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					        G    The Missing Link
             In Most Supply
                                                               reen•••


             Chains
            An Overview of What
             Green Purchasing Is,
              How It Can Further
Previously Established Goals and
       Its Positive Impact on the
               Triple Bottom Line

                                developed by




                                with significant contributions from

                                Bill Gregory
                                Director of Sustainable Initiatives




                                Fall 2007
 G          reening your supply chain

            The Products You Buy                              Defining a Supply Chain
            Every night, millions of people go to sleep at    What is a supply chain? Basically, the supply
            night in their warm, cozy bed. But how many       chain consists of every single one of the
            people have stopped to think about the            businesses and individuals who directly or
            pieces of wood that make up the framework         indirectly touch a product. Supply chains
            of where they sleep? Did the wood come            include the retailers, wholesalers,
            from recycled sources, environmentally            distributors, suppliers, service providers,
            protected forests or was it clear cut off a       manufacturers, shippers and anyone else
            pristine mountain top? Was it transported         who has a hand in turning raw materials into
            across the nation or simply trucked in from a     finished products and delivering them into
            local forest? And what happens when the           the hands of consumers. During the past 25
            bed is old and no longer needed? Will the         years, supply chain management has mainly
            wood that makes up the frame be recycled,         addressed cost savings, while supply chain
            reused for another wood product, burned or        strategy has focused on creating competitive
            simply thrown away?                               advantage through supply chain activities.
                                                              Greening the supply chain is the latest
           These are the kinds of questions
                                                              initiative for supply chain managers and
           manufacturers ask when they are trying to
                                                              directors to address.
           create a green product. The entire life cycle
                       of the product, from its               A 2007 survey from EyeForProcurement1 of
           More            conception to its ultimate         188 procurement professionals (primarily in
     than 50 percent         disposal, is taken into          the United States, Europe and Asia) stated:
   of companies have           consideration. From
                                                                 [M]ore than 50 percent of companies
                                cradle to grave, the
policies on greening their manufacturing process                 have policies on greening their supply
    supply chain, and                                            chain, and companies are nearly
                                 of a green product will
                                                                 unanimous in their belief that green
  companies are nearly           incorporate processes
                                                                 supply chains will only continue
unanimous in their belief that positively impact                 growing…. The vast majority of products
                                the triple bottom line:
that green supply chains the environmental, social               that companies are sourcing sustainably
    will only continue                                           are packaging materials and the raw
                              and economic
                                                                 materials used in manufacturing,
         growing.           consequences.
                                                                 with 29 percent and 24 percent of
                          Green products are those that          respondents purchasing those materials
                 do not cause harm to the environment,           from sustainable sources…. Two-thirds of
            have positive social impacts and ensure              the professionals in the survey said that
            profitability for the manufacturer. However,         they are practicing green procurement to
            it’s not just the product that has to be green.      support their companies' environmental or
            Everyone and everything that touches that            sustainability strategies, while 49 percent
            product must also address triple-bottom-line         also said they're responding to customers'
            issues. This is what greening the supply             interest in eco-friendly products and
            chain is all about.                                  services.1
G          reening your supply chain

           As encouraging as these numbers appear,          because they value protecting natural
           there is plenty of room for growth. The same     resources. Still others might only buy office
           report indicated that only 13 percent of         supplies from an organization that donates a
           respondents say green products and services      portion of profits to charitable organizations.
           make up at least half of their total purchases   In this way, the consumer is doing more than
           while 55 percent of respondents are saying       buying a product: the consumer is greening
           that green goods make up 10 percent or less      his or her purchasing habits.
           of their total purchases.2
                                                            Individuals are increasingly reflecting their
                                                            values by the purchases they make. Similarly,
                                                            institutional purchasing agents are reflecting
           Greening the Supply Chain
                                                            the values of their organizations by specifying
           Individuals that are involved in buying          products and services that align with
           decisions, whether as an individual shopper      established institutional goals and objectives.
           or an organizational purchasing agent, can       Green product features, those that are
           help these supply chains do more than            environmentally benign and socially
           simply satisfy a need. The act of obtaining      beneficial, are becoming extremely important
           copy paper, office supplies, office furniture,   differentiators in the marketplace.
           computers, groceries or whatever item is
           being purchased, can also help protect the
                   environment and bring about              Advantages of a Green Supply Chain
                         improved social conditions.
                                                            For an organization, greening its supply chain
       Institutional         How?                           has numerous benefits. Greening the supply
    purchasing agents                                       chain can actually save money. By
                          Before purchasing a
                                                            encouraging everyone in the supply chain to
are reflecting the values product, a customer               reevaluate their processes, suppliers, service
of their organizations by makes a variety of                organizations, wholesalers and retailers
                            decisions: size and
specifying products and color, features and                 inevitably identify inefficiencies in the delivery
                                                            of their products and services. By addressing
 services that align with   options, overall quality
                                                            these inefficiencies, each member of the
established institutional  and durability, just to
                                                            supply chain can reduce their costs, which
                          name         And, of
  goals and objectives. course, a few. are always
                                 there
                                                            can be passed on to the consumer and all
                                                            other stakeholders.
                            cost considerations. But
                        more and more often,                Greening the supply chain can have a
                   consumers are thinking about the         profound impact on human health as well.
           environmental impact and the social benefits     A simple switch to a green cleaning program,
           that a product offers.                           one that uses less toxic or non-toxic
                                                            solutions, significantly reduces the risk of
           Some consumers only buy fair trade coffee
                                                            exposure to harmful chemicals by the
           because they value safe and healthy
                                                            janitorial staff and even building occupants.
           working conditions for laborers. Other
           consumers might only buy recycled paper
G   reening your supply chain

    A healthier work environment will lower          One example of a company successfully
    absenteeism, increase productivity and could     greening its supply chain is Patagonia. This
    lead to lower insurance premiums, adding         retail store for outdoor sports is working with
    soft dollars to the financial bottom line.       suppliers to minimize environmental impacts
                                                     of its clothing. Patagonia uses recycled fibers
    If an employee who makes $30,000 a year
                                                     for its fleece jackets and pants and uses only
    loses 20 minutes of productivity every day
                                                     organically grown cotton to reduce the
    due to headaches, respiratory problems or
                                                     pollution of soil, air and water that comes
    other issues caused by poor indoor
                                                     from cotton farming. The company’s
    environmental quality, it costs the company
                                                     purchasing decisions are encouraging
    five dollars a day. Although this may not
                                                     pollution prevention and waste reduction,
    sound like a lot, that’s $1,250 per year, just
                                                     resulting in lower waste management fees.4
    for one employee. Take 100 employees in a
    15,000 square foot building and that amounts     Maytag, a producer of washer and dryer
    to $125,000 per year or an $8.33 per square      units, is finding opportunities to minimize
    foot per year loss in productivity.3             product packaging. The company contacted
                                                     the eight suppliers that accounted for more
    Knowing exactly where supplies originate and
                                                     than 60 percent of the total incoming
    knowing their content are crucial to the well
                                                     cardboard packaging to discuss reduction
    being and productivity of employees. Flooring
                                                     strategies. Some of the options implemented
    material may use a toxic adhesive or furniture
                                                     included reusable parts such as shipping
    may off-gas harmful fumes. Both of these can
                                                     containers, bulk paint containers and
    impact the health of the building and its
                                                     corrugated cart liners. Supplier costs for the
    occupants. Exposure to volatile
                                                     packaging went down as a result.5
    organic compounds (VOCs) can produce
    minor health problems such as headaches,         As a demonstration of its commitment,
    coughs, nosebleeds or dizziness, but they        Milliken & Company addressed one of the top
    can also have more serious effects such as       five environmental health risks related to
    triggering respiratory diseases like asthma      interior textile installations—Indoor
    and allergies or even causing cancer.            Environmental Quality, or IEQ. To improve
                                                     IEQ, research focused on the elimination of
    Commitment to improving indoor
                                                     on-site applied adhesives. The resulting
    environmental quality communicates an
                                                     products provided an adhesive-free solution
    organization’s dedication to its stakeholders’
                                                     for floor and wall covering called
    well-being.
                                                     TractionBack®. The bio-based coating is
    By requiring paper products to contain a         applied during manufacturing and eliminates
    certain amount of recycled content, fewer        off-gassing and VOCs on-site for healthier
    trees need to be harvested each year for their   interiors. This adhesive-free modular installs
    pulp. By requiring that electronic equipment     faster and virtually eliminates downtime.
    use less energy, less atmosphere greenhouse      Replacements from wear or severe stains are
    gas emissions are generated to pollute the       quick and simple. Easy access to underfloor
    atmosphere. And, by instituting a green          wiring is another benefit.
    cleaning program, fewer harmful chemicals
                                                     One element many organizations are
    are added to our wastewater stream,
                                                     considering is the competitive advantage they
    improving our drinking water and expanding
                                                     achieve through green purchasing decisions.
    our water recreation opportunities.
                                                     As an increasing number of consumers and
                                                     investors are considering their own supply
                                                     chains, they will seek
 G           reening your supply chain

            out companies who are also committed. A             black eye. Therefore, paying close attention
            survey found that 80 percent of consumers in        to supplier activities can not only improve the
            the UK prefer to buy products from                  triple bottom line, but also reduce the risk of
            companies with good environmental and               a crisis communications fiasco.
            social track records.6 As a larger portion of
            consumers become more environmentally
            aware, organizations that are not greening          How to Green the Supply Chain
            their supply chains or offering green product
            features will find it difficult to survive in the   To begin greening a supply chain, it’s
            marketplace.                                        important for an organization to be unified
                                                                with its goals and values. Companies
            Underscoring the importance to green the            dedicated to greening their supply chain
            supply chain, federal agencies are                  need to have a strong commitment that is
            encouraged to buy more green products due           stated in their mission statement. This
            to executive orders and federal regulations.        commitment should be in writing and
            Executive Order 13101 Greening Through              distributed to all employees. Additionally, top
            Waste Prevention, Recycling, and Federal            management at the organization should
            Acquisition requires federal agencies to            understand the benefits of being socially and
            consider environmental criteria in purchasing       environmentally responsible throughout
            decisions. There are also Federal Acquisition       company operations. While many green
            Regulations that govern how federal agen-           products cost the same or less than
                cies buy goods and services, requiring          comparable products, in some instances
                      them to implement programs that           green alternatives are more expensive. An
                         use environmentally preferable         employee paying a premium for a green
     Paying close          and energy-efficient products        product within a “lowest-cost” environment
                            and services. The Biomass           will not last long. Therefore, top-level buy-in
 attention to supplier Research and Development                 is crucial.
activities can not only Act of 2000 promotes the
                                                                An important part of ensuring continued
  improve the triple          development and
                                                                support is for managers to track the success
                              manufacture of bio-based
bottom line, but also                                           of green purchasing efforts. From reductions
                              products. State and local
    reduce the risk           governments across the            in energy and water use to reductions in
       of a crisis           nation as well as buying           waste or employee absences, the figures will
                            groups are also instituting         add up to great savings. Some Web sites
   communications                                               offer energy savings calculators or other
                           environmentally preferable
         fiasco.         purchasing programs.                   types of calculators that are helpful when
                                                                evaluating savings. These savings will
                   Another benefit of a green supply chain      reinforce the benefits of green purchasing to
            is the matter of corporate and brand image.         high level executives and the organization as
            Positive stories promoting company and              a whole, thus encouraging additional green
            brand image can attract the attention of            efforts.
            customers, investors and even the media.            Energy Star:
            The same can be said for negative stories.          http://www.eere.energy.gov/consumer/calculators/
            Investors and other constituencies are              Philips Energy Savings Calculator:
            continuously demanding more transparency            http://www.nam.lighting.philips.com/
            from all business entities. The last thing any      us/pro_lighting/energy_savings_calc.php
            organization can afford is a public relations
  G           reening your supply chain

            Education is another key to greening the         Another simple way to green the supply
            supply chain. Some people think that going       chain is by using suppliers that are local. This
            green will be more expensive when in many        reduces the financial costs, the consumption
            instances it saves money. Lower energy           of natural resources and the emission of
            consumption, less maintenance and repairs        harmful pollutants associated with
            or reduced disposal costs can make up for        transporting products from distant locations.
            higher up-front costs. When creating a green     In addition, purchasing from local suppliers
                   purchasing policy, all affected parties   drives the local economy.
                        should be involved and under-
                                                             If raw materials used in the manufacturing
                          stand the long term goals,
      Greening the                                           process harm the environment, it can be far
                            especially those who work in
                                                             more beneficial to the manufacturer to find a
    supply chain is all      the purchasing department
                                                             more environmentally friendly alternative.
                              and their superiors.
     about evaluating                                        Even if the material is not necessarily
  existing processes as      From a human resources          harmful, there is a good chance there is
                             standpoint, managers            something in the market place that serves
       they relate to
                              should select individuals      the same purpose but is more durable, more
the triple bottom line and who show a true interest          energy- or resource-efficient or contains
  taking small steps to      in sustainability to be part    recycled content, thereby making the product
    green the product       of a green team that             less harmful to the environment.
                           researches green product
    throughout its life   alternatives and brainstorms
                                                             Standard Fruit de Costa Rica, Dole’s Costa
           cycle.                                            Rican operating subsidiary, is working with
                         ways the organization can
                                                             the country's National Forestry Financing
                            make greener purchasing deci-
                                                             Fund (FONAFIFO) to wipe out the emissions
                         sions. Discussions among these
                                                             from the production, packing, transport and
                    like-minded individuals tend to spark
                                                             distribution of its bananas and pineapples to
             ideas for more green initiatives.
                                                             European and North American markets.
             Many companies, such as Lucent                  FONAFIFO and Dole will focus on mitigation
             Technologies, Lockheed Martin and Johnson       practices that increase carbon dioxide
             Controls, include procurement from minority-    capture, such as more efficient transportation
             owned companies as part of their greening       methods, altering agricultural processes to
             effort. Strengthening minority markets has a    lower emissions and implementing
             positive impact on the community as more        preservation and reforestation programs with
             people can purchase more products and           Costa Rican farmers.7
             services. Additionally, job creation is
                                                             Greening the supply chain is all about
             accelerated in the minority workforce as
                                                             evaluating existing processes as they relate
             minority firms tend to hire minority
                                                             to the triple bottom line and taking small
             employees, furthering the social benefits
                                                             steps to green the product throughout its
             of their green purchasing program.
                                                             life cycle.
G          reening your supply chain

          EPA’s Environmentally Preferable                  3. A product’s or service’s environmental
          Purchasing Guidance8                              preferability is a function of multiple
                                                            attributes from a life-cycle perspective.
          1. Environmental considerations should
          become part of normal purchasing practice,        Raw materials, product manufacturing,
          consistent with such traditional factors as       packaging, transportation and disposal all
          product safety, price, performance and            contribute to a product or service’s life cycle.
          availability.                                     Organizations should purchase
                                                            products or services with as few negative
                   If the manufacture, use and
                                                            effects on the environment in as many
                         disposal of certain products
                                                            stages of its life cycle as possible.
                            have negative impacts on
       As more                human health or the           4. Federal agencies should consider the
   manufacturers                environment, society        reversibility and geographic scale of the
                                 ends up paying for         environmental impacts, the degree of
provide disclosure on             them in one way or        difference among competing products or
   environmental                   another. This is why     services and the overriding importance of
  information, the                 environmental            protection for human health.
   marketplace for                 considerations should
                                                            An impact is less acceptable if recovery time
                                  be taken into account
  environmentally                 and should be a
                                                            is longer or if its effects are global rather than
 preferable products                                        local or regional. If an organization has to
                                subject of competition
                                                            choose between two products that each
  and services will            among venders, which
                                                            have different attributes that benefit
                             will eventually stimulate
      increase.           continuous environmental
                                                            environment, it should consider both the
                                                            nature of the environmental impact and
                       improvement, increasing the
                                                            the degree of difference among the
        availability of environmentally preferable
                                                            competing products.
        products and services.
                                                            5. Comprehensive, accurate and meaningful
          2. Consideration of environmental
                                                            information about the environmental
          preferability should begin early in the
                                                            performance of products or services is
          acquisition process and be rooted in the
                                                            necessary in order to determine
          ethic of pollution prevention, which strives to
                                                            environmental preferability.
          eliminate or reduce, up front, potential risks
          to human health and the environment.              Information on all stages throughout a
                                                            product’s or service’s life cycle is crucial
          A major reason for environmentally
                                                            when evaluating whether one product or
          preferable purchasing is to protect the
                                                            service is more or less damaging than
          environment by reducing waste and
                                                            another. As more manufacturers provide
          pollution at the source, which reduces
                                                            disclosure on environmental information,
          costs to the government and society.
                                                            the marketplace for environmentally
          Because many of the environmental
                                                            preferable products and services will
          impacts a product has are determined
                                                            increase. And the accessibility of the public
          early on in the design stages, it’s important
                                                            to this information will ensure accuracy
          to consider environmental preferability as
                                                            and credibility.
          early as possible.
G          reening your supply chain

          Involve Your Employees                             environmental and social performance and
                                                             consider other suppliers if environmental and
          Finding environmentally friendly products for
                                                             social responsibility is lacking.
          the office becomes easier every day as
          more green products are introduced. But,           Employees can have green meetings on a
          organizations looking to green their supply        regular basis. To make a meeting greener,
          chain can’t wait for a green-product               participants could register electronically and
          salesperson to walk through their door.            bring their own pens and paper. Employees
          If green purchasing is a priority, those           could use non-toxic markers for presenta-
          responsible for purchasing must seek out           tions, eliminate plastic water bottles, use
          and find these alternative products.               signs and banners made from recycled
                                                             materials and make sure recycling bins are
         Take for example environmentally
                                                             abundant.
         preferable printers. Because environmental
                responsibility is just one of
         A         many distinguishing features,
                                                             Making Green Products
   product that      manufacturers of the product
   can be easily       may not even be promoting it          When manufacturers are looking for ways to
                        as green. It may be faster than      green their efforts, their products are a great
    repaired or          the alternatives and cost less.     place to start. Seventy percent of the cost to
 upgraded is better                                          develop, manufacture and use a product is
                            These printers have a sleep
for the environment         mode so they end up using
                                                             determined in its design phase. Seventy
 than if you had to                                          percent of a product’s environmental impacts
                            about 60 percent less energy
                                                             are also determined in its design phase.
     replace the           than traditional printers, on
                                                             Therefore, organizations that work with
                          average. If the office uses many
   entire product.                                           suppliers to develop designs and processes
                        printers, this could offer great
                                                             that positively impact the financial,
                      savings. Purchasing 1,000
                                                             environmental and social properties of their
                  environmentally preferable printers
                                                             product can stay ahead of the competition
          would save a company $75,000 over the
                                                             on several fronts.
          printer’s life cycle and would have the same
          greenhouse gas impact as taking 15 cars off        One simple green design feature is
          the road. Furthermore, manufacturers who           increasing the durability of a product. The
          offer green printers have programs for             result is fewer products will be necessary
          recycling toner bottles and cartridges.9           since the product will have a longer life. This
                                                             decreases waste and energy used in
          All employees need their own supplies to get
                                                             manufacturing. A product that can be easily
          a job done. Individual employees can help
                                                             repaired or upgraded is better for the
          green the supply chain by buying only what
                                                             environment than if you had to replace the
          they need, learning where their supplies
                                                             entire product.
          originate and evaluating the environmental
          and social performance of suppliers. They
          can also work with suppliers to improve their
G            reening your supply chain

            The design of a product should also take         Organizations looking to green their supply
            into account the product’s recyclability.        chains need to lead by example, and the
            Entire products that are not recyclable          truth is, a green product can not be made
            should be easy to disassemble for instant        in a brown factory. It’s important for
            access to the recyclable parts. The easier it    companies to consider using green
            is to access the recyclable parts, the more      building best practices in their facilities if
            likely the end user will recycle. In addition,   they are going to tout their products as
            recyclable products or product parts need        being green. Purchasing renewable energy,
            to be clearly labeled.                           such as wind, solar and geothermal
                                                             energy, can greatly reduce our dependency
            The recycling programs in the United States
                                                             on foreign oil and eliminate emissions.
            have grown considerably over the past
            years. Many Americans are happy to do their
            part in sorting out their garbage into
                                                             LCAs
            recyclable parts. However, there is not
            enough demand for products with recycled         One way to determine the greenness of a
            content, and oftentimes, plastics that have      product is by conducting a Life Cycle
            been separated for recycling remain stored       Assessment, or LCA. In her paper, “Life
            in warehouses, unused. When organizations        Cycle Assessment: the Environmental
            choose to use supplies made from recycled        Performance Yardstick,” Rita Schenck of
            content, they close the loop, generating the     the American Center for Life Cycle
            demand necessary to recycle unused               Assessment describes an LCA as “a
            materials.                                       holistic yardstick of the environmental
                                                             performance of products and services. It
           Small changes have the potential to make
                                                             measures how much impact a product has
           a meaningful impact on the triple bottom
                                                             both directly and indirectly. An LCA is
                    line. As an example, Milliken &
                                                             holistic because it covers all phases of the
                         Company found it could
       Purchasing           significantly decrease
                                                             product's life cycle and it covers all
       renewable                                             significant environmental impacts.”10
                              packaging waste through
 energy, such as wind, working with specifiers.              In another work,11 Schenck explains the
 solar and geothermal In 1995 Milliken size of
                                 changed the tile
                                                             process of conducting an LCA in relation to
                                                             ISO 14040 standards, the most current
  energy, can greatly            its modular carpet,         environmental standard available. The
reduce our dependency            from 18 square inches       process determines all the mass and energy
   of foreign oil and            to 36 square inches, to     flows from the time raw materials are
                                reduce waste and             extracted from the environment, through the
        eliminate              complexity in shipping.       manufacturing of the product, its use and its
       emissions.             Twelve years later this        final disposal. Following all that mass and
                            small modification has           energy from cradle to grave provides an
                         eliminated more than 76             accurate estimation of what kind of impact
                    million pounds of cardboard by           the product is having on the environment.
           shipping on pallets versus boxes, a
           quantity of cardboard that represents
           approximately 90,000 trees.
G   reening your supply chain

    The most common reason to do LCAs is for       A simple way to do that is to get the
    “market advantage for environmentally          product certified and then market that
    preferable products.… Because LCAs can         certification. There are a number of third-
    influence the financial success of a           party certifications available.
    company, they provide an excellent wedge
                                                   Green Seal® provides labels for
    for the integration of environmental systems
                                                   environmentally responsible goods and
    with other systems.”12 Collaboration and
                                                   services. Green Seal works with
    partnerships with suppliers and customers
                                                   manufacturers, industry sectors, purchasing
    are a necessary step in this process to
                                                   groups and governments to green the
    reduce waste, conserve resources and
                                                   production and purchasing chain,
    introduce renewable materials. LCAs can
                                                   evaluating the entire life-cycle of the
    also help identify false steps.
                                                   product or service. Green Seal products
    Stonyfield Farms had been using #2             range from soap to windows.
    recyclable plastic cups for its organic
                                                   A well-know program, ENERGY STAR®,
    yogurt assuming it was the most
                                                   identifies and labels products that are the
    environmentally friendly choice. When a
                                                   most energy-efficient on the market.
    study from the Tellus Institute stated that
                                                   ENERGY STAR qualified products range
    more than 95 percent of the environmental
                                                   from dishwashers, furnaces and computers
    cost of a package is in its production, the
                                                   to light fixtures, ceiling fans and VCRs.
    company switched from the #2 cups to
                                                   There is even certification for homes.
    #5 thermoform plastic cups. While not
    recyclable, the #5 cups reduced the            WaterSense® is a program sponsored by
    amount of materials used in packaging by       the U.S. Environmental Protection Agency
    17 percent. The new cups also use foil tops    with a mission to protect the nation’s water
    instead of plastic lids, resulting in          supply by promoting the market for
    16 percent energy reduction, 6 percent         water-efficient products and services. From
    solid waste reduction, 13 percent less         landscape irrigation services to bathroom
    water consumed, and the use of 106 fewer       sink faucets and toilets, WaterSense
    tons of material in the first year alone. An   provides labels to products and services
    independent LCA verified a reduction in        that are water efficient.
    overall environmental impact.13
                                                   Greenguard® is a certification and labeling
                                                   program that addresses product-related
                                                   indoor air quality performance. Products are
    Third-Party Certification
                                                   regularly tested to ensure their chemical
    If a product is green, market it! As           and particle emissions meet acceptable
    mentioned earlier, green purchasers are the    indoor air quality pollutant guidelines and
    ones responsible for finding green             standards. Products in the Greenguard
    products. Marketing the green product          Product Guide include doors, flooring,
    features to the masses makes their job of      furniture, bedding, air filters and wall
    finding your product that much easier.         finishes.
G           reening your supply chain

           For the first time in the building industry,      receive formal certification of their
           architects, designers and end users will be       environmental performance while Herman
           able to easily identify “green” carpets that      Miller inspects its suppliers’ facilities every
           have a reduced environmental impact,              12 to 18 months.14
           certified by the new NSF140, Sustainable
                                                             SC Johnson Wax initiated a supplier
           Carpet Assessment Standard. It is the first
                                                             partnership program in 1991. SC Johnson
           industry-wide unified product standard to be
                                                             works with its 70 supplier organizations to
           ANSI accredited and applies to carpets used
                                                             establish environmental goals and
           in all types of buildings in the United States.
                                                             encourages them to examine their own
           The Forest Stewardship Council provides           environmental management programs.
                      certification for wood that comes      Working together, SC Johnson and its
       Companies          from environmentally               partners have reduced over 400 million
                             managed forests. FSC            pounds of waste and saved over $120 million
       are not only            certified® products can be    per year.15 It is easy to see how a supply
  evaluating their own          found worldwide and are      chain can drastically change because of the
 sustainability practices, also at many retail               relationship between organizations involved
but are also encouraging stores in the United                in the supply chain.
                                  States including The
their suppliers to make a Home Depot, Lowe’s                 Concern for worker safety is an important
                                                             pillar of sustainability with a recognized
     commitment to                Home Improvement
                                                             economic value. Milliken, which boasts an
      environmental              Centers and Kinko’s.
                                                             annual injury rate more than 92 percent
        and social              Companies should also        below the industry average, has worked with
      responsibility.         get the green product          suppliers and communities to implement
                           included in green procure-        various safety programs. One such safety
                        ment systems and lists and label     program was implemented throughout
           the green product                                 Troup County government facilities in
           appropriately. Environmentally conscious          Georgia. According to a presentation
           consumers need to be aware of the                 delivered by County Commissioner Richard
           green products in the market. Organizations       Wolfe in August 2007, the program helped
           such as The Institute for Market                  reduce county building occupant injuries
           Transformation to Sustainability [or MTS          by 50 percent.16
           (see http://mts.sustainableproducts.com/)]
                                                             Supply chains stretch even further than the
           are trying to set standards for product
                                                             final product that goes into consumers’
           categories and create green product
                                                             hands. A supply chain also includes what
           directories to make the switch to sustainable
                                                             happens after the consumer buys it. Does
           purchasing fast and easy.
                                                             the product get recycled or is it thrown
                                                             away? Can the product be reused?
                                                             A supply chain is the entire life cycle of a
           Sharing The Responsibility
                                                             product, from its birth to its death.
           Companies are not only evaluating their own
           sustainability practices, but also are
           encouraging their suppliers to make a
           commitment to environmental and social
           responsibility. Volvo requires its suppliers to
G   reening your supply chain

    Companies can make it easy for customers           Royal Crest Dairy became one of the first
    to participate in green practices once the         dairies in the country to incorporate reusable,
    product has left their doors by getting            recyclable plastic containers for milk in 1965.
    customers to send recyclable materials back        Royal Dairy collects these containers and
    to the manufacturer. For many products in          reuses them up to 100 times before they are
    European countries and Japan, it is the law        recycled. Because of this reuse process,
    to return valuable materials such as car           Royal Crest prevents over 40 tons of waste
    batteries or carpeting back to the producer.       annually.17


                             The City of Santa Monica                        18



    The city of Santa Monica is       on environmental and human         fewer pest complaints
    a leader in environmental         health criteria, then on           received by facility managers.
    purchasing. Santa Monica’s        performance and then on
                                                                         Santa Monica also made
    Sustainable City Program          cost. In addition to green
                                                                         changes to its Fleet
    strives to create the basis for   cleaning products being
                                                                         Maintenance Division. Of all
    a more sustainable way of         better for the environment
                                                                         city vehicles, 67.5 percent
    life—helping the city “meet       and human health, this
                                                                         are maintained by the Fleet
    its current needs without         switch reduced the city’s
                                                                         Maintenance Division. All of
    compromising the ability of       spending on custodial
                                                                         these 585 vehicles use
    future generations to do the      products by about five
                                                                         re-refined motor oil which
    same.”                            percent. This also eliminated
                                                                         costs the city up to
                                      about 3,200 pounds annually
    The city made changes in                                             25 percent less than virgin
                                      of hazardous materials in
    buying products and services                                         motor oil. The Fleet
                                      products purchased, and
    that were environmentally                                            Maintenance Division also
                                      increased the morale of
    preferable and while these                                           uses antifreeze made with
                                      custodians who recognize
    products and services                                                propylene glycol which is
                                      that the city is concerned
    performed just as well as or                                         less toxic than ethylene-
                                      about their health and
    better than traditional                                              glycol antifreeze in all of its
                                      working conditions.
    competitor products and                                              vehicles. About 20 percent of
    services, they often saved        The city also switched to an       these vehicles are powered
    the city money. In addition,      integrated pest management         by alternative fuels including
    the switch to alternative         approach at all facilities. This   CNG, electricity and propane.
    products did not place any        method gained excellent            More than half of the fleet
    extra burden on the staff.        control of pests around            has retread tires, which cost
                                      city-owned buildings and           less than new tires and
    Across the entire city, Santa
                                      structures while reducing the      conserve oil as it takes 22
    Monica replaced its
                                      hazard associated with             gallons of oil to make a new
    traditional cleaning products
                                      pesticide applications by          tire and only seven gallons to
    with cleaning products with
                                      eliminating the use of spray       retread a truck tire. The Fleet
    less toxic or nontoxic
                                      pesticides in most cases.          Maintenance Division also
    chemicals in 15 of 17
                                      This method also ended up          purchases less toxic,
    cleaning product categories.
                                      costing 30 percent less than       water-based brake cleaners
    These products were tested
                                      traditional pesticide              and parts washer for use on
                                      application and there were         its vehicles.
G          reening your supply chain

           Think Before Acting                             thousand different carts. Imagine if every
                                                           single item in all those carts were
          Imagine any product that can be purchased.
                                                           environmentally friendly, socially conscious
               Now, take a moment to consider all the
                                                           and cost neutral. What kind of impact would
                      hands involved in getting that
                                                           that have on the planet? What kind of
                           product to the end user.
                                                           impact would that have on the lives of its
      Sustainable            Consider the working
                                                           inhabitants?
                              conditions of all those
procurement programs involved. Consider the                The Institute for Market Transformation to
  can effectively force         environmental impact of    Sustainability states the 100 largest companies
compliance by fostering extracting the raw                 account for more than 90 percent of the
                                 materials and the         world's products.19 By buying only those
    competition for
                                processes used to make     products that are green, that is environmentally
 green-buying dollars,         it. What is going to        and socially beneficial, sustainable
   thus driving down          happen to that product       procurement programs can effectively force
         prices.            once its usefulness is         compliance by fostering competition for
                          gone? Is there a more durable    green-buying dollars, thus driving down prices.
                     option? What about the
                                                           That is the power of a green supply chain.
          packaging? Is it excessive? Is it recyclable?
                                                           And all it takes is the addition of one more
           Now, consider those same questions for a        product feature to the decision-making
           cart full of different products. And now, a     process.




           Questions to Think About for Greening Your Supply Chain
           ■ What commitments have         ■ How does the company          ■ Does the company rent
             the company made to be          enforce environmental and       items that are used
             environmentally and             social performance              infrequently instead of
             socially responsible?           standards?                      purchasing them?
           ■ Is there a person on staff    ■ Are employees accountable     It’s important to keep in
             responsible for                 for the organization’s        mind that greening a
             coordinating environmental      environmental and social      supply chain takes time and
             purchasing efforts?             performance?                  is a continuous process.
           ■ What role have                ■ Does the company have a       Consistently taking small
             environmental and social        supplier diversity program?   steps to improve a
             considerations played in                                      product’s social and
                                           ■ Does the company comply       environmental impact will
             the design of the               with all federal, state and
             products and services?                                        make a notable difference
                                             local environmental laws?     in the company’s success.
G       reening your supply chain

    1
         EyeForProcurement, Green Purchasing Report, July 2007
    2
         Ibid
    3
         Bloech, H. (2003, May 1). Dimensions of Green. American School & University.
    4
         Ottman, J. (1998). Two companies that do everything right. From Green Marketing: Opportunity for Innovation (chap. 10).
         Retrieved August 16, 2007, from http://www.greenmarketing.com/Green_Marketing_Book/Chapter10.html#patagonia
    5
         United States Environmental Protection Agency. (1998). United States Environmental Protection Agency Solid Waste and
         Emergency Response (5306W). Retrieved August 16, 2007, from http://www.epa.gov/wastewise/pubs/wwupda9.txt
    6
         Volunteering England. What are the Key Benefits of Adopting CSR? Retrieved August 16, 2007, from
         http://www.volunteering.org.uk/WhatWeDo/Projects+and+initiatives/Employer+Supported+Volunteering/Employers/
         CSR+and+CCI/CSR/What+are+the+key+benefits+of+adopting+CSR.htm
    7
         GreenBiz.com, Dole to Make Banana and Pineapple Supply Chain Carbon Neutral. Aug. 13, 2007. Retrieved
         August 16, 2007, from http://www.greenbiz.com/news/news_third.cfm?NewsID=35721
    8
         United States Environmental Protection Agency (2006). EPA's Final Guidance on Environmentally Preferable Purchasing.
         Retrieved August 16, 2007, from http://www.epa.gov/epp/pubs/guidance/finalguidance.htm#guidingprinciples
    9
         Sachs, M. (2006, March). It’s Getting Easier to Be Green. From Summit: Canada’s magazine on public sector purchasing.
    10
         Schenck, Rita, Life Cycle Assessment: the Environmental Performance Yardstick. American Center for Life Cycle
         Assessment, Institute for Environmental Research and Education. Retrieved September 13, 2007, from
         http://www.iere.org/LCA-For-Mere-Mortals-Chapter1.html
    11
         Schenck, Rita, Life Cycle Assessments for Mere Mortals. American Center for Life Cycle Assessment, Institute for
         Environmental Research and Education. Retrieved September 13, 2007, from
         http://www.lcacenter.org/LCA/LCA-yardstick.html
    12
         Ibid
    13
         GreenBiz.com, Small Packages Have Big Impact. Retrieved August 16, 2007, from
         http://www.greenbiz.com/news/reviews_third.cfm?NewsID=35720
    14
         United States Environmental Protection Agency (1999). Private Sector Pioneers: How companies are incorporating
         environmentally preferable purchasing. From Environmentally Preferable Purchasing Program. Retrieved August 16, 2007,
         from http://www.epa.gov/oppt/epp/pubs/privsect.pdf
    15
         United States Environmental Protection Agency (1998). United States Environmental Protection Agency Solid Waste and
         Emergency Response (5306W). Retrieved August 16, 2007, from http://www.epa.gov/wastewise/pubs/wwupda9.txt
    16
         Wolfe, Richard (August 2007). Proceedings of Injury Reports for Troup County, La Grange, GA: Milliken.
    17
         GreenBiz.com, Small Packages Have Big Impact. Retrieved August 16, 2007, from
         http://www.greenbiz.com/news/reviews_third.cfm?NewsID=35720
    18
         United States Environmental Protection Agency (1998). The City of Santa Monica’s Environmentally Purchasing:
         A case study. From Environmentally Preferable Purchasing Program Retrieved August 16, 2007, from
         http://www.epa.gov/oppt/epp/pubs/santa.pdf
    19
         The Institute for Market Transformation to Sustainability. Retrieved August 16, 2007, from
         http://mts.sustainableproducts.com/

				
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