Reducing GHG emissions through Sustainable Public …...and presented at the 5 December side event,...

The Sustainable Public Procurement programmeof the 10-Year Framework of programmes on

Sustainable Consumption and Production

“Reducing GHG emissions through Sustainable Public

Procurement”

5 December 2015

- A COP21 side event -

Time Topic Panelist

5:30-5:40 pm

Welcome remarks by the 10YFP SPP programme Coordination Desk

• Mr. Stefanos Fotiou, Head of the Cities and Lifestyles Unit, UNEP

• Mr. Yong-Jin Kim, Executive Director, KEITI• Mr. Mark Hidson, Deputy Regional Director

Europe, Global Director ICLEI's Sustainable Procurement Centre, ICLEI – Local Governments for Sustainability

5:40-5:50 pm

Reading of the Seoul Declaration on the role of Sustainable procurement in the fight against climate change

• Mr. Farid Yaker, SPP Programme Officer, UNEP

5:50-6:00 pm

Monitoring and Measuring GHG emission reduction impacts of SPP

- Results from the 10YFP Programmeon SPP working group

• Mr. Jason Pearson, Executive Director, Sustainable Purchasing Leadership Council (SPLC)

6:00-6:20 pm

How SPP can contribute to reducing GHG emission - Case studies

- European Case – Mainstreaming Low-Carbon Procurement: the GPP 2020 approach

• Mr. Simon Clement, Coordinator Sustainable Economy and Procurement, ICLEI – Local Governments for Sustainability, European Secretariat

Side event agenda (1/2)

Time Topic Panelist

6:00-6:20 pm

How SPP can contribute to reducing GHG emission - Case studies

- Asian Case – Korea’s experience on GHG emission reduction impacts of GPP

• Ms. Hyunju Lee, Associate Researcher, KEITI

- North American Case – City of Portland, Oregon and King County, Washington, U.S.A. by Mr. Jason Pearson, Executive Director, Sustainable Purchasing Leadership Council

• Mr. Jason Pearson, Executive Director, Sustainable Purchasing Leadership Council

6:20-6:35 pm

Questions & Answers session

6:35-6:45 pm

Closing remarks • Mr. Stefanos Fotiou, Head of the Cities and Lifestyles Unit, UNEP

Side event agenda (2/2)

Reading of the Seoul Declaration on the role of Sustainable procurement in the

fight against climate change

Mitigating Climate Change through Low Carbon

Procurement

Mr. Farid Yaker, SPP Programme Officer, UNEP

Declaration drafted by the participants of the 19-20 November 2015 Seoul meeting

on low carbon procurement and presented at the 5 December side

event, COP21, Paris

WHEREAS

Government procurement accounts for 10-15% of GDP fordeveloped countries, and as much as 20% of GDP fordeveloping countries. Procurement by other large privatesector actors such as utilities, banks, and retail companies alsorepresents a large share of GDP. Government procurement andinstitutional private purchasing, combined, form the largestprofessionally managed economic demand driving the globaleconomy and its associated greenhouse gas emissions.

Mitigating Climate Change through Low Carbon Procurement (1/7)

• Through sustainable procurement, governments as wellas private purchasers, can significantly reduce theircarbon footprint. They can also use their vast combinedeconomic purchasing power to enlarge the market forclimate friendly products, thereby meaningfullyreducing supply chain GHG emissions across the entireeconomy and stimulating more suppliers to invest inlow carbon goods and services.

• Many public and private purchasers have alreadyadopted low carbon procurement practices to achievetheir own mitigation goals, and to contribute to theworldwide effort to maintain global averagetemperatures increase within the two degreesthreshold. However, there is still much untappedpotential, in particular in the following sectors:


• Electricity and heat production (25% of global GHG emissions),vehicles procurement (14% of global GHG emissions),infrastructure and construction (6% of global emissions).

• Procurement of electronic appliances, including refrigerators,washing machines, copy machines, computers and monitors.

• Procurement of services including information technology services,leased space, food services, and travel and hospitality services.

• Procurement of street lighting, and other indoor and outdoorlighting.


THEREFORE

• Procurement offers a strategic opportunity to reduce GHGemissions and fulfill country objectives expressed in INDCs.

• In order to seize this opportunity, the participants of the 19-20Seoul meeting call upon public and private purchasers to make useof the potential of procurement to fully contribute to the climatemitigation objectives agreed upon by the international community.They specifically call for:

• Consideration of the climate impacts of goods and services in theprocurement process, notably through the demand for low carbonsolutions, the estimation and inclusion of carbon costs in theevaluation of tenders, and, whenever possible, through theevaluation of suppliers’ carbon footprint in the selection process.In this respect, public and private purchasers should make a moresystematic use of Life Cycle Costing and if not, of Total Cost ofOwnership methodologies in order to capture the broader range ofclimate impacts in the bids evaluation process.


• Active engagement of suppliers and other supply chain actors toshift towards carbon friendly products, solutions and productionprocesses.

• Increase in collaboration among national, regional, state, and localgovernments, and the private sector, to grow and support marketsfor low carbon goods and services.

• Development by all institutional purchasers of sustainableprocurement action plans and monitoring systems inclusive ofGHG reduction objectives. The efforts of developing countries inthis regard should receive the support of the donor community.

Finally, the participants of the 19-20 November Seoul meeting call fora comprehensive approach to procurement that links climate changewith the full range of environmental, social, and economic factorsthat affect our long-term future, in line with the recently adopted UNSustainable Development Goals.


Endorsing organizations

The following organizations endorse the Seoul Declaration:

• CEGESTI, Centro de Gestión Tecnológica e Informática Industrial, Costa Rica

• China Environmental United Certification Center (CEC)

• CO2Logic, Belgium

• Corvers Procurement Services BV

• Ecoinstitut (Spain)

• EcoMark Office, Japan

• Green Council (Hong Kong)

• Green Purchasing Network, Malaysia

• IEc, Industrial Economics Inc.

• International Green Purchasing Network

• Institut des Finances, Basil Fuleihan, Lebanon

• KEITI, Korea Environmental Industry & Technology Institute


Endorsing organizations

The following organizations endorse the Seoul Declaration:

• Ministry of Environment of the Netherlands

• Policy Procurement Office, Mauritius,

• Regional Activity Centre for Sustainable Consumption and Production (SCP/RAC), Mediterranean Action Plan (Barcelona, Spain)

• Sustainable Purchasing Leadership Council,

• UNEP, United Nations Environment Programme

• US General Services Administration


GHG Metrics & Measurement from Sustainable Purchasing

Lessons from 10YFP Workgroup 2B

Jason Pearson

President & CEO

Sustainable Purchasing Leadership Council

Cities and Regions Pavilion

TAP 2015 @ COP 21

05 December 2015

Le Bourget, France

13

W W W. S U S TA I N A B L E P U R C H A S I N G . O R G

Root Challenge

18

The lack of standardization

in how sustainable purchasing

is defined, measured,

and rewarded.

Could we collaborate to

launch a shared program

for guiding, measuring, and

recognizing leadership

in sustainable purchasing?

19

Market Transformation

Commitment Campaign

2016 Challenges

1 2 3 4 5

6 7 8 9 10

Rating System for Leadership

in Sustainable Purchasing

Version 1.0

2014

2015

2016

201721

22


UNEP SPP 2B Work-Group:

Measurement Framework

IEcINDUSTRIAL ECONOMICS, INCORPORATED

INDUSTRIAL ECONOMICS, INCORPORATED

The 2B Project Hypothesis

Sustainable Public Procurement (SPP) will increase

if there is a reliable way of measuring and

communicating the benefits of SPP programs.

24


2B Framework development inputs

Framework (Guidance) for measuring and communicating SPP benefits

WG 2A Guidance

SPLC Guidance

v1.0

2B Concept

Map

25

2B Baseline Review




WG 2A Guidance

SPLC Guidance

v1.0

2B Concept

Map

26

2B Baseline Review


SPLC Guidance V1.0 Overview

27


SPLC Guidance V1.0 Overview

28




WG 2A Guidance

SPLC Guidance

v1.0

2B Concept

Map

29

2B Baseline Review


How Do We Measure SPP?

Policies• Measure

adoption, type, scope and mandate

Activities• Measure

outputs and progress toward goals

Outcomes• Measure

environmental, economic, and social impacts

Global

Review of

SPP2A working

group 2B working group

30


Key Measurement Concepts

SPP Activities includes:

• Spend analysis

• Policy development

• Spec. development

• RFP language development

Outputs/ Embedment Indicators includes:

• Sustainability policy, guidance, or specifications in use

• RFPs have sustainability criteria built in

• Integration of SPP program into e-procurement

systems

31


Key Measurement Concepts (continued)

Intermediate Outcomes

• # of contracts that meet sustainability policies

Longer-term Outcomes

• More sustainable goods/services purchased leads to:

Internal Benefits: Benefits enjoyed by the

purchaser, e.g. Cost savings, revenue growth, risk

reduction

External Benefits: public good/social welfare

benefits, can be environmental, social or

economic

32


Common Benefits of Sustainable Purchasing

ENVIRONMENTAL

REQUIREMENT KEY INTERNAL BENEFITS KEY EXTERNAL BENEFITS

Reduced energy use of

specified products

• Reduced operational cost

• Addresses high profile

problem (GHGs)/ improves

reputation

• Carbon mitigation

• Air quality improvement

• Energy independence

Reduced use of hazardous

materials in specified

products

• Improved occupational safety/

reduced business risk

• Reduced regulatory burden

• Sometimes reduced cost of

products

• Human health risk reduction at all

lifecycle stages

• Protection of natural resources

Use of recycled content in

specified products

Sometimes reduced cost of

products

• Preservation of natural

resources/biodiversity

• Reduced end of life environmental

impacts

• Support of markets for recycled

materials

• Sometimes reduced impacts during

manufacturing process

33


Potential Benefits (longer-term outcomes) of SPP

Source: 2B Baseline Review Report

34

Environmental Benefits

• Reduced greenhouse gas emissions

• Reduced energy, water, and fuel consumption

• Reduced waste generation

• Improved air quality

• Efficient use of materials

• Reduced use of hazardous substances

• Maintains biodiversity

SocialBenefits

• Creates employment opportunities

• Improves occupational health and safety

• Improves social inclusiveness

• Promotes economic opportunity for indigenous people

• Promotes equal opportunity employment

• Promotes fair and ethical trade

• Supports small and medium enterprises

Economic Benefits

• Reduces cost

• Promotes innovation

• Promotes regional economic development

• Develop markets for sustainable products and services

• Grows revenue

• Improves reputation

• Reduces risk




WG 2A Guidance

SPLC Guidance

v1.0

2B Concept

Map

35

2B Baseline Review


Framework Guidance


SPLC Guidance and Measurement

37


Program Level: Prepare

Choose benefit categories your organization cares about:

• What benefits are relevant to your organization, mission,

and stakeholders?

• Focus on environmental impacts, or focus on economic or

social as well?

• Are there already purchasing initiatives in place that inform

future vision?

38


Program Level: Enlist

• Ask: what types of communication will resonate

with different audiences?

• Collect input on the importance of various

measures

39


Program Level: Design

• Conduct a preliminary analysis of tracking

systems and data sources.

• Lay the foundation for program evaluation by

considering:

• Baselines

• Expected outcomes

• Evidence required

• The need for validation.

40


Program Level: Commit Step

• Ensure management’s commitment includes

measuring and reporting.

• Encourage managers to use measurement data as

part of a continuous improvement cycle.

41


Strategy Cycle: Launch

• The kickoff agenda and report-out should

include a plan and budget for measuring and

communicating results.

42


Strategy Cycle: Analyze

• Collect purchasing data to

support spend analysis

• Conduct analysis to

identify priority

product/service

categories or priority

strategies

43

• Review spend analysis options

• Product/service category focus or supplier focus

• Process LCA, EIO-LCA, alternatives to LCA


Strategy Cycle: Planning

Example Reporting

Requirements

The contractor/supplier must document

that the products supplied under this

contract comply with key environmental

criteria noted above. On a quarterly

basis, the supplier shall submit a Product

Worksheet to the Contracting Officer. The

report shall include:

Contractor

Date of solicitation

Product or service type

Model

Number of sustainable units sold

Price per sustainable unit

Number of non-sustainable units sold

Price per non-sustainable unit

Total cost – sustainable products

Total cost – non-sustainable products

Supporting information for

sustainable products (e.g., eco-label

certified, and name of the eco-label)

44

• Define the scope and level of

measurement activities

• Select benefits categories and

performance metrics

• Develop a plan for collecting and

reporting data


Strategy Cycle: Implementation

For each priority strategy implemented:

• Identify key indicators & SMARTT metrics for each

indicator

• Establish a baseline for each metric to measure

progress against

• Check on data quality as you implement, correct

errors

45


Strategy Cycle: Reporting and

Communication Steps

What to Communicate:

• Progress on each strategy

• Aggregation to program level

• Contextualizing benefits, e.g. with “social math”

• Benchmarking

• Attribution issues/program evaluation

And to Whom:

• Within your organization

• Stakeholders

• Public

46


Using Results

Continuous improvement of individual SPP strategies and

SPP program

• Decisions to take on new SPP strategies: launch of

new strategy cycle

• Management tool to inform broader/higher-level

organizational and business planning

• Inform Policy

47


GHG-related Metrics for Procurement

ENVIRONMENTAL

REQUIREMENT KEY INTERNAL BENEFITS KEY EXTERNAL BENEFITS

Reduced energy use of

specified products

• Reduced operational cost

• Addresses high profile

problem (GHGs)/ improves

reputation

• Carbon mitigation

• Air quality improvement

• Energy independence

Reduced use of hazardous

materials in specified

products

• Improved occupational

safety/ reduced business risk

• Reduced regulatory burden

• Sometimes reduced cost of

products

• Human health risk reduction at all

lifecycle stages

• Protection of natural resources

Use of recycled content in

specified products

Sometimes reduced cost of

products

• Preservation of natural

resources/biodiversity

• Reduced end of life environmental

impacts

• Support of markets for recycled

materials

• Sometimes reduced impacts during

manufacturing process

48


GHG-related Metrics for Procurement

BENEFIT METRIC EXAMPLES EXAMPLE UNITS

Carbon mitigation • GHGs reduced or avoided

• Value of GHGs reduced or avoided

(applying social cost of carbon)

• Metric tonnes carbon equivalent

(MTCE) or CO2 equivalent (MTCO2E)

• $ value of (MTCE) or CO2 equivalent

(MTCO2E)

Energy use

reduced/avoided

• Total energy use reduced/avoided

• Fossil fuel use reduced/avoided

• Electricity reduced/avoided

• MMBtu or Joules(all)

• Watt-hours kWh (electricity)

Air quality

improvement (from

reduction on fossil-fuel

energy use)

• NOx reduced/avoided

• SOx reduced/avoided

• PM reduced/avoided

• Air toxics (aggregate or specific)

• Metric tonnes

Cost savings • Total (net) cost savings (time-delimited)

• Total (net) lifeycle cost savings

• $ saved over (time)

• $ saved over product lifetime

Efficiency in carbon

mitigation

• GHGs reduced or avoided/ unit of

product

• GHGs reduced or avoided/total spend

for the product category

• GHGs reduced or avoided/ total

employee count

• MTCE or MTCO2E/unit of product

• MTCE or MTCO2E/$ annual spend on

product category

• MTCE or MTCO2E/# employees

Cost-effectiveness in

carbon mitigation

• Cost/GHG reduction

• Cost savings/GHG reduction

• $ cost/MTCE or MTCO2E

• $ saved/MTCE or MTCO2E

49


General Methods for GHG Assessment from

Purchasing

Lifecycle-based methods that cover energy use and

GHG emissions within a multi-attribute framework:

• Process-based LCA models

• EIO-LCA models

• Environmental Product Declaration (EPD)

50


GHG-Specific Comprehensive Tools Examples

• Carbon Footprint Measurement Toolkit

• Carbon Value Analysis Tool

• EU Ecolabel Carbon Footprint Measurement

Toolkit

• Envirocalc

51


Product or Issue Specific GHG Calculators

• ReCon (EPA, GHGs for recycled content)

• Campus Carbon Calculator (Carbon MAP)

• Carbon calculators are available specific to:

• Appliances (EnergyStar calculator)

• Electronics (EEBC/EPEAT calculator)

• Office operations

• Paper

• Renewable energy purchases

• Street lighting

• Vehicles

52


GHG Analytical Challenges

• Capturing lifecycle impacts

• Double counting

• Treatment of offsets

• Rebound effects

• Capturing any trade-offs

53

55


How SPP can contribute to reducing GHG emission

Case studies

• European Case – Mainstreaming Low-Carbon Procurement: the GPP 2020 approach, Mr. Simon Clement, Coordinator Sustainable Economy and Procurement, ICLEI – Local Governments for Sustainability, European Secretariat

• Asian Case – Korea’s experience on GHG emission reduction impacts of GPP by Ms. Hyunju Lee, associate researcher, KEITI

• North American Case – City of Portland, Oregon and King County, Washington, U.S.A. by Mr. Jason Pearson, Executive Director, Sustainable Purchasing Leadership Council

GPP 2020 – procurement for a low-carbon economy

Quantifying our impact

Paris, 5 Dec 2015 – 10 YFP on SPP

www.gpp2020.eu | 58

Starting point of GPP 2020:

Many successful SPP examples, projects,

policies, but little quantified information on impact.

Policy makers need this data

GPP 2020 approach:

1. Big Impact – working with big buyers in 8 EU countries, each publishing 6 SPP tenders

2. Quantified impact - calculating CO2 savings for each tender

www.gpp2020.eu

How?

• Compares emissions from GPP 2020 tender with previous or

standard product/service

• 4 CO2 procurement impact calculators developed (all online):

• Vehicles

• ICT

• Street-lighting

• Energy Performance Contracting

• Only calculates emissions related to energy use

• Provides an approximate estimation of the savings achieved

| 59

www.gpp2020.eu

Expected impacts

• Over 100 GPP tenders for energy related products and

services carried out – all documented in Tender Models

• Estimated savings: up to 1 million tonnes t CO2e

(Current figure: 249,077 t CO2e)

• Further support activities in each country: training,

helpdesks, networking events, guidance

| 60

www.gpp2020.eu

GPP 2020 Tender Models Database

| 61

www.gpp2020.eu

Latest tenders

| 62

Tender Savings (t CO2e )

Purchase of 100% green electricity, Slovenia (107 legal

entities) – Lead: Ljubljana45,000

Energy efficient PCs and monitors (national framework

contract) – Lead: Consip5,100

Energy efficiency services for 12 schools in Prov.

Barcelona – Lead: Catalan Min. of Education550

Printers for German federal agencies and institutions –

Lead: Federal Procurement Office of the German Federal

Ministry of the Interior

4,700

Reconstruction of the Dutch A12 motorway section –

Lead: Dutch Min. of Infrastructure9,000

Contact

Germany: Federal Procurement Agency of the Ministry of Interior, ICLEI European Secretariat / Austria:

Federal Procurement Agency (BBG), IFZ / Slovenia: Umanotera, Ministry of Finance / The

Netherlands: RVO, RWS / Croatia: UNDP / Portugal: OesteCIM, LNEG / Italy: Ecosistemi, Province of

Rome, Consip / Catalunya: Ecoinstitut, ICAEN, Generalitat Catalunya

Simon Clement

ICLEI - Local Governments for

Sustainability

[email protected]

+49 761 368 9244

www.gpp2020.eu

Partners

mailto:[email protected]

http://www.gpp2020.eu/

Hyunju Lee

Associate Researcher

Sustainable Lifestyle Office

Email: [email protected]

GHG emission reduction

impacts of Korea’s GPP

Framework Act on Low Carbon, Green Growth

Article 32 (Standardization and Certification of Green Technology and Green

Industries)

Five-Year Plan for Green Growth (2014-2018)

GPP as a tool to achieve one of the five policy goals – Creation of Green and Innovative

Industry

Key performance Indicator for GPP : The total amount of green procurement by public org.

“The Government may grant certification of conformity for green technology, green

projects, and green products or accreditation of specialized green enterprises, impose

an obligation to purchase on public institutions, or provide technical guidance in order

to facilitate the development of green technology and green industries.”

0.00

1.00

2.00

3.00

2014 2015 2016 2017 2018

GPP records

(billion USD)

Act on Promotion of Purchase of Green Products of 2005

Objective: prevent wasteful use of resources and environmental pollution, contribute to sustainable

development by encouraging green purchasing

The heads of public institutions shall purchase green products, when they intend to purchase any

product

State agencies are obliged by the Act to produce and report to MOE

Implementation Plan with voluntary GPP targets

Performance Report with the amount of green product purchased

Target organizations

Central government, Local government, Public corporation, Public institutes,

Public educational institutes

Comprised of about 900 umbrella org. and more than 30,000 subsidiary org.

Certified or Meet the criteria set either by the Korea Eco-Label or the Good

Recycled Mark

Meet other environmental standards set by MOE in consultation with the

relevant ministries

156 categories including office

equipment, construction

materials

2,321 companies, 15,698 products

(As of Oct. 2015)

Ministry of Environment

http://www.ecoi.go.kr

Korea Eco-

Label

Good Recycled

Mark

15 categories including waste paper,

glass

195 companies, 238 products

(As of Oct 2015)

Ministry of Trade, Industry and Energy

http://www.gr.or.kr

Product groups

Number of Products

Certification

Authority

Website

Collating GP plans

/records & Evaluating

What is monitored?

The GHG emission of an eco-labeled product is calculated by averaging test results of frequently

used products of the product category.

The GHG emission baseline for an ordinary product is set, in a conservative manner, following the

minimum environmental performance requirements of the product category under the Korea Eco-

label.

0.79 0.86

1.34

1.58 1.63 1.64 1.65 1.73

2.04

4.5 5.36.9

5.4 5.3 4.9 5.3 6.17.5

0.0

5.0

10.0

15.0

20.0

25.0

30.0

0

0.5

1

1.5

2

2.5

2005 2006 2007 2008 2009 2010 2011 2012 2013

Total expenditure in green products (billion USD)

% of GPP over the total domestic purchase executed by PPS

How the baseline is set?

GPP records by category (%)

Electric / Electronic

Goods

ConstructionMaterials/Furniture

Computer

MonitorCopying machine, washing machine, dish washer,

refrigerator, television, computer, laptop, printer,

computer monitor, facsimile, air conditioner

Desk, bookcase/cabinet,

partition, blast furnace slag

cement, insulator and sound-

absorbing material, floor

decoration material

ConsumablesToilet paper, soap

ProductsEnvironmental

performances

GHG

emission

reduction

Relevant Environmental

loads

Computer

monitor

Monitor for desktop

computer1,000

Electricity use, reduction of

solid waste disposal

Desktop

computerPower use of 400W or less 477


solid waste disposal

Refrigerat

or

capacity of 500-1,000L

used at home67.1


ozone depleting substances

& solid waste disposal

… … …

<Table. Annual GHG emission reduction of the Korea Eco-labeled

products (%)>

Source: MOE/KEITI, 2007, “Environmental and Economic benefit analysis of eco-products”

For the last 10 years, public sector’s green procurement in 19 items resulted

in 4.8 million tons of CO2 equivalent GHG emission reduction

More than 90 % of savings are made from the purchase of desktop computer,

and computer monitor

Hyunju Lee

Associate Researcher

Sustainable Lifestyle Office

Email: [email protected]

Reducing GHG Emissions through Sustainable Purchasing

Lessons from the SPLC Case Study Library

Jason Pearson

President & CEO

Sustainable Purchasing Leadership Council

Cities and Regions Pavilion

TAP 2015 @ COP 21

05 December 2015

Le Bourget, France

1Creating the Case Study Library

SPLC 2016 Leadership & Case Study Awards

SPLC 2015 Leadership & Case Study Awards

Case Study Submission Form

Case Study Sample Outline

40+ SUBMISSIONS

38 OUTSTANDING CASE

STUDIES

20 ORGANIZATIONS

RECOGNIZED

2Lessons from Sample Case Studies

Reducing GHG Emissions through SPP

Case Studies: Reducing GHG Emissions

8 pages 4 pages 3 pages

U.S. General Services AdministrationU.S. General Services Administration (GSA)

commissioned VitalMetrics (IERS LLC) to

conduct a comprehensive environmental Spend

Analysis (SA) for federal spends and identify

options for improving procurement procedure to

reduce their environmental impacts. With over

$500 billion annual expenditure, the U.S. federal

government is ranked as the single largest

purchasing entity in the world, and its leadership

in sustainable purchasing has the potential to

transform the economy across the border.

Recognizing its importance, President Obama

signed the Executive Order 13514 in 2009, under

which federal agencies in the U.S. are required

to demonstrate measurable effort in operating

sustainably. In response to E.O. 13514, GSA

initiated two projects to measure and mitigate the

environmental impacts of federal government

purchases.

Using CEDA, an environmentally extended input-

output LCA database, and structural path

analysis (SPA), the structure of environmental

impacts associated with the US federal

government spends were analyzed. CEDA

database contains data for over 2,700

environmental emissions and resources

consumption by over 400 sectors. The large

number of environmental exchanges are

aggregated into 12 different impact categories

using the TRACI method developed by the U.S.

EPA., which is then further aggregated into a

single impact score using a weighting scheme

developed by the National Institute of Standard

and Technology (NIST).

The procurement ledger included over 3.3 million

individual rows of data and over 800 million data

fields. The spend data have been collated and

stored into a queryable database, and a software

platform has been developed to analyzed queried

spend data by purchasing agency and

procurement categories.

The results shows that nonresidential

construction such as road, bridges, and other

infrastructures constitutes the largest

environmental impacts among US federal

government expenditure.

Among the supply-chain processes that directly

generate environmental impacts within the

federal government expenditure, electric utility

sector was responsible for the most significant

chunk of the overall impact.

Detailed analyses were performed on 12 major

inputs. Procurement item–specific opportunities

for reducing life-cycle impacts of consumption

were analyzed for these target inputs considering

the availability of alternative standards and eco-

label programs to those already being used as

part of GSA’s green purchasing policy and

shifting demand for products or services to lower

impact products and services, among others.

The findings from this work helped inform GSA

and other federal government branches to

improve the environmental performance of their

purchases. While the first of the two projects

were performed prior to the publication of the

SPLC guidance document, both of the two

projects closely follow SPLC’s guidance

demonstrating its applicability to a very large

organizations with complex spend data.

Scope National

Agencies US General Services Administration

Timeline ongoing

Objective Identify highest priority purchasing categories based on supply chain environmental impacts across 12 impact categories.

Categories All

Outcomes Identified nonresidential construction (infrastructure) as the highest priority category.

Lessons Prioritization of categories is critical to strategic action.

U.S. General Services Administration

Key Lessons

• Purchasing of electricity and non-residential construction (infrastructure) are

the highest priority categories for GHG emissions.

• Most supply chain GHG emissions are from the utility sector.

• More complex purchasing categories require detailed supply chain analysis to

identify genuine GHG reduction opportunities.

King County, Washington

Scope Regional

Agencies Government of King County

Timeline ongoing

Lessons Full participation of the people who make purchasing decisions is the key to success.

“Environmental, Social, and Fiscal” is not a motivating factor for everyone, but “Human Health and Safety” and “Saving Money” resonates

with all.

King County’s Environmental Purchasing Policy

and Program provides County personnel with

information and technical assistance to help

them identify and evaluate, and ultimately buy,

economical and effective environmentally

preferable products and services. We provide

relevant information on cost savings, standards

and specifications, case studies and success

and failure of others. In addition, we routinely

present King County’s experience as a model for

other jurisdictions and organizations, highlighting

the tools, techniques, and products employed by

agencies. We specify and quantify the

sustainable products that we buy, and report this

annually to the county council.

King County uses environmental standards and

certifications whenever possible to assure that

the products we are buying are environmentally

preferable. Some of these include: Energy Star,

EPEAT, UL Environment, LEED, Green Seal,

DfE, and FSC. We promote adoption of

additional standards by county agencies as we

are able to identify them and seek to engage the

expertise of users in their development and

testing.

King County routinely uses total cost of

ownership (TCO) and Life Cycle Coast

Assessment (LCCA) to purchase vehicles and

heavy equipment. Agencies have used purchase

price, maintenance and operating costs and re-

sale value to justify the purchase and payback of

hybrid-electric vehicles and buses. King County

was one of the first municipalities to purchase

both hybrid passenger vehicles and hybrid-

electric buses and now have over 70% hybrid

buses in our fleet of 1,600 buses.

King County has historically documented the

purchase of environmentally preferable products

by reporting total units and dollars spent on

various commodities and presented a dollar

savings table. As, we learn to quantify the

environmental benefits of our purchases,

sometimes through on-line “calculators” we

report the environmental benefit such as Kwh

saved or greenhouse gas emission reductions.

Benefits / Savings

Copy Paper

225 MT CO2e

Computers

1,271 MT CO2e

Lighting Upgrades

767,824 kWh

Electric Vehicles

200,000 MT CO2e

Hybrid Buses

$4.7 million, 18,000 tons CO2e

King County, Washington

Key Lessons

• Purchasing of electricity, fuels, and construction (infrastructure) are the highest

priority categories for GHG emissions.

• Largest reductions are from demand reduction/management.

• Demand reduction/management provides an immediate financial payback.

• Procurement is a sub-component of the broader Strategic Climate Action Plan.

City of Portland, OregonOffice equipment uses eight percent (8%) of

electricity in a typical office building. Utilizing

energy efficient office electronicsplays an

important role in meeting both the City’s energy

use and GHG reduction goals. Since 1990 the

City has had an Energy Policy that directs the

City to both purchase energy efficient products

and consider the life-cycle cost of products when

making purchasing decisions. Over the years,

purchasing ENERGY STAR products has played

a key role in meeting the City’s energy efficiency

objectives. And when EPEAT was developed,

the City saw an opportunity to meet additional

sustainable procurement objectives.

In 2011 the City’s Facilities division began the

task of pursuing LEED for Existing Buildings for

its largest office building. During this time,

Procurement Services partnered with Facilities

to pursue a few of the procurement related

credits, including the credit for Durable Goods –

Electric Powered Equipment. In order to meet

the LEED credit, a policy had to be in place

specifying ENERGY STAR as a standard and

ENERGY STAR electronic equipment had to be

purchased during the performance period. In

addition, the credit gave credit if EPEAT

products were purchased during the

performance period.

When Facilities and Procurement Services

started this project, they soon realized that the

City’s Technology Services division did not have

ENERGY STAR or EPEAT explicitly written into

their technology standards. It was also

discovered, that past purchases of ENERGY

STAR qualified desktops did not always come

with the energy saving features enabled.

Through the LEED process, Facilities and

Procurement Services worked with Technology

Services to integrate ENERGY STAR and

EPEAT into their technology standards, while

also ensuring products were ordered with energy

saving features enabled.

When EPEAT for imaging equipment was

developed, Procurement Services used the

opportunity to reach out to its Printing and

Distribution division to incorporate EPEAT into

their procurement decisions, as they are

responsible for procuring and managing the

City’s fleet of multi-function devices. Having

previously worked with Technology Services in

incorporating EPEAT into their technology

standards, Procurement Services was also able

to work with them to incorporate EPEAT into the

printer section of their standards.

Benefits

Not only did this work help contribute to the

City’s LEED Gold certification for the Portland

Building, it fostered ongoing energy savings

compared to using non-ENERGY STAR or non-

EPEAT office electronics. Facilities wins by

reducing plug load in their buildings, and

Technology Services and Printing and

Distribution continue to get high-quality

equipment that meet their internal customers’

needs. Also, since EPEAT qualified products

meet a variety of environmental performance

requirements, the City’s EPEAT purchases

reduce energy, water, toxic materials, etc. over

the life of the product as compared to non-

EPEAT purchases.

For example, during fiscal years 2010-14, the

City’s purchase of EPEAT desktops will produce

the following savings over product lifetime(s):

• 2.5 million kWh in energy savings

• 1,523 MT of CO2 equiv. savings

• 181 kg of toxic material savings

• 5,215 kg of hazardous waste savings

• $256,345 in cost savings

Scope City

Agencies City of Portland (Facilities, Procurement Services, Technology Services)

Timeline ongoing

Lessons Engagement of multiple departments was critical to success.

City of Portland, Oregon

Key Lessons

• Product standards are effective for achieving and quantifying GHG reductions.

• Engagement of multiple departments (IT, Facilities, Procurement) is critical to

identify aligned incentives, build consensus, and ensure effective implementation.

• Ongoing product review of certified product availability is required.

3Applying Lessons at the Global Scale

SPLC 2016 Market Transformation Campaign

2016 Market Transformation Campaign

A high-profile campaign that challenges

purchasers to publicly join together in

committing to a set of key actions that

will accelerate market transformation in

areas of the economy that are global priorities

for transitioning to a sustainable future.

2016 Market Transformation Campaign

Thank you!

Reducing GHG emissions through Sustainable Public …...and presented at the 5 December side event,...

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