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Life Cycle Considerations in Environmental Procurement Decisions

VIEWS: 13 PAGES: 67

									ENVIRONMENTALLY
   PREFERABLE
   PURCHASING
      P2 Regional Roundtable
           EPP Session


           EUN-SOOK GOIDEL
              PACIFIC NW
POLLUTION PREVENTION RESOURCE CENTER

            March 17, 2004
    OVERVIEW OF EPP SESSION
            AM                              PM
   Part 1: EPP Panel              Part 2: EPP Training
    – Setting the context           – Putting the Concepts
    – Introductions by panel        into Practice
      members                       – Key ingredients for
    – Panel discussion of             EPP
      challenges & strategies       – How do you know it’s
      to overcome them                “green”?
    – Questions for panel           – EPP Opportunities &
      members from the                Resources
      audience                      – Q&A throughout
    – Wrap up
                                                             2
INSTITUTIONAL PURCHASERS:
      A SPECIAL ROLE…

“The large scale, systematic approach that
  most institutions take in their purchasing
  can have large ripple effects on which
  products are used by hundreds or even
  thousands of individuals.”
         Purchasing Power: Harnessing Institutional Procurement
         for People and the Planet, Worldwatch Institute, 2003




                                                              3
WHAT IS ENVIRONMENTAL
    PURCHASING?


 ….Incorporating key environmental
factors with traditional price and
performance considerations in
purchasing decisions.


                                4
      EVOLUTION OF
ENVIRONMENTAL PURCHASING
                                          Environmentally
                                            Preferable
              Recycled Content              Purchasing
                 Purchasing


                               Reduced Toxics
  Energy Efficiency
                                 Purchasing
     Purchasing
                  Bio-based
                  Purchasing
                                                      5
         SUSTAINABLE
         PURCHASING
 Balancing the three “E”s:
   Environment
   Economics
   Equity
 Next iteration in the continuous
  improvement model...


                                     6
  EPP PANEL DISCUSSION
Panelists:
  – Jonell Allamano, U.S. EPA-Region 10
  – Ron Dalberg, Swedish Medical Center
  – Eric Nelson, King County
  – Servando Patlan, WA Office of State
    Procurement


                                          7
ENVIRONMENTALLY
   PREFERABLE
   PURCHASING
    PUTTING EPP CONCEPTS
       INTO PRACTICE


           EUN-SOOK GOIDEL
              PACIFIC NW
POLLUTION PREVENTION RESOURCE CENTER

            March 17, 2004
    OVERVIEW OF EPP SESSION
            AM                              PM
   Part 1: EPP Panel              Part 2: EPP Training
    – Setting the context           – Putting the Concepts
    – Introductions by panel        into Practice
      members                       – Key ingredients for
    – Panel discussion of             EPP
      challenges & strategies       – How do you know it’s
      to overcome them                “green”?
    – Questions for panel           – EPP Opportunities &
      members from the                Resources
      audience                      – Q&A throughout
    – Wrap up
                                                             9
  Environmental
   purchasing is
10% technical and
 90% behavioral!
                    10
Responsibility should
    not fall on the
     shoulders of
 “purchasers” only
                        11
          CHAIN OF CONSUMPTION

    PLAYERS              SPHERE OF INFLUENCE

– R&D/Designers             – Materials Selection
– Manufacturers             – Mfg Process Selection
– Retailers                 – Distribution/Packaging
– Purchasers                – Sourcing/Logistics
– End Users                 – Product Selection/Use
– End-of-life managers      – Disposal/Recycling



                                                    12
          ENVIRONMENTALLY
        PREFERABLE PURCHASING
                         Send clear market signals of
                         organization’s preference for
   PLAYERS                environmentally preferable
                                   products
– R&D/Designers
– Manufacturers
– Retailers
– Purchasers
– End Users
– End-of-life managers



                                                         13
   PART 1:
 PUTTING THE
CONCEPTS INTO
  PRACTICE
            EPP: KEY INGREDIENTS
           (Need not mix sequentially!)
 Engage others
 Know what you’re buying
 Bench-mark your purchasing practices
 Prioritize your efforts
 Define green for chosen product category
 Fit green into procurement to obtain product
 Sell EPP to internal and external stakeholders
 Nurture a supportive infrastructure
                                             15
                * Engage Others *
 Tips:
   – Consider
        Who can influence product selection
        Who will be affected by product switch
        Who might be a good champion
   – Chosen product category will usually dictate who
     needs to be involved. For example, different
     players are involved in product choices for --
        Janitorial
        IT Equipment


 Examples
   – Cross functional teams are used by many of the
     EPP pioneers (e.g., Massachusetts, City of Seattle,
     Starbucks, Herman Miller)
                                                           16
* Know what you are buying *

   Secure a purchasing report for the past year

   Tips:
    – Have the report organized by product category or
      ranked by value of purchase
           Which products/services are purchased the most?
    – Obtain information about existing vendors and type of
      contract (e.g., long-term vs. short-term)
           Are there a few vendors with large $ contracts or many
            vendors with small $ contracts?

                                                                     17
               * Benchmark *
   Without knowing where you are, it is impossible
    to see any distinct change or to determine the
    results of an environmental purchasing effort.

   Available tools to help you:
    – North American Green Purchasing Initiative’s ECO-
      S.A.T. (A Green Purchasing Self Assessment Tool)
      http://www.cec.org (not yet available on-line)
    – Green Seal Criteria for Green Procurement
      http://www.greenseal.org/criteria_procurement.pdf


                                                          18
       Review
Self-Assessment Tools



                        19
                    * Prioritize *
 Select a product category on
  which to focus your efforts
  based on criteria such as:
   – Total value of purchase
   – Environmental impact
   – Availability of alternatives

 Tool to help you:
   – PPRC’s Product Prioritization
     Tool
   - Global Environmental
     Management Initiative’s “Four-
     Step Search for Value
     Opportunities related to EHS
     Performance”
     http://www.gemi.org/newpath.pdf

                                       20
      Review
Product Prioritization
        Tool


                         21
PPRC’S PRIORITIZATION TOOL*
  Environmental                           Political
      – Overall Impact                         – Statutory requirement
      – Product Stewardship                    – Management support
        potential                              – Industry collaboration
                                                 potential
  Logistics
      – Standards                          Economic
      – Environmental info.                    –   Dollar value of purchase
      – Env alternatives                       –   Price of alternatives
      – Performance                            –   Life cycle cost savings
      – Expertise                              –   Bundling potential
      – Flexibility in procurement

* Developed for the Department of Ecology and WA Office of State Procurement, 2003
* Tool is being revised for use by a broader audience.                        22
         PPRC’s Product Category Prioritization Tool – An Example
                                                                                                         I
                                                                                                         N                       L
                                                                             F                 M         D                       I       B
                                                             P               L                 A         U                       F       U
                             P                               E               E                 N         S                       E       N
                     O       R               A               R               X       S         A         T       D       P               D
                     V       O               V       A       F                       T         G                 O       R       C       L
                                                                             I                           R
                     E       D       S       A       L       O                       A         E                 L       I       Y       I       T
                             U
                                                                             B                           Y                       C
                     R               T       I       T       R       E               T         M                 L       C               N       O
                             C                                               L                                                   L
                     A               A       L       E       M       X               U         E                 A       E               G       T
                             T                                               E                           C                       E
                     L               N               R       A       P               T         N                 R                               A
                                                                                                         O
                     l               D       O       N       N       E               O         T                         O               P       L
                             S                                               P                           L                       C
                                     A       F       A       C       R               R                           V       F               O
                             T                                               R                           L                       O
                     I       E
                                     R               T       E       T               Y         S                 A               S       T       S
                                                                             O                           A
                     M       W       D       I       I               I                         U                 L       A       T       E       C
                                                                             C                           B
                     P       A       S       N       V       OF      S               R         P                 U       L               N       O
                                                                             U                           O
                     A       R               F       E               E               E         P                 E       T       S       T       R
                                                                             R                           R
                     C       D               O       S       A                       Q         O                                 A       I       E
                             S
                                                                             E                           A                       V
                     T                                       L               M                 R         T                               A
                             H                                                                                                   I
                             I
                                                             T               E                 T         I                       N
                                                                                                                                         L
                             P                                               N                           O                       G
                                                                             T                           N                       S

                     Environment                     Logistics                               Political                   Economic

      Product                                                        Criteria Score
 Category/Contract

Carpet                   2       5       3       3       3       3       5       5       1         1         5       3       3       1       5   48

Cleaning Product         3       1       5       5       5       5       5       3       5         1         3       1       3       1       3   49

Computer (desktop)       4       5       3       3       3       5       3       3       5         1         5       3       5       3       5   56

Copier paper             2       1       5       5       5       5       5       3       1         5         1       1       1       1       1   42

Interior paint           3       3       3       3       5       5       1       3       3         1         1       3       5       3       1   43
                                                                                                                                         23
     FOUR STEPS TO FIND VALUE
OPPORTUNITIES IN PRODUCT LIFE CYCLE




Excerpted from: GEMI’s New Paths to Business Value, 2001   24
                    *Prioritize*
                   (continued)
 How others have prioritized:
   – Focus on products associated with sourcing,
     transportation and store design based on the Natural
     Step framework (Starbucks)
   – Focus on products sold by 23 vendors receiving 70% of
     hospital’s purchasing funds (Swedish Medical Center)
   – Formed teams around 16 commodities for which city
     spends 80% of its dollars (City of Seattle)
   – Rank based on three criteria: waste reduction potential,
     toxicity reduction in the waste stream, and availability
     of alternatives (State of Minnesota)

                                                           25
             * Define Green*
 For the selected product categories, decide what
  product attributes will differentiate a “greener”
  product

 Tips
   – Rely on existing resources and replicate!
       Federal, state and local EPP program resources
       Third Party standards and certifications
   – You CAN develop unique standard to fit your needs
     (+/- to this)
   – Remember to apply life cycle thinking in “defining”
     green

                                                           26
* “Fit” Green into Procurement *
           Criteria for green must be integrated into
            procurement process to ensure that the
            “greener” product is obtained!

           Tip
            – Integrate environmental considerations into the
               SOP of procurement department. For example,
                     Market surveys that include environmental
                      questions
                     Solicitations and evaluation processes that reward
                      environmentally superior products and processes
                     It helps to give clear signals to existing and new
                      vendors of organization’s environmental
                      commitment
                                                                    27
  * “Sell” to Stakeholders *
 Internal Stakeholders
   Procurement staff      What Approaches
   End Users                Work Best?
   Budget/Finance staff     Voluntary
                                 Or
 External Stakeholders     Mandatory?
   Vendors
   Customers

                                      28
        *“Sell” to Stakeholders *
               (continued)
   Tips for internal            Tips for external
    stakeholders                  stakeholders
    – Incentives for              – Pre-bid meetings with
      purchasers                    vendors (most EPP
      (Massachusetts Buy            pioneers)
      Recycled/EPP Award)         – Incentives, e.g.,
    – EPP as a part of job          through price
      performance (State of         premiums (Department
      Washington)                   of Defense
    – Pilot/demonstration           construction contract)
      projects

                                                            29
 “NURTURE” A SUPPORTIVE
    INFRASTRUCTURE
• Tips
  - Provide high level support
  - Set clear goals and priorities
  - Ensure responsibility is shared across
    professional disciplines
  - Provide training and education
  - Create “safe harbor” for innovative EPP
    approaches
                                              30
INSTITUTIONALIZING EPP

     THEORY/CONCEPT



PRACTICE, PRACTICE, PRACTICE



  INDIVIDUAL TRANSLATION
         & ADOPTION
                               31
QUESTIONS?

         32
END OF
PART 1
 PART 2:
HOW DO
  YOU
 KNOW
  IT’S
“GREEN”?
    ENVIRONMENTALLY
  PREFERABLE PURHCASING
EPP = Environment + Price + Performance




   •pollution prevention
   •Multiple attributes
   •life cycle

                                    35
  HOW DO YOU DETERMINE
      IT’S “GREEN”?
 “ Green” based on:
  –   Organization-unique standards
  –   Vendor claims about its products or practices
  –   Government standards or guides (e.g., Energy Star)
  –   Third Party standards (e.g., Green Seal, CFPA,
      Canada’s Environmental Choice)

 How these are manifested:
  –   Approved supplier lists (Starbucks)
  –   Chemical bans (Herman Miller, Volvo)
  –   Approved product lists (Aberdeen Proving Ground)
  –   Solicitations that reflect existing or organization-
      specific standards
                                                             36
         VENDOR CLAIMS
 All environmental claims made
  about a product or a service must
  comply with the Federal Trade
  Commission Guides for Use of
  Environmental Marketing Claims (“
  FTC Green Guides”)

 FTC Guides can be accessed at:
  www.ftc.gov/bcp/grnrule/guides980
  427.htm

                                      37
               Environmental Products



  VENDOR CLAIMS (continued)
 FTC guides establish four general principles for
  environmental marketing:
   – clear and prominent disclosure to prevent deception.
   – presented in a way that makes clear whether the
     environmental attribute or benefit refers to the
     product, the packaging, or both.
   – Avoid overstating environmental attributes and
     claims.
   – Present comparative statements in a manner that
     makes the basis for the comparison sufficiently clear
     to avoid consumer deception.
                                                             38
 VENDOR CLAIMS (continued)
FTC also provides guidance on the
 appropriate use of the following categories
 of claims:
  – Claims of general environmental benefits.
  – Claims that the product is “degradable,”
    “compostable,” or “recyclable.”
  – Claims of “recycled content,” “source
    reduction,” “refillable,” or “ozone safe/ozone
    friendly.”


                                                     39
  GOVERNMENT STANDARDS
        OR GUIDES
 Federal standards exist for:
   – Recycled content (EPA)
   – Energy and water efficiency (DOE and EPA)
   – Bio-based (currently being developed by USDA)
 States and local governments have developed
  standards
   – Often follow federal standards for RC, EE, WE
   – Some go beyond federal standards
 One-stop shopping: EPA’s EPP Database
   http://yosemite1.epa.gov/oppt/eppstand2.nsf

                                                     40
   FEDERAL GREEN PROCUREMENT
            PROGRAMS
 Green Procurement Program            Target Attribute(s)
Comprehensive Procurement Guideline   Recycled content

            Energy Star               Energy efficiency

                                      Agricultural or forestry
         Biobased Program
                                      materials content

           EPP Program                Depends on product/service --
                                       examples include:
                                      All of the above plus
                                      Less/Non toxic
                                      Resource conserving
                                      Recyclable
                                      Durable/upgradable
                                      Reduced packaging
                                      Reduced effect on human
                                       health and eco-systems     41
THIRD PARTY PROGRAMS
 Develop standards (e.g., ASTM)
 Verify and/or validate claims (e.g., Scientific
  Certification Systems)
 Certify vis-à-vis an existing standard (e.g.,
  Underwriter’s Lab)
 Certify other third party programs (e.g., Forest
  Stewardship Council)
 Develop standards and award labels based on
  these standards (e.g., Green Seal)

                                                     42
THIRD PARTY PROGRAMS
   Pros                           Cons
    + They’ve done the              – Some worry that the
      homework of                     cost of certification
      determining what                might be passed onto
      constitutes green               the purchasers by
      (= resource savings for         vendors
      organizations)                – Can be difficult to sort
    + Some programs utilize           out which third party
      LCA and/or LC                   standards are “good”
      perspective in                  and which ones are not
      standards development

                                                             43
EVALUATING THIRD PARTY
      PROGRAMS
• The U.S. Environmental Protection Agency identified the
  following list of questions to evaluate third party
  organizations. Does the program have:

   • An open, public process that involves key stakeholders?
   • A transparent process (i.e., process and resulting criteria are
     publicly available, easily accessed and understandable to the lay
     person)?
   • A system of data verification and data quality?
   • A peer review process (with representation of all stakeholders) for
     developing the standards or criteria?
   • Criteria which are developed based on a "systems" or life cycle
     approach (i.e., "cradle to grave")?


                                                                       44
 EVALUATING THIRD PARTY
   PROGRAMS (continued)
Does the third party program have:

   • An outreach program to educate the consumer?
   • An established goal of updating standards or criteria?
   • Authority to inspect the facility whose product is certified to
     ensure compliance with the standards or criteria?
   • Testing protocols for the products that are certified which ensure
     testing is conducted by a credible institution?
   • Access to obtaining the seal by small and medium sized companies
     (e.g., the cost of the seal is not so high as to prevent access by
     companies)? and
   • Compliance with the Federal Trade Commission's (FTC) Guides
     for the Use of Environmental Marketing Claims?


                                                                     45
PART 3: YOU’RE NOT
WITHOUT HELP!

 OPPORTUNITIES AND
      TOOLS
    IMMEDIATE OPPORTUNITIES

 Copier Paper
 Electronics
 Cleaning products
 Buildings
 Conferences/Meetings




                              47
         WHY COPIER PAPER?

Resource intensive
  – About 42% of the wood harvested for industrial use
    goes to making paper.
  – In the U.S., the pulp and paper industry is the second
    largest consumer of energy and uses more water to
    produce a ton of product than any other industry.




                                                             48
           WHY COPIER PAPER?
 High volume of use
    – An average office worker uses about 10,000 sheets of
      copier paper per year!
    – In 1997, the Federal government purchased roughly
      18.1 billion sheets of copier paper.
   High, Hidden Cost
    – Office paper is the fastest growing use of paper. The
      cost of printing, copying, mailing, storing and
      disposing can exceed the initial price by as much as 10
      times!

                                                              49
          WHAT YOU CAN DO

Seek to increase paper “efficiency”
  – Duplex copying & printing
  – Many other strategies!
Buy “greener”
  – high quality, competitively priced options exist
  – Go for high post consumer, chlorine-free papers!
Ensure fully functioning paper recycling
 program
  – Close the “loop”

                                                       50
           WHAT YOU CAN DO

Follow the lead of pioneers:
  – Vermont has been using chlorine free, high recycled
    content paper since 1994
  – Others doing the same:
      City of Portland
      State of Oregon
      State of Washington
      Environmental Protection Agency
      Department of the Interior
  – Many others!!

                                                          51
           WHAT YOU CAN DO

   Look to existing resources:
    – Federal Network for Sustainability Paper Campaign
      website: www.federalsustainability.org
    – Cutting Paper: http://eetd.LBL.gov/Paper
    – State of Minnesota's "Reduce Waste: If not you, who?
      Campaign“:
      http://www.moea.state.mn.us/campaign/workplace/inde
      x.html
    – Conservatree www.conservatree.com

                                                          52
         WHY ELECTRONICS?

 Short Life Span
  – By 2005, most people will trade in their
    computers for newer models within 2
    years of purchase
  – Cell phones are typically used for only
    18 months before being replaced.




                                               53
             WHY ELECTRONICS?

   Large Volumes of Waste & Toxic
    Components
    – Today, 1.5 million computers enter
      waste streams annually
    – By 2004, as many as 315 million
      obsolete computers could end up in
      landfills
        = 1.2 billion pounds of lead +
        = 2 million pounds of cadmium +
        = 400,000 pounds of mercury
    – By 2005 about 130 million of cell
      phones, weighing approximately 65,000
      tons, will be retired annually in the US.

                                                  54
          WHAT YOU CAN DO

   Follow the lead of pioneers:
    – Seattle, WA requires take-back plus “multi-
      paks”
    – Department of the Interior and City of Denver
      computer contracts include environmental
      requirements
    – Minnesota has contract language requiring
      proper disposal
    – Pennsylvania will be leasing all their computer
      equipment
                                                        55
          WHAT YOU CAN DO

 Look to existing resources:
   – EPA’s EPP Program’s website:
     www.epa.gov/oppt/epp/electronics.htm
   – Silicon Valley Toxics Coalition Clean Computer
     Campaign: http://www.svtc.org/cleancc/index.html
   – Center for New American Dream’s computer
     workgroup:
     http://www.newdream.org/procure/products/computers.
     html
   – Product Stewardship Institutes’ EPP Guide:
     http://www.productstewardshipinstitute.net/EPP.html#
     Electronics
   – Federal Electronics Challenge:
     http://www.federalelectronicschallenge.net
                                                        56
   WHY CLEANING PRODUCTS?

 Large, pervasive industry!
   – Institutional/commercial (I/C) cleaning is a $100+ billion industry.
   – I/C cleaning industry uses roughly 6 - 8 billion pounds of cleaning
     products.
   – Cleaning industry employs 2 - 3 million janitors; but due to very
     high turn-over, even greater #s are affected.
 Equity Issues
   – Janitors tend to be minorities; stepping stone for many immigrants.
 Health Issues
   – Most people spend more than 90 percent of their time indoors.
     Many indoor environments contain hazards that lead to health
     complaints.

                                                                       57
          WHAT YOU CAN DO

   Adopt Green Seal’s Institutional and
    Industrial Cleaners Standard (GS-37) --
    http://www.greenseal.org/standards.htm

   Follow the lead of pioneers
    – Santa Monica (CA), City of Seattle,
      Massachusetts, Minnesota and many others have
      great “green” cleaning programs

                                                58
         WHAT YOU CAN DO
Look to existing resources:
  – EPA’s Environmentally Preferable Purchasing
    Program website:
    http://www.epa.gov/oppt/epp/cleaner.htm
  – INFORM’s Cleaning for Health: Products and
    Practices for a Safer Indoor Environment:
    http://www.informinc.org/cleanforhealth.php
  – ASTM Standard E 1971-98 – Stewardship for
    the Cleaning of Commercial and Institutional
    Buildings: http://www.astm.org (search by title)
                                                   59
            WHY BUILDINGS?
 Resource Intensive
   – Building construction and use consume 40% of the
     world's raw stone, gravel and sand resources, 25% of the
     virgin wood supply, and 16% of total water withdrawal.
   – Buildings use approximately 40% of the energy in the
     U.S.
 High volume of waste
   – Construction and demolition waste eats up 40% of our
     landfill space.

 Health issues
   – On average, Americans spend 90 percent or more of their
     time indoors.
                                                         60
         WHAT YOU CAN DO

 Incorporate environmental factors into the earliest
  planning stages of a construction/renovation
  project!!
 Follow the lead of many private sector and public
  sector pioneers
 Participate in the LEEDs Green Buildings Rating
  System http://www.usgbc.org/leed/leed_main.asp
 Look to numerous existing resources; e.g.,
  http://www.epa.gov/greenbuilding/

                                                   61
              WHY MEETINGS?
 Travel and tourism is the world’s largest industry.
   – Meetings make up a growing component of this
     industry which weighed in a few years ago at $280
     billion annually, world-wide.
 Bringing people together for meetings has a slew
  of environmental impacts, associated with:
  marketing of the event, travel to/from events,
  lodging, food services & local travel.
   – All this translates into high and concentrated
     consumption of energy, water and other natural
     resources .
                                                         62
            WHY MEETINGS?

 An average hotel purchases more products in
  a week than 100 families purchase in an entire
  year.
 93,000 Federal travelers are traveling on any
  given business day to 8,000 locations across
  the country for meetings.
  – This translates into 24 million room nights of hotel
    space in the US annually.


                                                      63
         WHAT CAN YOU DO?

Start incorporating green considerations
 as early in the conference/meeting
 planning process as possible:
  – A key decision is the selection of the city and
    conference site that will avail you to the most
    number of green options.



                                                      64
           WHAT CAN YOU DO?

Look to existing resources:
  – U.S. EPA’s Green Meetings Initiative
    http://www.epa.gov/oppt/greenmeetings/
  – Oceans Blue Foundation
    http://www.oceansblue.org
  – The Coalition for Environmentally Responsible
    Economies (CERES) Green Hotel Initiative
    http://www.ceres.org/our_work/ghi.htm
  – Meeting Professionals International (MPI)
    Green Meeting Task Force
    http://www.mpiweb.org/
                                                    65
         TOP FIVE RESOURCES
   Pacific NW Pollution Prevention Resource
    Center: www.pprc.org
   U.S. EPA’s EPP Program website:
    www.epa.gov/oppt/epp
   Northeast Recycling Council’s EPPNet:
    www.nerc.org/eppnet.html
   Center for New American Dream:
    www.newdream.org/procure
   Inform: http://www.informinc.org/p3_00.php


                                             66
           QUESTIONS?
Contact:
 Eun-Sook Goidel
 Pacific NW Pollution Prevention Resource
 Center
 esgoidel@pprc.org



                                            67

								
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