Yalmaz Siddiqui, Senior Director, Environmental Strategy, Office DepotCo-Chair, Green Products Roundtable

A Framework for Greener Procurement:Connecting Lifecycle, Attributes and Ecolabels

to Bring Greater Clarity to Institutional Buyers

Jonathan Rifkin, Green Purchasing Coordinator, Office of Contracting & Procurement, DC & NASPO Green Products Working Group Liaison

My background and green philosophyRecognizing an obscure German philosopher: Hegel

Before thinking about tools, we need to work much harder on definitions

Point #1

Point #3 To foster ‘sustainability considerations into procurement, we must show the WIFM / WIFMO for greener choices

Before defining ‘sustainable’ for products, we need to clarify and better define ‘greener’

Point #2

Key points we’d like you to take from our presentation

� Map all ideas associated with ‘green’by untangling concepts, reorganizing them and connecting them so that ultimately…

� Institutional purchasers and businesses have a consistent, readily understandable way to identify and procure greener products, in priority categories

GPR Framework Group Goal

What is a Framework?

Conceptual frameworks attempt to connect to all aspects of an inquiry

They act like maps that give coherence to an inquiry

Wikipedia

What inquiry are we trying to bring coherence to?

“What makes one product greener than another?”

Seemingly simple definition of ‘greener’?

Products with reduced impact on

human health and the environment when

compared with competing products that

serve the same purpose.

US EPA

Is this green?

30% Post Consumer Recycled;

Meets Federal EPP Guidelines

Is this green?

FSC-Certified 0% Recycled

Meets LEED EBEPP Guidelines

Is this green?

100% Post Consumer Recycled, PCFGreen-E Certified

Meets San Fran &

Washington State EPP Guidelines

Agreeing on definitions – a paper example

Agreeing on definitions – GoodGuide

Agreeing on definitions – International Paper

Who’s definition is right? We need a framework to untangle concepts and think clearly about ‘greener’

1. Single Attribute: Greener for one reason

2. Multi-Attribute: Greener for multiple reasons

3. Ecolabels: Meets a 3rd party definition of green, with a label

4. Standards: Meets a third party definition of green, no label

5. Index: Calculated green score based on numerous factor

6. Lower Footprint: Less cumulative impact in one a few impact areas

7. Lifecycle Impact: Less cumulative impact in all key impact areas

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There are some product categories where definitional issues have been resolved (Technology, Furniture) – but not quite

Multi- attribute Tiering

Energy Efficient & Safer Materials & Designed for Recyclability

MOST Efficient

Single attribute Tiering:

Energy Efficient

Framework Step 1:Identify terms and concepts used in Major EPPs?

LifeCycle

Impacts&

Hotspots

Lifecycle Impacts

Footprint Areas

Single Attributes

Standards

Specifications

Single-Attribute

Ecolabels

Multi-Attribute Ecolabels

Product Categories& Sectors

RightPriorities

for Impact

Reduction

Framework Summary

Concepts in EPPs

Framework Draft 12/2011: All major concepts

associated with ‘greener’ untangle & connected

Framework Detail:

LCA to Footprint Areas

to Attributes

Framework

Detail:

Greener

Product

Attributes

Greener Process

Attributes

Standards

Ecolabels

Detail

Framework Next Step: Leverage TSC / GSA / other data sets to clarify Product Category hotspots / Warmspots and with this insight, clarify attributes, standards and ecolabels that reduce

environmental impacts of concern, at relevant lifecycle stages

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Framework as a Tool?

The framework can serve as:

1. Reference for Standards Development

2. The foundation of a tool to clarify which attributes / ecolabels / behaviors result in actual lower environmental impact

3. A way to distinguish between criteria

Framework final step: Create entertaining training:

Draft Training Overview [Modules 1-3]

Greener Purchasing Basics � Why greener purchasing – debunking the myths

� Why greener purchasing – understanding environmental issues

� What is greener purchasing vs. sustainable purchasing?

What’s in it for you or your Organization when seeking greener products � The business case for greener purchasing - saving money/resources for your organization

� Green products now meeting performance requirements

� Current and upcoming regulatory requirements

� Emerging trends and their implications for procurement professionals

� Supply chain risks and traceability

Learning from the Leaders

� How to develop a greener purchasing policy and program - approaches and considerations

� What do successful greener procurement programs look like?

� Case studies of notable programs (e.g. Santa Monica, TTC, Sodexo etc.]

Economically Preferable

Societally Preferable

Environmentally Preferable

Better outcomes for society than with alternative products that serve a similar function

Lower impact on the environment than alternative products

that serve a similar function

To foster ‘sustainability’ in procurement, it helps to show the WIFM/WIFMO for greener choices / connect to broader goals

More desirable economically, through immediate or long term ROI than alternative products that serve a similar function

Universal WIFM & WIFMO: The Green Savings Continuum

Lower Initial Cost

Lower Operating

Cost

Hig

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Hig

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Lower Re-

purchase Cost

Higher Initial Cost

Price Parity

Examples:

Energy/

WasteAvoidance

Remanuf-Actured

Items

Examples:

Energy efficient lights

Power-saving

strips

Water-saving taps

Green cleaners

Examples:

Rechargeable

Reusables

Refillable

Examples:

Energy Star

Technology

Fuel efficient Vehicles

Many recycled items

Examples:

Recycled

Paper

Carbon

Offsets

CompostableDishware

1. Understand impacts and costs

2. Recognize energy as the cost savings opportunity

3. Identify product categories people control

4. Encourage switching to greener alternatives in priority categories

5. Write & release implementable greener purchasing policies

6. Define quantifiable green spend metrics

7. Quantify economic impacts of greener spend

8. Quantify environmental benefits of greener spend (announceables)

9. Recognize psychological / behavioral aspects of greener purchasing

10. Reward success (even if it is limited)

Greener Product Definition to Greener Purchasing Program

Finding WIFMO:

Nudging behavior change: psychological tricks

People follow ‘norms’Show greener as normal

Find the Bright SpotsUse Emotion, not just reason

Before thinking about tools, we need to work much harder on definitions

Point #1

Point #3 To foster ‘sustainability considerations into procurement, we must show the WIFM / WIFMO for greener choices

Before defining ‘sustainable’ for products, we need to clarify and better define ‘greener’

Point #2

Key points we hope you took from our presentation