ones,  the  barriers   were  mainly  internal  ones,  with  only  one  external  barrier  mentioned.           60     Internal   Drivers   • The  UN’s  sustainability  agenda  and   Barriers   • Conservatism  of   mandate.   procurement   • Motivated  staff  members.   professionals.   • The  initiation  of  reporting   • resources.   requirement  from  the  UN’s   headquarters  in  New  York.   Lack  of  funding  and   • Complexity  of  a   cross-­‐cutting   initiative.   • The  lack  of   environmental   considerations  in   agencies

 of  the   health  sector.   • Slow  pace  in  a   public  organization.   • The  lack  of  strict   monitoring  systems   in  procurement   departments.   External   • A  business  opportunity  for  suppliers.   • Initiatives  from  other  international   be  seen  as  a   organizations  and  private  companies.   potential  hinder  to   • The  initiative  could   suppliers  and   manufacturers  in   developing   countries.     Table  6:  Main  drivers  and  barriers  identified  in  the  UN  initiative       61   Comparing  with  the  literature,  and  particularly  that  of  private  sector  companies,  there  are  a   number   of   similarities   with   the   barriers,   but   less   so  

with   the   drivers.   One   of   the   main   reasons   for  this  is  that  private  companies  are  driven  by  sales  and  profit,  whilst  the  UN  is  driven  by  the   requirements   and   objectives   of   their   donors.   This   will   serve   as   a   major   difference   when   it   comes   to   the   drivers.   For   instance,   brand   image   and   gaining   a   competitive   advantage   are   considered   as   important   drivers   in   the   private   sector.   In   the   UN,   their   mandate   and   agenda   is   their  top  driver.       5.4 Relating  the  findings  to  the  critique  of  public  procurement   In  this  section  I  will  address  the  third  and  final  research

 question  by  comparing  my  findings   with   the   existing   literature   on   public   procurement,   and   in   particular   the   most   common   critique  of  it.     5.41 (Lack  of)  efficiency  within  public  procurement   According   to   the   OECD   (2009),   weak   governance   in   public   procurement   hampers   market   competition   and   raises   the   price   paid   by   the   administration   for   goods   and   services.   Public   procurement   is   also   known   for   being   bureaucratic   (Ævarsson,   2010),   difficult   to   implement   (Tyrrell   &   Bedford,   1997)   and   have   a   slow   speed   of   environmental   improvements   (Bauer,   Christensen,  Christensen,  Dyekjær-­‐Hansen,  &

 Bode,  2009).  Thus,  within  public  procurement,   efficiency   is   deemed   to   be   one   of   the   most   important   objectives   (Arrowsmith,   Linarelli,   &   Wallace,  2000).     On  the  background  of  this,  I  asked  several  of  the  interviewees  to  rate  their  perceived  level  of   efficiency  of  the  UN  initiative.  The  rating  was  done  on  a  scale  from  1  to  10,  from  low  to  high   levels   of   efficiency.   Out   of   seven   answers   given   (where   six   of   them   were   UN   staff   members,   and   one   was   from   outside),   the   mean   number   was   7.07   and   the   median   was   7   None   of   the   answers  were  below  5.  Many

 of  the  interviewees  argued  that  due  to  the  informal  nature  of  the   initiative,   it   was   more   efficient   than   many   other   UN   projects   and   programmes   (Sørensen,   2015).  For  instance,  it  was  argued  that  the  staff  members  involved  in  the  initiative  had  more   flexibility,   opportunity   for   creativity,   and   ability   to   make   concrete   decisions,   compared   to   what  they  usually  have  in  the  formal  programmes  and  projects  within  the  UN.  This  has  offered     62   many  opportunities  to  the  SPHS  secretariat  and  members  when  it  comes  to  moving  forward   on  the  greening  agenda  (Milic,  2015).       “If   you  

would   ask   me   to   give   a   mark   from   1-­‐10,   I   could   not   give   10,   as   the   structures   and   regulations   of   the   UN   are   still   very   bureaucratic.   Nevertheless,   the   mark   for   our   initiative   would   still  be  rather  high.”  (Milic,  2015)     Regardless,  there  were  also  some  interviewees  who  were  less  satisfied  with  the  speed  of  the   project.     “  from  an  abstract  level,  things  could  go  a  lot  faster.  So  I  would  say,  given  the  complexity  of  our   environment  on  this  topic  and  the  complexity  of  the  organizations  involved,  I  would  say  we  are   moving  maybe  at  kind  of  a  medium

 speed,  maybe  5?”  (Hamelmann,  2015)     The  interviewee  who  was  external  to  the  UN  also  commented  on  this:     “It  took  two  years  just  to  define  the  programme.  That  sounds  like  a  long  time  But  I  do  recognize   that   there   are   different   agencies   who   need   to   come   together,   agree,   and   then   go   back   and   consult  internally.”  (Leetz,  2015)     All   in   all,   the   interviewees   pointed   to   different   (positive   and   negative)   aspects   of   the   initiative’s   rate   of   efficiency,   but   no   one   was   altogether   negative   to   it.   Compared   to   the   critique   on   public   procurement   in   the   literature,

  this   points   to   a   much   more   positive   and   optimistic  view.  It  should  off  course,  be  kept  in  mind  that  many  of  the  interviewees  were  UN   staff   members   themselves,   and   therefore   likely   to   be   biased   to   a   certain   extent.   However,   more  than  anything  it  was  the  specific  characteristics  of  the  initiative  that  was  highlighted  as   the  most  positive  aspect.       5.42 Transparency  issues  in  public  procurement   Of   all   public   activities,   the   OECD   (2009)   states   that   procurement   is   the   most   vulnerable   to   fraud   and   corruption.   In   the   organization’s   Principles   for   Enhancing   Integrity   in   Public

    63   Procurement  they  point  out  procedures  that,  among  other  things,  enhance  transparency,  good   management  and  accountability.  Hawkins  et  al  (2011)  found  that  leaders  in  the  not-­‐for-­‐profit   sector  were  more  willing  to  turn  a  blind  eye  to  opportunistic  behavior  and  exhibited  greater   willful   ignorance.   Tyrrell   and   Bedford   (1997)   stated   that   EU   procurement   was   based   on   corrupted   states.   That   being   said,   other   authors   point   out   that   public   authorities   have   been   thoroughly   committed   to   sustainability,   for   instance   by   compiling   and   disseminating   sustainability   information   through   environmental   policies

  and   applying   environmental   risk   assessments  for  key  contracts  (Preuss,  2009).  Furthermore,  within  the  UN  system  there  is  a   large  focus  on  ensuring  transparency,  equity,  integrity  (Van  De  Gronden,  Bloch,  Ramm,  Jensen,   Harland,  &  Walker,  2007)  and  accountability  (Ævarsson,  2010).       According  to  my  findings,  there  is  not  a  lot  of  evidence  supporting  low  levels  of  transparency   within  the  UN  initiative.  It  was  argued  that,  because  the  UN  is  a  public  organization,  they  have   a   duty   to   make   all   their   work   highly   transparent.   However,   given   the   early   stage   of   the   initiative  so  far,  the

 transparency  level  is  somewhat  sub-­‐optimal  at  this  point  in  time  (Milic,   2015).     Three   of   the   interviewees   from   external   companies   (two   partner   organizations   and   one   supplier)   were   asked   about   the   easiness   of   getting   information   from   the   UN   initiative.   The   responses  were  mainly  positive.   “I  think  it’s  been  pretty  easy  to  get  information.  I  work  close  together  with  the  team    we  have   had   a   lot   of   meetings,   and   internal   workshops   on   what   our   success   criteria   were   and   how   we   wanted   to   get   there.   And   they   were   really   willing   to   share   any   sort   of  

documentation   or   information   about   the   programme   with   us.   Overall   it   was   a   pleasant   collaboration   between   Implement  Consulting  Group  and  the  programme.”  (Hansen,  2015)   “So   far,   it’s   been   OK.   The   communication   could   have   been   more,   today   we   only   communicate   through  conferences  and  workshops    Hopefully  more  workshops  like  that  could  happen.  But  it   doesn’t  have  to  be  workshops  like  that,  it  could  also  be  closer  meetings  for  example.”  (Goh,  2015)   Only  one  of  the  interviewees  had  a  clearly  negative  perception  of  the  information  sharing  with   the  UN:     64   “Oh,  I  think  it’s

 very  difficult,  very  difficult.  Like,  the  UN  again  is  notorious  about  saying  that  they   are   transparent.   But   you   have   to   seek   like   a   crazy   person   on   their   websites   to   find   the   information  you  need.  Very,  very  difficult  and  impenetrable”  (Veem,  2015)   Overall   my   findings   do   not   show   evidence   of   big   transparency   issues   with   the   UN   initiative,   but  do  no  disprove  it  either,  given  that  one  interviewee  commented  on  the  lack  of  it.  However   this   latter   comment   was   more   towards   the   UN   in   general,   as   opposed   to   the   initiative   as   such.   I  thus  assume  that  transparency  is

 not  a  big  issue  within  the  initiative,  but  that  there  is  room   for  improvement.       5.43 Summing  up  the  answer  to  research  question  3   The   literature   generally   criticizes   public   procurement   for   being   bureaucratic   and   lacking   transparency.   My   findings   do   not   support   this   Although   the   UN   as   an   organization   has   a   tendency  to  include  slow  and  bureaucratic  processes,  this  is  not  proven  to  be  a  big  problem   within  the  UN  initiative.  On  the  other  hand,  due  to  its  informal  nature,  there  is  evidence  that   the   work   processes   can   in   fact   be   faster   than   what   is   normally   the   case

  within   public   procurement.  Secondly,  there  is  no  clear  evidence  supporting  a  lack  of  transparency  Though   the   different   answers   contradict   each   other,   there   is   not   enough   evidence   to   support   a   transparency  issue  within  the  UN  initiative.  But  it  is  noted  that  there  are  improvements  that   can  be  done  to  better  inform  the  different  stakeholders.         5.5 Other  findings     5.51 A  strong  interest  from  suppliers  and  manufacturers   Several   of   the   interviewees   mentioned   the   positive   response   that   has   been   met   by   the   suppliers  and  manufacturers  following  the  UN  initiative.  This  surprised  many  of  the

 UN  staff   members,  who  initially  thought  most  of  the  suppliers  would  be  skeptic  to  change  (Sørensen,   2015).   According   to   the   literature,   this   is   a   trait   that   has   become   more   and   more   common   among  suppliers  in  the  past  few  decades  (Falkner,  2003).  There  is  also  research  which  states   that   collaboration   in   the   supply   chain   can   lead   to   improvement   in   performance   (Vachon   &     65   Klassen,   2008)   (van   Bommel,   2011).   All   in   all,   the   positive   response   and   willingness   to   collaborate  among  the  suppliers  was  considered  a  very  positive  aspect  of  the  UN  initiative.     “The  

current   suppliers   definitely   could   see   that   there   might   be   some   good   reasoning   in   greening   their  production  methods,  and  that  reducing  your  CO2  footprint  or  water  or  energy  consumption   not   necessarily   is   a   bad   thing,   but   can   also   save   money   for   your   business   as   well     there   was   some  willingness  among  the  suppliers  who  wanted  to  engage  with  the  UN  and  to  think  of  ways  to   get  there    They  were  saying  that  if  the  UN  wanted  to  produce  something  in  a  certain  way,   they   would  go  ahead  and  do  it.”  (Hansen,  2015)     One  of  the  interviewees,  the  CEO  of  the

 world’s  biggest  condom  manufacturer  and  a  supplier   to   UNFPA,   could   confirm   this   picture.   The   Malaysian   company   will   be   the   first   in   the   world   to   be   LEED1  certified,   and   all   their   factories   are   ISO   14001   certified   as   well.   Some   of   the   green   initiatives  they  have  in  their  day-­‐to-­‐day  work  are:     • When   building   new   factories,   they   send   the   trees   that   are   cut   down   to   biomass   factories,  where  they  are  used  to  regenerate  energy.   • Their  factories  are  built  from  steel  that  is  made  of  recycled  materials.   • They   have   a   rainwater   harvesting   system,   where  

the   rainwater   is   used   for   irrigation,   cleaning  the  floors  or  for  watering  the  plants  inside  the  building.     • Given  the  large  amount  of  sun  in  Malaysia,  they  plan  to  have  solar  panels  installed  on   the  roof,  in  order  for  the  company  to  generate  its  own  energy  (Goh,  2015).     “We  try  to  be  green  from  all  the  way  from  scratch  when  making  a  factory.  We  look  into  ways  of   cutting  down  energy  consumption.  At  the  end  of  the  day,  it  makes  corporate  sense  for  us,  because   energy  today  is  very  expensive.  So  we  all  want  to  cut  down  costs    Potentially  [the  factories]  will  

be  there  for  the  next  50  years.  And  you  want  to  make  sure  that  whatever  you  build,  will  have  to   fit  its  purpose  also  after  50  years.  So  we  have  to  really  look  into  the  future”  (Goh,  2015)     There  are  also  findings  in  the  existing  literature  highlighting  green  changes  among  suppliers   in   Asia   (Zhu   &   Sarkis,   2006).   However,   my   findings   are   not   consistent   with   the   observation                                                                                                                   1  Leadership  of  Energy  and

 Environmental  Design,  http://www.usgbcorg/leed     66   that  Asian  manufacturers  are  doing  this  only  for  business  reasons  (Zhu,  Sarkis,  &  Geng,  2005).   For  instance,  the  quote  above  shows  that  the  CEO  of  the  company  understands  the  long-­‐term   purposes  of  going  green.       That   being   said,   it   has   also   been   mentioned   that   the   responses   from   the   suppliers   and   manufacturers  are  varied,  with  some  being  much  less  cooperative  and  willing  to  change  in  a   greener  direction.  It  has  been  a  process,  where  the  UN  has  gradually  convinced  a  number  of   the  suppliers  to   become   more   sustainable   in  

order   to   improve   performance.   Over   time,   many   of   the   suppliers   have   recognized   that   they   can   save   money,   especially   in   terms   of   energy   (Sørensen,  2015).       5.52 Predictions  for  the  future   It   has   been   argued   in   the   literature   that   global   environmental   governance   lies   in   the   hands   of   states,   organizations  and  private  companies  (Levy  &  Newell,  2002).   So   what   is   the   future   of   sustainability  in  the  health  sector?       In  order  to  keep  the  health  sector  going  in  a  green  direction,  it  was  argued  that  it  is  important   to   have   the   presence   of   (international   or  

national)   legislation   or   demand   from   the   market   (Leetz,   2015)   (Veem,   2015).   These   arguments   are   in   line   with   the   literature   Historically,   public   incentives   have   proven   to   be   an   efficient   mechanism   for   changing   firms’   behaviors   in   a   greener   direction   (Kolk   &   Pinkse,   2004).   The   potential   role   of   public   laws   was   also   emphasized  by  one  of  the  interviewees:     “If   you   talk   to   a   business   person,   it’s   actually   risk   reduction.   So   if   you   see   coming   that   we   are   going  to  have  certain  EU  laws,  then  it  makes  business  sense  to  reduce  the  risk.  And    for

 instance   BPA  was  one  of  the  substances  that  was  a  lot  talked  about,  and  a  lot  in  the  discussion,  as  it  is   harmful  for  babies.  So  now  you’re  getting  plastic  bottles  that  says  ‘BPA  free’  Or  medical  products   that   would   say   ‘BPA-­‐free’     From   the   company   side     if   there   is   no   external   reason   to   switch,   why  would  they?”  (Leetz,  2015)       67   However,   it   is   also   argued   in   the   literature   that   with   globalization   and   increased   politics   of   businesses,   global   environmental   politics   is   moving   towards   market-­‐oriented   systems   of   governance  (Falkner,  2003).  The

 demand  created  from  the  market  was  also  highlighted  as  a   major  contributing  effect  to  change  in  the  health  sector:     “I  think  huge  amounts  can  be  changed.  You  need  to  have  critical  mass  demanding  that  type  of   change.   It’s   the   same   way   that   it   is   true   for   organic   food,   it   is   the   same   in   the   health   sector,   people  need  to  demand  for  it.  If  nobody  demands  the  change  and  create  critical  mass  to  generate   that  change,  it’s  not  going  to  happen.”  (Veem,  2015)     It   was   also   mentioned   that   the   UN   initiative   could   serve   as   a   catalyst   for   change,   through  

signaling  and  spreading  awareness.  Two  of  the  interviewees  from  the  partner  organizations   stated   the   important   need   for   the   UN   to   make   changes   within   sustainability   in   the   health   sector:     “  I  think  [the  UN]  have  an  obligation  to  do  so.  Because  it  is  public  funding  through  taxpayers’   money,  and  [the  UN]  should  be  at  the  forefront  for  these  kinds  of  reforms.  And  since  they  are  such   a   big   buyer,   their   impact   will   be   absolutely   fundamental.   It   can   really   be   one   of   those,   you   know,   tipping  points  for  a  lot  of  sectors  When  you  extend  that  to  other  UN  areas,  

the  impact  could  be   enormous.”  (Veem,  2015)     “  It  really  depends  on  motivated  individuals.  Now  that  this  project  is  in  place,  we  need  to  have   people  driving  it  forward.  So,  if  we  have  the  right  people  in  the  UN  working  on  it,  and  they  are   good  at  raising  the  funds,  then  it  could  be  a  success.  But  if  it  just  sits  there  as  a  document,  and   doesn’t  get  implemented,  then  it  might  be  a  different  story.”  (Leetz,  2015)     5.53 Summing  up  the  other  findings   For   private   healthcare   companies   to   become   more   sustainable   there   is   a   need   for   either   legislation   or   market

  demand.   Through   the   development   of   procurement   standards   and   guidelines,   the   UN   provides   further   incentives   for   their   suppliers   and   manufacturers   to   go   green.       68     With   a   growing   interest   from   suppliers   and   manufacturers   to   cooperate,   there   is   an   immense   potential  for  the  future  of  the  UN  initiative.  However  it  is  crucial  to  have  motivated  UN  staff   members   to   push   the   initiative   forward,   in   order   to   turn   the   organization’s   aspirations   into   reality.       6. Contributions  and  limitations     6.1 Theoretical  and  practical  contributions   The   power   of   businesses   and   their  

ability   to   make   global   environmental   impact   is   clearly   stated  in  the  literature  reviewed.  Large  MNCs’  potential  to  change  their  industries  by  use  of   their   large   scale   and   purchasing   power   has   been   highlighted.   This   thesis   adds   another   dimension   to   this   topic,   by   introducing   the   same   concept   in   the   sector   for   multilateral   aid.   Furthermore,   it   contributes   to   the   topic   by   identifying   the   drivers   and   barriers   that   are   present  in  this  setting,  and  discussing  how  the  case  of  the  UN  differs  from  the  private  sector.       In   the   reviewed   literature   there   is   clear   evidence  

of   research   on   sustainable   and   green   procurement   practices,   both   within   the   private   and   the   public   sector.   There   exists   some   research  on  general  procurement  within  the  sector  for  multilateral  politics,  in  particular  that   of   the   EU,   and   some,   quite   limited,   studies   within   the   UN.   This   thesis   has   combined   these   two   dimensions,   by   looking   at   sustainable   procurement   practices   within   the   UN.   There   is   very   limited  existing  research  on  that  exact  topic,  and  hence  this  thesis  may  serve  as  a  guideline  for   others  who  are  researching  green  procurement  practices  within  the  UN  or  other

 multilateral   organizations.       This   research   also   contributes   to   the   overall   topic   of   sustainability.   This   very   broad   topic   includes  several  subtopics,  where  global  environmental  governance,  the  power  of  businesses   and  sustainable  procurement  practices  are  a  few  of  them.  This  research  suggests  that,  through   the  SPHS  initiative,  the  UN  has  a  power  to  make  real  impact  in  the  global  sector  for  health  aid.   Furthermore,  it  suggests  that  the  UN’s  large  purchasing  power  is  a  possible  road  for  a  more     69   sustainable   global   health   sector,   and   that   this   model   may   also   be   implementable   in

  other   sectors  where  the  UN  are  involved  as  a  large  purchaser.       In  terms  of  practical  contributions,  this  qualitative  study  offers  some  interesting  insights  into   how   the   UN   initiative   is   perceived   by   some   of   its   major   stakeholders.   The   semi-­‐structured,   open-­‐ended   form   of   interview   allowed   the   interviewees   to   speak   freely   about   the   initiative,   and  thus  provided  an  arena  for  open  reflections  on  its  current  state.  Hopefully  this  will  turn   into   useful   material   for   those   involved   in   the   UN’s   initiative,   and   can   provide   some   form   of   learning   for   the   future.   In  

particular,   the   main   drivers   and   barriers   can   provide   valuable   insights  and  form  a  useful  part  of  the  strategy  forward  for  the  initiative.       6.2 Limitations   This   study   provides   certain   limitations.   First   of   all,   given   that   the   data   is   based   on   answers   from   eleven   interviewees,   the   sample   is   not   representative   for   all   the   relevant   stakeholders   within  the  joint  UN  initiative.  There  are  many  different  types  of  stakeholders  involved  in  this   programme,   and   the   findings   cannot   be   generalized   for   all   of   them.   For   instance,   there   are   likely   to   be   relevant   opinions   on   this  

topic   that   have   not   been   included   in   the   study.   Furthermore,  the  sample  is  based  on  recommendations  from  my  main  contact  people  within   the  UN  system,  and  thus  is  likely  to  be  slightly  biased,  painting  a  more  positive  picture  than   what   may   be   the   reality   for   all   of   the   stakeholders.   The   interviewees   were   either   UN   staff   members   or   close   partners   with   the   UN,   which   also   adds   to   the   degree   of   biasedness   of   the   sample.       For  a  more  objective  sample,  the  sample  could  have  included  competitors  to  the  UN,  such  as   other   large   procurers   of   pharmaceutical   products

  and   medicines.   Another   alternative   could   have  been  to  make  a  combined  approach  with  both  qualitative  and  quantitative  data,  so  that   the  sample  could  have  been  more  representative.  If  the  scope  of  the  master  thesis  had  been   larger,   such   as   over   the   course   of   a   whole   year,   I   could   have   dedicated   some   of   the   time   to   participant  observation,  partaking  in  meetings  and  workshops  during  my  internship  at  UNDP.   This   may   have   provided   even   more   insights   to   the   analysis,   and   considered   changes   to   the   initiative  over  time.     70     For   future   research   in   this   area,   I  

suggest   looking   deeper   into   the   technical   details   of   the   procurement   practices   within   this   initiative.   There   is   a   lot   of   literature   on   GSCM   strategies,   and   more   detailed   research   done   on   how   to   implement   sustainable   improvements.   For   example   within   the   subject   of   supply   chain   management,   there   are   a   number   of   interesting   topics   that   can   be   explored   from   the   UN’s   SPHS   initiative.   Furthermore,   given   the   global   emphasis  on  sustainability  today,  there  are  several  other  topics  that  can  be  researched  within   the   fields   of   sustainable   procurement.   For   instance,   it   can   be  

interesting   to   look   at   other   multilateral   or   public   programmes,   and   compare   that   with   the   SPHS   initiative   or   with   the   private  sector.       Several   of   the   negative   features   of   public   procurement   have   been   addressed   in   this   thesis.   This   is   a   very   broad   and   generalized   picture   that   does   not   necessarily   represent   the   true   picture   all   over   the   world.   For   instance,   there   are   various   municipalities,   not   the   least   in   Scandinavia,  which  have  done  a  remarkable  job  at  changing  society  in  a  greener  direction.  A   future  study  may  look  at  the  positive  aspects  of  public

 procurement,  and  draw  conclusions  on   the   main   success   factors   in   this   field.   Finally,   an   interesting   topic   could   be   to   thoroughly   research   the   supply   chain   of   one   or   more   the   UN’s   health   products,   and   find   out   how   sustainable   it   really   is.   Does   the   UN   actually   have   sustainable   supply   chains,   or   is   it   ‘all   talk   and  no  action’?     7. Conclusion   The   aim   of   this   thesis   has   been   to   compare   the   UN’s   SPHS   initiative   with   the   ‘Walmart   approach’   to   sustainable   procurement.   By   addressing   different   strands   of   literature,   such   as   global  environmental

 governance  and  the  private  sector,  green  procurement  and  supply  chain   strategies,   and   public   procurement   and   the   role   of   the   UN,   I   have   sought   to   analyze   the   UN   initiative.   Through   eleven   qualitative   interviews   with   UN   staff   members   and   other   relevant   external  stakeholders,  I  have  compared  the  UN  with  procurement  in  both  the  private  and  the   public  sector,  and  mapped  out  the  UN  initiative’s  position  vis-­‐à-­‐vis  these  sectors.         71   I  have  answered  three  research  questions.  The  first  one  compares  the  UN  initiative  with  the   ‘Walmart   approach’   and   the   private   sector  

model   for   sustainable   procurement.   The   second   one  addresses  the  main  drivers  and  barriers  in  the  initiative,  and  relates  to  the  literature  on   GSCM   strategies.   The   third   question   compares   the   UN   initiative   with   procurement   in   the   public   sector,   and   addresses   in   particular   the   critique   found   on   public   procurement   in   the   literature.       My  findings  show  that  the  UN  initiative  is  highly  inspired  by  the  ‘Walmart  approach’  and  the   above-­‐mentioned   MNCs’   way   of   approaching   sustainable   procurement.   That   being   said,   certain   aspects   of   GSCM   is   not   yet   focused   on   by   the   UN,  

such   as   supply   chain   monitoring   and   consideration   of   a   product’s   entire   life   cycle.   The   main   drivers   were   identified   as   the   UN’s   global   mandate   for   sustainability   and   the   unexplored   business   opportunities   that   exist   for   suppliers.   The   main   barriers   were   recognized   as   the   following:   The   conservatism   of   procurers,   the   lack   of   funding,   the   complexity   of   the   initiative,   the   slow   pace   of   the   organization,   and   the   health   sector’s   lack   of   environmental   consideration.   Compared   to   the   critique  on  public  procurement  found  in  the  literature,  the  UN  initiative  was  not  found  to

 be   either  bureaucratic  or  intransparent.  That  being  said,  there  is  still  room  for  improvement  in   those   areas.   Moreover,   my   findings   show   that   a   number   of   the   UN’s   suppliers   were   motivated   to   collaborate   on   the   SPHS   initiative   and   improve   their   sustainability   profile.   Finally,   it   was   emphasized   that   the   future   for   sustainability   in   the   health   sector   will   largely   depend   on   the   implementation  of  environmental  laws  or  high  market  demand  for  sustainable  products.  The   UN   can   play   a   significant   role   on   this   road   to   sustainability,   assuming   that   they   have   motivated  individuals  to

 push  the  initiative  forward  in  concrete  ways.       Given   what   I   have   learned   from   this   research,   I   offer   a   four-­‐pronged   future   strategy   of   the   UN’s  SPHS  initiative:     1) The   UN   should   have   a   clear   focus   on   improving   the   life   cycle   of   their   products,   with   an   aspiration   for   a   cradle-­‐to-­‐cradle   approach.   They   have   a   number   of   suppliers   who   are   motivated  to  learn  and  willing  to  improve  their  products.  Together  I  believe  they  can   make  big  improvements  in  the  life  cycles  of  the  products  in  their  mutual  supply  chains.     72   In  the  best-­‐case  scenario,

 this  could  also  spill  over  to  the  suppliers’  other  products,  and   potentially  also  provide  learnings  for  the  UN’s  suppliers  in  other  sectors  as  well.       2) The  UN  agencies  that  are  involved  in  the  initiative  should  become  more  integrated  in   their   joint   work,   and   communicate   better   among   each   other.   Given   the   complexity   of   the  initiative,  and  the  interviewees’  at  times  contradicting  views  on  the  same  topics,  I   believe   improved   integration   and   communication   could   make   a   real   change   in   the   initiative.   For   instance,   the   initiative   may   become   more   efficient   if   the   different   UN  

agencies  share  the  same  understanding  of  the  work  being  done,  the  specific  mandates   of  the  agencies  and  the  strategy  forward.       3)  Given  the  differing  views  on  transparency  among  the  interviewees,  I  believe  increased   information   sharing   with   partner   organizations   and   the   public   should   be   a   key   focus   point   for   the   initiative.   For   example,   the   UN   can   follow   up   with   the   partners   through   newsletters   or   other   types   of   recurrent   reporting,   or   it   can   keep   an   updated   website   with  information  on  the  initiative  that  is  available  to  the  public.       4) To   solve   some   of   the  

issues   related   to   funding,   the   UN   should   communicate   to   their   member   countries   that   they   are   interested   in   getting   more   earmarked   funding,   specifically  targeting  the  SPHS  initiative.       There  is  still  one  issue  that  remains  in  terms  of  the  current  informality  of  the  initiative.  On  the   one   hand,   its   informal   nature   allows   staff   members   to   work   independently,   without   having   to   deal   with   many   of   the   bureaucratic   procedures   typical   of   the   UN’s   formal   programs.   On   the   other  hand,  if  the  initiative  was  formal,  there  may  have  been  more  resources  –  both  human,   financial   and

  time   –   dedicated   to   it.   The   question   of   whether   the   initiative   should   become   more   formalized   into   the   UN’s   mandate   or   stay   informal  is   thus   difficult   to   answer   with   the   findings  of  this  thesis.       I   hope   this   thesis   has   provided   some   valuable   learning   for   the   UN   staff   members,   and   that   certain  new  aspects  of  the  initiative  have  been  uncovered.  For  future  research  specifically  on   this   initiative,   I   suggest   looking   more   into   the   technicalities   of   product   life   cycle     73   improvements,   and   exactly   how   the   UN   can   move   further   on   this   agenda.   I

  also   suggest   researching   the   initiative   from   an   organizational   management   or   human   resources   point   of   view,  for  instance  by  looking  at  the  interaction  of  staff  members  from  different  UN  agencies   over  time.       8. Acknowledgements   I  would  like  to  thank  my  supervisor  Hans  Krause  Hansen,  for  supporting  me  along  the  way,   and  always  providing  me  with  feedback  that  lifted  the  thesis  up  to  a  new  level.  I  want  to  thank   all  the  eleven  interviewees  for  taking  time  out  of  their  busy  schedules  to  assist  me  with  their   knowledge,   experiences   and   views.   I   particularly   want   to   thank   Volker  

Welter   and   Mirjana   Milic  for  providing  me  with  valuable  assistance  from  the  very  beginning.  I  thank  my  former   colleague  Michael  Toft  for  helping  me  get  started  on  the  thesis  and  providing  me  with  ideas  on   relevant  topics  within  the  UN.  Finally  I  would  like  to  thank  my  family  for  always  being  there   for   me,   and   giving   me   their   full   support   when   I   have   needed   it   the   most.   My   greatest   appreciation  of  all  goes  to  my  father  Christian,  who  has  been  my  rock  throughout  all  my  years   of  studying.                             74   9. References     Ageron,

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 Operations  and  Production  Management  ,  28  (9),  831-­‐857     Walker,  H.,  Di  Sisto,  L,  &  McBain,  D  (2008)  Drivers  and  barriers  to  environmental  supply   chain  management  practices:  Lessons  from  the  public  and  private  sectors  .  Journal  of   Purchasing  and  Supply  Management  ,  14,  69-­‐85.     Walmart.  (den  30  06  2015)  Environmental  Sustainability  Hämtat  från  Walmart  Corporate:   http://corporate.walmartcom/global-­‐responsibility/environmental-­‐sustainability  den  30  06   2015       Weiss,  T.  G  (2009)  Whats  wrong  with  the  United  Nations  and  how  to  fix  it  Cambridge:  Polity     Welter,  V.  (den  15  January  2015)  Interview  (N

 Thommessen,  Intervjuare)     Welter,  V.  (den  14  07  2015)  RE:  Do  you  wish  to  look  over  your  quotes  before  I  hand  in  the   thesis?  Deadline  is  July  27th  .  Email  exchanges  New  York,  New  York,  United  States      World  Health  Organization.  (2011)  The  Use  of  DDT  in  Malaria  Vector  Control:  WHO  Position   Statement.  Geneva:  World  Health  Organization     81       World  Health  Organization  .  (2013)  UN  Initiative  on  Greening  Procurement  in  the  Health   Sector:  From  Products  to  Services.  Bonn:  WHO     Yin,  R.  K  (2003)  Case  Study  Research:  Design  and  Methods  London:  SAGE  Publications     Zhu,  Q.,  &

 Sarkis,  J  (2006)  An  inter-­‐sectoral  comparison  of  green  supply  chain  management  in   China:  Drivers  and  practices  .  Journal  of  Cleaner  Production  ,  14,  472-­‐486     Zhu,  Q.,  Sarkis,  J,  &  Geng,  Y  (2005)  Green  supply  chain  management  in  China:  pressures,   practices  and  performance.  International  Journal  of  Operations  and  Production  Management  ,   449-­‐468.                                                                   82   10. Appendix     10.1  Commonly  used  terms     Below  is  a  list  of  the  most  commonly  used  terms  in  this  essay,  and  their

 definition.       • Sustainability:  Sustainability  encompasses  environmental,  social  and  economic  goals   (see   definitions   on   pages   5   and   16).   Environmental   improvements:   The   term   is   a   synonym  to  green  improvements,  and  encompasses  only  the  environmental  aspect  of   sustainability.   The   adjectives   sustainable,   environmental   and   green   are   used   interchangeably  in  the  thesis.       • MNCs:  Multinational  companies     • The   ‘Walmart   approach’:   An   unofficial   term   for   large   MNCs   who   use   their   procurement   volume   and   purchasing   power   to   change   their   industry.   The   terms   stems   from  Walmart,  a  big  American  retailer

 that  is  well  known  in  recent  years  for  making  its   supply  chain  more  sustainable.       • The  UN:  When  described  by  this  short  acronym,  it  is  generally  described  as  the  United   Nations  as  a  whole.  Independent  UN  agencies,  such  as  the  United  Nations  Development   Programme,  are  generally  referred  to  with  their  own  acronym,  ie.  UNDP       • GSCM:  Green  Supply  Chain  Management       10.2  Overview  of  sample       Interview   Position   Organization   Location   subject   UNDP   New  York,   Volker  Welter   Senior   Procurement   USA   Advisor  at   UNDP’s   Procurement   Support  Office   Regional   UNDP   Istanbul,   Christoph   Turkey  

Hammelmann   Practice   Leader  of  HIV,   Health  and   Development   and  SPHS   Coordinator     Date   Length  of   interview   20.042015   1  h  12  min   49  sec   27.042015   47 mins 51 seconds   83   Mirjana  Milic   Anja  Leetz   Ignacio   Sanchez  Diaz   Morten   Sørensen   Katarina   Veem   Martin   Hansen   Francesca   Racioppi     at  the  UNDP   Regional   Centre  for   Europe  and   the  CIS   Associate   Coordinator   for  the   Secretariat  of   the  informal   Interagency   Task  Team  on   Sustainable   Procurement   Executive   Director,   Health  Care   Without  Harm   Europe   Former   project   coordinator,   sustainable   procurement,   UNFPA   The  deputy   chief  for   procurement,   UNFPA  

Director  of   Swedish   Water  House   at  Siwi   UNDP   Istanbul,   Turkey   28.042015   46 mins 27 seconds   Health  Care   Without   Harm   Brussels,   Belgium   05.052015   48 mins 21 seconds   UNFPA/UNDP   Istanbul,   Turkey   06.052015   17 mins 55 seconds   UNFPA   Copenhagen,   11.052015   39 mins Denmark   43 seconds   Stockholm   International   Water   Institute   (Siwi)   Implement   Consulting   Group   Stockholm,   Sweden   Consultant  at   Implement   Consulting   Group   Senior  Policy   WHO   and   Programme   Advisor  at  the   Environment   and  Health   Policy  and   Governance  at   WHO   20.052015   18 mins 18 seconds   Copenhagen,   21.052015   20 mins Denmark   21 seconds   Copenhagen,   21.052015   52 mins Denmark   51 seconds   84

  Regional   Office  for   Europe   Helene  Møller   Chief,  Health   Unicef   Technology   Centre,  Unicef   Supply   Division   CEO  of  Karex,   Karex   MK  Goh   a  Malaysian   condom   manufacturer       Copenhagen,   22.052015   27 mins Denmark   24 seconds   Kuala   Lumpur,   Malaysia   02.062015   40 mins 33 seconds   10.3  Broad  overview  of  guideline  questions  for  the  interviews     Group   1:   How  is  the  joint  UN  initiative  similar  or  different  from  the  private  sector  model  of   green  procurement  and  environmental  supply  chain  management?     • Companies  like  Wal-­‐Mart,  BMW  and  Nike  are  using  their  scale  and  purchasing  power   to  make  their  supply  chains

 more  sustainable.  Would  you  say  that  the  UN  is  doing  the   same  thing?  Are  they  following  that  same  logic?  How  is  it  different  in  the  public  sector?   • Comparing  with  multinationals  such  as  Walmart  or  BMW,  how  has  the  UN  used  its   purchasing  power  and  large  scale  to  make  sustainable  changes  in  the  supply  chain?   • Has  there  been  any  use  of  green  supply  chain  management  from  the  UN’s  side?  Do  you   know  if  the  supply  chains  are  green  or  sustainable?   • Can   you   give   a   couple   of   examples   of   the   most   well-­‐known   or   relevant   projects   the   joint  UN  programme  have  been

 working  on?   • Can  you  describe  in  a  few  sentences,  what  the  joint  UN  programme  is  about?   • Can  you  describe  in  your  own  words,  what  the  joint  UN  programme  is  about?   • What  do  you  know  about  the  sustainability  of  the  health  suppliers’  value  chains?  Is  the   UN  somehow  involved  in  monitoring  of  the  supply  chains?   • “.we   define   ‘sustainable   supply   management’   (SSM)   as   the   extent   to   which   supply   management   incorporates   environmental,   social,   and   economic   value   into   the     85   selection,   evaluation   and   management   of   its   supply   base.”   (Giunipero,   Hooker,   &   Denslow,

 2012)(p.  260)  To  what  extent  does  the  Joint  UN  programme  address  this?     • How  easy  or  difficult  is  it  for  health  suppliers  to  switch  customers  if  the  standards  set   by  the  UN  are  too  difficult  to  adhere  to?  Is  it  an  option  for  them  to  switch?   • Which   of   the   following   parts   of   a   product’s   life   cycle   is   environmentally   considered:   Product   design,   the   manufacturing   and   management   of   by-­‐products,   product   life   extension  and  product  end-­‐of-­‐life  (disposition  and  recovery  processes)?     Group  2:  What  are  some  of  the  (internal  and  external)  drivers  and  barriers  that  are  faced

 by   the  UN  agencies  when  working  towards  sustainable  procurement  of  the  health  sector?   • What   are   some   of   the   drivers   and   barriers   that   have   been   encountered   in   such   processes?   • Can  you  identify  some  drivers  and  barriers  (both  internal  and  external)  that  have  been   met  in  this  initiative?     Group   3:   How  do   the  findings  on  the  joint  UN  programme  relate  to  the  existing  critique  on   public  procurement?   • The  OECD  has  written  some  principles  for  enhancing  integrity  in  public  procurement,   does  the  UN  use  that  in  the  project?   • Are   issues   of   bureaucracy   or   long,   tedious  

processes   a   problem?   Has   there   been   any   cases  related  to  corruption?   • Can  you  specify,  on  a  scale  from  1  to  10  (low  to  high),  the  level  of  bureaucracy  or   slowness  of  processes  you  have  experienced  in  this  programme,  and  specified  your   reasoning  for  this?     • Can  you  now  do  the  same  with  transparency,  where  1  is  low  levels  of  transparency  and   10  is  high  levels?     • Do  you  know  how  much  of  UNDP’s  health  procurement  is  currently  following  the  green   standards  (or  do  you  know  where  I  can  find  information  on  it)?   • Can  you  specify,  on  a  scale  from  1  to  10

 (low  to  high),  the  level  of  efficiency  you  have   experienced  in  this  programme,  and  specify  your  reasoning  for  this?     86   • Here  is  a  list  of  known  barriers  to  procurement  within  the  UN  system.  Which  ones  have   been  identified  in  the  joint  UN  program?   • What  do  you  believe  will  happen  in  the  future,  regarding  this  Joint  UN  programme?   How  do  you  see  the  future?   • What  do  you  believe  is  the  future  of  the  health  sector,  in  terms  of  sustainability?  How   much  do  you  think  can  be  changed?     10.4 List  of  figures  and  tables     Figure  1:  Decision  tree  for  procurement

 standards  and  practices  (p.  17)   Figure  2:  The  research  ‘onion’  (p.  32)   Figure  3:  Virtuous  circle  of  Green  Procurement  in  the  Health  Sector  (p.  45)     Table  1:  Drivers  and  barriers  for  selected  companies  in  the  UK  (p.  18-­‐19)   Table   2:   Percentage   of   total   spend   across   major   procurement   categories   of   22   IAPWG   organizations  (p.  28)   Table  3:  Main  barriers  to  UN  procurement  activities  (p.  29)   Table  4:  List  of  interview  subjects  (p.  36-­‐37)   Table   5:  Examples  of  practices  by  the  different  UN  agencies  in  the  joint  UN  programme  (p.  46-­‐ 47)   Table  6:  Main  drivers  and  barriers

 identified  in  the  UN  initiative  (p.  61)                 87