Green Procurement
Green Procurement
Green Procurement means purchasing products and services that cause minimal adverse environmental impacts. It incorporates human health
and environmental concerns into the search for high quality products and services at competitive prices.
As early as year 2000, the Government amended its procurement regulations to require bureaux and departments to take into account
environmental considerations when procuring goods and services. Specifically, bureaux and departments are encouraged to avoid single-use
disposable items, and purchase products:
with improved recyclability, high recycled content, reduced packing and greater durability;
with greater energy efficiency;
utilizing clean technology and/or clean fuels;
which result in reduced water consumption;
which emit fewer irritating or toxic substances during installation or use; or
which result in smaller production of toxic substances, or of less toxic substance, upon disposal.
For new green specifications developed with uncertain market availability, the green specifications will be included in the tender
specifications as "DESIRABLE" features. Tenderers are invited to indicate in their offers whether their items can comply with these green
features and, where appropriate, to submit supporting documents for verification.
The Green Procurement Standards apply to the following goods that the Brother Group handles:
Parts, materials and sub-materials used for products designed, manufactured, and sold by the Brother Group;
Parts, materials and sub-materials used for products designed and manufactured by the Brother Group for a third party;
Products designed and manufactured by a third party for the Brother Group and sold under the Brother Group's trademark;
green procurement
Environmentally responsible or 'green' procurement is the selection of products and services that minimize environmental impacts. It requires a
company or organization to carry out an assessment of the environmental consequences of a product at all the various stages of its lifecycle. This
means considering the costs of securing raw materials, and manufacturing, transporting, storing, handling, using and disposing of the product.
Green procurement is rooted in the principle of pollution prevention, which strives to eliminate or to reduce risks to human health and the
environment. It means evaluating purchases based on a variety of criteria, ranging from the necessity of the purchase in the first place to the options
available for its eventual disposal.
Consumers, investors, shareholders and regulatory agencies are increasingly demanding that organizations behave in an environmentally
responsible manner. Practising green procurement demonstrates an organization's commitment to considering and minimizing the environmental
consequences of its activities. It thus makes both environmental and economic sense.
Green products are generally produced in a manner that consumes less natural resources or uses them more sustainably, as with sustainable
forestry. They may involve less energy in their manufacture and may consume less energy when being used, and they generally contain fewer
hazardous or toxic materials.
Green products are also generally designed with the intention of reducing the amount of waste created. For example, they may contain recycled
material or use less packaging, and the supplier may operate a 'take-back' program.
Green procurement can also offer cost savings. In particular, buying 'green' usually involves products that are easily recycled, last longer or
produce less waste. Money is therefore saved on waste disposal. In addition, green products generally require fewer resources to manufacture and
operate, so savings can be made on energy, water, fuel and other natural resources.
Moreover, green products generally involve fewer toxic or hazardous materials, reducing associated expenses such as permit fees, toxic materials
handling charges and staff training.
Organizations often require a green procurement program as part of their environmental management systems, as certified under the EMAS and
ISO 14001 regimes. In addition, new regulations increasingly require the adoption of green procurement practices. The Sustainable Development
Act in Manitoba, for example, requires all publicly funded organizations to integrate procurement guidelines into their daily operating practices.
Meeting these and other environmental regulations is easier for organizations that already practice green procurement.
Green procurement also has benefits for health and safety, both of workplaces and of the wider community.
Organizations that practice green procurement will also be recognized as good 'corporate citizens', and influence those around them. As markets
gradually change, the availability of green products will increase and prices will fall.
Challenges to green procurement
1. Price: There is a perception that green products are more expensive than conventional alternatives. This is true in some cases, particularly where
development costs are reflected in the price; however, often there is no significant difference. The real problem may simply be that products are
being ordered in small quantities, or are not available locally.
Sometimes a green product may have a higher up-front purchase price, but will cost less over its liftime. For example, a non-toxic alternative to a
toxic product will cost less to transport, store, handle, and discard. It will require fewer permits, less training for staff, and the consequences of an
accident will be greatly reduced.
Similarly, a product that uses less packaging and that is easily recyclable or reusable will carry
a lower disposal cost.
2. Lack of corporate commitment: For an organization to implement a green procurement program, it must have commitment from all levels,
including senior management and purchasing agents. A policy statement outlining the corporate commitment to green procurement can help.
3. Insufficient knowledge: Many organizations are unfamiliar with the concept of green procurement or with the options available to them. For an
organization to participate, it must have an understanding of concepts, vocabulary and terms.
4. Availability: Frequently, local distributors do not stock green products, or else they stock only small quantities. This can lead to delays in
obtaining the product. Increasing market demand will help to overcome this obstacle.
5. No acceptable alternative: Another barrier to green purchasing can be simply a lack of acceptable alternatives to the present product. For
example, a few years ago in the furniture manufacturing industry, the use of water-based finishes as an alternative to solvent-based ones was
impeded by the fact that water-based finishes presented technical difficulties which were costly to overcome, and were of lower quality. Growing
demand for will stimulate the development of new and better 'green' products.
6. No specifications: It is important that suppliers be asked to provide the environmental specifications of the products they are offering. Purchasers,
in the same way, must clearly define their needs and requirements.
7. Purchasing habits: 'We've always done it this way' can be a difficult mentality to overcome. There may also be existing relationships between
purchasers and suppliers that make it difficult to switch to alternatives.
Financial savings
Green purchasing can have a big impact on your organization’s bottom line. Hundreds of environmentally preferable products - from office
paper to janitorial cleaners, electronics, transportation and landscaping products - are competitive in terms of quality, while costing the same or
even less than comparable conventional alternatives, over the life of the product. Many of these products also use less energy, water, fuel and
other resources, saving additional money. Since environmentally preferable products are designed to generate little or no waste, they help
reduce or eliminate the cost of waste and/or hazardous material management. For real-world examples of how green purchasing can save
money, click here.
Positive PR
Organizations with a positive public image, brand and goodwill fare better in the marketplace than those without. As sustainable operations
become more important in the public’s eye, implementing a green purchasing policy can go a long way for positive PR as it is good business
practice.
This County Agency installed 2.31 megawatts in photovoltaic systems, which--combined with retrofits--save taxpayers $4 million a year from
reduced operating costs. They also switched to a new office paper supplier and now purchase 30% recycled content instead of virgin paper
(non-recycled) while cutting costs by 20%.
The City wanted to install LED (light-emitting diode) semiconductor technology to produce street lighting. They developed a Return on
Investment (ROI) tool with Stanford University students to determine if the high initial cost for fixtures would pay back in energy savings, reduced
maintenance costs, greenhouse gas emissions and mercury/hazardous waste disposal. A $1.3 million ROI was estimated on just 70W LED street
lighting inventory (45% of total inventory of various wattage lights).
Santa Rosa piloted their environmentally preferable purchasing (EPP) program with the City Garage. They replaced the transmission lubricant
in use with an environmentally preferable synthetic version. The auto transmission fluid is now changing less frequently saving the city about
$25,000 per year in labor costs.
The steps involved in implementing a green procurement program are outlined here. It is not comprehensive, but rather is intended to provide
an overview.
1. Organizational support: Implementing a green procurement program means changing policies and procedures. For it to be successful, it is
essential that management support the initiative fully. In addition, those charged with making purchasing decisions must be involved in the
implementation process. Their suggestions and support are critical.
2. Self-evaluation: An important step in implementing green procurement is conducting an evaluation of present purchasing practices. This
process will help to clarify what is purchased, in what quantities, from where and at what price. The evaluation will provide a baseline, in order to
measure future success and to focus the development of green procurement goals.
3. Set goals: A broad policy should be established, and specific priorities and targets set.
4. Develop a strategy: It is now to time to identify and implement changes, both short and long-term, identify suitable products and services, and
evaluate the environmental performance of suppliers.
5. Run a pilot project: A pilot project can provide practical experience in purchasing green products and services, by applying green
procurement principles to a specific product or service. Pilot projects can be used to generate more detailed guidance on purchasing practices.
6. Implementation: Implementing the green procurement program will require an assignment of accountability, plus a well designed
communications plan addressing employees, customers, investors, suppliers and the public.
7. Sustainment: As with all business practices, it is important that a systematic review of the green procurement program be carried out, in order
to establish whether the scheme is meeting its goals and objectives. The review should take into account changing environmental goals.
'Implementing a green procurement program' is modeled on the Canadian standard for 'Environmentally Responsible Procurement', CSA
Z766-95, issued by the Canadian Standards Association.
Sustainable procurement policy and development
State government
For central governments, sustainable procurement is typically viewed as the application of sustainable development criteria to spending and
investment decisions. Given high-profile socioeconomic and environmental concerns such as globalization and climate change, governments are
increasingly concerned that our actions meet the needs of the present without compromising the needs of the future.
Public spending, which accounts for an average of 12% of GDP in OECD countries, and up to 30% in developing countries, wields enormous
purchasing power.[4] Shifting that spending towards more sustainable goods and services can help drive markets in the direction of innovation
and sustainability, thereby enabling the transition to a green economy. Through Sustainable procurement practices, governments can lead by
example and deliver key policy objectives. Sustainable procurement allows governments to mitigate key issues such as greenhouse gas emissions,
improve resource efficiency, recycling, among others. The key international organizations already increasingly recon gnize public procurement as
a means of changing the unsustainable patterns of consumption and production.
The United Nations, including its many affiliated agencies, recognize their own responsibilities in contributing to more sustainable patterns of
development, maintaining a market behavior which is credible, inspirational and exemplary, and proving that UN agencies stand behind the
principles they promote.[9] Through the development of procurement criteria that support sustainability principles, requisitioners and procurers
can send strong signals to the market in favor of goods and services that promote sustainability. The United Nations agency destined to develop
and promote resource efficiency and more sustainable consumption and production processes, including the promotion of sustainable resource
management in a life cycle perspective for goods and services in both developed and developing countries, The United Nations Environmental
Programme, UNEP, drafted sustainable public procurement implementation guideline to aid in the consideration of society, economy, and the
environment in procurement processes[4]
SOURCES
1. "green procurement compilation - about - gsa sustainable facilites tool". sftool.gov.
3. ^ gillett, a.g., 2015. remarkor: relationship marketing orientation on local government performance. journal of services research, 15(1), p.97.
4. ^ gillett, a.g. (2016). multiple relationships with multiple stakeholders: the scope of relationship marketing for public services. journal of services research, 16(2),
pp. 1-28
5. ^ california sustainability alliance, green procurement toolkit, received october 28, 2010
6. ^ "life cycle assessment (lca) overview - gsa sustainable facilites tool". sftool.gov.
7. ^ "sp platform | sustainable procurement platform". sustainable-procurement.org. retrieved december 18, 2018.
11. ^ http://www.ft.com/cms/s/b2a1cdec-8660-11db-86d5-0000779e2340.html financial times, december 8, 2006, 'diversity linked to london contracts'