The Power of Purchasing:Greening the University Supply Chain

Duke University; Freeman Center for Jewish Life (March 22, 2004)

K. Lyons (1980 – Today):• Ph.D. Supply Chain Environmental Management (EPP/SCM Economic Impact Assessments);

LCA/C, Waste Management, EIS

Real Work!:

• 1980 – 1986; USAF – Purchasing Division

• 1986 – 1988; St. Peter’s Med Ctr – Purchasing/Patient!

• 1988 – Present; Rutgers – Procurement/Research/As Assigned!o RU/Oracle eProcurement Implementation Team (1999-2002)

o EcoComplex (EPP Research)

o NYCT/MTA (EPP Research, EIS Peer Review Facilitator-On Call!)

o EPP Government/Community/School Developmental Projects

o HE/Community Shared Services Initiative

o EPP Local Economic Development Initiative

o Global EPP/Supply Chain Project Work

o UK (Wales, England, N. Ireland, Scotland); EU/Local Authority Projects

o S. America (Colombia, Peru, Brazil – Supply Tracking, Waste Mgt)

Green Purchasing Overview/Theme  A strong, high-level Organizational commitment to environmental stewardship and top-level management support for supply chain initiatives;  Cross-functional integration involving all the different areas within a organization that can gain value from interacting with suppliers (such as procurement, environment, manufacturing, marketing, research & development, and distribution);   Incorporation of environmental issues into existing supply chain management activities and design, procurement, and distribution processes;  Effective processes for targeting which suppliers to involve in environmental initiatives;•Clear, consistent, frequent, and two-way communication with suppliers about environmental issues and performance expectations.

Identificationof Need

Purchasing(Public Law)

Receipt andDistribution

Use andDisposal

Accounting

Feedback(Performance)

Qualificationand

Contracting

Design andSpecification

Waste management,re-use, recycling

Producthandling

& logistics

Supplierassessment,managementinformation

Supplierenvironmental& socialqualification &appraisalsystems

'Full cost accounting'and 'life cycle costing'

'manage out'environmental

impacts

Greening the Supply ChainThe role of procurement inmanaging environmental

and social impacts

HE/Federal Government Spend!

The United States Federal Government and Higher Education sectors are two of the largest purchasers and consumers of goods and services in the U. S. On average, both spend approximately $400–$500 billion dollars a year on goods and services, which is 15 % of all goods and services purchased in the U.S. economy (27.5% of the U.S. Gross National Product), with state and local governments accounting for an additional 12%–13%.

"...products or services that have a lesser or reduced effect on human health and the environment when compared with competing products or services that

serve the same purpose..."

U.S. Federal Executive Order 13101

Environmentally Preferable Purchasing

High Quality Purchasing/Supply Chain Management

Also called "Affirmative Procurement," “Sustainable Procurement/ Purchasing” and "Green Purchasing," this approach means integrating environmental factors into procurement policies, usually using the following tools and/or methods:•Pollution Prevention: From the start of a process or procedure, reducing or eliminating toxicity, air and water emissions. •Life-Cycle Perspective: Looking beyond purchase price. Consider costs and environmental impacts over the lifetime of a product or service (manufacturing, packaging, transport, energy consumption, maintenance, disposal). •Natural Resource Protection: Giving preference to sustainable, reusable content, and recycled materials over virgin materials, as well as to conserving water and energy.

Environmentally Preferable Purchasing

DefinitionsBio-based Material – Material, other than food or feed, that is composed, in whole or in significant part, of biological products or renewable, domestic, agricultural (plant, animal and marine), or forestry materials. Certification – Procedure by which an independent third party gives written assurance that a product, process system or service conforms to specified requirements, either mandatory or voluntary, regulated or non-regulated. Certified – A product, process, system or service that has undergone certification.

Life Cycle Assessment (UN)

A product's life cycle starts when raw materials are extracted from the earth, followed by manufacturing, transport and use, and ends with waste management including recycling and final disposal. At every stage of the life cycle there are emissions and consumption of resources. The environmental impacts from the entire life cycle of products and services need to be addressed. To do this, life cycle thinking is required.

Costing Assessments should be applied as well (LCC)!

Life Cycle Assessment (UN)

Life Cycle Assessment (LCA) is a tool for the systematic evaluation of the environmental aspects of a product or service system through all stages of its life cycle. LCA provides an adequate instrument for environmental decision support. Life cycle assessment has proven to be a valuable tool to document the environmental considerations that need to be part of decision-making towards sustainability.

Definitions

A reliable LCA performance is crucial to achieve a life-cycle economy. The International Organization for Standardization (ISO), a world-wide federation of national standards bodies, has standardized this framework within the ISO 14040 series on LCA.  

 

Life Cycle Assessment (UN)

Extraction of minerals such as limestone, sandstone, gravel, sand, coal or china clay can be extremely damaging to the environment and can impact on local communities in a variety of ways. These impacts include:

• Noise and vibration (during extraction, processing and construction phases) • Dust (from quarrying, traffic, etc) • Pollution of surface and groundwater • Visual impacts and loss of land • Increased traffic and associated energy use, dust, noise, nuisance, etc • Health and safety impacts associated with extractive industries • Use of energy for extraction and processing • Loss of cultural heritage • Reduced local and global air quality with subsequent effects on health • Production and disposal of waste materials and associated landfill impacts • Exhaustion of non-renewable resources • Reduction of biodiversity (directly through the use and loss of habitats, and indirectly through dust, noise, etc.)

Environmental impacts along the lifecycle (example)

Environmental Impacts of Mineral Extraction

Waste Management/Recycling; My Research at the EcoComplex

In order to support the economic soundness of solid waste and recycling policy implementation, research into the economic impacts associated with this program are being investigated. This research could provide a broad overview of recent trends in solid waste and recycling, related public policy issues, and will utilize various national and international sources of economics literature and research devoted to this topic. Special attention is given to critical decision-making further up the waste stream ladder which will include raw material extraction, product design, manufacture, packaging, use and options disposal (which may provide insights to broadening our downstream technology options and opportunities).

RU eProcurement Initiatives

• Rutgers - Camden LCC Project 1999-2000– Life Cycle Costing - Purchase Profiles– Waste/financial impact profiles attached to each

purchase (Resource Track)– Reporting ‘real-time’ purchase>waste stats

• Environmentally Preferable Purchasing and e-Commerce Research (Electronic Supplier Data Transfer/Interface)

• EPP GPS Resource Tracking ‘Buyer’ Footprint • Commodity/Resource LCA Tracking and Mapping Project• Web Database; Procurement LCC Decision Matrix • EcoComplex; R&D Government/Industry Participation

Greening the US Federal Government

WHY BUY GREEN?

• Conserve resources, including energy

• Improve our environmental footprint

• Market development

• Economic benefits

• Health and safety

• Reduced liabilities

Positive Environmental Attributes• Recycled content • Recyclability• Product disassembly potential• Durability• Reusability• Take-back• Biobased• Energy efficiency• Water efficiency• Reconditioned or remanufactured• Other attributes with positive environmental effects

(expansion of the ‘Lease/return’ concept)

WHY BUY RECYCLED?

• Develop markets and technologies (RU/Polywood, Highland Park ‘Green Tax Zone, MBE/WBE opportunities)

• Conserve resources and energy• Improve our environmental footprint• Economic benefits

WHY BUY GREEN?

It’s the law!

MYTHS ABOUT BUYING GREEN

• President Bush revoked the greening the government Executive Orders

• Inconsistent with efforts to be more like corporate America

• Inconsistent with buying from mandatory sources

GREEN PURCHASING ENCOMPASSES:

• Recycled content products• Environmentally preferable products

including biobased products• Energy efficient products

LowVOC

MANDATES

• Resource Conservation and Recovery Act (RCRA), Section 6002

• 2002 Farm Bill, Section 9002

• EO 13101, Greening the Government through Waste Prevention, Recycling, and Federal Acquisition

• Federal Acquisition Regulations

Environmentally Preferable PurchasingRutgers EPP Program Highlights!

                                                                       

Greening the Supply Chain InfrastructureClimbing Outside the Procurement Box!

Global Product/Supplier Investigations/Liaisons (US, SA, Europe, Far East), RU Research, Supply Chain research (FAR, State, HE, Corp)

France

England, Wales, Scotland(WWF-UK, IDeA, Edinburgh, Cardiff, Glasgow)

Greening the Government, EU EcoPurchasingPolicy, Transportation, Greenhouse Gas Legislation

Ireland

Belfast, New Parliment EcoPurchasingPolicy Implementation Project

Germany

Netherlands South America

Coffee, Rubber, Wood, Fuel,Textiles, Transportation,

Packaging, WasteManagement, CorporationResponsibility (Colombia,

Peru, Brazil, Amazon)

Talloires Signatories

WWF-UK, RU Contracts

Global EPP Projects

Europe/UK (IDeA, WWF-UK, etc.) European Union EPP Policy Development/Performance Project Local Authority EPP Training/Implementation Project Corporate Environmental Reporting (Sunderland-Alabaster)

Colombia/Peru (Supply Chain Tracking) EPP Training and Corporate Policy Development Waste Management/Recycling Training Collaborative Environmental Research Trade Issues International Corporate Responsibility (International Environmental

Liaison Program)

Rutgers EPP Community Partnerships & Opportunities

Local Community, National/International, Government, NGO, Higher Education, Private Sector, On-Campus Research, K-12, Purchasing Associations (NIGP, NAEB, ISM, COUP)

New York City Transit Authority Project

Greening the MTA

New York City Transit Authority Project

Greening the MTA (& Lower Manhattan)

MTA

MTA/NYCT EPP Training/EPP Policy Development-Implementation Project NYCT/MTA Specific (Procurement, Safety, Field) Environmental Impacts; Performance (on-site/construction, etc)

State of New York DEC Grant MTA Capital EPP Project K. Lyons EPP Embedment (MTA/NYCT, LIRR, NJ DOT/NJ Transit) Specification/Contract Development EPP Inclusion Public Law/EO 111 Support Lower Manhattan Redevelopment Classroom/Laboratory: Rutgers

University/NYCT-MTA Center for Applied EPP Research

MTA (Fulton Street Transit Center)

Federal Environmental Impact Statement; Peer Review Facilitator, NYCT Fulton Street Transit Center Project

($750 Million)Overall Compliance with NEPATechnical Analysis – Project Environmental Impacts and

Performance (e.g. Construction, Spoils) Coordination w/Other Agencies/Stakeholders

Selected K. Lyons EPP Projects

New York Stock Exchange (Greening the NYSE Supply Chain); New ProjectGreen Business Ticker/Report NYSE Green Purchasing/NYSE Operations and TechnologyTechnology and Workplace Environment

Lawrenceville Prep School Project Waste Audit Project Campus Audit Waste Management/Landfill Research Community/Economic Impact Assessments

Greening With Our Neighbors in Highland Park, NJ

Highland Park 2020 Initiative(Mayor M. Frank); BPU

Rutgers EPP Community Partnerships

EPP Local Economic Development

Cooperative Purchasing/Maximized

Sustaining Green Government/Higher Education Partnerships

Green Business/Residential Zone

Greening the Municipal Buildings

City-wide Audit/Assessment

EcoCenter