Purchasing for People and the PlanetLisa MastnyState of the World 2004

Purchasing for People and the PlanetOverview: Greening Institutional Procurement Pioneers in Green PurchasingPressures and DriversOvercoming ObstaclesIdentifying Green ProductsSpreading the Movement

Nearly every purchase an organization makes has hidden costs for the environment and for the worlds people

Purchasing for People and the Planet

When purchasing is highly centralized, as in large institutions, a single decision made by one or a handful of buyers can influence the products used by hundreds or even thousands of individuals The buying activities of institutional purchasers have far greater consequences for the planet than the daily choices of most household consumers Greening Institutional Procurement

By incorporating environmental concerns into all stages of their procurements, institutions can use their significant purchasing power to be powerful agents for environmental changeGreening Institutional Procurement

Governments spend billions of dollars on purchases of everything from office supplies to vehiclesGreening Institutional Procurement

Other large institutions also have significant purchasing powercorporations universities religious institutions international institutions such as the United Nations and World Bank Greening Institutional Procurement They all require vast amounts of goods and services to run their operations

Rising institutional demand can play a key role in building larger markets for greener goods and services, making environmentally preferable purchases more affordable for everyone

Greening Institutional Procurement

Institutions can make use of their systematic approach to purchasingIn addition to requirements for quantity, price, function, or safety in purchasing contracts with suppliers, institutional buyers can also establish environmental criteria

Greening Institutional Procurement

Several advantages to green purchasing at the corporate level

Pioneers in Green Purchasing improved profitability from increased water and energy efficiency, waste reduction healthier and safer work environments (fewer toxic chemicals from cleaning agents, paints, pesticides, etc.) better public image

Examples of Green Purchasing in Selected Companies

Examples of Green Purchasing in Selected Companies

Several countries have strict national laws or policies requiring government agencies to buy green

Pioneers in Green Purchasing- Austria- Canada- Denmark- Germany- Japan- United Kingdom- United States

Government green purchasing can be particularly effective in pushing markets where public buying accounts for a significant share of overall demand (e.g., computer equipment)

Pioneers in Green Purchasing

U.S. government is the worlds single largest computer purchaser (1 million machines annually)In 1993, federal agencies were required to buy only computer equipment that met efficiency requirements of Energy Star program

Pioneers in Green Purchasing Today, largely due to this increased demand, Energy Star standards are now met by - 95% of all monitors- 80% of all computers- 99% of printers sold in North America

Governments can exert pressure to promote green purchasing with rebates, tax breaks, and other economic incentives to encourage consumers to buy green laws and regulations (for energy efficiency, recyclability, waste disposal, etc.) to influence the way manufacturers design and make their productsPressures and Drivers: Governments

Many consumers chose to buy green at the household levelAbout 63 million U.S. adults (30% of households in the country) do some form of environmentally or socially conscious buyingConcerned individuals are participating in boycotts and other direct actions to pressure companies into shifting their buying practicesmany feel this is a more effective tool for change than lobbying for regulatory action, which could take yearsPressures and Drivers: Individual Consumers

In the mid-1990s, Rainforest Action Network launched a campaign to pressure Home Depot, the worlds largest home improvement retailer, to change its buying practicesIn 1999, the company announced they would phase out endangered wood products and favor products certified as coming from sustainably managed forests Ripple effect: these policy shifts have raised the overall standard for the timber industryPressures and Drivers: Individual Consumers

Green purchasing initiatives must overcome several barrierscomplex legal framework surrounding procurementweak enforcementpolitical challengesfinding affordable product alternativesconvincing employees to recognize the benefits of adopting more environmentally sound practices

Overcoming Obstacles

Tools to help green purchasing:establishing an explicit written policy or lawsetting strict targetsimplementing a system of accountabilitymonitoring and recording activity

Overcoming Obstacles

An additional challenge lies in identifying green productsTo make sound decisions, there is a need to evaluate the environmental performance of productsSeveral tools are being developed to help both manufacturers and consumersIdentifying Green Products

Identifying Green Products

A number of organizations and networks are spreading the movement bypublishing information on green purchasingcollecting success storiespublicizing trendspartnering directly with industry leaders and government officialsrallying the grassroots to boycott or otherwise pressure manufacturerspromoting public debate and generating media interestSpreading the Movement

Spreading the Movement

Spreading the Movement

Spreading the Movement

Must also boost green purchases in the developing worldBy doing so, international organizations stimulate local green markets, and clean up their own acts in the face of mounting criticism about the environmental impacts of their activitiesSpreading the Movement

Green purchasing is not the only way to minimize the problems associated with excessive consumptionInstitutions will also need to find ways to meet their needs without buying new products, such as- eliminating unnecessary purchases- extending the lives of existing products- diverting used goods from being sent to landfillsSpreading the Movement

Green purchasing is an important step to achieving a more sustainable worldAs individuals, we need to pressure the organizations we work for, and rely on, to join us in building such a worldSpreading the Movement

About the Author Lisa Mastny is a Senior Editor at the Worldwatch Institute

More information on State of the World 2004 at www.worldwatch.org

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