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Green purchasing
Green purchasing
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Green Products & Procurement

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This is an easy to understand presentation on how organizations can procure greener products in order to lower the environmental impacts throughout the value chain. This presentation was made by our chairperson Dr. Prasad Modak at the CII GreenCo Forum held in Mumbai on 27th January 2015.

This is an easy to understand presentation on how organizations can procure greener products in order to lower the environmental impacts throughout the value chain. This presentation was made by our chairperson Dr. Prasad Modak at the CII GreenCo Forum held in Mumbai on 27th January 2015.

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Green Products & Procurement

  1. 1. Green Products & Green Procurement Dr. PrasadModak
  2. 2. Green Products – who are relevant? Green Product & Procurement 2 Government Business Consumers
  3. 3. What can be procured Green? Office Supply Motorcar PC Paper Furniture Work wear Food Lighting Electric Appliance Products Parts and Materials Printer Distribution Hotel & Meeting Banking Canteen Catering Services Cleaning Printing Construction Electricity Energy
  4. 4. Green Product & Procurement 4 How much Green is Green
  5. 5. How much ‘Green’ is ‘Green’? • Products and services – That are environmentally friendly • Environmentally friendly relative to those available – Have lesser / reduced impact on human health and environment than other product that perform similar function • Behind every product there’s a ‘past’ and a ‘future’ – The life cycle Green Product & Procurement 5
  6. 6. Green Product & Procurement 6 Every Product has a Life Cycle!
  7. 7. What are Green Products/Services? • Products/Services* that – Are More environmentally friendly relative to other products in the same category . – Have lesser / reduced impact on human health and environment than other product that perform similar function Green Product & Procurement 7 *United Nations Environment Programme
  8. 8. Attributes of Green Products • Green products / services would typically display all or some of the following characteristics; – conservation of energy and water – minimized generation of waste and releases of pollutants or emissions – be recyclable or themselves be made from recycled materials; and – use energy from renewable sources. Green Product & Procurement 8
  9. 9. Green Product & Procurement 9 Green Purchasing
  10. 10. Basic Principles of Green Purchasing 1. Consider whether a product is needed before purchasing it or not. 2. Purchase a product considering the various environmental impacts over its life cycle - from extraction of raw materials to disposal. 3. Select suppliers who make a conscious efforts to care for the environment. 4. Collect environmental information on products and suppliers. 5. Support Greening of your supply chain Green Product & Procurement 10 Environmental issues to consider • Low energy • Longer life • Locally produced • Low pollution • Recycled contents • Packaging
  11. 11. Approach Green Product & Procurement 11 Data Collection Current Procurement Procurement Policy Primary data on vendor compliance Prioritization Identifying priority products and vendors based on high volume and environmental impacts. Life Cycle Assessment and Costing Analyzing the priority products with a life cycle approach and identifying the areas for improvement. Detailed assessment of vendors on their environmental and social compliance. Finding Alternatives Based on the above study, find greener alternatives for the priority products and vendors respectively. Life Cycle Assessment of alternative products identified . Implementation Acting upon the findings from the above steps and implementation in phases. Monitoring & Reporting Monitoring implementation and reporting progress on green procurement.
  12. 12. Life Cycle of Goods – Environmental and Social Impacts MATERIALS PRODUCTION TRANSPORT LIFESPAN: USE & REPAIR DISPOSAL LIFE CYCLE COSTING (Case based on SPP in Mauritius) Green Product & Procurement
  13. 13. Common Core Criteria Common Core Criteria Pre-Qualification Compliance to EHS Regulations; Presence of EMS; Social Inclusion Sustainability Resource Conservation and Efficiency; Exclusions and Preferences; Conservation of Biodiversity; Biodegradability & Recyclability; Reporting & Responsible Disclosure Green Product & Procurement (Case based on SPP in Mauritius)
  14. 14. Sustainability Criteria – Paper for General Office Use • Prequalification – Compliance with environmental legislation – Adherence to national social regulations and standards  Sustainability Requirement – Sustainable forest wood fibers – Recovered paper fibers – Elemental Chlorine Free – Brightness – Environmentally friendly packaging Green Product & Procurement
  15. 15. Sustainability Criteria – Cleaning Materials • Pre-Qualification – Compliance with environmental legislation – Adherence to national social regulations and standards  Sustainability Requirement – Restricted cleaning products – Biodegradability – Packaging - clear dosing instructions – VOCs – Environmentally-friendly packaging Green Product & Procurement (Case based on SPP in Mauritius)
  16. 16. Life Cycle Costing LCC required LCC not required (Case based on SPP in Mauritius) Green Product & Procurement
  17. 17. Life Cycle Costing for Personal Computers and Laptops Purchase price Energy consumption cost during use Materials / consumable consumption cost during use Cost and disposal of the equipment (Case based on SPP in Mauritius) Green Product & Procurement
  18. 18. Life Cycle Costing for Paper LCC is not relevant for this product as the use and disposal phase does not impact Mauritius (Case based on SPP in Mauritius) Green Product & Procurement
  19. 19. Green Purchasing Trends • Eco-labelling – voluntary method of environmental performance certification and labelling • Conforming to hazardous chemical substance restriction regulations spreading in the world – Purchasing of part not containing hazardous substances / chemicals – Setting up management system and supply chain linking for this • Purchasing from the point of preventing global warming – Priority Purchasing of materials that reduce environmental load of products – Purchasing from suppliers producing with low environmental load Green Product & Procurement 19
  20. 20. Green Purchasing Trends • Supply Chain Environmental Management – Involving suppliers and vendors – For Reduction or Elimination of materials used in manufacturing processes or products – Black & brown listing of chemicals • Carbon footprint in Eco-labels – The carbon footprint labeling is an initiative to calculate and show the carbon footprint on products. – Shows the amount of CO2 emitted on products and that the manufacturer/retailer is committed to reducing that amount Green Product & Procurement 20
  21. 21. Green Products calls for Greening of Supply Chain • Green Buildings – Demand for products such as high performance glass, low VOC paints and fly ash blocks • Automobiles – Demand for products such as Lead free paints, hexavalent chrome free plating, low emitting fuels, bio fuel, etc. • IT Sector – Improving Power Efficiencies of Data Centers – Reuse of materials – Complying to international mandates of RoHS, WEEE Green Product & Procurement 21
  22. 22. Greening of Supply Chains • Supplier decisions • Purchasing decisions • Material management decisions • Production scheduling decisions • Inventory decisions • Transportation decisions • Customer service Green Product & Procurement 22 Business Values Environmental Performance Strategic Sourcing
  23. 23. Green Product & Procurement 23 Product Labelling
  24. 24. Eco-labels • Criteria span across the life cycle • Multi attribute • Set criteria for product categories • Criteria define what makes a greener product Green Product & Procurement 24
  25. 25. Sometimes, greenness is defined upon a single criterion • Single-attribute labels Green Product & Procurement 25
  26. 26. Self declared ‘greenness’ • Not awarded by an independent authority • Developed internally by companies • Take the form of a declaration, a logo, a commercial, etc. Green Product & Procurement 26
  27. 27. Core Criteria for Demonstrating Greening* • Compliance • (Voluntary) Exclusion • Meeting the Benchmarks • QEHS Management System • Transparency & Communication *developed by Green Purchasing Network of India Green Product & Procurement 27
  28. 28. Green Products & Procurement – the need to know • Sustainable Development (SD) and Sustainable Consumption and Production (SCP), green procurement • Associated Key terminologies – Eg. Extended Producer Responsibility, Sustainable Packaging, Hazardous and Toxicity of substances • Eco-labels and Core Criteria for Green products – define ‘greenness’ of the products • Preparing for Green Procurement • Challenges and barriers to Green Procurement and how to overcome themm Green Product & Procurement 28
  29. 29. Green Product & Procurement 29 Thanks

Notas del editor

  • For the use and disposal phases impacting Mauritius, the costs to be considered with the Bid Price has been highlighted with red and green boxes respectively.

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