1 sustainable purchasing strategies july 11, 2003

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Sustainable Purchasing Strategies

July 11, 2003

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Sustainable Purchasing Strategies

Scot Case,Director of Procurement StrategiesCenter for a New American Dreamwww.newdream.org/procure610 [email protected]

Jesse Eaves,U.S. Environmental Protection Agencywww.epa.gov/oppt/epp202 [email protected]

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Link Between Purchasing and the Environment

It’s all connected to purchasing

1©2003 by Scot Case, Center for a New American Dream

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Who Are We?

The Center for a New American Dream is a non-profit organization helping Americans consume responsibly to protect the environment, enhance quality of life and promote social

justice.

www.newdream.org

www.newdream.org/procure1©2003 by Scot Case, Center for a New American Dream

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How To Increase Profits?

Accounting Scandal Inc.

Incomexxxx.xx xx.xx xxx.xx xxxx.xxxxx.xx xxx.xx xxx.xx xxx.xx

Expensesxx.xx xxxx.xx xx.xx xxxx.xx

xxx.xx xxx.xx xxx.xx xxx.xxxxxx.xx xxxxxx.xx xxxx.xx xxxxxx.xxxxx.xx xxx.xx xxx.xx xxx.xx

xxxxxx.xx xxxx.xx x.xx xxxxxx.xxxxxxx.xx xxx.xx xxxxx.xx xxxxx.xx

xx.xx xxxxxx.xx xxxxx.xx xx.xxxxx.xx xxxxx.xx xxx.xx xxxxx.xx

xxxxxx.xx xx.xx xxxxxx.xx xx.xxxxx.xx xxxxxx.xx xxx.xx xxxxxx.xx

Net Loss $xxxxxxxxxx.xx


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Hide the Expenses












xx.xx xxxxxx.xx xxxxx.xx xx.xxxxxxxx.xx xxx.xx xx.xx xxxxxx.xx








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Hide the Expenses




















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Hide the Expenses




xxx.xx xxx.xx xxx.xx xxx.xx
















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Hide the Expenses



xxxxxx.xx xxxx.xx x.xx xxxxxx.xx


















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Hide the Expenses





















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Hide the Expenses









Net Loss $xxxx.xx












12

Hide the Expenses








Net Loss $xxxx.xx










Net Loss $xxxxxxxxxx.xx Accounting Scandal Inc.











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Hide the Expenses




xx.xx xxxxxx.xx xxxxx.xx xx.xx


xxx.xx xxxxx.xx xxx.xx xxxxx.xxxxxxxx.xx xx.xx xxxxxx.xx xx.xx

xxx.xx xxxxxx.xx xxx.xx xxxxxx.xx

Net Loss $xxx.xx































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Hide the Expenses




xx.xx xxxxxx.xx xxxxx.xx xx.xxxxxxx.xx xxx.xx xxxxx.xx xxxxx.xx


xxx.xx xxxxx.xx xxx.xx xxxxx.xx

xxx.xx xxxxxx.xx xxx.xx xxxxxx.xx

Net Loss $xx.xx





























































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Hide the Expenses




xx.xx xxxxxx.xx xxxxx.xx xx.xxxxxxx.xx xxx.xx xxxxx.xx x.xx


Net Loss $x.xx





































































































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Hide the Expenses




xx.xx xxxxxx.xx xxxxx.xx xx.xxxxxxx.xx xxx.xx xxxxx.xx xxxxx.xx


Net Profit xxxxxxxxxxxxx.xx

Net Loss













































































































































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Environmental Concerns

•Mass extinctions

•Deforestation & soil erosion

•Air & water pollution

•“Super” bacteria, viruses, and insects

•Dwindling natural resources

•Cancer rates increasing

•Reproductive disorders increasing

•Fisheries collapsing

•Water tables falling

•Climate Change1©2003 by Scot Case, Center for a New American Dream

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Consuming the Environment

“The major cause of the continued deterioration of the global environment is the unsustainable pattern of production and consumption, particularly in industrialized countries.”

– United Nations Agenda 21 Report


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2002 World Summit

Emphasized the need for authorities to “[p]romote public procurement policies that encourage development and diffusion of environmentally sound goods and services.”

- 2002 World Summit on Sustainable Development in Johannesburg


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Energy Consumption

•Every gallon of gas burned emits 19 pounds of carbon dioxide.

•Every day, the worldwide economy burns an amount of energy the planet required 10,000 days to create.


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Resource Consumption

•One ton of virgin paper requires 98 tons of resources to produce.

•A single 1/10 ounce, 14-carat gold ring requires 2.8 tons of ore


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Typical Desktop Computer

•Manufacturing a typical desktop computer creates 139-pounds of waste and 49 pounds of hazardous materials.

•Producing the six-inch silicon wafer from which computer chips are cut generates 2,840 gallons of wastewater and 7 pounds of hazardous waste.


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Two Cups of Coffee a Day

•34 gallons of coffee a year.

•18 pounds of coffee beans

•12 pounds of fertilizer

•A few ounces of highly toxic pesticides

•43 pounds of coffee pulp

•Clear cutting of forests to grow even more coffee•Bird species disappearing

•More erosion

•More pesticides


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Defining Environmentally

Preferable Purchasing


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Federal Government Definition

Environmentally preferable products are “products and services [that] have a lesser or reduced effect on human health and the environment when compared to other products and services that serve the same purpose. This comparison may consider raw materials acquisition, production, manufacturing, packaging, distribution, reuse, operation, maintenance, or disposal of the product or service.” - Executive Order 13101, Greening the Government

Through Waste Prevention, Recycling, and Federal Acquisition, September 16, 1998


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The “Real” Definition

Environmentally preferable purchasing means:

Buying less polluting products and services from less polluting companies.


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How H2E and EPA Can Help You With Environmentally Preferable

PurchasingEPP: Tools For the Trade

How H2E and EPA Can Help You With Environmentally Preferable

PurchasingEPP: Tools For the Trade

Jesse Eaves US EPA

202-564-8867

[email protected]

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Healthcare Procurement: Your Money Matters

• Hospitals Spend TRILLIONS - On products and services every year

• Federal Government Spends:– over $250 billion annually in direct

purchases

• State/local governments spend:– nearly $400 billion annually in

purchases

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The Federal EPP Program

-Created

purchasing tools

with you in mind

-Created to make

things simple

http://www.epa.gov/oppt/epp/index.htm

http://www.epa.gov/opptintr

http://www.epa.gov/

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Serving Customers’ Needs

• Providing tools

• Supporting development of voluntary standards

• Focusing on specific products and services

• Partnering to serve unique needs

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Focusing on Specific Products and Services

• Conferences/meetings

• Copiers

• Cafeteria serviceware

• Carpets

• Electronics

• Cleaners

• Building materials/operations

• Certified biobased products

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EPA’s EPP Website

Easy, Accessible Answers…

FAST

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Tools For Contracts

• Biggest mechanism for making an impact

• Contracts comprise the majority of Hospital spending on goods and services

• Think EPP at earliest contract stages

• Not that hard: THE ANSWERS ARE AT YOUR FINGERTIPS

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EPP Database

• Your teachers were wrong (this time) PLAGARIZE!!!

• Search hundreds of product categories

• Copy contract language

• See Vendor Lists

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EPP Database

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EPP Database

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EPP Database

• PLEASE NOTE: Linking to these lists does not constitute "endorsement" ofthese products or companies on the part of the EPA's Environmentally Preferable Purchasing Program.

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EPP Database

- Easy to use

- Constantly updated

- Got a problem? Tell us about it. We want to make this as easy as possible.

- http://yosemite1.epa.gov/oppt/eppstand2.nsf

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Procurement Policies

Use the trail the others blazed

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Procurement Policies

• Based on environmental attributes

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Other Tools and Documents

• Cleaning Product Ranking Tool

http://www.epa.gov/opptintr/epp/cleaners/select/matrix.htm

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Other Tools and Documents

Tips For Buying Green With A Government Credit Card

- You have the direct purchasing power to buy EP Products, reduce packaging, conserve energy

- Even small purchases make a big difference

http://www.epa.gov/oppt/epp/tools/creditcard.htm

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OpportunitiesWhere Can We Begin?


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Opportunities

•Buildings–New construction–Renovation–Maintenance

•Cafeteria Supplies

•Cleaning Products

•Computers

•Copiers

•Electricity

•Furniture

•Landscaping/Pest Management

•Lodging

•Meetings

•Office Supplies

•Paint

•Paper

•Printing

•Vehicle Fleets1©2003 by Scot Case, Center for a New American Dream

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Why Cleaning Products?

•Institutional/commercial (I/C) cleaning is a $100+ billion industry.

•I/C cleaning industry uses roughly 6 to 8 billion pounds of cleaning products.

•Cleaning industry employs 2 to 3 million janitors; but due to very high turn-over, more are exposed.

•Janitors tend to be minorities.

•Most people spend more than 90 percent of their time indoors.

•Many indoor environments contain hazards that lead to health complaints.


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Cleaning Attributes?•Carcinogens•Reproductive toxins•Endocrine disruptors•Skin & eye irritants•Asthmagens•Allergens•Dyes & fragrances•VOC content•Biobased vs. petroleum-based

•Corrosivity•Product packaging•Transportation distance•Flammability•Toxicity•Used with cold water•Biodegradability•Aquatic toxicity•Third-party certification


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New Problems

•There were too many sets of competing standards and purchasing criteria.

•Additional standards/criteria are counter productive if the goal is to maximize environmental protection.

•Manufacturers saw EPP as a moving target and were not responding to RFPs.


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New Solution

With EPA funding and support, CNAD worked with the innovative pioneers to reach consensus on a single set of environmental criteria that could be used nationally.

Goal: Make it easier for purchasers to identify and buy “green” cleaners.


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Overall Benefits

•One set of criteria.

•One set of necessary documentation.

•Nationwide list of acceptable products is being developed.

•Manufacturers not dealing with confusing and potentially conflicting environmental requirements.

IT’S FINALLY EASY!!

www.newdream.org/procure/products/clean.html1©2003 by Scot Case, Center for a New American Dream

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Why Paper?•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 more than any other industry.

•An average office worker uses about 10,000 sheets of copier paper per year!

•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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Why Paper?

•Of the 4.7 million tons of copy paper used in the United States in 2000, less than 10% contained recycled fiber.

•U.S. copy paper use consumes 100 million mature trees every year.


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Why Paper?

Each ton of 100% postconsumer paper saves:

•24 trees

•7,0000 gallons of water

•4,100 kw hours of electricity

•60 pounds of air pollution


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Paper Attributes?•Recycled-content•Virgin-fiber sources•No old-growth•No endangered forests•Process chlorine-free (PCF)•Totally chlorine-free (TCF)•Enhanced Elemental chlorine-free (ECF)•No genetically modified trees (GMOs)•No plantation conversion•No polluting companies•Tree-free papers•FSC-certified papers


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Paper Resources

www.newdream.org/procure/products/paper.html

•Environmental impacts

•Consensus recommendations on buying safer paper

•Extensive list of resources


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Using Eco-Labels Effectively

Can Someone Else Tell Me What’s Green?

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Beware of Misleading Claims

•Eco-safe

•Environmentally friendly

•Earth friendly

•Earth smart

•Environmentally safe

•Environmentally preferable

•Essentially non-toxic

•Practically non-toxic

•Made with non-toxic ingredients

•Degradable

•Biodegradable

•Compostable

•Environmentally safe

•CFC-free

•Ozone friendly

•Recyclable


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FTC Recommendations

•Environmental claims should be specific.

•Know the difference between recycled and recyclable.

•Know the difference between post-consumer recycled content and recycled content.

•Degradable products do not save landfill space.


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FTC Green Marketing Guidelines

Available at:

www.ftc.gov


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Eco-Label Objectives

•Communicate verifiable and accurate information.

•Encourage demand and supply of environmentally sound products and services.

•Reduce stress on the environment.

•Stimulate market-driven continuous environmental improvement.


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Identifying a Good Label•Meaningful and verifiable information

•Clear, consistent meaning•Lifecycle-based approach•No conflict of interest•Standards reviewed and updated regularly•Available to small and medium sized companies•Consistent with FTC labeling guidelines•Transparent labeling development process•Key stakeholders involved throughout development process•Open to public comment throughout development process


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Labeling Resources

• www.eco-labels.org -- Maintained by Consumers Union, publishers of Consumer Reports. Includes an assessment of more than 90 (and growing) labels.

• www.epa.gov/oppt/epp -- EPA’s Environmentally Preferable Purchasing Program. Includes list of questions for evaluating labeling and certifying claims.


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Use Your Peers- Hospital Success Stories

- Hackensack Medical Center

- Strong Memorial Hospital

- University of Michigan Hospitals and Health Centers

- Kaiser Permanente Northwest Region

• Dartmouth-Hitchcock Medical Center

• Bronson Methodist Hospital

• Premier, Inc.

• Beth Israel Medical Center

http://www.h2e-online.org/tools/waste-case.htm

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Documents For You!!

Detailed stories, outline every step to make it easier for You

http://www.epa.gov/oppt/epp/documents/doccase.htm

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Service Focus: Green Meetings

• “One-stop shop” websitewww.epa.gov/oppt/greenmeetings

• A one-stop shop for Green Conference information including a checklist of opportunities to minimize the environmental impacts of holding meetings and conferences.

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• Building for Economic and Environmental Sustainability (BEES) software

• ASTM standards development

• ASTM E2129 - Standard Practice for Data Collection for Sustainability Assessment of Building Products

• ASTM - Standard Practice for Sustainable Development Relative to Planning, Design, Construction, and Operation of Buildings – General Principles

• Green Specifications Database• Marketing and outreach www.epa.gov/greenbuilding

Focus: Green BuildingFocus: Green Building

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Online Resources

• EPA’s EPP Website – http://www.epa.gov/oppt/epp

• H2E EPP Site - http://www.h2e-online.org/tools/epp.htm

• Center For A New American Dream – http://www.newdream.org/procure

• Energy Star® - http://www.energystar.gov

• EPPnet – http://www.nerc.org/eppnet.html

• See Other Resources at http://www.epa.gov/oppt/epp/links/linkspage.htm

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Do Your Part

• Prevent…

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Do Your Part Protect

Questions?

Visit www.epa.gov/oppt/epp

Call 202-564-8867

Office of Pollution Prevention and Toxics

U.S. Environmental Protection Agency