Environmentally Preferable Purchasing

Supply Chain Management

Jay Justine Bantaya

Shawn Vance Panaginip
Environmentally Preferable Purchasing
• goods and services that have a lesser or reduced
impact on the environment over the life cycle of the
item when compared with competing goods of the
same purpose.
• Environment + Price + Performance = EPP
• Life Cycle = “cradle to grave” assessment considers
materials extraction, production, transport, use of
the product and end-of-life disposal.
• And also called buying green or green purchasing
EPP requires consideration of numerous environmental
considerations, including:
• Postconsumer recycled content
• Energy efficiency
• Durability
• Low/zero air emissions
• Low/zero hazardous substances
• Water efficiency
• Easy, nonhazardous maintenance
• End-of-life management keeps materials out of landfills
(e.g., reuse, recycling, return to manufacturers)
• Low life-cycle cost
• Responsible manufacturing
• Packaging and distribution efficiency
Why Environmentally Preferable Purchasing

• Conserve natural resources

• Minimize pollution
• Reduce water and energy use
• Avoid environmental health hazards on our campus and within our
community
• Divert material from landfills
• Improve the availability and use of environmentally preferable product
• Encourage suppliers to reduce their environmental impact and to send
that message up their supply chain
• Support locally produced goods and services
• Educate and inform ourselves, campus requestors and end users, and
suppliers of the best environmentally responsible procurement choices
 Why should we practice EPP

• It protects the environment

• It protects employees-if it’s less toxic it’s better for employee’s health
• It can save money/labor/time
• It can help you comply with environmental laws
• It is good for public relations (it’s good PR)
• Reduces environmental liabilities
• It helps persuade vendors to deliver products that are more
environmentally friendly
BEFORE WE BUY

• Is the available product used? Consider purchasing used or

remanufactured products such as laser toner cartridges and furniture
whenever practical and cost effective without compromising safety,
quality or performance and must consider total cost of ownership.
• Does another department have a surplus of the product they are
willing to share?
• Does another department have the product but is not using it?
• Can the existing product be economically and sustainably refurbished?
COST OF OWNERSHIP

While many items look like they are a good price at point of purchase, take
in to account a product’s total life cycle cost. Consider:
• acquisition,
• extended warranties,
• operation,
• supplies,
• maintenance,
• support,
• disposal costs or trade-in value,
• and expected lifetime compared to other alternatives .
WHEN TO BUY
If a purchase is necessary, look for a product with some or all of the following
characteristics. They may be relevant to your acquisition whenever practical and
without compromising safety, quality, or your budget. Consider if product:

• is durable and expected to last

• is made in whole or in part from recycled material(s) or from a renewable
resource
• failure parts can be replaced, recycled or returned to the manufacturing for
reuse or remanufacture
• is energy and water efficient
• is shipped securely with a minimum of packaging; all packaging is made from
recycled materials and is itself 100% recyclable; or, Supplier takes back
packaging for reuse
How to apply EPP
• Do an Environmental Audit or collect baseline information
• Set policy or pass resolution on EPP
• Establish up an EPP team
• Adopt specific goals
• Gather broad support
EPP ECONOMIC BENEFITS

• Can reduce costs for products and services

• Can improve operational efficiency (sometimes significantly)
• Can reduce employee exposure to hazardous materials
• Can reduce worker comp costs and medical costs
• Can reduce transportation costs
• Can reduce losses from spoilage
• Can reduce energy costs
• Can reduce waste storage and handling costs
• Can reduce waste disposal costs
EPP ENVIRONMENTAL BENEFITS

• Can reduce environmental impacts from waste disposal

• Can reduce warehouse and storage costs and free up space
• Can conserve natural resources
• Can reduce pollution from manufacturing process
• Can reduce pollution from transporting products
• Can reduce environmental liabilities
• Helps paint your organization as being green in eyes of public
Environmental Management System
Environmental Management System
• A management system is a structured framework of
practices and procedures that enables an
organization to execute its operations in a consistent
and sustained manner.
• The management system is intended to be system
dependent, not people dependent.
• The system is built on the Plan, Do, Check and Act
Model.
• A set of methods and procedures for aligning
corporate strategies, policies and operations with
principles that protect ecosystems.
The aims of Environmental Management System

• to increase compliance and reduce waste Compliance

• the act of reaching and maintaining minimal legal
standards Reduce Waste
• to reduce environmental impact
 definition

• An EMS objective is an overall goal arising from the

environmental policy statement set by the
organization.
• An EMS target is a detailed measurable performance
requirement related to the objective.
 Some Basic EMS definition
Environmental Aspect (Cause)
– The elements of an organization’s activities, products, or
services which can interact with the environment.
– It is important to establish, implement and maintain a procedure
to identify the environmental aspects of activities products and
services that you “can control and …can influence.”
– After identifying environmental aspects you must determine
those which have or can have significant impacts on the
environment.

Examples include: air emissions, water discharges, use of raw

materials, energy use, use of natural resources, use of volatile
organic compounds.
 Some Basic EMS definition

Environmental Impact (Effect)

– Any change to the environment whether adverse or
beneficial, wholly or partially resulting from an
organizations activities, products, or services.

Examples include: depletion of natural resources, air

pollution, hazardous waste generation, soil and water
contamination.
Purpose of an EMS

• An EMS brings together the people, policies, plans,

review mechanisms, and procedures used to manage
environmental issues at a facility or in an
organization.
Benefits of an EMS

• Helps maintain compliance

• Reduce operating costs
• Integrate environmental programs into mission
• Increase employee involvement
• Reduce environmental impacts
Connecting the Environment and the People

• An EMS helps each member of the organization

understand their role in the environment, and to see
how what they do at the facility affects the
environment
• It provides for responsibility, ownership, and
accountability of actions and related impacts,
• Results? People that are more aware, better trained,
more motivated, and more enthusiastic.
EMS model or PDCA Cycle
PLAN

• Planning, identifying environmental aspects and

establishing goals
• Determine most important to company
• Legal and Other Requirements
• Objectives and Targets
• Management Actions to Support Objective and
Targets
DO

• Implementing, includes training and operational

controls
• Structure
• Training, awareness
• Communication
• EMS Documentation
• Document Control
• Operational Control
• Emergency Preparedness and Response
CHECK

• Checking, includes monitoring and corrective action

• Records
• Preventative Action
ACT

• Reviewing, includes progress reviews and acting to

make needed changes
• EMS Audits
• Management Review
• Final Review stage creates a loop on continuous
improvement for a company
EMS Components

1. Environmental Policy
2. Planning
3. Implementation and Operation
4. Checking and Corrective Action
5. Management Review
1. Environmental Policy

• Issue a policy statement signed by facility manager

• At a minimum, commit to
 Continual improvement
 Pollution prevention
 Environmental compliance
• Identifies EMS framework
• Publicly available
2. Planning

• Identify aspects and impacts from facility activities,

products, and services
• Review legal requirements
• Set objectives and targets
• Establish formal EMS program
3. Implementation and Operation

• Define roles and responsibilities

• Provide EMS training
• Establish internal and external communication
mechanisms
• Establish document control system
• Establish operational controls
• Integrate with or establish emergency preparedness
procedures
4. Checking and Corrective Action

• Conduct periodic monitoring of environmental

performance
• Identify root causes of findings and conduct
corrective and preventive actions
• Maintain environmental records
• Conduct periodic EMS audit
5. Management Review

• Conduct periodic senior management review of EMS

• Revise policies as needed
General Benefits Of An EMS

• Drives Sustained Performance

• Set targets to reduce energy use, water use & waste
to landfill
• Achieve cost savings
• Easier compliance
• Pollution prevention
• Increased efficiency
• Improved morale
Environmental Improvement Plan

• CO2 emissions
• Electricity use
• Vehicle emissions
• Storage and use of oil
• Use of diesel, petrol and gas
• Discharges to drains
• Water
• Storage and use of timber treatment chemicals
• Purchase and sale of products, particularly timber.
Action List and Responsibilities

• Observing all relevant legislation

• Seeking to prevent pollution
• Looking for ways to make continuous improvements 
Cost and Benefits of EMS

• The benefits are achieved through a number of cost

reductions.
• nature and the environment in general are also clear
winners