Section 2: Understanding the Basics

A. WHAT IS GREEN PURCHASING?
B. WHY IS IT IMPORTANT TO BUY GREEN?
C. WHO ARE THE KEY PARTICIPANTS?
D. WHAT ARE THE CHALLENGES?

A. What is Green Purchasing?

Green purchasing is referred to by many names: responsible purchasing, eco-procurement, green procurement, and sustainable purchasing just to name a few. It's a way of adding environmental considerations to the price and performance criteria used by public and private sector procurement officers to make purchasing decisions. Most importantly, green purchasing attempts to identify and reduce the environmental impact of an organization's activities and maximize resource efficiency.

Often the acronym EPP is used interchangeably to refer to Environmentally Preferable Purchasing and/or Environmentally Preferable Products. For purposes of this guide, EPP will stand for environmentally preferable products, which are products and services that have a lesser or reduced effect on human health and the environment when compared to competing products or services that serve the same purpose. EPPs may include, but not be limited to, items that:

  • Contain recycled materials--made from sustainable resources, recycled or remanufactured materials or parts. 
  • Minimize waste--minimal packaging that is recyclable or reusable (take-back provisions)
  • Conserve energy and/or water or other natural resources
  • Prevent pollution--emissions, VOCs (volatile organic compounds), etc.
  • Consist of fewer toxic substances or reduce the amount of toxic substances disposed or consumed
  • Protect open-space
  • Encourage an environmentally positive practice (water fountains, compost bins, recycling containers, engine block heaters, etc.)
  • Uses energy alternatives to fossil fuel
All of these attributes add up to increased quality of human health, planetary health and economic health.

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B. Why is it Important to Buy Green?

Perhaps a decade ago, serving in a leadership role regarding sustainable business steps was more difficult, but today the trend is already in full swing. As more procurement managers understand the connection between broader social issues and purchasing decisions, they are adopting responsible strategies aimed at reducing the adverse environmental and social impacts of their organization's purchasing decisions. They are increasingly integrating environmental, health, and safety concerns into their strategic sourcing and in their recognition of the fact that government's wastes, emissions, and environmental risks are often directly linked to the quantity and quality of the goods and raw materials it buys.

  1. Environmental Benefits. It is important to keep in mind that the purchasing decisions we make affect our local environment and the health of our citizens and workers as well as the global community. The following are some examples of how green purchasing can address the key environmental issues mentioned throughout this guide. By purchasing EPPs that are:
  • Manufactured using fewer toxic ingredients, we minimize the hazardous impacts of those products during the manufacturing process (e.g. water / air pollution) as well as reduce the damage caused through accidental spills and improper disposal. We also reduce the risk to workers handling the products and the risks posed to building occupants when the product is in use.
  • Energy efficient, we help to limit energy consumption, which in turn lowers our emissions of sulfur dioxide (which causes acid rain) and carbon dioxide (a primary greenhouse gas).
  • Made with a percentage of post-consumer recycled content instead of pure virgin products, we reduce the need to extract raw materials, such as petroleum, trees or metals and, in general, use less energy and water.  Reduce the amount of waste in our overstressed landfills.
  • Designed to reuse and/or reduce the amount of water needed to perform certain tasks, we actively work toward conserving this very valuable resource. Such products and technologies involve plumbing devices, cooling systems, appliances, water treatment technologies and more.
  • Utilizing renewable energy and clean technologies works toward reducing our dependency on foreign petroleum, stimulating economic development for innovative technologies and meeting our goals for clean energy production.
  1. Reduced Total Costs. While green purchasing can help an agency economically as well as lighten its environmental impacts, it can also help departments to improve their efficiency, reduce liabilities, and gain competitive advantage when applying for grant and other funding opportunities. The fact is that a green purchasing program is an excellent way of finding products with a high price-performance ratio and with improved use rates.

Evaluating a potential purchase by initial (purchase-point) cost alone can actually incur greater total costs for a department. A department's green purchasing program can help identify and reduce hidden costs and develop cost reduction strategies for the entire organization. Some examples of cost savings opportunities include:

  • Reduced hazardous management costs (e.g. using less toxic products);
  • Reduced operational costs (energy savings from efficient equipment);
  • Reduced disposal costs (hazardous and solid waste) by generating less waste and using longer lasting products;
  • Reduced repair and replacement costs when using more durable and repairable equipment;
  • Reduced employee safety and health costs at the facility with reduced potential liability by improving the work environment and minimizing risks to workers; and
  • Reduced material and energy consumption.

In fact, purchasing EPPs is often associated with significant cost savings on a number of levels:

  • Many EPPs available in the market today are less expensive than their conventional counterparts that serve the same purpose. For example, remanufactured toner cartridges cost on average 30-60% less than those produced by original equipment manufacturers, retread tires can save as much as 50% off the cost of a new tire, and remanufactured office panels can reportedly save anywhere from 10-30%.
  • A wide range of other EPPs are equal or comparable in cost (e.g. carpet, cleaning products, janitorial paper products, remanufactured antifreeze and traffic cones, energy efficient lighting, equipment and appliances. While not costing anymore, these products offer the added value of reduced toxic use and waste reduction through the use of recycled materials.
  • A third segment of EPPs may cost more at the time of purchase, but often have a short “payback period” after which time they represent a significant ongoing cost savings in the maintenance, operation and/or disposal of the product. (e.g. compact fluorescent light bulbs, plastic lumber, integrated pest management).

Readers will also find actual cost saving examples experienced by member states in  Chapter 9 - Measuring and Marketing Your Success.Measuring and Marketing Your Success.

  1. Influence to Move Markets. As part of the largest procurement group in the nation (representing over 20% of the GNP) federal, state and local governments can use the clout of their buying practices to direct industry manufacturers toward making more responsible products that are reasonably priced and do less harm to the environment and the public health. As we use this purchasing power to push our suppliers in a more proactive, planet-conscious direction, we are also enabling them to achieve an enhanced market position. Many forward thinking businesses have already adopted environmental purchasing policies for traditional reasons such as:
  • Recognizing market preferences and stepping up to serve customers asking for EPPs,
  • Understanding that it can distinguish a business and its products from competitors,
  • Recognizing the opportunity to increase operating efficiency,
  • Joining an industry or international market trend to capture market share, and
  • Improving compliance with environmental regulations.

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C. Who are the key participants?

While the focus for this guide is on state purchasing officials and their municipal counterparts, participation from a host of various stakeholders is necessary to maximize the success of any green purchasing program; the reason being that the greater the demand for these goods and services, the greater the incentive for industry to respond and provide them. In addition, the greater the competition among industry players, the more competitive pricing for items becomes for all levels of buyers. Below are the key participants to consider:

  • Procurement professionals both government and corporate. These individuals have the responsibility to encourage current suppliers or select new ones to improve the environmental performance of their operations and their products. They may also coordinate procurement policies among various departments for optimal supply-chain performance and cost efficiency.
  • Higher education and public school business managers. Campuses and other institutional facilities often have unique applications that invite the utilization of innovative technologies.
  • Manufacturers, suppliers and vendors. Upon receiving the clear message from the buying public, companies are then given the incentive to reformulate current products to minimize environmental impact. Many products today must meet specific standards in order to be certified, or officially labeled "environmentally preferable."
  • Environmental managers. State and municipal personnel can assist procurement departments in identifying and assessing greener alternatives to currently used products and materials, and to weigh suppliers' environmental performance and initiatives in purchasing decisions. Once government and large scale private companies work to make EPPs available on the retail level at competitive pricing, it is incumbent upon their customer agencies and consumers to choose these EPPs.
  • Program Managers - Often write the specifications for products and the specifications can be demanding. These individuals need information and education regarding EPPs that exist to fill their needs.
  • Consumer level buyers and end users.

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D. What are the challenges?

All government agencies and departments are different and there is no one path towards sustainability; while one organization may choose to focus on energy management, another may see an opportunity in setting up an effective recycling program. Nevertheless, regardless of the environmental initiatives they choose to pursue, most organizations face very similar issues:

  • Additional work needed to research products, plan and coordinate green purchasing programs and implement sustainability efforts.
  • Lack of commitment or interest from upper management to provide the directives necessary for a more efficient implementation.
  • Possible resistance from co-workers due to the unavailability or lack of staff education and training.
  • Lack of expertise in environmental issues and new technologies, particularly those involving technical data reporting and analysis.
  • Conflicting or confusing information that may create misconceptions about the quality and performance of environmentally preferable products and services, coupled with a shortage of available time to perform necessary research and investigation.
  • Effort required to change the “business as usual” norm and work with existing suppliers (or to find new suppliers) in order to procure environmentally preferable products and services; there may also be existing relationships between purchasers and suppliers that make it difficult to switch to alternative products.
  • Difficulty in determining the life-cycle cost of products that considers the manufacturing impacts, potential cost savings opportunities in the operational and maintenance life of the product as well as the expense and process necessary to dispose or recycle the product.

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