Eco Buy

Introduction to Sustainable Procurement

Sara Redmond-NealECO-Buy Business Program Manager

What is ECO-Buy?

Every purchase has an impact

Negative publicity

Green is the new Black

The Australian consumer market for healthier, more sustainable products and services is valued at $21.5Bn

– Living LOHAS Insights 4, 2011 

70% of Asia Pacific consumers prefer to buy from companies who engage in CSR, including environmental sustainability.

55% of APAC consumers are willing to pay extra for products and services from those companies

– Nielsen Global Survey of Corporate Citizenship, 2011

Sustainable procurement is:

“a process whereby organisations meet their needs for goods, services, works and utilities in a way that achieves value for money on a whole life basis in terms of generating benefits not only to the organisation, but also to society and the economy, whilst minimising damage to the environment.”

UNEP definition

Triple bottom line

Economic

EnvironmentalSocial

Sustainable

What is ECO-Buy?

Total cost of ownership (TCO)

What is ECO-Buy?Paper towels vs. hand-dryers

Actual Savings• 76.8% less energy than other dryers• cost saving of over 85%• 186,761 kgs less carbon emissions• zero waste to landfill • 40,000L water

Paper Towels Hand-dryers

Consumables $9,000/year Purchase price (one off) $2,000

Labour (refilling, cleaning, disposal) $17,550/year

Electricity $ 100/year

Cost $26,550/year Cost $100/year

8

What is ECO-Buy?

How it’s done

Policy People Process Suppliers Measure-ment

Commitment

Communication

What is ECO-Buy?

What is ECO-Buy?

What is ECO-Buy?

1. Implement Supplier Sustainability Principles

• Corporate Governance • Occupational Health and Safety • Risk Management • Community • Environmental Management • Workforce Policies & Human Rights • Supply Chain Management

2. Monitor Compliance to Principles

3. Sustainability Initiatives with High Risk Suppliers

4. Support & Recognition of Supplier Performance

What is ECO-Buy?

Boral’s quest for a better bag

39% reduction in paper use per sack, or 860 tonnes paper per annum • Reduced carbon emissions, water use, waste, biodiversity impacts

20% reduction in sack price New sacks stronger and higher quality than the old 3 ply sacks Elimination of perforations which created dust leakages and

consequential OH&S issues 15% faster filling time and increased throughput on the filling line Decreased plastic film weight per sack on average by 50% Reduction in leakage during transport by over 90%

What can we do to improve the sustainability, price and performance of this product?

3 ply paper cement sack 2 ply

Global Best Practice

What is ECO-Buy?

Start now

What are you currently purchasing?

Get executive buy-in

Train procurement staff

Talk to your suppliers

Establish a baseline

Engage staff in the process

What is ECO-Buy?

ECO-Buy can help

ECO-Find

Consulting

Resourcesand Advice

Assessment Tool

Trainingand Events

Membership

Any questions?

Sara Redmond-NealBusiness Program Manager

sredmondneal@ecobuy.org.au 9349 0402