AFEP III CIPFA Norse Group sustainability roundtable

This roundtable covered a broad agenda, including considering sustainability in the context of the 17 United Nations Sustainable Development Goals (SDGs). This reflects that a number of police forces have used the SDG framework to consider the socioeconomic benefits, costs and risks they bring to the communities they serve as part of their focus on community engagement.

This was helped by having a range of professional disciplines involved, including senior finance professionals, estates professionals and sustainability professionals, many of whom are involved with national groupings focused on sustainability. The complexity of this broad sustainability agenda requires a multi-disciplinary response and leveraging existing tools, techniques and case studies rather than starting from scratch.

HM Treasury’s better business case approach

There was a particular focus on the HM Treasury better business case approach and the use of the Green Book in considering socioeconomic benefits, costs and risks. Examples were shared around a policing approach of “clear, hold and build” whereby for troubled/high-crime areas, the tactic is to remove the criminal elements, ensure they do not reappear and then work with partners to build a renewed community – a business community in a specific location faced with criminal challenges. With respect to buildings retrofit/microgeneration, historically the focus has been on “spend to save” arrangements – ie the payback in terms of energy savings that comes from reducing the energy usage and therefore the accompanying carbon footprint.   However, in more recent buildings retrofit/microgeneration work, the wider socioeconomic benefits around health, wellbeing and economic stimulus have been factored in, resulting in compelling cost/benefit ratios.

Using this better business case framework, we discussed that the strategic context is set by being enshrined in legislation (net zero 2050) and then in strategies (targeting net zero much earlier than 2050). Therefore, instead of considering the strategic need to act, the consideration becomes the opinions, sequencing and timing – the roadmap.   In business case terms, the “why” is set, and the consideration is the “what”, “how”, “who”, “when” and “who pays.”

Under the “what” and the “how”, we discussed a range of programmes and projects, both within policing and broader public services. For example, CIPFA have recently supported a solar farm business case for a police force on land they own adjacent to the police headquarters. CIPFA has also worked historically on the Mayor of London’s retrofit accelerator programme, which has seen over 1,000 public buildings across London benefit from the installation of energy efficiency/microgeneration measures delivered through over 300 individual projects. The roundtable discussed the advantages of taking this long-term programmatic approach.

Decarbonising the police fleet

There was discussion around the need to decarbonise the police vehicle fleet, including recognition that the technology might not be quite there at present to meet demand, but that there are opportunities to work with the supply chain on innovation.

Moreover, having electric vehicles (EVs) is one thing – the question then is where to charge them. One force is trialling an innovative approach where an EV charging hub comes in a container set up in a car park that can then fast charge circa 12–15 EVs.

Sustainability and the supply chain

This led onto a broader discussion on the supply chain. Norse shared invaluable experience gained from their work across local government on progressing the sustainability agenda. There was a broader discussion on the work of the Government Commercial Function, including around using its buying powers to ensure suppliers to public services have aligned interests, including their own net zero strategies and the link between the updated procurement regulations (post-EU exit) and the Green Book.

We discussed that in policing, more could be done in a collaborative manner with the supply chain, but the supply chain needs to have a strong understanding of policing, particularly the police sustainability agenda. We also covered the need for stronger contract management. CIPFA talked about the fact that value for money does not come on the day that you sign a ten-year contract but from ten years of strong, collaborative contract management, including at the contract exit/expiry.

We discussed the range of commercial models available to public bodies in delivery with supply chain partners. Again, there is a link with the Green Book, which covers the value for money (in its broadest sense) that comes from risk being held with the party best able to manage that risk, the need to encourage the supply chain to bring innovation, and the benefits of a whole-life benefits, costs and risk approach. There is a link between the consideration of commercial models and funding and financing – the “who pays” question. We talked about examples where alternative financing had been used – not necessarily because it was needed, but because of the commercial behaviours and incentives it drives. As part of this discussion, we also covered the green bond/crowdfunding examples in local government, which the police might replicate.

Delivery of sustainability projects

We talked about the management case, ie having the capacity and capability to successfully deliver sustainability programmes and projects. There was a recognition that there are limits in resourcing. One force talked about the challenge in recruiting sustainability professionals. It was recognised that working in a collaborative, coordinated manner across forces and with other public body partners might ease this pressure. CIPFA highlighted to the group that as part of the AFEP III programme, there are consulting days available to help develop and deliver programmes, projects and business cases in relation to net zero, asset management and wider sustainability.

The importance of good data

Throughout the roundtable, there was discussion around the importance of measurement and data. CIPFA is involved in developing the sustainability reporting requirements for public bodies’ financial statements, and finance professionals will have a key role to play here. However, sustainability is much broader than this, and in our experience of some public bodies, good data and data predictions have already been developed by estates, energy managers and sustainability professionals.

Again, it is worth looking at what other public bodies are doing, including your own local authorities, as they may have a net zero/climate emergency declaration that impacts you. In our experience, one of the more developed measurement approaches and impactful net zero strategies is that of National Highways, available on their website: Net zero highways – our 2030/2040/2050 plan.

There are also some parallels between National Highways and a police force in that both have operational buildings, depots and a specialist fleet. We also discussed an organisation in our CIPFA team members’ network that has well-developed measurement approaches covering scopes 1, 2 and 3, which they are happy to demonstrate. This is an alternative to using Excel spreadsheets and offline calculations.

Conclusion

In summary, this is a broad agenda where CIPFA and Norse have a range of relevant experience and tools/techniques that should save police forces time and effort. Likewise, police forces working in a collaborative, coordinated manner will save time and effort.

CIPFA have consulting days available through AFEP III. For example, we discussed the following options around strategy support, specific business case support for projects and sustainability reporting guidance. CIPFA also has a range of training programmes in this area, including our free-to-access e-learnings, micro modules, and soon the joint ICAEW/CIPFA sustainability certification for the public sector will be available.

Finally, through our network, there are organisations with solutions that can help. Sustainability, in its broadest context, can be seen as offering a range of opportunities to policing, including around community engagement.

Mark Williams, Senior Consultant/Advisor at CIPFA

29 November 2023