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Utilizing Life Cycle Assessment and Waste Archeology Strategies to Integrate E nvironmental
Criteria into Procurement and Supply Chain Processes at Rutgers, The State University of
New Jersey
Kevin Lyons, Ph.D.
The ‘Green’ Concept Sustainability, Sustainable Development, etc.
(UN, Brundtland Commission, 1983). Development that "meets the needs of the present without compromising the
ability of future generations to meet their own needs."
Sustainable development is a pattern of resource use that aims to meet human needs while preserving the natural environment so that these
needs can be met not only in the present, but also for future
generations.
“Greening the Government T hrough Waste Prevention, R ecycling, and F ederal Acquisition”. Signed by President Clinton in 1998, this policy strengthens the F ederal government's commitment to buying recycled content and other environmental products.
Excerpt from Federal Executive Order 13101
Kevin Lyons, Ph.D. http: //greenpurchasing.rutgers.edu
In order to be good stewards of the environment, we should buy products and services that conserve energy, water and other natural resources.
Rutgers G r een SC M /Pur chasing (1988 – Present)
Green Purchasing:minimizes negative environmental effects through the use of environmentally friendly products, practices and attributes.
is a way of adding environmental considerations to the price and performance criteria that businesses use to make purchasing decisions.
attempts to identify and reduce environmental impact as well as maximize resource efficiency.
Why consider the environment?Purchasing with a ‘green’ mindset can:• Reduce energy and water consumption
(which can reduce costs)• Improve resource use efficiency• Reduce waste (which can reduce waste
disposal costs)• Reduce environmental health impacts of
goods and services.
Supply Chain and Purchasing
Kevin Lyons, Ph.D. http: //purchasing.rutgers.edu/green
K. Lyons Work/Research History
1980/6 – USAF – Supply Chain/Contracting (Corporate Trends)1986 – St Peter’s Medical Center/Pharmaceutical Supply Chain1987/8 - Rutgers, NJ Recycling Act; Supply Chain Response; Supply Chain Waste Research (Archeology)1992 - US Federal Executive Orders (13101); NJ EO; Research, LCA, Waste Prevention, Recycling, Product Life Cycle Research Rio Summit; Talloires Declaration (Colombia, Peru, Brazil, etc)
1997 – N. Ireland - SCM/Green Purchasing Program1998 – SC Environmental Archeology/Logistics GHG1999 - Energy Grid, GHG-Carbon Impact2004 – Modified Strategic Sourcing (Construction, etc.)2005 - Alternative Energy Carbon-Impact Research
Supply Chain Environmental Management - Archeology
John E ngler is president and CE O of the National Association of Manufacturers (NAM), the largest industry trade group in America representing small and large manufacturers in every industrial sector and in all 50 states. A former three-term governor of Michigan, Mr. E ngler became NAM president on October 1, 2004 and was elected President of the Business Roundtable (commencing 1.15.11)
Business Roundtable is an association ofchief executive officers of leading U.S.companies with nearly $6 trillion in annualrevenues and more than 12 millionemployees. Member companies arecommitted to working with policymakers,NGOs and consumers to make theircommunities stronger and moresustainable. Enhancing Our Commitmentto a Sustainable Future explains what theyare doing to promote better business and abetter world.
Brand Equity!
Kevin Lyons, Ph.D. http: //purchasing.rutgers.edu/green
Green Supply Chain-Purchasing Research
Product Development, Design, Performance, & Cost Environment and Health Impacts – Eco-Labeling Total Cost of Ownership Global Warming and Climate Change Raw Material Data (Marketplace Availability and Eco-Impacts) Green Products and Services Data (ePr ocur ement/Or acle) Competitive Procurement Process and Strategic Sourcing Green Contract Language and Evaluation Criteria End of Life Data (W aste M anagement/R ecycling)
Annual Spend (Bottom-line Expectations) Life Cycle Assessment/Cost Return on Investment - ROI
Corporate and Organizational Reporting (Sox and Environmental Reporting)Multiple Academic Departments (RE I , E ngineering, Public Policy, Business, Marine, etc.)
Research Along the ‘Chain’
Kevin Lyons, Ph.D. http: //purchasing.rutgers.edu/green
Raw MaterialProduct
downsizing, extensive recycling
ManufacturingEnergy conservation, conservation and recycling of raw materials, measures to prevent air, water and underground water-pollution
DistributionSimplified packaging, efficient distribution, use of low-pollution delivery vehicles
Consumer UseProducts that consume less power, reduce use of auxiliary materials (products that require less use of water, detergent and other materials)
Post Consumer UseProducts designed for easier recycling, lower amounts of environmentally harmful substances (Risk Mgt Research)
Life Cycle Assessment (LCA, NPV)ISO 14040 Criteria (research investment, risks, decisions)
L ogis tic s / Trans portation =
Reverse Logistics: Opportunity/Innovation
Kevin Lyons, Ph.D. http: //purchasing.rutgers.edu/green
Product/Process Design
Raw and Virgin
Material
New Components and
Parts
Recycled, Reused Material
and Parts
V endor s
E xternalTransportation
Storage
Inventory Management
Internal Transportation, Materials Movement
F abr ication
Assembly
Closed-Loop Manufacturing,Demanufacturing,Source Reduction
Storage Distr ibution,F or war dL ogistics
USE
Purchasing, M ater ials
M anagement, I nbound L ogistics
Pr oductionOutbound L ogistics
Disposal
Waste Waste Waste
Energy Energy Energy
Energy
Location Analysis,Inventory Management,
WarehousingTransportation
Packaging
MarketingEngineering
R ever se L ogistics
Reusable,Remanufacturable,
Recyclable Materials and Components
Waste
Materials, Product and Information Flow. Forward and Reverse Logistics, Adapted From Sarkis, 2001.
Materials, Product and Information Flow. Forward and Reverse Logistics
• We will use this product as an example of an LCA to unders ta nd how des ign decis ions a ffect the env ironm enta l im pa ct of the product.
• This presentation is meant to show designers the importance of thinking about these issues while designing a new product or working on an existing one. Therefore, the general concepts and steps will be simplified.
• The important concept behind each step will be explained. It is important to understand the thinking behind these steps, even when the details of how to perform the step in a specific LCA might be unclear. Remember, the actual figures and calculations are not usually done by designers, but rather engineers. T he des igner ’s role is to be a ble to rea d the res ults of a n LC A, unders ta nd the rela tions hip between des ign decis ions a nd env ironm enta l im pa cts , a nd identify is s ues a nd opportunities . Als o, the des igner ha s to k now when a nd how to a s k for a n LC A.
OLFA Cutter
Steps Involved in LCA
• Start by identifying the materials in the product. For every material there is a set of inputs and outputs of energy and pollution. You should include the product, its packaging and every other object related to the product on an indiv idua l basis.
PP = PolypropyleneABS = Acetyl Butene Styrene
Materials
* Source: Des ign + E nv ironm ent; a globa l guide to des igning greener goods
Life-Cycle Inventory Analysis (PP)
Dec is ion G reenS M
UP S ’s approac h to environmental s us tainabilityUP S T rans port & T he E nvironment
R utgers Univers ityNew Brunswick, NJApril 2009
Dec is ion G reenS M
UP S ’s approac h to environmental s us tainability
Kevin Lyons, Ph.D. http: //greenpurchasing.rutgers.edu/
Comparison Between means of Transportation
International Maritime Organization (IMO)
Kevin Lyons, Ph.D. http: //purchasing.rutgers.edu/green
Supply Chain Environmental Archeology; Waste Research - The Concept
History – Question (SCM is everywhere!)Merge Supply Chain and Environmental Mgt/ISO 14001Challenge Waste/Recycling ConceptsChallenge WMX and Industry (separate trucks)Waste as Feedstock/CommodityUpstream Design and Technology (Waste Prevention)Technology Development along the SCMethane and Waste ResearchNew Emerging Contract Development
Kevin Lyons, Ph.D. http: //purchasing.rutgers.edu/green
Green Purchasing and Waste ResearchSupply Chain Archeology
Consumerism, Consumption and the Linking and Integrating of Solid Waste into the Supply Chain Management Process
A Supply Chain Manager’s and Purchaser’s Perspective On:
Understanding the History, Behavior, Movement and Business of Waste;
Methane!
http://vodpod.com/watch/1866241-eco-tech-zero-waste-plastic-bottles
Kevin Lyons, Ph.D. http: //purchasing.rutgers.edu/green
Waste is a Commodity!Mack Truck/Volvo
Kevin Lyons, Ph.D. http: //purchasing.rutgers.edu/green
Waste is Food!
Kevin Lyons, Ph.D. http: //purchasing.rutgers.edu/green
Projects From Recycled Plastic Polymershttp://www.youtube.com/watch?v=0hE-ymdio44
http://www.youtube.com/watch?v=3dD3ml_t77Y&feature=related
Waste is Feedstock
Corporate Logistics and Packaging
http://vodpod.com/watch/1866241-eco-tech-zero-waste-plastic-bottles
A 120-ton diesel locomotive crosses newly built plastic lumber bridge at the Army's Fort Eustis installation in Newport News, Virginia.
Kevin Lyons, Ph.D. http: //purchasing.rutgers.edu/green
Greening the Supply Chain; A Case Study and Success Stories by Dr. K evin Lyons
Clean Water and Oceans Environmental Justice
Global Warming
Clean Air and Energy
Health and the Environment
International Issues
Wildlife and Fish
Sustainable Solutions!
Kevin Lyons, Ph.D. http: //purchasing.rutgers.edu/green
Energy Purchased on the New Brunswick / Piscataway / Newark / Camden Campus – F/Y 2009-10 - R esour ce Data
• E lectr ic – Purchase, 292,100,000 kW h – Produce 115,000,000 kW h = 407,100,000 kW h per year
• Natur al G as – Purchased 2,988,738 dekather ms• Oil – 290,000 gallons• Water – 566,000,000 gallons• C ar bon F ootpr int – 345,197 tons C O2
E lectr ic $23,300,000.00
Natur al G as $ 35,700,000.00
Water $ 3,700,000.00
Totals $62,700,000.00
$2.5 B illion A ssets6200 A cres$550 M illion/Y r C ommodities and Ser vices
900 Buildings6200 Tons/Waste
26 Waste Commodities63% Recycling Rate
Cost Reductions 10yrs!
Software installed through networksPlaces computer into sleep modeBased on 40,000 ComputersInstallation Cost $660,000.00Annual Savings $480,000 - $800,000Annual Reoccurring Cost $80,0001 Year payback A nnual Net Savings $640,000.00
RU Data
Kevin Lyons, Ph.D. http: //purchasing.rutgers.edu/green
Green Purchasing Policy
Consumption (is it needed?) >Z er o W asteCradle-to-Cradle concepts (more than price!)Green Buildings (Design, Landscaping, Construction, Renovation)BioBase, Biodegradable, etc.Energy/Water ConservationE co-L abels; C er tificationsCorporate Social & Environmental Reporting
Changing the Mindset Inside the Campus
http: //purchasing.rutgers.edu/green/
Kevin Lyons, Ph.D. http: //purchasing.rutgers.edu/green
Global Corporate Social and Environmental Reporting
CommunityDiversityEnvironmentEthicsFinancial ResponsibilityHuman RightsSafety
Russell Athletics:
Purchasing for the
G reener G oods
Kevin Lyons, Ph.D., Magda Comeau, Purchasing Departmenthttp: //purchasing.rutgers.edu/green
Changing the Mindset Outside the Campus
Criteria we will be considering when we procure an item will be:•The availability of the item; the potential impact of procurement on the solid waste stream•The economic and technological feasibility of producing the item; and•Other uses of the recovered materials used to produce the item. •Ethics and Socially Responsible policies and practices• Items you may want to share could include:•Company/Corporate annual report (current or prior year) highlighting current ‘green’ initiatives•Documents presenting ideas for new ‘green’ initiatives•Company/Corporate policies regarding office recycling, reducing packaging, etc.
If your company does not have a policy or initiative in place currently, we would be happy to work with you to develop a plan that fits your company’s specific needs.
Kevin Lyons, Ph.D. http: //purchasing.rutgers.edu/green
30% Cost and E nergy ReductionRutgers PC-Laptop Purchasing Program
•EPEAT/ISO 14001
•Energy Star
•Environmental Mgt Plan
•Corporate Social and Environmental Reporting Criteria
•Extended Product Responsibility (Recycling On-Site)
Greening RU RFPs & Contracts
Kevin Lyons, Ph.D. http: //purchasing.rutgers.edu/green
UBS
KPMG
Student Research Projects
eProcurement – RU eEnergy Grid System
E NE R G Y PR OC UR E M E NT I NT E L L I G E NC E , R E A L I Z E D!
Low Carbs … Zero Waste Project2011 REI Energy Innovation Contest
R utger s Univer sity Product
Carbon/Climate Impact Research;Product Labeling and Certification
Measuring carbon emissions at every step of the supply chain could lead to valuable energy and cost saving opportunities (for the General Public, Rutgers, and our Manufacturers). “Carbon F ootprinting” is a way to measure the impact human activities have on the environment, in terms of the amount of greenhouse gases produced, measured in units of carbon dioxide.
Solar Project
The University installed one of the largest ground mounted solar arrays on any one campus in the United States. The 1.4 mega Watt system provides 10% of the power to the Livingston campus. The project cost was 10 million dollars. $4,900,000 dollars of the project was funded through a BPU Core Solar rebate. Currently the University is expected to make $1.1 million for the first year on its SRECS
Kevin Lyons, Ph.D. http://purchasing.rutgers.edu/green
THE LAWRENCEVILLE SCHOOLBogotá
Projects and Initiatives
Middlesex CountyVocational and Technical Schools
GreenEconomic
DevelopmentZone