P2 Regional Roundtable EPP Session EUN-SOOK GOIDEL PACIFIC NW POLLUTION PREVENTION RESOURCE CENTER March 17, 2004 ENVIRONMENTALLY PREFERABLE PURCHASING.

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

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WHAT IS ENVIRONMENTAL WHAT IS ENVIRONMENTAL PURCHASING?PURCHASING?

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

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EVOLUTION OF EVOLUTION OF ENVIRONMENTAL PURCHASINGENVIRONMENTAL PURCHASING

Recycled Content Purchasing

Energy Efficiency Purchasing

Reduced ToxicsPurchasing

Bio-basedPurchasing

Environmentally Preferable Purchasing

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SUSTAINABLE PURCHASING

Balancing the three “E”s: Environment Economics Equity

Next iteration in the continuous improvement model...

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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

10

Environmental purchasing is

10% technical and

90% behavioral!

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Responsibility should not fall on the shoulders of “purchasers” only

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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

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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

PART 1: PART 1: PUTTING THE PUTTING THE

CONCEPTS INTO CONCEPTS INTO PRACTICEPRACTICE

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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

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* 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)

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* 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?

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* 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

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Review Self-Assessment Tools

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* 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

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Review Product Prioritization

Tool

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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.

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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

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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

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*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)

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* 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

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* “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

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* “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?

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*“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)

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““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

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INSTITUTIONALIZING EPP

THEORY/CONCEPT

PRACTICE, PRACTICE, PRACTICE

INDIVIDUAL TRANSLATION & ADOPTION

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QUESTIONS?

END OF PART 1

PART 2: PART 2: HOW DO HOW DO

YOU YOU KNOW KNOW

IT’S IT’S “GREEN”“GREEN”

??

35

ENVIRONMENTALLY PREFERABLE PURHCASING

•pollution prevention•Multiple attributes•life cycle

EPP = Environment + Price + Performance

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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

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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

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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

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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.”

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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

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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

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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)

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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")?

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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?

PART 3: YOU’RE PART 3: YOU’RE NOT WITHOUT NOT WITHOUT HELP!HELP!

OPPORTUNITIES AND TOOLS

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IMMEDIATE OPPORTUNITIESIMMEDIATE OPPORTUNITIES

Copier PaperElectronicsCleaning productsBuildingsConferences/Meetings

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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!

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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”

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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!!

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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

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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.

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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

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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

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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.

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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.

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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/

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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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QUESTIONS?QUESTIONS?

Contact:

Eun-Sook Goidel

Pacific NW Pollution Prevention Resource Center

[email protected]