january 22, 2014 - naco · multi-sector and public/private collaboration all sustainability plans...
TRANSCRIPT
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Green Goods: How to Create Sustainable County Purchasing and Procurement Programs
November 21, 2013
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Rob Pressly Program Manager, Green Government Initiative National Association of Counties
NACo Staff
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NACo’s Green Government Initiative
For more information please visit: NACo.org/GreenCounties
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GGI Spring Forum
Powering County Resilience: Renewable Energy Solutions Forum
March 20 – 22, 2014
Santa Barbara County, CA
Registration is Open! Visit www.naco.org/GGI2014
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SPONSORS
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Agenda: • Welcome and Introductions
Rob Pressly Program Manager, Green Government Initiative National Association of Counties
• Moderator Introduction Eric Heaps President The Public Group
• Environmental Purchasing Programs Sam Hummel Director of Outreach Sustainable Purchasing Leadership Council
• King County, Washington’s Environmental Purchasing Program Karen Hamilton Environmental Purchasing Program Manager King County, WA
• Fairfax County, Virginia’s Green Purchasing Program Chris McGough Environmental Purchasing Analyst Fairfax County, VA
• Q&A • Closing Remarks
About SPLC
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Members Aerospace Agriculture Architecture Consulting Defense Energy Entertainment Environmental Services Food Service Government - Local Government - National Government - State/Provincial Higher Education Hospitality Information Services Information Technology Manufacturing Nonprofit Office Products Standards Developers & Certifiers Transportation Utilities
Purchaser, 47%
Supplier, 43%
Advocate, 10%
• Launched July 2013 • Multi-sector, multi-stakeholder • “Do for sustainable procurement what
USGBC did for green building.” • www.purchasingcouncil.org
SPLC Approach
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Part 1: A Unique Opportunity
Opportunity
Final Consumption
Opportunity
US Final Consumption
Opportunity
Opportunity
Opportunity Health care Housing Electricity Financial services and insurance Food services Transportation services Recreation services Education services Communications services Personal care services Hospitality services
Opportunity
Opportunity
± 100 million US jobs 70% of US employment
1 Purchaser = 100s of Consumers
Purchasing Organizations
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…are uniquely positioned to demand
transparency into the upstream and
downstream impacts of goods and services.
…are capable of incorporating sustainability
criteria into purchasing decisions at a scale
that can shift markets.
…are specially equipped to drive down the
cost of sustainable products and services
so that everyone can afford them.
…are already responsible for ensuring that
end-users understand, like and adopt new
products and services.
Part 2: The Landscape of the Movement
1970s – Rethinking Waste Earth Day
Environmental Protection Agency
Federal Resource Conservation & Recovery Act
• Imposed public safety restrictions on solid and hazardous waste
• Promoted conservation: recycling and energy efficiency
• Encouraged markets for reclaimed materials
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1970
1976
1987
1980s – It’s All About Recycled Content
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1989 Recycled paper market collapses
1983 EPA issues first recycled content guideline (for cement and concrete fly ash)
EPA issues 5 product guides (cement, paper, oils, tires, insulation) Municipal governments start “buy recycled” programs
1990s – Moving Beyond Recycled Content
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1993 Federal gov’t expands efforts beyond recycling to “environmentally preferable products”
1995 ~12 major North American eco-labels (primarily single attribute labels: energy efficient; sustainably harvested; recycled; etc)
1998 47 states and 500+ local govt’s have a “buy recycled” program or policy; a few have “environmentally preferable purchasing” programs/coordinators
>70 eco-labels!
2000s – Proliferation of Programs & Problems
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Many similar-but-different policies
2008 Green Products Roundtable forms
2009 Federal Executive Order 13514 signed
NASPO begins inter-state collaboration
Walmart launches The Sustainability Consortium
2005 Responsible Purchasing Network founded
2010s – Convergence and performance
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“Sustainable Purchasing” Data-driven impact assessments of spending
Multi-sector and public/private collaboration All sustainability plans converge on Procurement C
onve
rgen
ce
Per
form
ance
Emphasis on measuring impact Shared metrics and benchmarking Credible third-party leadership recognition Adding business value
2010s – Convergence and performance
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Strategic Sustainable Procurement
Part 3: Strategic Sustainable Procurement
Strategic Sustainable Purchasing
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Analyze
Action Plan
Implement
Measure Results
Familiar Spend Management & Continuous Improvement Process
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Analyze
Action Plan
Implement
Measure Results
Standard Procurement Process
Requirements Development
Assess Market
Invite Supplier Offers
Select Supplier
Agree to Terms
Manage Contract
Spend Management Process
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Analyze
Action Plan
Implement
Measure Results
Requirements Development
Assess Market
Invite Supplier Offers
Select Supplier
Agree to Terms
Manage Contract
Cross-functional, stakeholder engagement happens here Which means there’s less strife here
Standard Procurement Process
Spend Management Process
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Analyze
Action Plan
Implement
Measure Results
Requirements Development
Assess Market
Invite Supplier Offers
Select Supplier
Agree to Terms
Manage Contract
Clear metrics connect implementation and continuous improvement
Standard Procurement Process
Spend Management Process
Pilot: Higher Education Purchasing
purchasing categories 5
64% of total spending
83% of estimated impacts
Insight:
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Analyzing & prioritizing enables focus on best opportunities. Helps avoid exhausting resources chasing the long tail.
Strategic Planning Guide Provide guidance on how to…
…build support for developing a Strategic Sustainable Purchasing Plan
…structure stakeholder engagement
…conduct cost-effective and actionable spend analysis
…identify credible actions and create an Action Plan
…set performance goals and metrics
…implement the plan
…promote continuous improvement
King County, Washington’s Environmental Purchasing Program
NACo Webinar January 22, 2014
King County Facts
Environmental Policies Env Purchasing Ordinance
Strategic Plan
Climate Plan
Energy Plan
Green Building Ordinance
Environmental Purchasing Buy recycled and environmentally preferable products
“whenever practicable” [KCC 18.20] Mandates
Recycled paper (min. 30% copy; 100% preferred; 20% reduction) Electronics recycling (e-Steward certified or equiv) Re-refined motor oil (recycled content) Annual Reports (County Council)
Considers multiple attributes of products Less-toxic Resource efficient (water, energy) Reduced GHG emissions
Environmental Purchasing Program
Responsibilities • Communicate policy requirements • Provide technical assistance • Document purchases and product
evaluation results • Publish annual report • Produce bulletins and website • Outreach
Obstacles to EPP
Unfamiliar Products
Lack of Standards
Greenwashing
Price and Performance
Measurement
Opportunities
Standards/Eco-labels
Cost-effective Products
Cooperative Contracts
Pilot Projects
Networking
Recycled Copy Paper Paper Policy - 2012 goal
reduce copy paper consumption by 20% increase purchase of
100% recycled content
Status 25% waste reduction Reduced 375 tons* GHG $218,975 savings – 2 years
*estimated by the Paper Calculator – www.papercalculator.org
0
5,000
10,000
15,000
20,000
2010 2011 2012 2013
Copy Paper
100%40%30%
Cas
es o
f Pap
er
Green Cleaners Cleaning Protocols
Chemical Use Reduction
Worker Health & Safety
Certified Cleaners
Microfiber Cloths & Mops
Cost Savings
Electronics E-waste Recycling
e-Stewards Enterprise Computer’s, TV’s, cell
phones, printers, etc
Purchases 4,156 EPEAT Products Desktops, workstations,
monitors and laptops GHG emissions
Reduced 660 metric tons *estimated by the “Electronics Environmental Benefits Calculator” – www.epeat.net
Motor Oils & Lubricants Re-refined Motor Oil
Less expensive than virgin Closed-loop Used in cars, trucks & buses
Bio-based Hydraulic Oil Standard - Required pre-filled
in new equipment
Hybrid/Electric Vehicles Cars and trucks
30% - 50% fuel reduction
19-23% ROI - higher upfront costs
Hybrid buses
save $4.7 million annually in fuel costs and reduce greenhouse-gas emissions by 18,000 tons
Electric Vehicles Electric cars
30 for MetroPool
Plug-in hybrid/electrics Battery conversions
Charging Stations Over 100 since 2011 Joint procurement
Sustainability Report
Toward a Sustainable, Prosperous King County
2012 Annual Report of King County's Climate Change, Energy, Green
Building and Environmental
Purchasing Programs
2012 Supplemental Purchasing Detail Report
Savings/Environmental Benefits
Lessons Learned Work collaboratively
Internal – all levels External - Local/national
Use existing resources Learn from others experiences Use/copy other contracts
Use standards and certifications Build on each success Measure, document and share
Contact Karen Hamilton Environmental Purchasing Program Manager King County Procurement and Contract Services Seattle, Washington 206-263-9294 [email protected] www.kingcounty.gov/procurement/green
How we got started
Accomplishments & challenges
Where we hope to go next
Location & Influences
Procurement ◦ $700 million spent on goods/services annually.
◦ 2,000+ active contracts at any given time.
◦ Staff of 50. Responsible for contract administration (process) while department’s decide what to buy.
◦ Support 55 “customer” departments.
Program Goals ◦ Green operations
◦ Save taxpayer money
◦ Nudge the market
Responsibilities ◦ Consulting
Challenges are significant!
◦ Lack of resources. Very small team. Often powered by intern assistance.
◦ Discretionary Policy adopted in 2009. Does not change procurement process.
◦ Department culture, mission, and individual staff play significant role in willingness to consider green attributes during procurement.
◦ Lack of a sustainability office. Committee based structure.
Good news. Success is still possible…
Resources devoted to the following strategies
50% is changing behavior. Strategic outreach to provide direction/motivation.
50% is changing the path. Shift from opportunistic consideration to systematic consideration of environmental attributes during the procurement process.
Focus on greening key contracts rather than thousands of individual purchase orders
Prioritize. Impact, probability, penetration.
Partner with environmental staff.
Ride green contracts. All US Communities solicitations use language encouraging vendors to submit green solutions.
Narrow choices in ERP/vendor’s catalog
Works well to shift purchase of low value, commonly purchased items.
Example: office supplies, remanufactured printer cartridges, paper.
Enhance solicitation process
Use standard ‘green’ language in all solicitations.
Enhance reporting. Take credit for vendors voluntarily providing green products/services.
Create incentives (where possible). Faster payment schedule (net 15 vs net 30). Conditional awards and renewals to lower vendor risk and increase competition.
Policy improvements
Energy efficient purchasing policy
Realign incentives, encourage future innovation. Establish a revolving grant.
Internal Communication Strategy (replace text w/ pictures):
◦ Connect green purchasing goals with employee green team.
Leverage the passionate employees across the organization to take action through procurement decisions.
◦ Recognize success. Fairfax County sustainability champions. ◦ Blog. Two-way conversations. Examples: top green
products, how to use conference call software. ◦ Host events. Replica green office and green lounge at a
conference for 500+ admin employees. Green Roof tour. ◦ Friendly competitions. ◦ Branded effort via lanyards.
Success stories often require a bit of both strategies – direction/motivation and changing the process.
◦ Example: Fairfax County’s reuse of surplus
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