Environmentally Preferable Purchasing

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Environmentally Preferable Purchasing 11 June
2004 Kevin Lyons, Ph.D.
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Environmentally Preferable Purchasing
"...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
High Quality Purchasing/Supply Chain Management
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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)

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EPP Definition Expanded
Ethics, Social, Economic, and Environmental
Considerations

• Ethics Responsibility Individual,
  Corporate/Organizational

• Social Workers, Community, Justice, etc.

• Economic Local Economic Development, the cost
  of sustainability

• Environmental Impacts (local and global)
  Risks/Health, etc.

• All procurements can and should be considered!

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Corporate Ethics, Social, Environmental
Practices Triple Bottom Line

• The term was coined by John Elkington in the
  early 1980s
• The triple bottom line focuses corporations not
  just on the economic value they add, but also on
  the environmental and social value they add - and
  destroy. At its narrowest, the term 'triple
  bottom line' is used as a framework for measuring
  and reporting corporate performance against
  economic, social and environmental parameters.
• Elkington, J. (1980). The Ecology of Tomorrow's
  World

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EPP Overview
HE/US Federal Gov 400 Billion Spend/Yr
Rutgers University 350 Million Spend/Yr

• A strong, high-level Organizational commitment to
  environmental, social, ethics and stewardship and
  top-level management support for supply chain
  initiatives Valued-Added Procurement Not a
  Bolt-on

• 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 ethical, social, and
  environmental issues into existing supply chain
  management activities and design, procurement,
  and distribution processes

• Effective processes for targeting which suppliers
  to involve in environmental, social and ethical
  initiatives

• Clear, consistent, frequent two-way communication
  with suppliers about ethical, social and
  environmental issues and performance expectations
  (via negotiations and contract specifications).

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EPP/Sustainable Development Economic Impact
Assessment Research

• Economic Soundness of EPP Policy Implementation

• Examine economic impacts and provide economic
  decision-point assessments.
• Special attention is given to critical
  decision-making further up the supply chain and
  waste stream ladder (Social, Environmental,
  Ethics).

• includes raw material extraction, product design,
  manufacture, packaging,
• use and options disposal.

• Utilize various national and international
  sources of economics literature
• and research devoted to this topic.

Goal provide insights to broadening our
downstream technology options and opportunities
as well as upstream contractual modifications,
enhancements as well as value-added professional
purchasing!
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ECO-PROCUREMENT (NYCT/MTA)

• Eco-Purchasing encourages evaluation of multiple
  environmental impacts of every product throughout
  its life cycle
• Raw materials acquisition
• Production / Manufacturing
• Packaging / Distribution
• Use Operation
• Maintenance
• Disposal (recycling/remfg.)/ End-of-Life

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Greening the Supply Chain Infrastructure Climbing
Outside the Procurement Box!
Global Product/Supplier Investigations/Liaisons
(US, SA, Europe, Far East), RU Research, Supply
Chain research (FAR, State, HE, Corp)
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Talloires Signatories WWF-UK, RU Contracts
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Lawrenceville School Waste Audit Winter 2004
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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 purchasewaste 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 RD Government/Industry Participation
  
• Herman Miller LCC Impact Matrix/EPA LCA Software

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Selected Rutgers Purchasing and Contract Research
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EPP Lab Rutgers University and the Rutgers
EcoComplex
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Rutgers EcoComplex Methane Project (Mack Truck
Landfill Refueling Station)
Other Projects Waste to Fuel (on the Rutgers
NB Campus)
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Rutgers EPP Community Partnerships
Opportunities
Spread the eco-knowledge and wealth of
information Local Community Development
Opportunities, National/International Supply
Chain impacts, NYCT/MTA, Government/Higher
Education Collaborative, NGO, Higher Education,
Private Sector, On-Campus Research, K-12,
Purchasing Associations (NIGP, NAEB, ISM, COUP)
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New York City Transit Authority ProjectGreening
the MTA
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Rationale for ISO14001 Environmental Management
System

• Better manage environmental risk
• Better control environmental performance
• Continual improvement for a more effective system
  (future generations)

1999 NYCT became the first public transportation
entity to obtain ISO14001 certification
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New York City Transit Authority ProjectGreening
the MTA ( Lower Manhattan)
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Selected K. Lyons EPP Projects

• New York Stock Exchange (Greening the NYSE Supply
  Chain) New Project
• Green Business Ticker/Report
• NYSE Green Purchasing/NYSE Operations and
  Technology
• Technology and Workplace Environment
• MBE/WBE Eco-Tech Transfer Workshops
• Local Economic Development Opportunities
• New Business Growth (sustained by coop-contracts)

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Greening With Our Neighbors in Highland Park, NJ
Rutgers EPP Community Partnerships EPP Local
Economic Development Cooperative Purchasing
Research Sustaining Green Government/ Higher
Education Partnerships