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The Power of 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: The Power of Purchasing:


1
The Power of Purchasing Greening the University
Supply Chain Duke University Freeman Center for
Jewish Life (March 22, 2004)
2
  • K. Lyons (1980 Today)
  • Ph.D. Supply Chain Environmental Management
    (EPP/SCM Economic Impact Assessments) LCA/C,
    Waste Management, EIS
  • Real Work!
  • 1980 1986 USAF Purchasing Division
  • 1986 1988 St. Peters Med Ctr
    Purchasing/Patient!
  • 1988 Present Rutgers Procurement/Research/As
    Assigned!
  • RU/Oracle eProcurement Implementation Team
    (1999-2002)
  • EcoComplex (EPP Research)
  • NYCT/MTA (EPP Research, EIS Peer Review
    Facilitator-On Call!)
  • EPP Government/Community/School Developmental
    Projects
  • HE/Community Shared Services Initiative
  • EPP Local Economic Development Initiative
  • Global EPP/Supply Chain Project Work
  • UK (Wales, England, N. Ireland, Scotland)
    EU/Local Authority Projects
  • S. America (Colombia, Peru, Brazil Supply
    Tracking, Waste Mgt)

3
Green Purchasing Overview/Theme
  •   A strong, high-level Organizational commitment
    to environmental stewardship and top-level
    management support for supply chain initiatives
  •   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 environmental issues into
    existing supply chain management activities and
    design, procurement, and distribution processes
  •   Effective processes for targeting which
    suppliers to involve in environmental
    initiatives
  • Clear, consistent, frequent, and two-way
    communication with suppliers about environmental
    issues and performance expectations.

4
(No Transcript)
5
HE/Federal Government Spend!
The United States Federal Government and Higher
Education sectors are two of the largest
purchasers and consumers of goods and services in
the U. S. On average, both spend approximately
400500 billion dollars a year on goods and
services, which is 15 of all goods and services
purchased in the U.S. economy (27.5 of the U.S.
Gross National Product), with state and local
governments accounting for an additional 1213.

6
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
7
Environmentally Preferable Purchasing
  • Also called "Affirmative Procurement,"
    Sustainable Procurement/ Purchasing and "Green
    Purchasing," this approach means integrating
    environmental factors into procurement policies,
    usually using the following tools and/or methods
  • Pollution Prevention From the start of a process
    or procedure, reducing or eliminating toxicity,
    air and water emissions.
  • Life-Cycle Perspective Looking beyond purchase
    price. Consider costs and environmental impacts
    over the lifetime of a product or service
    (manufacturing, packaging, transport, energy
    consumption, maintenance, disposal).
  • Natural Resource Protection Giving preference to
    sustainable, reusable content, and recycled
    materials over virgin materials, as well as to
    conserving water and energy.

8
Definitions
Bio-based Material Material, other than food
or feed, that is composed, in whole or in
significant part, of biological products or
renewable, domestic, agricultural (plant, animal
and marine), or forestry materials.   Certificatio
n Procedure by which an independent third party
gives written assurance that a product, process
system or service conforms to specified
requirements, either mandatory or voluntary,
regulated or non-regulated.   Certified A
product, process, system or service that has
undergone certification.
9
Life Cycle Assessment (UN)
A product's life cycle starts when raw materials
are extracted from the earth, followed by
manufacturing, transport and use, and ends with
waste management including recycling and final
disposal. At every stage of the life cycle there
are emissions and consumption of resources. The
environmental impacts from the entire life cycle
of products and services need to be addressed. To
do this, life cycle thinking is required.
Costing Assessments should be applied as well
(LCC)!
10
Life Cycle Assessment (UN)
Life Cycle Assessment (LCA) is a tool for the
systematic evaluation of the environmental
aspects of a product or service system through
all stages of its life cycle. LCA provides an
adequate instrument for environmental decision
support. Life cycle assessment has proven to be a
valuable tool to document the environmental
considerations that need to be part of
decision-making towards sustainability.
11
Definitions
A reliable LCA performance is crucial to achieve
a life-cycle economy. The International
Organization for Standardization (ISO), a
world-wide federation of national standards
bodies, has standardized this framework within
the ISO 14040 series on LCA.    
12
Life Cycle Assessment (UN)
13
Environmental impacts along the lifecycle
(example)
Environmental Impacts of Mineral Extraction
Extraction of minerals such as limestone,
sandstone, gravel, sand, coal or china clay can
be extremely damaging to the environment and can
impact on local communities in a variety of ways.
These impacts include Noise and vibration
(during extraction, processing and construction
phases) Dust (from quarrying, traffic, etc)
Pollution of surface and groundwater Visual
impacts and loss of land Increased traffic and
associated energy use, dust, noise, nuisance, etc
Health and safety impacts associated with
extractive industries Use of energy for
extraction and processing Loss of cultural
heritage Reduced local and global air quality
with subsequent effects on health Production
and disposal of waste materials and associated
landfill impacts Exhaustion of non-renewable
resources Reduction of biodiversity (directly
through the use and loss of habitats, and
indirectly through dust, noise, etc.)
14
Waste Management/Recycling My Research at the
EcoComplex In order to support the economic
soundness of solid waste and recycling policy
implementation, research into the economic
impacts associated with this program are being
investigated. This research could provide a broad
overview of recent trends in solid waste and
recycling, related public policy issues, and will
utilize various national and international
sources of economics literature and research
devoted to this topic. Special attention is given
to critical decision-making further up the waste
stream ladder which will include raw material
extraction, product design, manufacture,
packaging, use and options disposal (which may
provide insights to broadening our downstream
technology options and opportunities).
15
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

16
Greening the US Federal Government
17
WHY BUY GREEN?
  • Conserve resources, including energy
  • Improve our environmental footprint
  • Market development
  • Economic benefits
  • Health and safety
  • Reduced liabilities

18
Positive 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)

19
WHY BUY RECYCLED?
  • Develop markets and technologies (RU/Polywood,
    Highland Park Green Tax Zone, MBE/WBE
    opportunities)
  • Conserve resources and energy
  • Improve our environmental footprint
  • Economic benefits

20
WHY BUY GREEN?
  • Its the law!

21
MYTHS ABOUT BUYING GREEN
  • President Bush revoked the greening the
    government Executive Orders
  • Inconsistent with efforts to be more like
    corporate America
  • Inconsistent with buying from mandatory sources

22
GREEN PURCHASING ENCOMPASSES
  • Recycled content products
  • Environmentally preferable products including
    biobased products
  • Energy efficient products

23
MANDATES
  • Resource Conservation and Recovery Act (RCRA),
    Section 6002
  • 2002 Farm Bill, Section 9002
  • EO 13101, Greening the Government through Waste
    Prevention, Recycling, and Federal Acquisition
  • Federal Acquisition Regulations

24
Environmentally Preferable Purchasing Rutgers EPP
Program Highlights!
25
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)
26
Talloires Signatories WWF-UK, RU Contracts
27
Global EPP Projects
  • Europe/UK (IDeA, WWF-UK, etc.)
  • European Union EPP Policy Development/Performance
    Project
  • Local Authority EPP Training/Implementation
    Project
  • Corporate Environmental Reporting
    (Sunderland-Alabaster)
  • Colombia/Peru (Supply Chain Tracking)
  • EPP Training and Corporate Policy Development
  • Waste Management/Recycling Training
  • Collaborative Environmental Research
  • Trade Issues
  • International Corporate Responsibility
    (International Environmental Liaison Program)

28
Rutgers EPP Community Partnerships
Opportunities
Local Community, National/International,
Government, NGO, Higher Education, Private
Sector, On-Campus Research, K-12, Purchasing
Associations (NIGP, NAEB, ISM, COUP)
29
New York City Transit Authority Project Greening
the MTA
30
New York City Transit Authority Project Greening
the MTA ( Lower Manhattan)
31
MTA
  • MTA/NYCT EPP Training/EPP Policy
    Development-Implementation Project
  • NYCT/MTA Specific (Procurement, Safety, Field)
  • Environmental Impacts Performance
    (on-site/construction, etc)
  • State of New York DEC Grant MTA Capital EPP
    Project
  • K. Lyons EPP Embedment (MTA/NYCT, LIRR, NJ DOT/NJ
    Transit)
  • Specification/Contract Development EPP Inclusion
    Public Law/EO 111 Support
  • Lower Manhattan Redevelopment Classroom/Laboratory
    Rutgers University/NYCT-MTA Center for Applied
    EPP Research

32
MTA (Fulton Street Transit Center)
  • Federal Environmental Impact Statement Peer
    Review Facilitator, NYCT Fulton Street Transit
    Center Project
  • (750 Million)
  • Overall Compliance with NEPA
  • Technical Analysis Project Environmental
    Impacts and Performance (e.g. Construction,
    Spoils)
  • Coordination w/Other Agencies/Stakeholders

33
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
  • Lawrenceville Prep School Project
  • Waste Audit Project
  • Campus Audit
  • Waste Management/Landfill Research
  • Community/Economic Impact Assessments

34
Greening With Our Neighbors in Highland Park, NJ
Highland Park 2020 Initiative (Mayor M. Frank)
BPU Rutgers EPP Community Partnerships EPP
Local Economic Development Cooperative
Purchasing/Maximized Sustaining Green
Government/ Higher Education Partnerships Green
Business/Residential Zone Greening the Municipal
Buildings City-wide Audit/Assessment EcoCenter
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