2. Joanne Gorski
• 25 years of business and educational
experience spanning Fortune 100 companies
and college faculty member
• BS Business ADM Ohio State University, MBA
• APICS CFPIM, CSCP
• SME Green Manufacturing Specialist
• ISO Auditor: 14001, 20121
• Sustainable Event Alliance: Accredited
Professional, Auditor
3. Session Overview
Answer three key questions
– What is sustainability?
– What is sustainable procurement?
– Why is sustainable procurement important?
• Explain the 6 Steps to Sustainable
Procurement cover all 6 steps
– Sustainable Procurement Policy
– Risk Management
– Customized Metrics and Scorecards
5. Pre-assessment
Answer the following questions:
– What is sustainability?
– What is sustainable procurement?
– Why is sustainable procurement important?
6. What is Sustainability?
• There are as many definitions of sustainability
as there are groups trying to define it
Key concepts
• Balance environmental, social, and financial
outcomes
• Ensures current needs are met without
compromising the ability of future generations
to meet their needs
7. Activity: Imagine Your Favorite Things
• What resources are
needed?
• Do they have limits?
• How does the
sourcing/use affect
the environment?
8. What is Sustainable
Purchasing/Procurement?
The process of acquiring goods and services
that:
– Meet user’s need
– Deliver long term value for money
– Maximize social and economic benefits
– Minimize damage to the environment and health
Source: http://www.forumforthefuture.org/sites/default/files/project/downloads/buying-better-world.pdf
9. The Power of Sustainable Procurement
• Purchasing is the gateway into your
organization
• Setting guidelines and criteria transfers
control over sustainable performance to your
organization
• Drives marketplace toward adopting
sustainable practices for long-term
improvement
• Purchasing dollars = power!
10. Sustainable Purchasing:
• Encourages the use of recycled or sustainably
produced materials
• Ensures fair labor and compensation
• Drives the reduction of waste
• Avoids harmful/toxic substances
• Ensures compliance with environmental and
social legislation
11. Steps to Sustainable Procurement
1. Create a sustainable procurement policy
2. Develop supplier specifications based upon
sustainable development criteria
3. Identify Key metrics/scorecards
4. Work with suppliers and potential suppliers
5. Evaluate supplier performance throughout
procurement cycle
6. Document and implement improvement
opportunities
12. Step 1:Create a Sustainable
Procurement Policy
• Provide guidelines for organization to follow
• Ensures adherence to principles of sustainable
development
• Minimizes supply chain risk
• Controls costs
• Enhances brand reputation
• Ensures compliance with environmental and
social legislation
13. Step 1: Create Sustainable
Procurement Policy
Define purpose of policy
The Big Green Sustainable Music Festival recognizes and is
committed to our responsibility to procure resources in a
manner consistent with the principle of sustainable
development and the mission of our event. We strive to make
purchases in a manner that balances social, economic, and
environmental goals.
14. Step 1: Create Sustainable
Procurement Policy
Define key sustainability
objectives
Evaluate all the significant
sustainable development
issues associated with your
organization and create
procedures to manage them in
a responsible manner.
• Support local business to
strengthen our community
• Minimize solid waste
• Use local sourcing
• Promote fair working conditions
• Protecting habitats and
biodiversity
• Minimize water waste
• Minimize use of fossil fuels
• Measures and targets for each
objective will be defined and
measured annually or more
frequently as needed.
15. Step 1: Create Sustainable
Procurement Policy
Define scope of sustainable procurement
This policy applies to all aspects of purchasing activities for The
Big Green Sustainable Music Festival. Purchasing shall
incorporate fiscal responsibility, social equity, community and
environmental stewardship in all procurement decisions. Life
cycle costing, where relevant, will be used to evaluate the long
term value for purchase decisions.
16. Step 1: Create Sustainable
Procurement Policy
Identify level of performance desired
• It is the goal of our organization to go beyond basic legal
compliance in the context of sustainable procurement in our
organization’s practices. Through the use of supplier
requirements and evaluation sustainability values will be built
into The Big Green Sustainable Music Festival’s supplier
strategies.
• The level of sustainable performance will be identified for all
identified key areas of spend or prioritization.
17. Step 1: Create Sustainable
Procurement Policy
Identify level of performance desired
• What is defined in your organizational sustainability plan?
• Has your organization made any outside commitments such
as signed the UN Global compact?
• Does your organization have any green labels, seals, or
certifications?
• Examples: Fair Trade, LEED, Green Seal, Forest Stewardship
Council, Greener Choices, Cradle to Cradle Certified
• Any of the above listed commitments need to be included in
your policy
18. Step 1: Create Sustainable
Procurement Policy
Create process for assessing suppliers during
tender evaluation
• Purchases will be made using the best practices
available in sustainable procurement, and evaluation
techniques will be updated as best practices evolve
and improve. This may involve new standards,
procedures, etc. as practical.
19. Step 1: Developing Sustainable
Procurement Policy
Create process for assessing suppliers during
tender evaluation
• Suppliers will be evaluated and assessed based upon
sustainability criteria developed into a scorecard.
Suppliers will be encouraged to propose
improvements and sustainable solutions that
support the overall purpose of this policy. Suppliers
will have input into the evaluation process and
given reasonable time to adjust to the evaluation
criteria.
20. Step 1: Developing Sustainable
Procurement Policy
Ensure supplier performance requirements are
in line with your own organizational
expectations
Don’t expect more of suppliers than you do of
your internal organization
21. Step 2: Develop supplier specifications based
upon sustainable development criteria
Risk Assessment on key spends
• Many methods available (ISO 31000)
• Prioritize key risks
• Decide for key risks:
– Do nothing
– Share risk
– Reduce risk
– Avoid
23. Step 2:Develop supplier specifications based
upon sustainable development criteria
• What are the big issues for your industry?
• What are the results of your impacts
assessment?
• How are your suppliers and partners
managing their risks?
• Critical issues/risks in your industry?
Locations? Markets?
24. Step 2: Develop supplier specifications based
upon sustainable development criteria
Significant Environmental Aspects (from ISO 14001)
• Identify environmental aspects of
organization’s activities, products or services
that you can have control over
• Determine the aspects that have significant
impacts on the environment
• Manage the significant environmental aspects
25. Step 2: Develop supplier specifications based
upon sustainable development criteria
Think efficient and cradle to cradle
Input Process Output Product End
of Life
What you buy What you do
In your
organization
What your
customer gets
Where
product ends
up
responsible
materials
sourcing
responsible
transport
recycled
content
efficient
low emissions
non-
hazardous
minimal
packaging
transportatio
n efficient
maximize
recyclability
non-toxic
Feedstock for
other
products
Avoid landfill
26. Step 2: Develop supplier specifications based
upon sustainable development criteria
Significant Environmental Aspects (from ISO 14001)
– Frequency (Actual Use) – Frequency of use at the facility. Scale 1 to 5.
– Quantities – Volume of aspect involved based on actual quantity
and/or regulatory impacts. Scale 1 to 3.
– Controlled – Control of aspect through environmental permits,
regulations, or not controlled. Scale 1 to 3.
– Severity – Relative to risks to environment (air emissions, land, water,
etc.), employee safety (toxicity, exposure), and/or resource reduction.
Scale 1 to 5.
– Effect on Public Image or Concerns of Interested Parties (employees,
community, government, etc.). Scale 1 to 5.
• Add each of the individual aspect rankings together for a maximum score
of 21. Total rankings 15 or greater are considered significant
environmental aspects (SEA).
27. Step 2: Develop supplier specifications based
upon sustainable development criteria
Aspect
Task
Team
Process
/
Activity
Unit
Facility
Area
Waste
Stream
Resp.
Disposal,
Physical
Controls
Frequency
Quantities
Severity
Controlled
PublicImage
RANKING
Cleaning
Station 1
ABC Wash line 300 gal unit cleaning line Wastewater
Operator,
Maintenanc
e
pH control,
wastewater permit 5 3 3 2 3 16
28. Inputs to Specifications for
Sustainability Requirements
Sustainability
Specifications
Prioritized
Spend
Results
Key
Sustainability
Risks
Significant
Environmental
Impacts
29. Step 2: Develop supplier specifications based
upon sustainable development criteria
Standards ISO 14000
ISO 90000
LEED
Certifications Forest Stewardship Council – FSC
Fair Trade Certified
Green Seal
Energy Star
Processes Organically grown
Cage free
Grass fed
Chlorine free paper
Attribute Locally sourced
GMO free
% recycled content
Minimum Standard of Performance Water footprint
Carbon footprint
Miles per gallon
Useful life
30. Step 3: Key Sustainable Criteria and
Measures
SMART
• Specific
• Measurable
• Attainable/Achievable
• Relevant
• Time bound
31. Step 3: Key Sustainable Criteria and
Measures
Example for paper company with objective to
increase their sustainably sourced wood and
paper products
Year Target % of FSC Certified Fiber
2013 50%
2014 60%
2015 80%
32. Step 3: Key Sustainable Criteria and
Measures
How does this fit our criteria?
• Specific – company goal for each year
• Measurable – can be quantified
• Attainable/Achievable – based upon reality
• Relevant – addresses significant
environmental impact
• Time bound – gives measures for each year
33. Step 3: Key Sustainable Criteria and
Measures
Helpful tips:
• Use existing industry benchmarks,
certifications and frameworks
• Start with smaller scope, then expand
• What you measure, you can manage and thus
change
34. Step 3: Key Sustainable Criteria and
MeasuresCategories Quantitativ
e Evidence
Soft
Evidence
In Process Negative or Not
Addressed
Score 5 3 1 0
Profit
% of spending done with locally based suppliers at significant locations of operation
% of employees earning a living wage or higher
Positive economic value generated and distributed through business operation
Measurement of gender pay equity among employees
Third party certifications for sustainability
Planet
Measurement of direct and indirect energy consumption with reduction plan
Total water withdrawal measurement with reduction plan
Total solid waste sent to landfill with reduction plan
Total materials used by weight and % recycled or diverted away from landfill
Weight of materials generated deemed hazardous by local or international standards
Green/sustainable supply chain policy in place
Measure GHG emissions Scope 1 & 2
Active Environmental Management System (EMS) in place
People
Active Green Teams with goals and measurements that meet on regular intervals
Published Sustainability Plan w/ continuous improvement process
Communicate sustainability goals and results to all employees at least twice a year
Formal or informal sustainability training
Provide continuing education and measure hours per employee
Community outreach provided and measured
% of employees who receive regular performance and career development reviews
Total Score
35. Step 4: Work with suppliers and
potential suppliers
• Communicate goals, process
• This should not be the first time supplier has
been included in this initiative
• Education
• Implement program
36. Education
Waste Hierarchy
Waste is the result of poor design
Prevent Most Favored
Reduce
Reuse
Recycle
Energy Recovery
Disposal Least Favored
37. Education
Conduct a waste audit
• Sort waste
• Measure waste
• Apply waste hierarchy
• Involve supplier and
employees
• Create waste reduction
plan Elementary school food waste
38. Education
What a Waste!
• You bought it
• You paid to transport it to
your organization
• You paid to move it to a
dumpster
• You paid to ship it to landfill
• You paid a tipping fee to
dispose of it Elementary school food waste
39. Hazardous Substances/ Toxics
International Drivers for Change
(Restriction of Hazardous
Substances)
EU (European Union) directive
banning six hazardous
materials
REACH (Registration,
Evaluation, Authorization and
Restriction of Chemical
Substances) EU directive that
all chemical substances be
registered into a centrally
manage database
WEEE (Waste Electrical and
Electronic Equipment) directive
responsibility for end-of-life
management of waste from
electrical and electronic
equipment onto the
manufacturers of such
equipment.
40. Hazardous Substances/ Toxics
• Best to avoid using hazardous/toxic materials
• Conduct life cycle cost analysis to evaluate
different processes
• Keep looking for new technology / processes if
not currently feasible
41. Green Chemistry
Definition:
Sustainable practice of chemical science and
manufacturing within a framework of industrial
ecology that is safe, non-polluting, consuming
minimum amounts of energy and material
resources while producing virtually no wastes.
Source: Purdue Research Foundation – Included in Green Manufacturing Specialist
BOK
42. Education
Sustainable procurement tips
• Buy less – is this item really needed? Can we use less of it?
• Rent or hire instead of purchasing
• Buy things that are reusable & durable
• Buy a used item in good repair
• Buy things that can be recycled
• Buy things that have a low environmental footprint
• Buy things that are non toxic
• Buy things that are made with fair labor and responsible manufacturing
processes
• Buy things made from sustainable materials
• Does someone in organization already have one that can be shared?
• Buy from a local source if possible
43. Step 5: Evaluate supplier performance
throughout procurement cycle
• Evaluate and measure supplier performance
• Provide feedback on regular intervals and as
needed
• Gather feedback from supplier:
– What is working well
– What is not working well
– Potential improvements
44. Step 6: Document and implement
improvement opportunities
• Document lessons learned
• Incorporate improvement opportunities into
review process
• Implement changes as needed
