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P2 Regional RoundtableEPP Session
EUN-SOOK GOIDELPACIFIC NW
POLLUTION PREVENTION RESOURCE CENTER
March 17, 2004
ENVIRONMENTALLY ENVIRONMENTALLY PREFERABLE PREFERABLE PURCHASINGPURCHASING
2
OVERVIEW OF EPP SESSIONOVERVIEW OF EPP SESSION
Part 1: EPP Panel– Setting the context– Introductions by panel
members– Panel discussion of
challenges & strategies to overcome them
– Questions for panel members from the audience
– Wrap up
Part 2: EPP Training – Putting the Concepts into Practice– Key ingredients for
EPP– How do you know it’s
“green”?– EPP Opportunities &
Resources– Q&A throughout
AM PM
3
INSTITUTIONAL INSTITUTIONAL PURCHASERS: A SPECIAL PURCHASERS: A SPECIAL
ROLE…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
4
WHAT IS ENVIRONMENTAL WHAT IS ENVIRONMENTAL PURCHASING?PURCHASING?
….Incorporating key environmental factors with traditional price and performance considerations in purchasing decisions.
5
EVOLUTION OF EVOLUTION OF ENVIRONMENTAL PURCHASINGENVIRONMENTAL PURCHASING
Recycled Content Purchasing
Energy Efficiency Purchasing
Reduced ToxicsPurchasing
Bio-basedPurchasing
Environmentally Preferable Purchasing
6
SUSTAINABLE PURCHASING
Balancing the three “E”s: Environment Economics Equity
Next iteration in the continuous improvement model...
7
EPP PANEL DISCUSSIONEPP 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
PUTTING EPP CONCEPTS INTO PRACTICE
EUN-SOOK GOIDELPACIFIC NW
POLLUTION PREVENTION RESOURCE CENTER
March 17, 2004
ENVIRONMENTALLY ENVIRONMENTALLY PREFERABLE PREFERABLE PURCHASINGPURCHASING
9
OVERVIEW OF EPP SESSIONOVERVIEW OF EPP SESSION
Part 1: EPP Panel– Setting the context– Introductions by panel
members– Panel discussion of
challenges & strategies to overcome them
– Questions for panel members from the audience
– Wrap up
Part 2: EPP Training – Putting the Concepts into Practice– Key ingredients for
EPP– How do you know it’s
“green”?– EPP Opportunities &
Resources– Q&A throughout
AM PM
Part 1: EPP Panel– Setting the context– Introductions by panel
members– Panel discussion of
challenges & strategies to overcome them
– Questions for panel members from the audience
– Wrap up
AM
12
CHAIN OF CONSUMPTIONCHAIN OF CONSUMPTION
– R&D/Designers– Manufacturers– Retailers– Purchasers– End Users– End-of-life managers
– Materials Selection– Mfg Process Selection– Distribution/Packaging– Sourcing/Logistics– Product Selection/Use– Disposal/Recycling
PLAYERS SPHERE OF INFLUENCE
13
ENVIRONMENTALLY ENVIRONMENTALLY PREFERABLE PURCHASINGPREFERABLE PURCHASING
– R&D/Designers– Manufacturers– Retailers– Purchasers– End Users– End-of-life managers
PLAYERS
Send clear market signals of organization’s preference for environmentally preferable
products
15
EPP: KEY INGREDIENTSEPP: KEY INGREDIENTS(Need not mix (Need not mix sequentially!)sequentially!)
Engage othersKnow what you’re buyingBench-mark your purchasing practicesPrioritize your effortsDefine green for chosen product category Fit green into procurement to obtain productSell EPP to internal and external stakeholdersNurture a supportive infrastructure
16
* Engage Others ** 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)
17
* Know what you are * Know what you are buying *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?
18
* Benchmark ** 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 Procurementhttp://www.greenseal.org/criteria_procurement.pdf
20
* Prioritize ** 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
22
PPRC’S PRIORITIZATION TOOL*PPRC’S PRIORITIZATION TOOL*
Environmental– Overall Impact– Product Stewardship
potential
Logistics– Standards– Environmental info.– Env alternatives– Performance– Expertise– Flexibility in procurement
Political– Statutory requirement– Management support– Industry collaboration
potential
Economic– Dollar value of purchase– Price of alternatives– Life cycle cost savings– Bundling potential
* Developed for the Department of Ecology and WA Office of State Procurement, 2003* Tool is being revised for use by a broader audience.
23
OVERALl
IMPACT
PRODUCT
STEWARDSHIP
STANDARDS
AVAIL
OF
INFO
ALTERNATIVES
PERFORMANCE
OF
ALT
EXPERTISE
FLEXIBLE
PROCUREMENT
STATUTORY
REQ
MANAGEMENT
SUPPORT
INDUSTRY
COLLABORATION
DOLLAR
VALUE
PRICE
OF
ALT
LIFE
CYCLE
COST
SAVINGS
BUNDLING
POTENTIAL
TOTAL
SCORE
Environment Logistics Political Economic
Product Category/Contract
Criteria Score
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
PPRC’s Product Category Prioritization Tool – An Example
24
FOUR STEPS TO FIND VALUE FOUR STEPS TO FIND VALUE OPPORTUNITIES IN PRODUCT LIFE CYCLEOPPORTUNITIES IN PRODUCT LIFE CYCLE
Excerpted from: GEMI’s New Paths to Business Value, 2001
25
*Prioritize**Prioritize*(continued)(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)
26
* Define Green** 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
27
* “Fit” Green into * “Fit” Green into Procurement * 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
28
* “Sell” to * “Sell” to Stakeholders *Stakeholders *
Internal Stakeholders Procurement staff End Users Budget/Finance staff
External Stakeholders Vendors Customers
What ApproachesWork Best?Voluntary
Or Mandatory?
29
*“Sell” to Stakeholders **“Sell” to Stakeholders *(continued)(continued)
Tips for internal stakeholders– Incentives for
purchasers (Massachusetts Buy Recycled/EPP Award)
– EPP as a part of job performance (State of Washington)
– Pilot/demonstration projects
Tips for external stakeholders– Pre-bid meetings with
vendors (most EPP pioneers)
– Incentives, e.g., through price premiums (Department of Defense construction contract)
30
““NURTURE” A NURTURE” A SUPPORTIVE SUPPORTIVE
INFRASTRUCTUREINFRASTRUCTURE• 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
31
INSTITUTIONALIZING EPP
THEORY/CONCEPT
PRACTICE, PRACTICE, PRACTICE
INDIVIDUAL TRANSLATION & ADOPTION
35
ENVIRONMENTALLY PREFERABLE PURHCASING
•pollution prevention•Multiple attributes•life cycle
EPP = Environment + Price + Performance
36
HOW DO YOU DETERMINE HOW DO YOU DETERMINE IT’S “GREEN”?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
37
VENDOR CLAIMSVENDOR 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/guides980427.htm
38
VENDOR CLAIMS (continued)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.
Environmental Products
39
VENDOR CLAIMS (continued)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.”
40
GOVERNMENT STANDARDS GOVERNMENT STANDARDS OR GUIDESOR 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 Databasehttp://yosemite1.epa.gov/oppt/eppstand2.nsf
41
Comprehensive Procurement Guideline
Biobased Program
Energy Star
EPP Program
Recycled content
Agricultural or forestrymaterials content
Depends on product/service -- examples include:All of the above plusLess/Non toxicResource conservingRecyclableDurable/upgradableReduced packagingReduced effect on human health and eco-systems
Energy efficiency
Green Procurement Program Target Attribute(s)
FEDERAL GREEN PROCUREMENT PROGRAMS
42
THIRD PARTY THIRD PARTY PROGRAMSPROGRAMS
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)
43
THIRD PARTY THIRD PARTY PROGRAMSPROGRAMS
Pros+ They’ve done the
homework of determining what constitutes green(= resource savings for organizations)
+ Some programs utilize LCA and/or LC perspective in standards development
Cons– Some worry that the
cost of certification might be passed onto the purchasers by vendors
– Can be difficult to sort out which third party standards are “good” and which ones are not
44
EVALUATING THIRD EVALUATING THIRD PARTY PROGRAMSPARTY 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")?
45
EVALUATING THIRD EVALUATING THIRD PARTY PROGRAMS PARTY PROGRAMS
(continued)(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?
47
IMMEDIATE OPPORTUNITIESIMMEDIATE OPPORTUNITIES
Copier PaperElectronicsCleaning productsBuildingsConferences/Meetings
48
WHY COPIER PAPER?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.
49
WHY COPIER PAPER?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!
50
WHAT YOU CAN DOWHAT 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”
51
WHAT YOU CAN DOWHAT 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!!
52
WHAT YOU CAN DOWHAT 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/index.html
– Conservatree www.conservatree.com
53
WHY ELECTRONICS?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.
54
WHY ELECTRONICS?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.
55
WHAT YOU CAN DOWHAT 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
56
WHAT YOU CAN DOWHAT 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
57
WHY CLEANING PRODUCTS?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.
58
WHAT YOU CAN DOWHAT 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
59
WHAT YOU CAN DOWHAT YOU CAN DOLook 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)
60
WHY BUILDINGS?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.
61
WHAT YOU CAN DOWHAT 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/
62
WHY MEETINGS?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 .
63
WHY MEETINGS?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.
64
WHAT CAN YOU DO?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.
65
WHAT CAN YOU DO?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/
66
TOP FIVE RESOURCESTOP 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
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