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Environmentally Preferable Purchasing

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Reporting real-time' purchase waste stats ... New York Stock Exchange (Greening the NYSE Supply Chain); New Project. Green Business Ticker/Report. NYSE Green ... – PowerPoint PPT presentation

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Title: Environmentally Preferable Purchasing


1
Environmentally Preferable Purchasing 11 June
2004 Kevin Lyons, Ph.D.
2
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
3
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)

4
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!

5
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

6
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).

7
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!
8
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12
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

13
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14
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)
15
Talloires Signatories WWF-UK, RU Contracts
16
Lawrenceville School Waste Audit Winter 2004
17
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21
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

22
Selected Rutgers Purchasing and Contract Research
23
EPP Lab Rutgers University and the Rutgers
EcoComplex
24
Rutgers EcoComplex Methane Project (Mack Truck
Landfill Refueling Station)
Other Projects Waste to Fuel (on the Rutgers
NB Campus)
25
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)
26
New York City Transit Authority ProjectGreening
the MTA
27
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
28
New York City Transit Authority ProjectGreening
the MTA ( Lower Manhattan)
29
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)

30
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
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