EarthCheck Fact Sheet: 9

EarthCheck Pty Ltd. PO Box 12149. George Street. Queensland 4003. Australia. T: +61 7 3238 1900 E:info@ec3global.com www.earthcheck.org

Green Procurement

Green or sustainable procurement is considering the environmental and social impact of the products and services being purchased and changing purchasing policies because of those considerations. Green procurement may have additional benefits to the operation besides reducing its environmental impact, sustainable purchasing can also reduce costs by reducing waste sent to landfill and by using more efficient products. Green procurement is especially important in the tourism industry because goods purchased by tourism businesses can have a significant impact on the environment. This fact sheet aims to provide a guide on how to implement green procurement and compare potential products to reduce the impact of tourism businesses.

What is a sustainable product?

A sustainable product is the result of a design process in which environmental, social, ethical and economic questions were partly or totally integrated¹

Life cycle thinking

Life cycle thinking is considering the whole life cycle of the product from the extraction of the resources needed to manufacture it to its disposal; it is also known as ‘cradle to grave’ thinking. Table 1 provides some example of things to consider when applying life cycle thinking to choosing and purchasing products.

GETTING STARTED AND IMPLEMENTING

GREEN PROCUREMENT

Green procurement is closely linked to waste management strategies, so it may also be useful to read fact sheet 8: Reducing Waste Sent to Landfill.

Start small, think of sustainable procurement as incremental and start by choosing a small selection of products you regularly purchase that have clear environmental or social impacts that are readily known and understood² e.g. items with packaging that is not biodegradable or that cannot be reused or recycled leading to waste being sent to landfill, wasting natural resources and increasing greenhouse gas emissions. Additionally, set short and long term targets, for example to transition to using recycled paper for a quarter of the operation by the end of the year and all recycled paper by 2016.

Table 1: Life cycle thinking

Stage Considerations

Resource Extraction

Is the product made from renewable, sustainable and natural resources? What is the product’s recycled content? Is resource extraction having an unsustainable impact on communities?

Manufacture What is the product’s embodied energy, water, waste and greenhouse gas emissions? How much packaging is used? Are there any toxic chemicals (VOC’s, heavy metals, carcinogens) or ozone depleting substances being emitted? Does the production and sale of the product align with fair trade standards? What are labour conditions like? Are there concerns about human rights abuse (for children in particular)?

Dispersal Where is the product manufactured? Are equivalent products available locally? How far does the product have to be transported? What mode of transport is used?

Use Are there any health and safety concerns for staff, guests and communities (i.e. toxicity and sanitation)? Is the quality and durability of the product appropriate? Can the product easily be repaired and/or upgraded? Is the product fit for purpose (i.e. size, quantity and application efficiency)?

Disposal Is the product biodegradable? Are there any environmental toxicity concerns for disposal? Can the product be recycled or reused?

Discuss a realistic timeline with the relevant staff members in the operation such as the procurement officer and staff that will have to use the product.

Is this product essential? It may be possible to completely remove the use of a product or its function may overlap with something that is already being used. In this way it is possible to avoid or reduce the environmental impact of that product.

Additionally, is it possible to reduce consumption of the product? A reduction in consumption would also reduce a product’s environmental impact as well as lower purchasing costs.

Do the products impact current waste management strategies? For example can they be recycled? Choosing products that fit into existing waste management strategies will allow for seamless integration of procurement policy and waste management policy.

Seek alternative solutions that provide reduced environmental and social costs. First consider what the main environmental and social issues are (refer to table 1 for some prompts) and what criteria could be used to start differentiating between products. It might be easier to assess products on one impact initially and gradually work towards incorporating more environmental or social aspects. Alternative solutions could mean finding different approaches available in the market such as reusing or refurbishing old goods or hiring goods from a supplier.

The Gateway Hotel Residency Road has

undertaken several green procurement

Initiatives, listed below:

Internal hotel stationary is recycled

Old newspapers and magazines are

donated to kindergartens

Bio degradable disposable bags

placed in rooms

All chemicals used have to have an

MSDS and be bio degradable where

possible

Using citron and lemongrass oil as an

alternative to pesticides

CASE STUDY: THE GATEWAY HOTEL RESIDENCY ROAD,

INDIA

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EarthCheck Pty Ltd. PO Box 12149. George Street. Queensland 4003. Australia. T: +61 7 3238 1900 E:info@ec3global.com www.earthcheck.org

PROCUREMENT POLICY

The most effective way to ensure green

procurement is considered is to develop

standard procurement policies to help

staff select the most suitable product

available with the least environmental

and social impacts.

A procurement policy should consider the

full range of environmental, social and

economic issues across the lifecycle of a

product (from extraction of resources,

through production, transport, purchase,

use, final disposal and everything in

between). Policies should be simple and

clear and outline decision making

strategies that incorporate green

procurement initiatives. Policies should

specify:

The types of products that can be purchased

Environmental, social and economic issues to consider

The basis of product comparison (i.e per 100 sheets of office paper)

The approval procedures to be followed

Make sure policies are continuously

reviewed and updated as new information

on products becomes available

Collect information from a range of suppliers about their products to avoid, green washing ask for more information, such as an MSDS (material safety data sheet) which gives you specific information about the impacts of the chemicals in the products you are purchasing. Choose suppliers which have consistently shown that they care for the environment and that continually work to reduce the impact of their product. Below may be some useful questions to ask:

What stages of the lifecycle are included and are there aspects which have been left out?

Is the information verified by an independent third party?

Does the information apply to the operating procedures of your business?

Are products being compared on the same basis?

Does the company’s web site or promotional material mention codes of practice, standards, charters or guidelines by which they abide?

Does the company have an environmental or social responsibility policy, relevant

certifications and/or Environmental Management Systems?

Consider rating and eco labels, such as energy or water stars, these can provide useful information to procurers about the efficiency and impact of the product. While they do make purchasing decisions easier they need to be critically assessed based on the operation of the business. What to look for in an eco-label:

Independent third party certification

Comprehensive and based on lifecycle considerations

Standards developed with participation from a range of stakeholders, based on sound scientific evidence and available for review

Transparency of information provided

Ongoing auditing and recertification requirements

Compare products of similar function

Eco-labels should not be used exclusively. If a product or service is able to demonstrate equivalent performance, it should not be excluded from procurement considerations.

At first many ‘greener’ alternatives may seem more expensive but this is usually offset by longer life expectancies, higher efficiency and lower disposal costs across the life cycle making them, in the long run, a cheaper option. Assess the functionality, availability and difference in costs to determine the capital cost of purchasing the environmentally or socially preferred product. When making purchasing decisions it is very important to take a holistic view and not just focus on the initial capital cost but also consider the many hidden costs such as:

Operational costs including water, energy, waste and ongoing cleaning and maintenance

Repair, replacement, disposal or resale costs

Administration and regulation costs

Staff training and health and safety considerations

3

Lifecycle costing comparisons clearly show that green products do not necessarily cost more when operational costs are considered. The higher initial investment can be offset by lower ongoing savings in resources such as water, energy and waste

4. By thinking about the impact of a

product in the procurement stage, costs and environmental impacts can be reduced across the whole life cycle.

ECO LABELS

There are 3 types of eco labels:

Type 1 eco labels: developed by an impartial third party authority, with a pre-determined set of requirements to assess the product

Type 2 eco labels: self-assigned by the producer of the product. Accuracy of the claims can be legitimate if evidence can be verified with a transparent and scientifically sound evaluation methodology

Type 3 eco labels: awarded based on a full life cycle assessment of the product to enable comparisons of products fulfilling the same function. Generally subject to an eco label system such as Green Seal

Eco labels may be product specific, such as the Marine Stewardship Council’s sustainable seafood label. It can be difficult to determine which eco label is which, especially since there are now a multitude of products claiming to be sustainable, in order to find out which label is which you could:

Paper Products

100% of the paper purchased by the Taj Boston is made from recycled materials. Staff are encouraged to re-use office paper, and wherever possible paper is re-used for internal photocopying. The hotel has also placed paper recycling bins in every office and near copying machines. Additionally, facial and toilet tissue are sourced from Green Seal Approved plantation trees.

Cleaning Products

The Taj Boston partners with EcoLab for all housekeeping materials. All products used are Green label approved, including those used in the laundry and valet areas. The hotel also partners with the Clean the World Foundation, a not-for-profit which aims to improve global hygiene by recycling soap and soap products. This partnership has enabled the Taj Boston to recycle 3,926 pounds of soap from April 2012 to March 2013. Cleaning areas are also equipped with dispensers so that the use of chemicals is kept to a minimum.

CASE STUDY: TAJ BOSTON, USA

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Tip

It is important to compare products of

equivalent function. For example:

Paper products: Environmental and social impacts should be compared per sheet of paper (or per 100 or 1,000 sheets of paper)

Chemicals and pesticides: These products should be compared based on their application efficiency and effectiveness. For chemicals, determine the full range of impacts to clean a specified area such as per 10m

2, whilst for pesticides consider

the impacts of pesticide use per 1m2

of effective pesticide treatment

Tip The Responsible Care Initiative is a

global voluntary initiative of the

chemical and pharmaceutical industry.

Find out whether your supplier has

signed up to the initiative and what

steps they have taken to implement the

“Fundamental Features” of the

initiative. For more information visit:

www.responsiblecare.org

Request more information from the supplier about the eco label and the criteria needed to earn it

Know the common type 1 eco labels for your region such as Blue Angel or Green Seal

Research the eco label when considering buying a product

Green washing

Green washing occurs when a product or service makes false claims to being environmentally friendly. This generally stems from type II eco labels and may be about the process used to make the product or the packaging it is in. Green wash products often use buzzwords such as ‘natural’ and ‘sustainable’ without substantiated evidence.

To avoid green washing understand the environmental impacts of the products and services you use this way you can target products that avoid these impacts as much as possible. Additionally, be wary of buzzwords and if in doubt ask the supplier for specifics about the environmental aspects of their product. If their claims are legitimate, they should have the evidence to back it up.

PRODUCT SPECIFIC INFORMATION

Chemicals

Cleaning chemicals and pesticides can have detrimental effects on the environment and health and safety of employees, guests and the community. It is essential that cleaning is effective to provide sanitary and safe facilities, however there are countless products now available that can achieve equivalent performance at a reduced cost to the environment.

Request suppliers provide you with Material Safety Data Sheets (MSDS) on the chemical products you are purchasing. This information will provide you with the key environmental and health and safety

information required for making informed decisions.

Cleaning Products

Cleaning products vary considerably in their composition, function, availability and effectiveness. Ecolabelled products can help to distinguish some cleaning chemicals. The Green Seal standard recommends cleaning chemicals be available for purchase in concentrated form (to reduce packaging) and contain minimal phosphorous. In addition, the standard specifies some ingredients which should be prohibited:

Heavy metals including, lead, hexavalent chromium, or selenium; either in the elemental form or compounds

2-butoxyethanol

Alkylphenol ethoxylates

Phthalates

Pesticides and Landscaping

The first issue to consider when assessing pesticide and herbicide use is whether they are actually needed:

Can the area be hand weeded instead of using a herbicide?

Are there passive design options which might negate the need for pesticide use, for example:

planting with natural pesticide plants

regrading areas to prevent water pooling which encourages pests

better housekeeping including not leaving food scraps or rubbish around

segregating problem areas to reduce the amount of pesticide required

installing physical barriers to prevent pest invasion

mulching to prevent weeds

Along with the Responsible Care Initiative, the Pesticide Action Network provides an international database on pesticide toxicity and regulatory information. For more information visit: www.pesticideinfo.org

Paper Products

Paper products are common to most tourism operations and although they can represent a relatively small cost, the embodied environmental impacts can be significant. Key issues to consider when purchasing paper products include:

Whether the paper comes from sustainable forestry practices (such as Forest Stewardship Council (FSC) certified)

Chemicals used during manufacture (for example chlorine bleaching)

Recycled content

Recyclability

SOME USEFUL RESOURCES

The Environmental Protection Agency: (http://www.epa.gov/epp/pubs/products/index.htm) - The Environmental Protection Agency’s Preferable Purchasing Program lists environmental attributes to look for in common products and services including cleaning, landscaping, electronics and paper.

The EcoLabel Index: (http://www.ecolabelindex.com/) - The EcoLabel Index provides information so that consumers can make informed decisions about the products they are purchasing. The also offer advisory services to organisations wishing to create a purchasing standard.

REFERENCES

¹ UNOPS 2008, Sustainable procurement: Buying for a better world, www.ungm.org/SustainableProcurement/toolsUN/TRAININGResourceBook_UNSustainableProcurementTraining.pdf

₂Healthcare Without Harm, n.d., Issues: Nine step purchasing guide, http://www.noharm.org/europe/issues/purchasing/guide.php

3UNDP, 2008, Practice Series -

Environmental Procurement Practice Guide, http://europeandcis.undp.org/uploads/public/file/UNDP%20SP%20Practice%20Guide.pdf

4UNOPS 2009, A GUIDE TO

ENVIRONMENTAL LABELS - for Procurement Practitioners of the United Nations System