eco buy
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Introduction to Sustainable Procurement
Sara Redmond-NealECO-Buy Business Program Manager
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What is ECO-Buy?
Every purchase has an impact
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Negative publicity
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Green is the new Black
The Australian consumer market for healthier, more sustainable products and services is valued at $21.5Bn
– Living LOHAS Insights 4, 2011
70% of Asia Pacific consumers prefer to buy from companies who engage in CSR, including environmental sustainability.
55% of APAC consumers are willing to pay extra for products and services from those companies
– Nielsen Global Survey of Corporate Citizenship, 2011
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Sustainable procurement is:
“a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment.”
UNEP definition
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Triple bottom line
Economic
EnvironmentalSocial
Sustainable
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What is ECO-Buy?
Total cost of ownership (TCO)
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What is ECO-Buy?Paper towels vs. hand-dryers
Actual Savings• 76.8% less energy than other dryers• cost saving of over 85%• 186,761 kgs less carbon emissions• zero waste to landfill • 40,000L water
Paper Towels Hand-dryers
Consumables $9,000/year Purchase price (one off) $2,000
Labour (refilling, cleaning, disposal) $17,550/year
Electricity $ 100/year
Cost $26,550/year Cost $100/year
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What is ECO-Buy?
How it’s done
Policy People Process Suppliers Measure-ment
Commitment
Communication
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What is ECO-Buy?
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What is ECO-Buy?
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What is ECO-Buy?
1. Implement Supplier Sustainability Principles
• Corporate Governance • Occupational Health and Safety • Risk Management • Community • Environmental Management • Workforce Policies & Human Rights • Supply Chain Management
2. Monitor Compliance to Principles
3. Sustainability Initiatives with High Risk Suppliers
4. Support & Recognition of Supplier Performance
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What is ECO-Buy?
Boral’s quest for a better bag
39% reduction in paper use per sack, or 860 tonnes paper per annum • Reduced carbon emissions, water use, waste, biodiversity impacts
20% reduction in sack price New sacks stronger and higher quality than the old 3 ply sacks Elimination of perforations which created dust leakages and
consequential OH&S issues 15% faster filling time and increased throughput on the filling line Decreased plastic film weight per sack on average by 50% Reduction in leakage during transport by over 90%
What can we do to improve the sustainability, price and performance of this product?
3 ply paper cement sack 2 ply
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Global Best Practice
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What is ECO-Buy?
Start now
What are you currently purchasing?
Get executive buy-in
Train procurement staff
Talk to your suppliers
Establish a baseline
Engage staff in the process
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What is ECO-Buy?
ECO-Buy can help
ECO-Find
Consulting
Resourcesand Advice
Assessment Tool
Trainingand Events
Membership