SUSTAINABILITY AND

CLEANER TECHNOLOGIES

Green Procurement & Eco-Labels

 What is EPP?
 "Environmentally preferable procurement" means 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.”
 This comparison may consider raw materials acquisition,
production, manufacturing, packaging, distribution, reuse,
operation, maintenance or disposal of the product or service.
 What is EPP?
 Just like all other activities in a company which contribute to
an improvement of in-house processes, ecologically oriented
purchasing requires a systematic and carefully planned
approach, which must be reflected in the way purchasing is
organized.
 If purchasing is not only limited to the procurement of raw
and process materials but also includes investments, it
accounts for approximately half of the company's costs.
 Therefore the scope for intervention with green procurement
is large.
 What is EPP?
 The experience gained by CP companies shows the impact of
successful green procurement measures.
 Usually more than one sixth of all measures planned and
implemented in the framework of a CP programme focus on
the substitution of raw and process materials.
 Further measures with an impact on corporate procurement
are taken as organizational measures (approximately 30% of
all measures).
What is advantage of EPP?
Below some examples illustrate how green procurement contributed to
promoting preventive environmental protection in various companies.
A dairy company saved approximately 43 t of packaging material per year by
changing to lighter plastic cups for yoghurt production. The annual savings
amounted to about USD 100,000.
The same company changed the external packaging of transport pallets from
plastic stretch foil to grid foil. In addition to saving two thirds of packaging
material, this change also ensured considerably better cooling effects in the
cooling chamber and consequently lower energy consumption.
Several car repair companies substituted the disposable seat covers for the
protection of car seats from dirt by reusable textile covers.
Automobile factories, car repair shops and a painting company achieved a
considerable reduction of solvent consumption by using water-based paints with
low solvent content.
What is advantage of EPP?

One company was able to save more than 80% of the previously required amount
of cleaning agents by substituting traditional detergents with biologically
degradable concentrates.
An offset printing shop replaced the volatile solvents used to clean printing
machines by detergents on organic basis, thus reducing the burden on the
environment as well as the health risks for the printers.
The heat supply of a large company building was entirely changed from fuel oil to
district heating.
A dry cleaner replaced the traditional perchloroethylene washing machines by
state-of-the-art PER-free machines. In addition, 25% of packaging material was
saved by introducing a thinner plastic foil.
What is advantage of EPP?

Many of the measures related to purchasing do not seem

spectacular at first sight.
A closer look, however, shows that simple measures can
considerably improve the environmental performance of a
company.
And that is what makes green procurement essential.
 What is EPP?
All products/services have a human health or
environmental impact.

So instead of asking “Is this product ‘green?” Ask:

What is EPP?
Does this product/service represent an improvement (in terms of reduced
effect on human health and the environment) than the alternative?
AND
Is it available?
Is it affordable?

EPP is one part of a sustainable procurement program

Sustainable procurement also takes on:
◦ The “social” leg of the sustainability stool (beyond human health
concerns)
EPP Attributes

How do you know if a product or service has “a lesser or

reduced effect on human health and the environment?”
EPP Attributes
1.Product-specific attributes
2.Process-specific attributes
3.Manufacturer-specific attributes
4.Life cycle considerations
Product-Specific Attributes
• Biobased
• Compostable
• Does not contain “X” toxic
ingredient
• Energy efficient
• Fragrance free
• Locally manufactured
• Low-VOC
• Rapidly renewable materials
• Recyclable
• % Recycled Content
• Reduced greenhouse gas
emissions
• Reduced indoor air quality
impacts
• Reduced packaging
• Remanufactured
• Responsibly harvested
• Reusable/refillable
• Upgradable
• Water-based
• Water efficient
Process-Specific Attributes

Transportation
◦ Use of alternative fuels, mode of transport
Use of renewable energy
Absence of hazardous byproducts
Greenhouse gas & other emissions
Closed-loop manufacturing facility
Manufacturer/Vendor-Specific Attributes

• Internal sustainability practices

• Recycling, public transit use, teleconferencing, energy
conservation
• Lack of environmental, safety, or labor violations
• Credible Environmental Management System
• Public environmental/social reporting procedures
• Supply-chain management (quality management)
Lifecycle Considerations

Combination of product specific, process specific, and manufacturer

specific attributes throughout the lifecycle of the product/service
◦ Design
◦ Pre-manufacture (resource extraction)
◦ Manufacture
◦ Packaging & Distribution
◦ Use, Reuse, Maintenance
◦ Waste Management
 EPP Attributes
Given the various combinations of “green” attributes, how do we know which
combination is the best?
• Priorities by Application or Agency or both
• Eco-standards and eco-labels
• Life-Cycle Analysis
• Common Sense
 Eco-Labels

An "ecolabel" is a label which identifies overall, proven environmental preference of

a product or service within a specific product/service category.1

Typically, an ecolabel
◦ certifies a product against a standard; or
◦ verifies a specific claim.

1Global Ecolabelling Network

Eco-Labels
Eco-Labels

Manufacturers attach a declaration of conformity and a visible stamp, the CE

identification, to products which meet the respective EU directives. Despite the
CE identification, the manufacturer can decide to meet a stricter product
standard or to have its machines inspected.
Eco-Labels
Example Eco-Labels

Multi-Attribute, Life-Cycle, Variety of Commodities, Independent Third Party Labels

Green Seal
◦ 31 standards covering 180 product and service categories
◦ U.S. based
ULE (formerly EcoLogo, Environmental Choice)
◦ 122 standards covering a large variety of product & service categories

Multi-Attribute, Independent Third Party Labels - single commodity area

• FSC Certified (wood products)
• EPEAT (electronics)
Example Eco-Labels
Single-Attribute, Independent Third Party Labels
Energy Star (energy efficiency)
Water Sense (water efficiency)
Greenguard Certified (indoor air quality- product offgassing)
SCS – environmental claim verification
Eco-Label Trends

Growth in point-based tiered-achievement or “scorecard” type ecolabels

◦ Key disadvantage: scorecards typically are not made public
Growth in number of players
◦ Growth in ecolabels
◦ Growth in “free market” approach
◦ Key disadvantage: harder for consumers to find quality information
What to avoid
Irrelevant or unverifiable claims
Labels defined by individual manufacturers or industry groups without a
consensus basis and third-party review
Eco-Labels & Greenwashing
Greenwashing Alert! Things to Know Before Using/Trusting an Ecolabel or Standard
Review a copy of the standard (or find someone who has).
◦ Does it have clear and meaningful criteria?
Know who/how the standard was created and who/how the ecolabel program is
managed.
◦ 1st, 2nd, 3rd party
◦ ISO 14020/14024 - Environmental labels and declarations
Know how the product/service is certified.
◦ 1st, 2nd, 3rd party
◦ ISO / IEC Guide 65 Accredited Product Certification Body
◦ ISO 17025 - Testing and Calibration Laboratories
Environmental Interventions in the Procurement Cycle

Procurement * Define subject matter Use environ’t Contract

planning * Green title for contract contract management
* Market research performance
clauses

Requirement Env. Specifications Issue

* Technical standards &
definition eco-label criteria
contract
* Performance requirements
* Production/process method
Sourcing Contract
review &
Assessing suppliers tech
award
capacity

Procurement Preparation Receipt & Evaluation

strategy solicitation open offers
documents
Env. evaluation criteria
From Environment Procurement Practice Guide, UNDP Life-cycle costing approach
 Elements of an EPP Policy
 Describe why it is important to buy environmentally preferable products
 Identify connections between EPP and other sustainability initiatives/policies
 Define environmentally preferable purchasing
 Identify desired environmental attributes
 Balance environmental considerations with performance, availability, and cost
requirements
 Modify existing specifications
 Identify initial priorities
Elements of an EPP Policy – cont’d

 Assign responsibilities and establish deadlines

 Reference existing environmental labeling and certification programs
 Create a communications plan
 Develop measurable goals and reporting requirements
 Review policy regularly
EPP Policies - Customization
Define EPP – how your agency defines a “green” product or conducts an evaluation
Define acceptable types of standards or eco-labels
Define any cost/price methodologies
◦ Price preferences, best value approach, life-cycle costs, product standardization
Roles & Responsibilities (based on staff capabilities and procurement methods)
Reporting
EPP Policies - Development
• Leadership Support
• Actively Engage:
• Procurement office; Stores/storeroom staff; Key end-users (large volume
buyers)
• Standards/specification writers (engineers, architects, project managers)
EPP Policy - Implementation
Key Elements for Successful Implementation
Understand how your agency specifies stuff
Understand how your agency buys stuff
Understand what your agency buys – prioritize
How & What will determine approach:
◦ Stakeholder groups
◦ Project by project
◦ Process integration
◦ Approved product lists
◦ Leadership & management support
◦ Dedicated staff
◦ Education & Communication
◦ Work with contractors/vendors
◦ Pilot tests; implementation by small steps
Example EPP Specifications
Copy Paper
Minimum specifications for copy paper should include:
1) 30% PCW (post-consumer waste) recycled content;
2) chlorine-free certification;
3) chain of custody certification for virgin content
4) a requirement that vendors offer tree-free alternatives.

For stronger specifications, include maximized PCW recycled content;

recycled-content and recyclable wrappers, cartons, and corrugated packaging
with a minimum of 30% PCW; and vendor green power use.

Refer to the Model Policy drafted by the Environmental Paper Network and RPN.
Example EPP Specifications
Furniture
Indoor Air Quality
Ergonomic, wide range of adjustability
Durable
Materials
◦ No PVC, PBDEs, PFCs, no added formaldehyde
◦ Minimum % recycled content (LEED standard)
◦ Single-resin plastics, readily-recyclable materials
Easily deconstructed & recyclable (also aids repair)
Certified to meet: BIFMA e3 standard
Example EPP Specifications

Laundry Services
Efficient Equipment – energy & water
Alternative transportation/vehicles; route optimization
No dry-cleaning (no perc); no NPEs, low-phosphates
Recyclable and/or reusable packaging
End-of-Life program for textiles
Example EPP Specifications
Example Evaluative Criteria
Consider “green meeting” best practices, emissions reduction (use of public transit,
rail, bicycle, carpooling), use of environmentally preferable materials (recycled
content, low-VOC, recyclable, etc.), and waste reduction.
Describe your firm’s policies and practices regarding utilizing low-carbon business
travel options.
Address how your firm will minimize carbon emissions related to attending
meetings with Auditees.
For the individuals hired to fulfill the requirements of this solicitation, will your firm
offer any incentives to encourage them to use alternative transportation for their
work commute (e.g. subsidize a portion of a public transit pass, carpool incentives,
bike/walk incentives)?
EPP Metrics
One of the keys to meaningful EPP metrics is:
Establishing effective criteria for defining EPP products
or services
Common EPP Metrics:
• $ and % spend on EPP during X timeframe
• Quantity and % EPP purchased during X timeframe
• $ saved via EPP during X timeframe
• Upfront savings, life-cycle savings or payback time
• Benefits of EPP during X timeframe or per purchase
• kWh saved, GHG reductions, lbs waste reduction, etc.
• Paper Calculator, Electronics Environmental Benefits Calculator, ENERGY
STAR calculators, Green Cleaning Pollution Prevention Calculator
 EPP
Challenges
Metrics
Decentralized procurement processes
Financial system software rarely incorporates EPP metrics; even then, it is typically limited
Variety of “green” definitions
Vendor usage reports may not have EPP tracking capabilities; if they do, they may define
“green” differently than your agency
Savings are typically not captured in financial systems
Other options:
Case studies
Focus on top commodities or particular projects
Focus on agency-wide price agreements
End-user reporting
Track process-related achievements
◦ # of solicitations with “green” criteria
EPP Metrics
Example: Commonwealth of Massachusetts

Sales of Environmentally Preferable Products and Services

and Recycled Content Products
Mass Dept. of
Transportation
(MassDOT)

Type of Purchase State Agencies Political Subdivisions EPP Total

EPPs and Services $55,628,727 $50,125,398 $0 $105,754,125

$137,852,362
Recycled Products $38,510,902 $23,224,795 $199,588,059
$137,852,362
GRAND TOTAL $94,139,629 $73,350,193 $305,342,184

FY2011 Summary: CFLs, Office Equipment, Computers and Remanufactured Toner Cartridge Purchases
Cost Savings
CFLs (savings / less energy use) $1,141,251
CFLs (savings / reduced labor) $528,376
Office equipment (savings / less energy use) $30,293
Computer Components (savings / less energy) $1,098,422
Remanufactured cartridges (savings / lower cost) $386,712
TOTAL COST SAVINGS $3,185,054
EPP Metrics – Example Case Study

• EPEAT (http://www.epeat.net/) purchases, City of San Jose

• 629 EPEAT-qualified CPUs, 544 EPEAT-qualified monitors, and 69 EPEAT-
qualified laptops
• Estimated to Save (vs non-EPEAT option):
• 473,000 kWh in energy,
• 830,000 kg in primary materials,
• 1.9 million kg in air emissions,
• 4,000 kg in water emissions,
• 45 kg in toxic materials usage, and
• 1600 kg in hazardous waste
• Total cost savings of these reduced impacts is about $44,700.
• LED lighting, City of Portland
• 10 BETA LED light fixtures for fueling station canopy
• 40% electricity savings (payback probably 6-7 years)
• Reduced maintenance costs
• Better quality light
Resources: EcoLabels & Greenwashing

Ecolabel directory: www.ecolabelindex.com

Green Building Product Certifications Report 2011 (BuildingGreen.com)
Pharos (rates different eco-labels related to building products)
www.pharosproject.net
FTC Green Guides – Environmental Marketing Rules
http://business.ftc.gov/documents/bus42-complying-environmental-marketing-
guides

EPP Policy - Resources

• Environmental Purchasing Policies 101 (Case, 2004)
http://www.cec.org/files/pdf/NAGPI%20Policy%20Paper2e.pdf
• Responsible Purchasing Network – example policies
http://www.responsiblepurchasing.org/purchasing_guides/all/policies/
Resources for EPP Specifications
Where to Find “Green” Specifications
City of Portland www.portlandonline.com/buygreen
◦ includes links to other public agencies such as: San Francisco,
Massachusetts, California, Multnomah County, King County, New York City
EPA EPP www.epa.gov/epp
Responsible Purchasing Network www.responsiblepurchasing.org
EPPnet Listserve www.nerc.org/eppnet/index.html
EPP Resources
Responsible Purchasing Network
www.responsiblepurchasing.org
EPA EPP
www.epa.gov/epp
City of Portland BuyGreen Website
www.portlandonline.com/buygreen
BuildingGreen.com & Pharos
www.buildinggreen.com, www.pharosproject.net
Healthcare Without Harm, Practice Greenhealth http://www.noharm.org,
http://practicegreenhealth.org
EPPnet listserve www.nerc.org/eppnet/index.html